Daito Trust Construction Co.,Ltd. (1878.T) stock analysis

In our weekly check, Daito Trust Construction Co.,Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4.

About Daito Trust Construction Co.,Ltd.

Daito Trust Construction Co.,Ltd. is a Real Estate company (Real Estate - Diversified) based in Japan, listed on JPX as 1878.T.

What our checks show for 1878.T

Red flags

• Operating cash flow is only 0.21x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is negative (-0.1% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 66% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 3.4% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.2 points from today's 5.6%.
• The net margin is only 5.6%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 29.6 times over.
• The net margin rose by 1.2 points over 5 years, to 5.6%.
• The gross margin is 18% and has risen by 1.6 points: pricing power is holding.
• Earnings per share grew 88.5% a year over the last 3 years.
• Net profit grew 17.2% a year over the last 3 years.
• The dividend takes 44% of profit: there is a cushion.

Next earnings report: 2027-01-29

Similar companies

8801.T · 8802.T · 0012.HK

Questions

What grade does Daito Trust Construction Co.,Ltd. (1878.T) have?

In our weekly check, Daito Trust Construction Co.,Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1878.T stock?

This week's biggest flags for Daito Trust Construction Co.,Ltd.: Profits not backed by cash, Weak free cash flow, Deep past fall. In total 8 of 25 checks show a warning or a red flag.

What does Daito Trust Construction Co.,Ltd. do?

Daito Trust Construction Co.,Ltd. is a Real Estate company (Real Estate - Diversified) based in Japan, listed on JPX as 1878.T.

When does Daito Trust Construction Co.,Ltd. report earnings next?

The next earnings report is expected on 2027-01-29. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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