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MBS Co., Ltd. (JP:1401)
:1401
Japanese Market
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MBS Co., Ltd. (1401) AI Stock Analysis

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JP:1401

MBS Co., Ltd.

(1401)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥1,450.00
▲(1.54% Upside)
Action:Upgraded
Date:07/17/26
The score is driven primarily by strong financial performance (solid profitability/growth, exceptionally low leverage, and strong recent free cash flow). This is tempered by weaker technical positioning (below key moving averages with negative MACD) and a valuation that is fair rather than clearly discounted, with only a modest dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and steadily rising equity provide durable financial flexibility. The minimal debt burden reduces solvency risk, lets management fund projects or capex internally, and cushions the company through cyclicality common in construction-related businesses.
Negative Factors
Cash-flow volatility / working-capital risk
Past volatile cash flows reflect project timing and working-capital swings typical in engineering and construction. This undermines predictability of funds available for investment or distributions and requires larger liquidity buffers or conservative planning to avoid stress during slower periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily rising equity provide durable financial flexibility. The minimal debt burden reduces solvency risk, lets management fund projects or capex internally, and cushions the company through cyclicality common in construction-related businesses.
Read all positive factors

MBS Co., Ltd. (1401) vs. iShares MSCI Japan ETF (EWJ)

MBS Co., Ltd. Business Overview & Revenue Model

Company Description
Mbs Inc, founded in 1993 and based in Ube, Japan, specializes in delivering a wide range of renovation services throughout Japan. The company's expertise extends to both exterior and interior refurbishments for residential homes and various other ...
How the Company Makes Money
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MBS Co., Ltd. Financial Statement Overview

Summary
Fundamentals are strong overall: improving revenue and net income through 2026, very conservative leverage with rising equity and assets, and strong recent operating/free cash flow. The main offset is historical cash-flow volatility (notably 2021 and 2023), which suggests project/working-capital timing sensitivity.
Income Statement
83
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
BreakdownTTMMay 2026May 2025May 2024May 2023May 2022
Income Statement
Total Revenue4.76B5.03B4.71B4.36B4.00B4.03B
Gross Profit1.60B1.59B842.11M683.82M621.10M614.56M
EBITDA749.86M753.80M654.38M522.21M465.28M468.03M
Net Income523.51M566.90M472.29M403.88M322.67M325.96M
Balance Sheet
Total Assets5.31B5.11B4.89B4.43B4.15B3.86B
Cash, Cash Equivalents and Short-Term Investments2.24B2.52B1.94B1.54B1.42B1.48B
Total Debt16.99M18.55M10.78M12.86M0.004.37M
Total Liabilities1.58B1.23B1.20B955.00M928.23M877.34M
Stockholders Equity3.73B3.88B3.70B3.47B3.22B2.98B
Cash Flow
Free Cash Flow0.00707.08M467.14M499.88M32.11M176.97M
Operating Cash Flow0.00723.58M567.89M547.57M54.04M232.47M
Investing Cash Flow0.00228.31M-43.99M-277.13M-24.28M-76.06M
Financing Cash Flow0.00-364.31M-233.69M-155.82M-90.02M-76.73M

MBS Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1428.00
Price Trends
50DMA
1306.21
Negative
100DMA
1351.69
Negative
200DMA
1363.89
Negative
Market Momentum
MACD
-7.66
Positive
RSI
44.18
Neutral
STOCH
7.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1401, the sentiment is Negative. The current price of 1428 is above the 20-day moving average (MA) of 1304.75, above the 50-day MA of 1306.21, and above the 200-day MA of 1363.89, indicating a bearish trend. The MACD of -7.66 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 7.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1401.

MBS Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥9.76B17.110.99%6.72%24.45%
73
Outperform
¥7.83B5.762.16%49.73%172.92%
69
Neutral
¥10.61B11.534.35%-4.80%0.54%
64
Neutral
¥10.83B13.034.39%-16.62%-1.08%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥12.60B14.355.36%13.96%88.96%
62
Neutral
¥9.32B18.812.74%11.22%-1.63%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1401
MBS Co., Ltd.
1,270.00
47.22
3.86%
JP:1768
Sonec Corporation
1,072.00
196.64
22.46%
JP:1807
Watanabe Sato Co., Ltd.
1,823.00
240.36
15.19%
JP:1826
Sata Construction Co., Ltd.
1,046.00
-12.39
-1.17%
JP:1844
Ohmori Co., Ltd.
498.00
72.20
16.96%
JP:1853
Mori-Gumi Co., Ltd.
324.00
33.48
11.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2026