Japan Petroleum Exploration Co (1662) AI Stock Analysis

• Market Cap: ¥399.19B
• Dividend Yield: 2.88%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.75
• Revenue Growth: 4.14%
• EPS Growth: 91.38%
• Country: JP
• Employees: 1,641
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 44.31
• Shares Outstanding: 257,000,370
• 10 Day Avg. Volume: 1,451,690
• 30 Day Avg. Volume: 1,119,016
• PEG Ratio: 0.06
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 5.84
• 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: 80 Outperform
• Price Target: ¥1,758.00 ▲(15.20% Upside)

Japan Petroleum Exploration Co's strong financial performance and attractive valuation are the most significant factors driving its stock score. The company's robust profitability, low leverage, and healthy cash flows position it well for future growth. Technical analysis supports a bullish outlook, although caution is advised due to the RSI nearing overbought levels.

Positive Factors

Strong Profitability

Strong profitability metrics indicate efficient operations and a solid ability to generate profits, supporting long-term financial health and investment capacity.

Low Leverage

Minimal leverage reduces financial risk and enhances the company's ability to withstand economic downturns, maintaining stability and flexibility for future growth.

Healthy Cash Flow

Strong cash flow generation supports ongoing operations, investment opportunities, and debt servicing, ensuring sustainable financial health.

Negative Factors

Revenue Volatility

Revenue volatility can lead to unpredictable financial performance, challenging long-term planning and potentially impacting investor confidence.

Asset Utilization

Inefficient asset utilization may hinder operational efficiency and profitability, affecting the company's ability to maximize returns on investments.

Market Volatility

Market volatility in the oil and gas sector can impact revenue and profitability, necessitating careful risk management and strategic planning.

Japan Petroleum Exploration Co Business Overview & Revenue Model

Company Description

Japan Petroleum Exploration Co., Ltd. (JAPEX) is a leading energy company based in Japan, primarily engaged in the exploration, development, production, and sale of petroleum and natural gas. The company operates in various sectors of the energy industry, including upstream oil and gas exploration, production, and the development of energy resources. JAPEX is also involved in the transportation and storage of natural gas, as well as the development of renewable energy initiatives, positioning itself as a key player in Japan's energy sector.

How the Company Makes Money

JAPEX generates revenue primarily through the exploration, production, and sale of oil and natural gas. The company earns money from selling crude oil and natural gas products to various domestic and international markets. Key revenue streams include the sale of hydrocarbons extracted from its exploration activities, along with associated services such as transportation and storage of these energy products. Additionally, JAPEX has formed strategic partnerships with other energy companies and government entities, which can enhance its operational capabilities and expand its market reach. The company's involvement in renewable energy projects also contributes to its revenue, particularly as the global energy landscape shifts towards sustainable and cleaner sources.

Japan Petroleum Exploration Co Financial Statement Overview

Summary

Japan Petroleum Exploration Co demonstrates robust financial performance with strong profitability, low leverage, and healthy cash flows. The company is well-positioned to capitalize on growth opportunities in the oil and gas sector, though it should remain vigilant about potential market volatility and asset management to sustain its financial health.

