Japan Foundation Engineering Co., Ltd. (1914) AI Stock Analysis

• Market Cap: ¥13.74B
• Dividend Yield: 3.69%
• Average Volume (3M): 31.68K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.96
• Revenue Growth: 5.82%
• EPS Growth: -22.14%
• Country: JP
• Employees: 395
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 24.17
• Shares Outstanding: 29,346,400
• 10 Day Avg. Volume: 26,290
• 30 Day Avg. Volume: 31,676
• PEG Ratio: 0.15
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -9.04
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥694.00 ▲(7.93% Upside)

The overall stock score of 67 reflects a balance between strong financial performance in terms of revenue growth and stable gross margins, and concerns over profitability and liquidity due to negative free cash flow. The technical indicators suggest a lack of strong momentum, while the valuation is reasonable with an attractive dividend yield. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Significant revenue growth indicates robust demand and successful market expansion, enhancing long-term business prospects and competitive positioning.

Stable Gross Margins

Stable gross margins suggest effective cost management, which supports profitability and competitive advantage in the engineering sector.

Low Leverage

Low leverage indicates financial stability and flexibility, allowing the company to invest in growth opportunities without excessive financial risk.

Negative Factors

Negative Free Cash Flow

Negative free cash flow suggests the company may struggle to cover operational costs and invest in growth, potentially impacting long-term sustainability.

Decline in Net Profit Margin

A decline in net profit margin indicates challenges in expense control or increased competition, which could affect future profitability.

Decreased Return on Equity

A decrease in return on equity suggests inefficiencies in generating returns from equity investments, potentially impacting investor confidence and growth.

Japan Foundation Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Foundation Engineering Co., Ltd., established in 1914, is a leading company in the field of foundation engineering and construction services in Japan. The company specializes in various sectors, including civil engineering, geotechnical engineering, and environmental engineering. Its core products and services encompass foundation design and construction, ground improvement technologies, and the provision of specialized equipment for construction projects.

How the Company Makes Money

Japan Foundation Engineering Co., Ltd. generates revenue primarily through its engineering and construction services. Key revenue streams include fees from foundation construction projects, consulting services in geotechnical engineering, and sales or rentals of specialized construction equipment. The company often engages in long-term contracts with government agencies and private developers, ensuring a steady income flow. Strategic partnerships with construction firms and collaborations on large infrastructure projects also contribute significantly to its earnings. Additionally, the company may benefit from advancements in technology and innovative engineering solutions that enhance operational efficiency and project outcomes, further driving its profitability.

Japan Foundation Engineering Co., Ltd. Financial Statement Overview

Summary

Japan Foundation Engineering Co., Ltd. shows strong revenue growth and stable gross margins, indicating a competitive position in the market. However, the decline in net profit margin and negative free cash flow raise concerns about profitability and liquidity. The balance sheet remains strong with low leverage, but the company needs to address cash flow challenges to ensure long-term financial health.

Income Statement

The company has demonstrated strong revenue growth with a 48.2% increase in the latest year, indicating robust demand or successful expansion. Gross profit margins have remained stable around 16.6%, suggesting effective cost management. However, the net profit margin has been volatile, dropping to 0% in the latest period, which could indicate challenges in controlling expenses or increased competition. EBIT and EBITDA margins have improved, reflecting better operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.17, indicating conservative leverage and financial stability. The equity ratio is strong, suggesting a solid capital structure. However, the return on equity has decreased to 0%, which may point to inefficiencies in generating returns from equity investments.

Cash Flow

Operating cash flow has decreased significantly, and free cash flow is negative, indicating potential liquidity issues. The negative free cash flow to net income ratio suggests that the company is not generating sufficient cash from operations to cover its net income, which could be a concern for sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.78B	30.28B	23.58B	23.91B	22.11B	22.85B
Gross Profit	4.73B	5.05B	3.93B	3.37B	3.42B	3.02B
EBITDA	2.92B	3.18B	2.41B	2.02B	2.05B	1.63B
Net Income	948.85M	1.44B	932.86M	526.97M	498.10M	213.28M
Balance Sheet
Total Assets	31.78B	31.78B	32.84B	30.24B	30.09B	30.86B
Cash, Cash Equivalents and Short-Term Investments	4.07B	4.62B	6.22B	6.21B	6.43B	5.77B
Total Debt	4.50B	4.00B	3.32B	3.34B	2.72B	1.25B
Total Liabilities	9.29B	8.83B	10.90B	9.61B	8.98B	8.22B
Stockholders Equity	22.48B	22.95B	21.94B	20.63B	21.11B	22.64B
Cash Flow
Free Cash Flow	0.00	-1.41B	484.31M	-173.48M	-10.49M	204.65M
Operating Cash Flow	0.00	449.66M	1.65B	969.54M	1.19B	1.37B
Investing Cash Flow	0.00	-1.87B	-1.43B	-945.98M	-325.95M	-783.67M
Financing Cash Flow	0.00	-258.77M	-383.00M	-276.96M	48.60M	-350.03M

Japan Foundation Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 643.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1914, the sentiment is Positive. The current price of 643 is below the 20-day moving average (MA) of 648.15, below the 50-day MA of 644.92, and below the 200-day MA of 653.51, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1914.

Japan Foundation Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1926	78 Outperform	¥131.05B	13.63	―	3.22%	12.23%	43.29%
1890	75 Outperform	¥163.72B	18.28	―	5.05%	12.80%	34.19%
1762	73 Outperform	¥120.57B	13.47	―	2.13%	7.22%	21.92%
1720	69 Neutral	¥137.25B	12.92	―	2.89%	20.38%	128.85%
1914	67 Neutral	¥13.74B	10.72	―	3.69%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1888	59 Neutral	¥56.24B	12.81	―	2.84%	15.45%	43.95%