Conservative Leverage / Strong Capital StructureA low debt-to-equity ratio (0.17) and strong equity ratio provide durable financial flexibility for multi-year infrastructure and construction projects. Conservative leverage reduces refinancing risk, supports bid capacity for long-term contracts, and preserves ability to fund capex or weather sector cyclicality without distress.

Stable Gross MarginsConsistent gross margins near 16.6% indicate sustainable project-level pricing and cost control across engineering and ground-improvement work. Stable project margins enable predictable contribution to overhead, support reinvestment in specialized equipment and R&D, and strengthen long-term competitiveness in bidding.

Recent Strong Top-line ExpansionA 48.2% revenue increase signals expanding contract wins or market share gains in foundation and geotechnical services. Given the business mix of long-term public and private infrastructure contracts, this growth can translate into a larger backlog and longer revenue visibility, supporting medium-term scale benefits and operational leverage.

Bears Say

Negative Free Cash Flow / Declining Operating Cash FlowA meaningful drop in operating cash flow and negative free cash flow undermine the company’s ability to self-fund capex and working capital for large projects. Over months this can force reliance on external financing or parent support, constraining bidding flexibility and raising financing costs despite low leverage.

Net Profit Margin Collapsed To 0%A net margin falling to 0% signals earnings quality erosion: revenue gains are not translating into bottom-line profitability. Persistently low net margins reduce retained earnings, limit cash build-up for reinvestment, and increase sensitivity to cost inflation or project overruns in the capital-intensive construction sector.

Return On Equity Fallen To 0%ROE at 0% indicates current asset and earnings deployment are not producing shareholder returns. Over a multi-month horizon this reflects structural inefficiency in project selection or pricing and risks investor confidence, making it harder to attract equity or justify higher reinvestment without operational improvements.

1914 FAQ

What was Japan Foundation Engineering Co., Ltd.’s price range in the past 12 months?

Japan Foundation Engineering Co., Ltd. lowest stock price was ¥547.00 and its highest was ¥722.00 in the past 12 months.

What is Japan Foundation Engineering Co., Ltd.’s market cap?

Japan Foundation Engineering Co., Ltd.’s market cap is ¥14.89B.

When is Japan Foundation Engineering Co., Ltd.’s upcoming earnings report date?

Japan Foundation Engineering Co., Ltd.’s upcoming earnings report date is May 14, 2026 which is in 85 days.

How were Japan Foundation Engineering Co., Ltd.’s earnings last quarter?

Japan Foundation Engineering Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥36.6 earnings per share for the quarter, beating the consensus estimate of N/A by ¥36.6.

Is Japan Foundation Engineering Co., Ltd. overvalued?

According to Wall Street analysts Japan Foundation Engineering Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Japan Foundation Engineering Co., Ltd. pay dividends?

Japan Foundation Engineering Co., Ltd. pays a Annually dividend of ¥22 which represents an annual dividend yield of 3.68%. See more information on Japan Foundation Engineering Co., Ltd. dividends here

What is Japan Foundation Engineering Co., Ltd.’s EPS estimate?

Japan Foundation Engineering Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Japan Foundation Engineering Co., Ltd. have?

Japan Foundation Engineering Co., Ltd. has 29,346,400 shares outstanding.

What happened to Japan Foundation Engineering Co., Ltd.’s price movement after its last earnings report?

Japan Foundation Engineering Co., Ltd. reported an EPS of ¥36.6 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.128%.

Which hedge fund is a major shareholder of Japan Foundation Engineering Co., Ltd.?

Currently, no hedge funds are holding shares in JP:1914

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Japan Foundation Engineering Co., Ltd.

Japan Foundation Engineering Co., Ltd. provides various construction services in Japan. It also offers ground improvement technology, which include chemical injection method, mechanical stirring method, and high pressure injection agitation method. In addition, the company provides various technologies for construction works, such as anchor; slope stability; foundation pile; landslide countermeasure; rock rouging; pollution control; natural restoration; tunnel assist; repair; bowling application; geological survey and construction consultant; construction-generated soil recycling technologies; and real-time monitoring systems. The company was formerly known as Japan Grout Corporation and changed its name to Japan Foundation Engineering Co., Ltd. in April 1985. The company was founded in 1958 and is headquartered in Osaka, Japan.