MBS Co., Ltd. (1401) AI Stock Analysis

• Market Cap: ¥11.76B
• Dividend Yield: 0.99%
• Average Volume (3M): 34.17K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.63
• Revenue Growth: 21.18%
• EPS Growth: 53.16%
• Country: JP
• Employees: 86
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 7,732,000
• 10 Day Avg. Volume: 70,830
• 30 Day Avg. Volume: 34,173
• PEG Ratio: 0.63
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 12.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,660.00 ▲(16.25% Upside)
• Action: Reiterated Date: 10/18/25
• Date: Action: Reiterated 10/18/25

MBS Co., Ltd. has a solid financial foundation with strong revenue and profit growth, and minimal leverage. However, the technical indicators suggest a lack of strong market momentum, and the valuation is moderate. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Low Leverage

Extremely low debt reduces default and refinancing risk and preserves financial flexibility. Over 2-6 months this durable balance-sheet strength supports capital allocation choices, resilience in downturns, and the ability to fund selective investments without pressured balance sheet restructuring.

Healthy Margins

Sustained gross and operating margins indicate structural cost control and pricing power in core engineering business. Durable margin profiles support cash generation and reinvestment capacity, enabling steady earnings quality and insulating returns from cyclical revenue swings.

Improving Free Cash Flow

Material improvement in free cash flow and a high FCF-to-net-income ratio indicate stronger cash conversion and internal funding capability. Over months this supports shareholder returns, debt-light growth initiatives, and reduces dependency on external financing for capital projects.

Negative Factors

Conservative Capital Structure

A very high equity ratio signals conservative financing but may limit return-enhancing investments and slower capacity expansion. Over the medium term this conservatism can constrain growth initiatives or slow market share gains versus peers that use leverage strategically.

Moderate Cash Conversion

OCF at roughly half of reported net income highlights periodic working capital or noncash items that dilute cash earnings. Persistently moderate cash conversion can restrict reinvestment and heighten sensitivity to project timing, affecting sustainable capital deployment.

Modest Recent Revenue Growth

A single-digit latest-year revenue rise points to limited top-line traction relative to higher-growth peers. If sustained, modest organic growth may cap long-term scale benefits, making it harder to leverage fixed costs and expand margins materially over the next several quarters.

MBS Co., Ltd. Business Overview & Revenue Model

Company Description

Mbs Inc provides renovation services in Japan. The company offers exterior and interior renovation services for houses and buildings. It also provides home makeup, a system that restores the aesthetic appearances, as well as protects buildings by providing resistance to various kinds of environments; skeleton disaster prevention coatings; Cannax, a system for new construction, extensions and renovations of interiors, plumbing, exteriors, etc.; and Mobapro Check, a camera-equipped mobile phone that photographs construction status of a building at each stage and sends it through e-mail to an internet server. In addition, the company undertakes construction works; develops and sells functional paints; and offers consulting services. Mbs Inc was founded in 1993 and is headquartered in Ube, Japan.

How the Company Makes Money

MBS Co., Ltd. generates revenue through multiple streams primarily focused on the sale of building materials to contractors and construction companies. The company's core revenue sources include direct sales of concrete, cement, and prefabricated components, which are utilized in residential, commercial, and industrial construction projects. Additionally, MBS Co., Ltd. establishes strategic partnerships with key players in the construction sector to enhance distribution and expand market reach, contributing to steady sales growth. The company also engages in project-based collaborations, providing tailored construction solutions that further diversify its revenue streams. Overall, MBS Co., Ltd.'s earnings are bolstered by its commitment to quality, customer service, and innovation in building materials.

MBS Co., Ltd. Financial Statement Overview

Summary

MBS Co., Ltd. shows strong financial health with consistent revenue and profit growth, minimal leverage, and improving cash flow metrics. The company is well-positioned for future growth, although its conservative balance sheet may limit aggressive expansion.

Income Statement

MBS Co., Ltd. has demonstrated strong revenue growth with a 3.1% increase in the latest year, supported by a solid gross profit margin of 31.6%. The net profit margin of 10% and EBIT margin of 14.1% indicate efficient cost management and profitability. The company has consistently improved its margins over the years, showcasing a positive trajectory in profitability.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio of 0.0029, indicating minimal leverage and financial risk. The return on equity of 12.8% reflects strong shareholder returns. However, the equity ratio of 75.8% suggests a conservative capital structure, which may limit growth opportunities.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow, with a growth rate of 'Infinity' due to previous negative values. The operating cash flow to net income ratio of 0.49 indicates moderate cash generation relative to earnings. The free cash flow to net income ratio of 0.82 suggests healthy cash flow management, although there is room for improvement.

Breakdown	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	4.71B	4.36B	4.00B	4.03B	3.44B
Gross Profit	1.49B	1.34B	1.24B	1.20B	997.86M
EBITDA	694.96M	629.50M	507.82M	512.28M	457.09M
Net Income	472.29M	403.88M	322.67M	325.96M	287.10M
Balance Sheet
Total Assets	4.88B	4.41B	4.13B	3.84B	3.74B
Cash, Cash Equivalents and Short-Term Investments	1.94B	1.54B	1.42B	1.48B	1.40B
Total Debt	10.78M	12.86M	0.00	4.37M	7.05M
Total Liabilities	1.18B	936.00M	907.08M	858.22M	1.00B
Stockholders Equity	3.70B	3.47B	3.22B	2.98B	2.74B
Cash Flow
Free Cash Flow	467.14M	476.85M	31.81M	165.55M	-12.02M
Operating Cash Flow	567.89M	547.57M	54.04M	233.10M	-1.70M
Investing Cash Flow	-43.99M	-277.13M	-24.28M	-76.06M	227.20M
Financing Cash Flow	-233.69M	-155.82M	-90.02M	-76.73M	-85.65M

MBS Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1428.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1401, the sentiment is Positive. The current price of 1428 is below the 20-day moving average (MA) of 1534.30, below the 50-day MA of 1466.62, and above the 200-day MA of 1310.26, indicating a neutral trend. The MACD of 10.69 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 12.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1401.

MBS Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1807	71 Outperform	¥12.71B	12.02	―	4.39%	2.65%	45.12%
1768	70 Outperform	¥12.30B	10.64	―	2.16%	24.11%	1644.12%
1853	68 Neutral	¥11.46B	13.42	―	4.35%	-7.40%	60.55%
1401	67 Neutral	¥11.76B	20.88	―	0.99%	21.18%	53.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	61 Neutral	¥10.95B	22.00	―	2.74%	4.36%	17.63%
1826	59 Neutral	¥15.44B	22.90	―	5.36%	-3.19%	109.84%