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

• Market Cap: ¥15.40B
• Dividend Yield: 3.71%
• Average Volume (3M): 14.32K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.71
• 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: ¥2,079.00 ▲(16.99% 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

Low leverage and a high equity ratio provide durable financial flexibility for an engineering contractor. This allows the company to fund bid bonds, absorb project timing mismatches, support working-capital swings and invest in maintenance services without relying heavily on external debt, strengthening resilience across cycles.

Healthy profitability and margins

Improving gross, net and EBIT/EBITDA margins indicate sustained cost control and project execution ability. For a project-driven building-services firm, durable margin improvements support competitive bidding, reinvestment in capabilities, and stable returns on projects over the medium term, reducing vulnerability to price competition.

Solid operating cash generation

Consistent operating cash conversion means profits translate into real liquidity, allowing the company to fund capex, maintenance contracts and working capital for multi-month projects. Strong operating cash flow reduces dependence on external financing and supports sustainable operations through project cycles.

Negative Factors

Recent revenue contraction

A ~20% recent revenue decline signals material near-term pressure on scale and utilization for a contract-driven business. If sustained, lower top-line reduces bargaining power with suppliers and subcontractors, risks underutilized capacity and can amplify margin sensitivity across the project pipeline over several months.

Earnings decline

A roughly 35% drop in EPS reduces retained earnings and internal funding capacity. For a mid-sized engineering contractor, weaker earnings constrain reinvestment in technical capabilities and maintenance services, potentially limiting competitive positioning and responsiveness to winning higher-margin projects over the medium term.

Free cash flow volatility

Volatile free cash flow driven by capex swings increases liquidity risk during slower contract periods. In construction and M&E work, inconsistent FCF can force short-term borrowing or deferred investments, reducing ability to pursue larger projects or honor maintenance contracts reliably across economic 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

The company primarily makes money by contracting engineering and construction work for building facilities (M&E/building-services engineering). Revenue is recognized from project-based contracts that typically include (1) engineering/design, (2) procurement of equipment and materials (often passed through as part of contract value), (3) installation/construction/commissioning work performed on site, and (4) related project management. A second recurring revenue stream comes from after-completion services, including inspection, repair, renovation, and preventive maintenance of installed building systems; these earnings are generated via maintenance contracts and spot service work. Profitability is influenced by the company’s ability to win new projects (order intake/backlog), manage subcontracting and labor costs, control procurement costs for major equipment, and execute projects within budget and schedule. Specific material customer/partner names, contract structures (e.g., fixed-price vs. cost-plus), and segment-level revenue breakdowns are null.

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	4.78B	4.15B	4.30B	4.20B
EBITDA	2.61B	3.17B	2.40B	1.95B	2.11B	1.98B
Net Income	1.35B	1.79B	1.59B	1.28B	1.37B	1.18B
Balance Sheet
Total Assets	27.58B	30.60B	33.53B	29.36B	27.47B	26.31B
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	11.62B	15.75B	12.92B	11.95B	11.95B
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: Negative
• Last Price: 1777.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1770, the sentiment is Negative. The current price of 1777 is below the 20-day moving average (MA) of 1837.70, below the 50-day MA of 1820.78, and above the 200-day MA of 1638.87, indicating a neutral trend. The MACD of -18.59 indicates Positive momentum. The RSI at 32.26 is Neutral, neither overbought nor oversold. The STOCH value of 0.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥28.84B	11.92	―	2.37%	3.01%	-13.60%
1770	76 Outperform	¥15.40B	10.00	―	3.71%	-21.52%	-35.65%
1960	73 Outperform	¥22.36B	8.25	―	2.97%	22.32%	5024.88%
4673	73 Outperform	¥3.68B	6.39	―	1.16%	29.12%	428.78%
9621	73 Outperform	¥85.60B	12.54	―	1.25%	2.61%	-13.38%
1914	67 Neutral	¥14.89B	4.49	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%