Fujita Engineering Co., Ltd. (1770) AI Stock Analysis

• Market Cap: ¥17.40B
• Dividend Yield: 3.71%
• Average Volume (3M): 14.32K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.72
• Revenue Growth: -21.52%
• EPS Growth: -35.65%
• Country: JP
• Employees: 594
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 44.44
• Shares Outstanding: 10,200,000
• 10 Day Avg. Volume: 36,930
• 30 Day Avg. Volume: 14,320
• PEG Ratio: 0.63
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 19.72
• 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: 76 Outperform
• Price Target: ¥2,147.00 ▲(20.82% Upside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

Fujita Engineering Co., Ltd. scores well due to its strong financial performance and attractive valuation. The technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The absence of earnings call and corporate events data does not impact the overall score.

Positive Factors

Low leverage / strong balance sheet

A low debt-to-equity ratio and high equity ratio give Fujita durable financial flexibility: better ability to fund working capital for project cycles, withstand downturns in construction demand, and pursue selective bidding or M&A without stressing liquidity over the next several quarters.

Strong operating cash conversion

Robust operating cash flow and a healthy operating cash flow-to-net income conversion imply the business reliably turns accrual profits into cash. That supports funding of project working capital and maintenance contracts, reducing reliance on external financing across business cycles.

Recurring after-completion service revenue

Recurring maintenance and service contracts create steady, higher-margin revenue alongside project work. This diversification smooths cash flow seasonality, strengthens client relationships, and builds a repeatable service book that supports long-term revenue predictability and margin resilience.

Negative Factors

Recent revenue contraction

A reported ~20% revenue decline signals weaker order intake or project timing shifts. For a project-driven engineering contractor, sustained revenue contraction can reduce scale, pressure fixed-cost absorption, and limit reinvestment into backlog-building sales or service expansion over the next several quarters.

Earnings per share deterioration

A near 35% EPS decline indicates material earnings pressure from margin compression, one-offs, or lower operating leverage. Continued EPS erosion can restrain retained earnings, limit capital allocation flexibility, and weaken the company’s ability to fund dividends or growth initiatives without altering capital structure.

Project-driven volatility and FCF variability

Reliance on fixed-price/project contracts and variable capex creates uneven cash and margin cycles. Execution risk (subcontracting, procurement, schedules) can produce free cash flow swings and pressure margins, making multi-quarter planning and investment cadence more uncertain.

Fujita Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Fujita Engineering Co., Ltd. engages in the facilities construction business in Japan and internationally. The company undertakes air-conditioning and sanitation, electrical, instrumentation, information and communication, mechanical installation, and other works. It is also involved in the sale of industrial equipment; management of equipment maintenance facilities; manufacture of electronic devices; and contract management of water supply and sewerage system. Fujita Engineering Co., Ltd. was founded in 1926 and is headquartered in Takasaki, Japan.

How the Company Makes Money

Fujita Engineering generates revenue primarily through contracts for construction projects and civil engineering services. The company bids on various public and private sector projects, securing contracts that encompass both design and construction phases. Key revenue streams include government contracts for infrastructure projects, private sector construction contracts, and fees for engineering consulting services. Additionally, Fujita Engineering may engage in joint ventures and partnerships with other construction firms to enhance its project capabilities and secure larger contracts. The company's longstanding reputation and experience in the industry, along with its ability to deliver complex projects on time and within budget, contribute significantly to its earnings.

Fujita Engineering Co., Ltd. Financial Statement Overview

Summary

Fujita Engineering Co., Ltd. demonstrates strong financial health with consistent revenue and net income growth, effective cost management, and a solid balance sheet. However, there is room for improvement in cash flow management to enhance liquidity.

Income Statement

Fujita Engineering Co., Ltd. shows strong profitability with a consistent increase in revenue and net income. The gross profit margin and net profit margin have improved over the years, indicating effective cost management. Revenue growth is steady, showcasing resilience in a competitive market. EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, highlighting low leverage and financial stability. The equity ratio is high, suggesting a solid capital structure. Return on equity is favorable, driven by improving net income, which indicates effective use of shareholder funds.

Cash Flow

Cash flow statements indicate strong operating cash flow, although there is some fluctuation in free cash flow due to varying capital expenditures. The operating cash flow to net income ratio is robust, demonstrating good cash conversion from profits. However, the decline in free cash flow growth rate suggests potential areas for improvement in cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.31B	32.65B	32.27B	27.16B	27.71B	26.25B
Gross Profit	5.30B	5.78B	4.84B	4.21B	4.36B	4.25B
EBITDA	2.34B	2.96B	2.57B	2.11B	2.26B	2.00B
Net Income	1.35B	1.79B	1.59B	1.28B	1.37B	1.18B
Balance Sheet
Total Assets	27.58B	30.29B	33.22B	29.12B	27.19B	26.05B
Cash, Cash Equivalents and Short-Term Investments	8.45B	7.99B	8.76B	8.35B	8.24B	8.61B
Total Debt	305.00M	566.15M	1.02B	1.01B	1.08B	1.05B
Total Liabilities	8.66B	11.31B	15.44B	12.67B	11.67B	11.69B
Stockholders Equity	18.92B	18.98B	17.78B	16.44B	15.52B	14.36B
Cash Flow
Free Cash Flow	0.00	695.13M	1.88B	1.16B	676.98M	1.42B
Operating Cash Flow	0.00	1.13B	1.98B	1.32B	965.19M	1.58B
Investing Cash Flow	0.00	-839.99M	-1.09B	-802.87M	-1.10B	-735.67M
Financing Cash Flow	0.00	-1.11B	-486.81M	-446.03M	-263.17M	-197.73M

Fujita Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1777.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1770, the sentiment is Positive. The current price of 1777 is below the 20-day moving average (MA) of 1847.90, below the 50-day MA of 1812.92, and above the 200-day MA of 1622.68, indicating a bullish trend. The MACD of 26.98 indicates Negative momentum. The RSI at 59.21 is Neutral, neither overbought nor oversold. The STOCH value of 64.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1770.

Fujita Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	77 Outperform	¥30.63B	12.86	―	2.37%	3.01%	-13.60%
1770	76 Outperform	¥17.40B	13.40	―	3.71%	-21.52%	-35.65%
1960	73 Outperform	¥23.36B	11.31	―	2.97%	22.32%	5024.88%
4673	73 Outperform	¥3.90B	6.35	―	1.16%	29.12%	428.78%
9621	73 Outperform	¥91.83B	15.13	―	1.25%	2.61%	-13.38%
1914	67 Neutral	¥15.93B	12.44	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%