Education
About Us
Working with TipRanks
Follow Us
JGC Corp. (JP:1963)
:1963
Top Page
JGC
(OTC:1963)
Rating:56Neutral
Price Target:
¥1,203.00
▼(-2.71%Downside)
JGC (1963) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$312.29B
Dividend Yield3.05%
Average Volume (3M)957.62K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth3.06%
EPS Growth94.99%
CountryJP
Employees8,865
SectorIndustrials
Sector Strength90
IndustryEngineering & Construction
Share Statistics
EPS (TTM)14.78
Shares Outstanding259,618,800
10 Day Avg. Volume952,930
30 Day Avg. Volume957,616
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.73
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1,261.51Price Target Upside2.02% Upside
Rating ConsensusHold
Number of Analyst Covering0
JGC Business Overview & Revenue Model
Company DescriptionJGC Holdings Corporation, together with its subsidiaries, provides engineering, procurement, and construction services for various plants and facilities. It operates in two segments, Total Engineering and Functional Materials Manufacturing. The company is involved in the design, procurement, construction, and performance test services of plant and machinery for petroleum, petroleum refining, petrochemicals, gas, LNG, chemicals, nuclear energy, metal refining, biochemical, food, pharmaceuticals, procurement, logistics, information technology, environment protection, and pollution control. It also manufactures and distributes chemicals and catalyst products, including FCC catalysts, hydro treating catalysts, deNOx catalysts, petrochemical catalysts, etc.; functional material products, such as colloidal silica, coating materials for surface treatment on cathode ray tubes, material for semiconductors, cosmetic products, etc.; and fine ceramic products. It serves in Japan, East and Southeast Asia, the Middle East, Africa, North America, and internationally. The company was formerly known as JGC Corporation and changed its name to JGC Holdings Corporation in October 2019. JGC Holdings Corporation was incorporated in 1928 and is headquartered in Yokohama, Japan.
How the Company Makes MoneyJGC (1963) generates revenue through its engineering, procurement, and construction (EPC) services. The company earns money by undertaking large-scale projects in the oil and gas, petrochemical, and infrastructure sectors. Key revenue streams include project management fees, design and engineering services, construction management, and procurement of materials and equipment. JGC (1963) often enters into significant partnerships and collaborations with other firms to leverage expertise and resources, enhancing its capabilities and expanding its market reach. Additionally, the company benefits from long-term contracts with major industry players, providing a stable income source and contributing to its financial performance.
JGC Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q2-2024)
| % Change Since: 5.19%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in net sales and demand in specific segments like functional materials and Total Engineering. However, this growth was overshadowed by declining profits, challenges in overseas projects, and a significant reduction in net income. While the market outlook remains positive in certain areas, the financial results reflect significant challenges that need to be addressed.Q2-2024 Updates
Positive Updates
Significant Increase in Net Sales
Net sales rose by 51% year-over-year to JPY 403.2 billion, driven by domestic projects related to clean energy and life sciences, as well as large-scale projects in Saudi Arabia and Iraq.
Strong Demand in Functional Materials
Demand for catalysts, especially for petroleum refining catalysts, remains strong in Japan and abroad. The demand for high thermal conductivity silicon nitride substrates for power semiconductors used in electric vehicles continues to grow.
Robust Market Environment for Total Engineering
Energy demand is increasing, with strong client inquiries for projects, particularly in Europe due to efforts to diversify energy procurement sources. Investment plans for hydrogen, fuel, ammonia, and SAF projects are accelerating.
Order Intake in Total Engineering
In the first half, the Total Engineering segment received orders worth JPY 160 billion, including large-scale biopharmaceutical plant construction projects in Japan.
Floating LNG Plant Success
Completion and delivery of a floating LNG plant in Mozambique, with a production capacity of 3.4 million tonnes per year, positioning JGC as a leading contractor in this field.
Negative Updates
Decline in Profit Margins
Gross profit fell by 11% to JPY 28.4 billion, and the profit ratio declined by 4.9% to 7.1%, primarily due to lower profit in the Total Engineering segment.
