Japan Petroleum Exploration Co (1662) AI Stock Analysis

• Market Cap: ¥605.68B
• Dividend Yield: 2.95%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.81
• 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): 49.71
• 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: ¥1,320.00
• Price Target Upside: -13.50% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 170.41
• Revenue Forecast (FY): ¥347.84B

• Rating: 81 Outperform
• Price Target: ¥3,083.00 ▲(102.03% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by strong financial performance (high margins, low leverage, and solid cash flow coverage) and bullish technical trend strength (price above all key moving averages with positive MACD). Valuation is supportive but not exceptional given a moderate P/E and modest dividend yield.

Positive Factors

Strong profitability and margins

Sustained high gross, EBIT and EBITDA margins indicate the business generates strong operating cash from each unit of production. For an E&P company, durable margin advantages support reinvestment in reserves and cushion commodity cycles, helping maintain free cash flow over 2-6 months.

Very low leverage and strong equity buffer

Minimal financial leverage and a high equity ratio reduce refinancing and liquidity risk during price shocks. This structural balance-sheet strength preserves capital flexibility for development spending and protects dividend and capex plans across medium-term cycles.

Improved cash generation and FCF conversion

Higher operating cash coverage and better FCF conversion mean the company can fund capex, maintain distributions, and service obligations without relying on new debt. Reliable cash conversion underpins long-term project execution and resilience through commodity volatility.

Negative Factors

Historical revenue and net income volatility

Volatile top-line and earnings suggest underlying production, reserve replacement or price-exposure variability. This undermines predictability of cash flows and complicates long-term planning for development projects, making capital allocation and guidance less reliable.

Sharp EPS contraction recently

A near-50% EPS decline signals material pressure on profitability drivers or one-off impairments. Such large EPS swings can persist through the cycle if production, costs or non-cash charges remain unstable, increasing forecast uncertainty for investors and lenders.

High sensitivity to commodity prices

As an upstream E&P, revenue and margins are structurally exposed to commodity price swings and production variability. This dependence limits revenue visibility and can force capex or production cuts in downturns, constraining medium-term growth plans and cash flow stability.

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

Strong profitability and efficiency (net margin 20.86%, EBIT margin 28.60%, EBITDA margin 41.42%) supported by revenue growth (+4.95%) and very low leverage (debt-to-equity 0.0028). Cash generation is solid (operating cash flow coverage 2.89), though historical volatility in revenue/net income and a moderate FCF-to-net income ratio (0.36) temper the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• RSI: Neutral
• 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 below the 20-day moving average (MA) of 2346.70, below the 50-day MA of 2051.62, and above the 200-day MA of 1417.30, indicating a bullish trend. The MACD of 113.93 indicates Positive momentum. The RSI at 55.76 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 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	81 Outperform	¥605.68B	7.90	8.62%	2.95%	4.14%	91.38%
1605	79 Outperform	¥4.90T	9.15	8.54%	2.91%	-11.79%	18.12%
5021	73 Outperform	¥734.56B	15.20	―	3.93%	2.57%	-4.79%
5019	68 Neutral	¥1.84T	21.95	2.23%	3.07%	-7.68%	-73.03%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
6269	62 Neutral	¥900.88B	15.07	24.31%	0.73%	10.13%	25.50%
5020	56 Neutral	$3.67T	11.54	-0.15%	2.74%	-14.13%	33.18%

Japan Petroleum Exploration Co Corporate Events

JAPEX Completes US$1.26 Billion Tight Oil and Gas Acquisition in U.S.

Japan Petroleum Exploration Co., Ltd. has completed the acquisition of all interests in Verdad Resources Intermediate Holdings LLC, securing tight oil and gas assets in Colorado and Wyoming in a deal valuing the enterprise at US$1.26 billion. Around US$360 million of the transaction will be funded through reserve-based lending, with the remainder covered by JAPEX’s own capital and other funding sources.

Through its overseas sub-subsidiary Peoria Resources, LLC, JAPEX will act as operator of the acquired assets and plans to actively develop tight oil and gas production at the fields. The company expects daily output from these assets to reach about 50,000 barrels of oil equivalent per day by around 2030, and aims to use this platform to enhance asset value, build operating expertise, and further expand its North American business footprint.

The most recent analyst rating on (JP:1662) stock is a Buy with a Yen2714.00 price target. To see the full list of analyst forecasts on Japan Petroleum Exploration Co stock, see the JP:1662 Stock Forecast page.

Weaker Yen Prompts JAPEX to Raise Full-Year Profit Forecasts

Japan Petroleum Exploration Co., Ltd. has raised its consolidated earnings forecast for the fiscal year ending March 31, 2026, citing stronger performance at overseas subsidiaries driven by a weaker yen. The company now projects net sales of ¥347 billion, operating profit of ¥39 billion, ordinary profit of ¥55 billion, and profit attributable to owners of parent of ¥45 billion, all higher than its November guidance.