Income Statement

The company shows strong revenue growth with a 4.95% increase in the latest year, supported by robust gross and net profit margins of 23.83% and 20.86%, respectively. The EBIT and EBITDA margins are also impressive at 28.60% and 41.42%, indicating efficient operations. However, the historical volatility in revenue growth and net income suggests potential risks in maintaining consistent profitability.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.0028, indicating minimal leverage and financial risk. The return on equity is strong at 15.38%, reflecting effective use of equity to generate profits. The equity ratio stands at 77.41%, showcasing a stable financial structure. However, the company should monitor its asset utilization to ensure continued efficiency.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth, driven by strong operating cash flow coverage of 2.89. The free cash flow to net income ratio of 0.36 indicates a healthy conversion of profits into cash. Despite past fluctuations, the current cash flow position supports future investment and debt servicing needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	382.46B	389.08B	325.86B	336.49B	249.14B	240.08B
Gross Profit	101.56B	92.70B	87.30B	96.11B	49.90B	36.53B
EBITDA	170.49B	161.17B	97.06B	97.35B	407.00M	17.81B
Net Income	85.38B	81.15B	53.66B	67.39B	-30.99B	-2.73B
Balance Sheet
Total Assets	677.63B	681.60B	660.93B	568.18B	471.94B	624.79B
Cash, Cash Equivalents and Short-Term Investments	153.34B	142.36B	173.00B	194.96B	150.27B	165.40B
Total Debt	7.63B	1.48B	250.00M	510.00M	770.00M	112.36B
Total Liabilities	124.60B	124.34B	123.36B	111.01B	69.17B	190.29B
Stockholders Equity	523.64B	527.75B	503.90B	425.63B	371.64B	400.17B
Cash Flow
Free Cash Flow	0.00	51.29B	24.64B	68.42B	-17.62B	27.69B
Operating Cash Flow	0.00	141.82B	90.56B	104.58B	-1.05B	43.26B
Investing Cash Flow	0.00	-107.08B	-99.66B	-52.72B	52.07B	-6.45B
Financing Cash Flow	0.00	-38.67B	-28.60B	-14.51B	-70.94B	-15.63B

Japan Petroleum Exploration Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1526.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1662, the sentiment is Positive. The current price of 1526 is above the 20-day moving average (MA) of 1426.10, above the 50-day MA of 1352.32, and above the 200-day MA of 1157.51, indicating a bullish trend. The MACD of 34.58 indicates Negative momentum. The RSI at 70.46 is Negative, neither overbought nor oversold. The STOCH value of 65.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1662.

Japan Petroleum Exploration Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1662	80 Outperform	¥399.19B	4.59	16.04%	2.88%	4.14%	91.38%
1605	79 Outperform	¥3.77T	8.78	9.52%	2.95%	-11.79%	18.12%
5021	73 Outperform	¥679.26B	11.44	―	3.99%	2.57%	-4.79%
6269	67 Neutral	¥796.04B	18.20	24.31%	0.77%	10.13%	25.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5020	64 Neutral	¥2.92T	13.22	-0.15%	2.77%	-14.13%	33.18%
5019	63 Neutral	¥1.49T	36.51	2.23%	3.10%	-7.68%	-73.03%

Japan Petroleum Exploration Co Corporate Events

JAPEX Transfers Hokkaido Gas Business to HEPCO

Japan Petroleum Exploration Co., Ltd. (JAPEX) has decided to transfer its gas manufacturing, sales, and gas pipeline business in Hokkaido Prefecture to Hokkaido Electric Power Co., Inc. (HEPCO) as part of its strategy to strengthen profitability and build a long-term business foundation. This move aligns with JAPEX’s Management Plan 2022-2030, allowing the company to focus on its core exploration and production operations while continuing to supply natural gas to HEPCO.

JAPEX Revises Financial Forecasts Upward Amid Rising Energy Prices

JAPEX has revised its financial forecasts for the fiscal year ending March 31, 2026, indicating an increase in net sales and profits due to higher crude oil and natural gas sales prices. Despite the revisions, the dividend forecast remains unchanged, with the company maintaining its interim and year-end dividend predictions, reflecting a stable profit distribution policy.

JAPEX Reports Financial Results and Revises Forecasts Amid Market Challenges

Japan Petroleum Exploration Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a decrease in net sales by 8.4% compared to the previous year. Despite the decline in sales, the company achieved a notable increase in ordinary profit and profit attributable to owners of the parent, reflecting a strategic focus on operational efficiency. The company also announced a revision in its financial forecasts for the fiscal year ending March 31, 2026, indicating expected declines in net sales and profits, which could impact stakeholders’ expectations.