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

• Market Cap: ¥17.29B
• Dividend Yield: 3.71%
• Average Volume (3M): 14.32K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.68
• 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: ¥2,133.00 ▲(20.03% 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

Strong balance sheet and low leverage

The company’s low debt-to-equity and high equity ratio indicate durable financial flexibility and lower solvency risk. Favorable ROE driven by improving net income suggests management allocates capital effectively, supporting investment capacity and resilience to project timing variability over months.

Improving margins and profitability

Sustained improvement in gross and net margins plus healthy EBIT/EBITDA imply lasting operational efficiency and better cost control on projects. This supports steady internal cash generation, protects profitability through cycles, and enhances the company’s ability to fund maintenance and selective growth investments.

Recurring after-completion service revenue

A recurring service stream from maintenance, inspections and renovations diversifies income beyond project timing, smoothing revenues and margins. Stable service contracts improve cash visibility, raise lifetime customer value, and provide a defensive revenue base during new-build slowdowns over the next several months.

Negative Factors

Recent revenue contraction

A >20% year-over-year revenue decline is a meaningful structural headwind that can reduce scale economies and weaken backlog visibility. If sustained, lower top-line volume pressures margins, utilization of specialized crews, and the company’s ability to negotiate favorable procurement terms on multi-month projects.

EPS deterioration

A near 35% EPS contraction signals profit compression beyond seasonal effects and may reflect margin pressure, higher costs, or lower project mix. Persistent EPS decline limits retained earnings growth and constrains reinvestment or dividend flexibility, affecting long-term shareholder returns and capital allocation choices.

Free cash flow volatility and cash management

While operating cash flow converts profit to cash, declining free cash flow growth and FCF volatility tied to capex create funding unpredictability. This can force trade-offs between maintenance, dividend policies, or new project investments, and raises refinancing and liquidity risk in slower order cycles.

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 1851.60, below the 50-day MA of 1817.48, and above the 200-day MA of 1626.98, indicating a bullish trend. The MACD of 23.55 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 45.65 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	¥30.27B	11.92	―	2.37%	3.01%	-13.60%
1770	76 Outperform	¥17.29B	10.00	―	3.71%	-21.52%	-35.65%
1960	73 Outperform	¥23.28B	8.25	―	2.97%	22.32%	5024.88%
4673	73 Outperform	¥3.82B	6.39	―	1.16%	29.12%	428.78%
9621	73 Outperform	¥88.01B	12.54	―	1.25%	2.61%	-13.38%
1914	67 Neutral	¥15.27B	4.49	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%