Overseas Subsidiaries' Challenges
Overseas projects required risk reviews that temporarily lowered profit margins. Two mid-size projects in Indonesia and Saudi Arabia faced additional costs due to construction site issues and design delays.
Reduction in Net Income
Net income attributable to owners of the parent decreased by 39% to JPY 12.5 billion, influenced by a higher effective tax rate due to losses in the overseas business.
Sluggish New Contracts Overseas
New contracts overseas remain sluggish, with significant projects expected to be awarded later in the fiscal year.
Functional Materials Manufacturing Challenges
Despite a slight increase in net sales to JPY 25.7 billion, profit remained unchanged at JPY 3.7 billion. The sales volume of catalyst products declined, and fine chemical products were impacted by declining demand, particularly for semiconductor-related products.
Company Guidance
During the earnings call for the second quarter of 2024, the executives provided detailed financial guidance, highlighting several key metrics. Net sales increased by 51% year-over-year to JPY 403.2 billion, while gross profit fell by 11% to JPY 28.4 billion. The profit ratio declined by 4.9% to 7.1%, primarily due to challenges in the Total Engineering segment. Operating profit decreased by 31% to JPY 13 billion, and ordinary profit fell 17% to JPY 25.4 billion. Net income attributable to owners of the parent dropped 39% to JPY 12.5 billion, influenced by a higher effective tax rate from overseas business losses. The company maintained its full-year forecast but adjusted the yen-dollar exchange rate from JPY 133 to JPY 140. New contracts in the Total Engineering segment amounted to JPY 158.9 billion, with an order backlog of JPY 1,484.9 billion at the end of September, down JPY 79 billion quarter-over-quarter. The executives emphasized efforts to improve profitability and the impact of exchange rate fluctuations, noting that each one yen change against the U.S. dollar could affect net sales by JPY 2 billion, gross profit by JPY 0.4 billion, and ordinary profit by JPY 0.8 billion.JGC Financial Statement Overview
Summary
JGC's financial performance shows challenges primarily on the profitability front, with consistent losses reflected in the income statement. Despite revenue growth, the company faces operational inefficiencies. The balance sheet is relatively resilient with low leverage and high liquidity, which could provide a foundation for recovery. Cash flow issues highlight a need for operational improvements to enhance cash generation capabilities.Income Statement
The income statement reflects significant volatility. The TTM data shows a negative gross profit margin and net profit margin, indicating considerable losses. Revenue growth is present when comparing to previous years, although profitability measures such as EBIT and EBITDA margins are negative, suggesting operational challenges.45
Neutral
Balance Sheet
The balance sheet is relatively strong with a high equity ratio and low debt-to-equity ratio, suggesting financial stability. However, the negative net income impacts return on equity negatively. The company has healthy levels of cash and short-term investments, which provides a buffer against liabilities.70
Positive
Cash Flow
Cash flow analysis reveals mixed results. While the company maintains a healthy cash position, the negative free cash flow and lack of positive operating cash flow in the latest period indicate struggles with generating cash from operations. Historical operating cash flow to net income ratios were positive, but recent trends show deterioration.50
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 835.66B | 832.60B | 606.89B | 428.40B | 433.97B | 480.81B | Gross Profit |
| -18.51B | 10.66B | 66.73B | 45.37B | 43.78B | 43.35B | EBIT |
| -47.48B | -19.00B | 36.70B | 20.69B | 22.88B | 20.23B | EBITDA |
| -29.81B | 13.88B | 44.54B | -19.64B | 29.31B | 24.13B | Net Income Common Stockholders |
| -22.42B | -7.83B | 30.66B | -35.55B | 5.14B | 4.12B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 335.93B | 324.96B | 332.95B | 288.16B | 268.28B | 261.90B | Total Assets |
| 776.39B | 792.30B | 713.13B | 694.27B | 702.53B | 671.27B | Total Debt |
| 35.96B | 39.27B | 36.77B | 72.32B | 67.37B | 50.57B | Net Debt |
| -289.97B | -285.69B | -296.18B | -215.84B | -200.91B | -211.32B | Total Liabilities |
| 396.51B | 404.41B | 315.15B | 306.61B | 284.91B | 280.29B | Stockholders Equity |
| 378.11B | 386.15B | 397.34B | 387.14B | 417.12B | 390.52B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | -7.90B | 98.63B | 9.51B | 2.26B | 85.77B | Operating Cash Flow |
| 0.00 | 11.09B | 110.77B | 19.31B | 12.47B | 92.44B | Investing Cash Flow |
| 0.00 | -20.20B | -11.47B | -7.70B | -13.52B | 19.36B | Financing Cash Flow |
| 0.00 | -8.89B | -61.29B | -148.00M | 196.00M | -7.70B |
JGC Technical Analysis
Positive
1236.50
Price Trends
1142.52
Positive
1169.63
Positive
1210.07
Positive
Market Momentum
26.95
Negative
64.76
Neutral
69.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1963, the sentiment is Positive. The current price of 1236.5 is above the 20-day moving average (MA) of 1190.38, above the 50-day MA of 1142.52, and above the 200-day MA of 1210.07, indicating a bullish trend. The MACD of 26.95 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 69.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1963.
