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

• Market Cap: ¥13.45B
• Dividend Yield: 3.74%
• Average Volume (3M): 31.68K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.95
• Revenue Growth: 17.93%
• EPS Growth: -31.47%
• Country: JP
• Employees: 395
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 15.10
• 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: ¥680.00
• Price Target Upside: 7.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥680.00 ▲(7.42% Upside)

The overall stock score of 65 reflects strong financial performance in terms of revenue growth and stable gross margins, but is offset by concerns over profitability and liquidity due to negative free cash flow. The technical analysis indicates bearish momentum, which is a negative factor. However, the valuation is attractive with a reasonable P/E ratio and a good dividend yield, providing some support to the stock's attractiveness.

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

Company Description

Japan Foundation Engineering Co., Ltd. provides various construction services in Japan. It also offers ground improvement technology, which include chemical injection method, mechanical stirring method, and high pressure injection agitation method. In addition, the company provides various technologies for construction works, such as anchor; slope stability; foundation pile; landslide countermeasure; rock rouging; pollution control; natural restoration; tunnel assist; repair; bowling application; geological survey and construction consultant; construction-generated soil recycling technologies; and real-time monitoring systems. The company was formerly known as Japan Grout Corporation and changed its name to Japan Foundation Engineering Co., Ltd. in April 1985. The company was founded in 1958 and is headquartered in Osaka, Japan.

How the Company Makes Money

Japan Foundation Engineering Co., Ltd. generates revenue primarily through its engineering and construction services, particularly in foundation work and ground improvement projects. The company's revenue model is based on project contracts and service agreements with contractors, developers, and government agencies. Key revenue streams include fees for design and consultancy services, direct payments for construction work, and long-term maintenance contracts. Additionally, the company may benefit from strategic partnerships with other engineering firms and construction companies, enhancing its market reach and capacity to undertake large-scale projects. Factors contributing to its earnings include a strong reputation for quality and reliability in engineering solutions, a growing demand for infrastructure development, and advancements in technology that improve service efficiency.

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: Negative
• Last Price: 633.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 633 is below the 20-day moving average (MA) of 641.25, below the 50-day MA of 655.44, and below the 200-day MA of 641.71, indicating a bearish trend. The MACD of -7.08 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 67.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1890	75 Outperform	¥163.62B	18.35	―	5.05%	0.57%	26.93%
1926	74 Outperform	¥124.83B	14.05	―	3.43%	8.19%	29.40%
1762	69 Neutral	¥105.34B	16.77	―	2.52%	6.90%	-25.24%
1914	65 Neutral	¥13.45B	12.80	―	3.74%	17.93%	-31.47%
1720	64 Neutral	¥112.54B	13.97	―	3.53%	11.42%	26.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1888	58 Neutral	¥61.08B	16.18	―	2.63%	1.00%	-6.09%