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JGC
(1963)
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Rating:71Outperform
Price Target:
¥2,497.00
▲(12.20% Upside)
Action:Reiterated
Date:05/16/26
Overall score is driven primarily by solid financial resilience (strong balance sheet) and a rebound in FY2026 earnings/cash flow, tempered by historically high volatility in profitability and cash flows. Technicals are supportive with the stock trading above major moving averages, while valuation is reasonable but not especially compelling due to a modest dividend yield.
Positive Factors
Conservative balance sheet
Low leverage and a large equity base provide durable financial resilience through the project cycle. This strengthens ability to absorb cost overruns, fund working capital swings, and pursue new bids without urgent refinancing, supporting stability over the next 2–6 months.
Negative Factors
Profitability & cash volatility
Marked year-to-year swings in profits and cash weaken predictability of earnings and free cash flow. That volatility complicates planning, increases bid pricing caution, and raises the chance of margin misses on large contracts over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a large equity base provide durable financial resilience through the project cycle. This strengthens ability to absorb cost overruns, fund working capital swings, and pursue new bids without urgent refinancing, supporting stability over the next 2–6 months.
Read all positive factors
JGC (1963) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥536.73B
Dividend Yield2.3%
Average Volume (3M)2.05M
Price to Earnings (P/E)13.1
Beta (1Y)1.14
Revenue Growth-13.15%
EPS GrowthN/A
CountryJP
Employees8,154
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)173.03
Shares Outstanding244,293,010
10 Day Avg. Volume2,906,950
30 Day Avg. Volume2,048,153
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.28
Price to Sales (P/S)0.74
P/FCF Ratio8.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)199.57
Revenue Forecast (FY)¥697.33B
JGC Business Overview & Revenue Model
Company Description
JGC Holdings Corporation, together with its subsidiaries, delivers comprehensive engineering, procurement, and construction (EPC) solutions for a wide array of industrial plants and facilities worldwide. The company operates through two primary se...
How the Company Makes Money
JGC makes money primarily by contracting to deliver large projects and recognizing revenue based on those contracts. The company’s main revenue model is EPC-style project contracting: it bids for projects (often through competitive tenders or nego...
JGC Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
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.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.
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.
Read all updates
Q2-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 745.28B | 858.08B | 832.60B | 606.89B | 428.40B |
| Gross Profit | 64.14B | 21.09B | 10.66B | 66.73B | 47.41B |
| EBITDA | 73.30B | 20.07B | 13.88B | 57.81B | -19.64B |
| Net Income | 41.84B | -398.00M | -7.83B | 30.66B | -35.55B |
Balance Sheet | |||||
| Total Assets | 838.79B | 784.17B | 796.63B | 716.99B | 699.67B |
| Cash, Cash Equivalents and Short-Term Investments | 400.48B | 333.70B | 324.96B | 332.95B | 288.16B |
| Total Debt | 35.18B | 36.63B | 41.61B | 39.65B | -50.98B |
| Total Liabilities | 407.60B | 391.91B | 408.74B | 319.01B | 312.01B |
| Stockholders Equity | 429.42B | 390.66B | 386.15B | 397.34B | 387.14B |
Cash Flow | |||||
| Free Cash Flow | 67.08B | 37.18B | -2.43B | 104.20B | 13.84B |
| Operating Cash Flow | 79.90B | 46.76B | 11.09B | 110.77B | 19.31B |
| Investing Cash Flow | -14.82B | -21.17B | -20.20B | -11.47B | -7.70B |
| Financing Cash Flow | -10.98B | -15.05B | -8.89B | -61.29B | -148.00M |
JGC Technical Analysis
Negative
2225.50
Price Trends
2497.17
Negative
2447.57
Negative
2172.65
Positive
Market Momentum
-66.23
Negative
41.00
Neutral
37.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1963, the sentiment is Negative. The current price of 2225.5 is below the 20-day moving average (MA) of 2311.70, below the 50-day MA of 2497.17, and above the 200-day MA of 2172.65, indicating a neutral trend. The MACD of -66.23 indicates Negative momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 37.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1963.
JGC Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥1.10T | 16.98 | 16.33% | 2.00% | 3.66% | 35.60% | |
71 Outperform | ¥536.73B | 13.06 | 10.15% | 2.34% | -13.15% | ― | |
70 Neutral | ¥294.79B | 13.54 | 8.82% | 2.31% | 4.11% | 37.59% | |
69 Neutral | ¥170.66B | 2.04 | 114.61% | ― | 8.09% | 213.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
46 Neutral | ¥113.80B | -7.93 | -30.80% | 0.96% | -34.22% | -825.18% |
* Industrials Sector Average
JP:1963
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JGC Corporate Events
JGC Holdings to Grant Treasury Shares as Long-Term Restricted Stock Compensation
Jul 13, 2026
JGC Holdings has approved the disposal of 76,941 treasury shares as restricted stock compensation to directors, executive officers, and certain retired executives across the parent company and its subsidiaries. The shares, priced at 2,336 yen each...
JGC Holdings to Allocate Treasury Shares as Long-Term Performance Stock to Management
Jul 13, 2026
JGC Holdings’ board has approved the disposal of 148,322 treasury shares, valued at about ¥346 million, to be used as performance share units for 64 directors and executive officers of the parent company and its subsidiaries. The shares...
JGC Launches 2030 Plan to Strengthen LNG Core and Expand Materials Business
May 14, 2026
JGC Holdings has unveiled its medium-term business plan, Building a Sustainable Planetary Infrastructure 2030, aimed at navigating geopolitical risks, shifting decarbonization trends, and post-pandemic uncertainty by leveraging its diverse technol...
JGC Revises 2040 Profit Targets but Reaffirms Long-Term Strategic Vision
May 14, 2026
JGC Holdings has reaffirmed its long-term 2040 Vision, maintaining its core purpose, focus on three key social issues, and transformation pillars despite changing business conditions since 2021. The group, active in global energy and infrastructur...
JGC Holdings Beats Earnings Forecasts and Plans Dividend Proposal After Profit Rebound
May 14, 2026
JGC Holdings reported consolidated results for the fiscal year ended March 31, 2026, that exceeded its February forecast, with net sales slightly above target and operating profit, ordinary profit, and profit attributable to owners of parent all r...
JGC Unveils FY2025 Results and BSP2030 Medium-Term Plan
May 14, 2026
JGC Holdings has released its financial results for FY2025, outlined its business outlook for FY2026, and presented a summary of its new medium-term business plan, BSP2030. The update highlights order targets for its total engineering division, ma...
JGC Holdings Outlines FY2025 Results and Forecasts with Focus on Shareholder Returns
May 14, 2026
JGC Holdings Corporation released an outline of its financial results for fiscal year 2025, covering the period from April 1, 2025, to March 31, 2026. The materials also set out forecasts for FY2026 and details of the company’s plans for enh...
JGC Swings Back to Profit as Earnings and Equity Strengthen in FY2025
May 14, 2026
JGC reported consolidated results for the fiscal year ended March 31, 2026, showing net sales of ¥745.3 billion, down 13.1% year on year, but a sharp turnaround in profitability with operating profit of ¥35.4 billion and ordinary profit ...
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.