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

• Market Cap: ¥13.89B
• Dividend Yield: 3.67%
• Average Volume (3M): 33.89K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.94
• 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: 31,770
• 30 Day Avg. Volume: 33,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥717.00
• Price Target Upside: 9.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥717.00 ▲(9.63% Upside)

The overall stock score reflects strong revenue growth and a solid balance sheet, but is tempered by concerns over profitability and liquidity. Technical indicators suggest potential short-term weakness, while the valuation is attractive with a reasonable P/E ratio and a good dividend yield.

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 profitability, supported by a robust balance sheet with low leverage. However, cash flow management is an area of concern due to historical variability and missing recent data.

Income Statement

The company shows strong financial performance in TTM with a significant increase in revenue and net income compared to the previous year. Gross profit margin stands at 17.52%, while the net profit margin is a healthy 7.31%. The EBIT and EBITDA margins are also strong at 6.90% and 11.02%, respectively. Revenue growth is notable, indicating positive business momentum. The company demonstrates solid profitability and growth potential.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.17, indicating conservative leverage. Return on equity is solid at 9.66%, reflecting efficient use of equity to generate profits. The equity ratio is high at 69.10%, suggesting financial stability and a strong capital base. Overall, the company's balance sheet reflects financial health and prudent management of liabilities.

Cash Flow

The cash flow statement reveals challenges, with operating cash flow and free cash flow data missing for the TTM period. Historically, the company has shown variability in free cash flow, with growth in some years and declines in others. This variability poses potential risks in cash flow management. The free cash flow to net income ratio was 0.52 last year, indicating moderate cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.28B	30.28B	23.58B	23.91B	22.11B	22.85B
Gross Profit	5.04B	5.05B	3.93B	3.37B	3.42B	3.02B
EBITDA	3.42B	3.18B	2.41B	2.02B	2.05B	1.63B
Net Income	1.44B	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	4.62B	4.62B	6.22B	6.21B	6.43B	5.77B
Total Debt	4.00B	4.00B	3.32B	3.34B	2.72B	1.25B
Total Liabilities	8.83B	8.83B	10.90B	9.61B	8.98B	8.22B
Stockholders Equity	22.95B	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	697.51M	1.65B	969.54M	1.19B	1.37B
Investing Cash Flow	0.00	-2.09B	-1.43B	-945.98M	-325.95M	-783.67M
Financing Cash Flow	0.00	-233.30M	-383.00M	-276.96M	48.60M	-350.03M

Japan Foundation Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 654.00
• 50DMA: Negative
• 100DMA: Negative
• 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:1914, the sentiment is Neutral. The current price of 654 is below the 20-day moving average (MA) of 659.20, below the 50-day MA of 670.48, and above the 200-day MA of 637.22, indicating a neutral trend. The MACD of -4.06 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	80 Outperform	¥129.89B	14.62	11.29%	3.29%	8.19%	29.40%
1890	75 Outperform	¥163.81B	18.34	10.78%	5.05%	0.57%	26.93%
1888	73 Outperform	¥65.03B	17.23	7.64%	2.47%	1.00%	-6.09%
1720	69 Neutral	¥120.60B	14.97	6.52%	3.30%	11.42%	26.72%
1762	69 Neutral	¥109.80B	17.53	4.69%	2.41%	6.90%	-25.24%
1914	67 Neutral	¥13.89B	13.22	―	3.67%	17.93%	-31.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%