The revised outlook reflects increased sales profits abroad and additional foreign exchange gains, resulting in double-digit percentage upgrades to operating and bottom-line forecasts. Despite the higher profit expectations, JAPEX is keeping its year-end dividend forecast unchanged at ¥20 per share for now, stating that the final payout will be determined after reviewing full-year results under its policy of targeting a 30% consolidated dividend payout ratio.

The most recent analyst rating on (JP:1662) stock is a Buy with a Yen2503.00 price target. To see the full list of analyst forecasts on Japan Petroleum Exploration Co stock, see the JP:1662 Stock Forecast page.

JAPEX Updates Investors on Nine-Month Results and Revises Full-Year Outlook

Japan Petroleum Exploration Co., Ltd. released explanatory materials on its financial results for the nine months ended December 31, 2025. The document, prepared for a briefing to institutional investors and analysts, outlines key financial highlights, detailed results for the period, and revised forecasts for the fiscal year ending March 31, 2026.

The release signals that JAPEX is actively updating the market on its performance and outlook, suggesting that conditions or expectations have shifted enough to warrant revised full-year guidance. This may influence investor perceptions of the company’s earnings trajectory and strategic positioning within the energy sector, ahead of the formal briefing scheduled for mid-February.

The most recent analyst rating on (JP:1662) stock is a Buy with a Yen2503.00 price target. To see the full list of analyst forecasts on Japan Petroleum Exploration Co stock, see the JP:1662 Stock Forecast page.

JAPEX Profit Falls Sharply Despite Strong Balance Sheet, Cuts Full-Year Outlook

Japan Petroleum Exploration Co., Ltd. reported consolidated net sales of ¥260.3 billion for the nine months ended December 31, 2025, down 5.3% year on year, with operating profit falling 27.9% to ¥32.1 billion, while ordinary profit rose 5.2% and profit attributable to owners of parent dropped 46.6%. Despite the earnings decline, JAPEX’s financial position strengthened, with total assets increasing to ¥713.6 billion and an equity ratio of 79.1%, and the company maintained its dividend forecast of ¥40 per share for the year ending March 31, 2026, while revising down its full-year earnings outlook and adjusting its consolidation scope with one new subsidiary and two exclusions.

For the fiscal year ending March 31, 2026, JAPEX now projects net sales of ¥347.0 billion, a 10.8% decrease from the prior year, alongside significant declines in operating profit and profit attributable to owners of parent, signaling a more cautious earnings environment. The company’s ongoing stock split effects, stable capital base, and portfolio changes, including the addition of Peoria Resources, LLC and the removal of two subsidiaries, indicate an effort to optimize its structure and shareholder base amid a challenging market for energy producers.

The most recent analyst rating on (JP:1662) stock is a Buy with a Yen2503.00 price target. To see the full list of analyst forecasts on Japan Petroleum Exploration Co stock, see the JP:1662 Stock Forecast page.

JAPEX Acquires U.S. Tight Oil and Gas Assets

JAPEX has announced its acquisition of all interests in Verdad Resources Intermediate Holdings LLC (VRIH), which holds tight oil and gas assets in the U.S., through its subsidiary Peoria Resources and its subsidiary Peoria Resources Acquisition Company, LLC. This acquisition supports JAPEX’s strategic goal of diversifying and strengthening its energy exploration portfolio, particularly in the U.S. market, yet the company has confirmed no immediate impact on its consolidated financial performance.

The most recent analyst rating on (JP:1662) stock is a Buy with a Yen1607.00 price target. To see the full list of analyst forecasts on Japan Petroleum Exploration Co stock, see the JP:1662 Stock Forecast page.

JAPEX Acquires U.S. Oil and Gas Assets for $1.3 Billion

JAPEX has announced the acquisition of Verdad Resources Intermediate Holdings LLC (VRIH), which holds tight oil and gas assets in the U.S., for approximately $1.3 billion. This acquisition enables JAPEX to expand its U.S. energy operations as an operator, aiming to increase production levels, enhance profitability, and solidify its presence in the market through strategic asset management and ongoing development.

The most recent analyst rating on (JP:1662) stock is a Buy with a Yen1607.00 price target. To see the full list of analyst forecasts on Japan Petroleum Exploration Co stock, see the JP:1662 Stock Forecast page.

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.

The most recent analyst rating on (JP:1662) stock is a Buy with a Yen1607.00 price target. To see the full list of analyst forecasts on Japan Petroleum Exploration Co stock, see the JP:1662 Stock Forecast page.