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

• Market Cap: ¥10.77B
• Dividend Yield: 0.99%
• Average Volume (3M): 34.17K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.64
• 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: ¥1,620.00 ▲(13.45% 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

Profitability & Margins

Sustained gross, EBIT and net margins indicate durable operational efficiency and pricing power in projects. Higher margins provide internal funding for maintenance capex, R&D or selective bids, and create a durable buffer against commodity or cycle swings in engineering and construction.

Very Low Leverage

Extremely low leverage reduces refinancing and interest risk, giving the company financial resilience in downturns and flexibility to fund opportunistic investments or withstand project delays. Strong ROE shows returns without relying on debt financing.

Earnings and Revenue Growth

Consistent top-line growth with outsized EPS expansion signals improving operating leverage and margin progression. Durable earnings growth supports reinvestment, strengthens cash generation potential, and enables strategic execution over the 2-6 month horizon and beyond.

Negative Factors

Conservative Capital Structure Limits Growth

A high equity ratio implies management prefers low leverage which, while lowering risk, can constrain the company's ability to scale quickly in a capital-intensive industry. This conservative stance may slow expansion into larger projects or markets versus peers using leverage to grow.

Moderate Cash Conversion

Operating cash conversion below 1.0 indicates earnings are not fully converted to cash, raising sensitivity to working-capital swings common in construction. While FCF conversion is reasonable, modest OCF conversion constrains sustained capex, dividend flexibility and rapid scaling.

Limited Scale / Small Headcount

A small employee base limits internal capacity to execute many large or simultaneous engineering projects, increasing reliance on subcontractors and key personnel. This structural scale constraint can reduce competitiveness for big contracts and raise execution risk on complex projects.

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	1.46B	1.31B	1.21B	1.17B	966.49M
EBITDA	654.38M	522.21M	465.28M	468.03M	264.54M
Net Income	472.29M	403.88M	322.67M	325.96M	287.10M
Balance Sheet
Total Assets	4.89B	4.43B	4.15B	3.86B	3.76B
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	6.05M
Total Liabilities	1.20B	955.00M	928.23M	877.34M	1.02B
Stockholders Equity	3.70B	3.47B	3.22B	2.98B	2.74B
Cash Flow
Free Cash Flow	467.14M	499.88M	32.11M	177.60M	-5.54M
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: Negative
• Last Price: 1428.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 1463.15, below the 50-day MA of 1494.54, and above the 200-day MA of 1353.90, indicating a neutral trend. The MACD of -25.57 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1807	71 Outperform	¥11.94B	8.32	―	4.39%	2.65%	45.12%
1853	68 Neutral	¥11.04B	9.54	―	4.35%	-7.40%	60.55%
1401	67 Neutral	¥10.77B	13.10	―	0.99%	21.18%	53.16%
1768	66 Neutral	¥10.54B	6.31	―	2.16%	24.11%	1644.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	62 Neutral	¥11.25B	11.79	―	2.74%	4.36%	17.63%
1826	59 Neutral	¥14.66B	11.13	―	5.36%	-3.19%	109.84%