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

• Market Cap: ¥14.29B
• Dividend Yield: 3.95%
• Average Volume (3M): 14.32K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.66
• Revenue Growth: -21.52%
• EPS Growth: -35.65%
• Country: JP
• Employees: 594
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 35.73
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,994.00 ▲(20.41% Upside)

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

Financial Stability

A strong balance sheet with low debt enhances financial stability, providing resilience against economic fluctuations and enabling strategic investments.

Profitability

Consistent profitability and revenue growth indicate effective cost management and operational efficiency, supporting long-term business sustainability.

Operational Efficiency

Healthy EBIT and EBITDA margins suggest strong operational efficiency, allowing the company to maximize profit from its core activities.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in maintaining market share or competitiveness, potentially impacting long-term growth prospects.

Earnings Pressure

A significant drop in EPS growth suggests pressure on earnings, which can affect investor confidence and the ability to reinvest in business expansion.

Cash Flow Management

Fluctuations in free cash flow growth indicate challenges in cash management, which could limit financial flexibility and investment capacity.

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

Company Description

Fujita Engineering Co., Ltd. (1770) is a Japan-based company specializing in the construction and engineering sectors. Established in 1946, the company focuses on civil engineering and construction, offering a range of services including infrastructure development, urban construction, and environmental engineering. Fujita Engineering is known for its expertise in large-scale projects such as highways, bridges, and public facilities, contributing significantly to Japan's infrastructure development and maintenance.

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. The company shows resilience in a competitive market, though there is room for improvement in cash flow management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1656.00
• 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:1770, the sentiment is Positive. The current price of 1656 is above the 20-day moving average (MA) of 1642.15, above the 50-day MA of 1601.17, and above the 200-day MA of 1507.47, indicating a bullish trend. The MACD of 15.59 indicates Positive momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.88 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
1770	76 Outperform	¥14.29B	10.57	―	3.95%	-21.52%	-35.65%
1960	73 Outperform	¥22.21B	8.75	―	2.75%	22.32%	5024.88%
1716	71 Outperform	¥14.98B	11.18	―	2.89%	-1.39%	-4.43%
1914	67 Neutral	¥13.34B	12.69	―	3.76%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	63 Neutral	¥15.00B	11.69	―	4.71%	-6.37%	-16.88%
1776	54 Neutral	¥13.57B	78.87	―	2.65%	5.89%	-30.27%