JGC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.49B | 12.34 | 5.40% | 248.65% | 4.13% | -12.33% | |
56 Neutral | $312.29B | ― | -0.17% | 3.05% | 3.06% | 94.99% | |
| $12.32B | 14.82 | 10.06% | 2.66% | ― | ― | ||
| $10.72B | 11.25 | 12.49% | 3.33% | ― | ― | ||
| $7.50B | 18.10 | 7.47% | 2.25% | ― | ― | ||
| $10.16B | 12.37 | 13.61% | 2.50% | ― | ― | ||
| €3.73B | 14.21 | 12.02% | 2.84% | ― | ― |
* Industrials Sector Average
Performance Comparison
JP:1963
JGC
1,236.50
24.43
2.02%
KAJMF
Kajima
25.90
9.34
56.40%
OBYCF
Obayashi
16.15
4.96
44.33%
SHMUF
Shimizu
11.26
5.91
110.47%
TISCF
TAISEI
54.85
18.02
48.93%
DE:5EY
Kandenko Co., Ltd.
18.00
8.23
84.24%
JGC Corporate Events
JGC Holdings Announces Executive Leadership Change
May 14, 2025
JGC Holdings Corporation announced a change in its executive leadership, with Tsutomu Akabane being appointed as the Senior Executive Vice President and Chief Project Officer, effective June 1, 2025. This strategic leadership change is expected to enhance the company’s project management capabilities and strengthen its position in the industry.
The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.
JGC Holdings Enhances Capital Flexibility with Reserve Adjustment
May 14, 2025
JGC Holdings Corporation announced a strategic move to enhance its capital policy flexibility by reducing its capital reserve and transferring the funds to other capital surplus. This internal financial adjustment, which does not affect the company’s net assets or business results, is aimed at ensuring greater agility in future capital management.
The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.
JGC Holdings Reports Foreign Exchange Losses in Fiscal Year 2024
May 14, 2025
JGC Holdings Corporation reported a non-operating expense of 2,213 million yen due to foreign exchange losses in the fiscal year ending March 2025. This loss was attributed to the appreciation of the yen, which impacted the company’s foreign currency-denominated assets and liabilities, potentially affecting its financial results.
The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.
JGC Holdings Reports Variances in Financial Results Due to Project Costs
May 14, 2025
JGC Holdings Corporation reported differences between its forecasted and actual financial results for the fiscal year ended March 31, 2025. The company saw an increase in net sales due to the progress of large-scale overseas projects and completion of domestic projects, which improved its operating loss. However, despite increased sales, the company faced operating and net losses due to higher estimated construction costs for ongoing projects, impacting its financial performance.
The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.
JGC Holdings Outlines FY2024 Results and FY2025 Strategic Goals
May 14, 2025
JGC Holdings Corporation has released its financial results for FY2024 and outlined its targets for FY2025. The company is focusing on enhancing its framework for executing overseas EPC projects and is making capital investments to boost production capacity in its functional materials manufacturing business. These strategic moves are part of its medium-term business plan aimed at addressing key market challenges and improving operational efficiency.
The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.