JGC (1963) AI Stock Analysis

• Market Cap: $343.40B
• Dividend Yield: 3%
• Average Volume (3M): 894.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 3.06%
• EPS Growth: 94.98%
• Country: JP
• Employees: 8,865
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 14.78
• Shares Outstanding: 259,618,800
• 10 Day Avg. Volume: 983,370
• 30 Day Avg. Volume: 894,926
• PEG Ratio: -7.78
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $1,202.83
• Price Target Upside: -11.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥1,430.00 ▲(5.30%Upside)

JGC's stock score is primarily driven by its stable financial structure and strong technical indicators. However, significant profitability challenges and a poor earnings-based valuation weigh on the score. The positive market momentum and dividend yield offer some support but are not enough to offset the negative valuation metrics.

JGC Business Overview & Revenue Model

Company Description

JGC (1963) is a diversified company with a focus on providing engineering and construction services primarily in the oil and gas sector. The company specializes in designing and constructing large-scale industrial facilities and infrastructure projects, serving clients in both the public and private sectors. JGC (1963) is recognized for its expertise in project management and technical innovation, enabling them to deliver complex projects efficiently and reliably.

How the Company Makes Money

JGC (1963) makes money through a combination of service contracts and project-based revenue. The company's primary revenue streams include engineering, procurement, and construction (EPC) contracts, where they design and build industrial facilities for clients. These contracts often involve long-term projects that provide a steady stream of revenue over their duration. Additionally, JGC (1963) may engage in partnerships or joint ventures with other companies to expand their project portfolio and share in the financial returns. Key factors contributing to their earnings include their ability to deliver projects on time and within budget, maintaining strong relationships with clients, and leveraging their technical expertise to win competitive bids.

JGC Financial Statement Overview

Summary

JGC has a stable financial structure with low leverage and strong cash flow management. However, the company struggles with profitability, as shown by negative net profit margins and return on equity. Revenue growth is modest, and operational efficiencies need improvement.

Income Statement

JGC has shown a mixed performance in its income statement. The revenue growth rate from 2024 to 2025 was modest at 3.06%, suggesting a stable but slow growth trajectory. Gross profit margin for 2025 was low at 2.21%, reflecting significant cost pressures. The net profit margin was negative due to a net loss, indicating challenges in maintaining profitability. Additionally, both EBIT and EBITDA margins were weak, with a negative EBIT margin of -1.34% and a low EBITDA margin of 2.34% for 2025, highlighting operational inefficiencies.

Balance Sheet

The balance sheet of JGC reflects a stable financial position with a debt-to-equity ratio of 0.09 in 2025, indicating low leverage and financial prudence. The equity ratio is robust at 49.81%, showcasing a healthy proportion of equity financing. However, return on equity was negative at -0.10% due to net losses, pointing to challenges in generating returns for shareholders. Overall, the balance sheet suggests financial stability but lacks profitability.

Cash Flow

The cash flow statement reveals strong operational cash generation with an operating cash flow to net income ratio of 117.49 for 2025, indicating efficient cash management despite net losses. Free cash flow improved significantly with a positive growth rate, turning from negative in 2024 to a healthy 37.18 billion JPY in 2025. The free cash flow to net income ratio was also strong at -93.42, underscoring effective cash flow management despite profitability issues.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	858.08B	832.60B	606.89B	428.40B	433.97B
Gross Profit	18.93B	10.66B	66.73B	45.37B	43.78B
EBITDA	20.06B	13.88B	44.54B	-19.64B	29.31B
Net Income	-398.00M	-7.83B	30.66B	-35.55B	5.14B
Balance Sheet
Total Assets	784.17B	792.30B	713.13B	694.27B	702.53B
Cash, Cash Equivalents and Short-Term Investments	333.70B	324.96B	332.95B	288.16B	268.28B
Total Debt	34.89B	39.27B	36.77B	72.32B	67.37B
Total Liabilities	391.91B	404.41B	315.15B	306.61B	284.91B
Stockholders Equity	390.66B	386.15B	397.34B	387.14B	417.12B
Cash Flow
Free Cash Flow	37.18B	-7.90B	98.63B	9.51B	2.26B
Operating Cash Flow	46.76B	11.09B	110.77B	19.31B	12.47B
Investing Cash Flow	-21.17B	-20.20B	-11.47B	-7.70B	-13.52B
Financing Cash Flow	-15.05B	-8.89B	-61.29B	-148.00M	196.00M

JGC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1358.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1358 is above the 20-day moving average (MA) of 1288.53, above the 50-day MA of 1250.83, and above the 200-day MA of 1217.69, indicating a bullish trend. The MACD of 31.31 indicates Negative momentum. The RSI at 70.81 is Negative, neither overbought nor oversold. The STOCH value of 85.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1963.

JGC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1802	80 Outperform	¥1.60T	10.93	12.49%	3.71%	12.68%	94.75%
1942	77 Outperform	€734.68B	15.42	14.13%	2.22%	16.45%	60.65%
1812	77 Outperform	$1.84T	14.23	10.06%	2.80%	9.25%	11.71%
1801	77 Outperform	$1.66T	13.28	13.61%	2.44%	22.05%	215.17%
1803	76 Outperform	$1.12T	15.53	8.70%	2.08%	1.02%	5782.30%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
1963	64 Neutral	$343.40B	―	-0.17%	3.00%	3.06%	94.98%

JGC Corporate Events

JGC HOLDINGS Issues New Shares as Restricted Stock Compensation

JGC HOLDINGS CORPORATION has announced the issuance of 130,670 new common shares as restricted stock compensation. This move is part of a system designed to align the interests of directors and executive officers with shareholders by sharing the benefits and risks of stock price fluctuations. The initiative aims to incentivize an increase in stock price and enhance corporate value over the medium to long term. The allocation is set for the fiscal year 2025 and involves a total monetary compensation claim of 163,076,160 yen, with a restricted period of 30 years.

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 Introduces Performance-Linked Stock Compensation

JGC HOLDINGS CORPORATION has announced the issuance of new shares as part of a performance-linked stock compensation plan for its directors and executive officers. This initiative aims to align the interests of the company’s leadership with shareholders by tying compensation to stock performance, thereby incentivizing the achievement of performance targets and enhancing long-term corporate value.

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 Announces Executive Leadership Change

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

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

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

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

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.