JGC (1963) AI Stock Analysis

• Market Cap: ¥597.82B
• Dividend Yield: 2.1%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.85
• Revenue Growth: -0.41%
• EPS Growth: 80.25%
• Country: JP
• Employees: 8,865
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 75.46
• Shares Outstanding: 259,793,000
• 10 Day Avg. Volume: 2,906,950
• 30 Day Avg. Volume: 2,048,153
• PEG Ratio: 7.52
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 7.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 119.93
• Revenue Forecast (FY): ¥761.80B

• Rating: 65 Neutral
• Price Target: ¥2,521.00 ▲(23.49% Upside)
• Action: Reiterated Date: 02/10/26
• Date: Action: Reiterated 02/10/26

Overall score reflects a financially stable company with strong cash flow and low leverage, but meaningfully pressured profitability (net loss, weak margins) keeps the score moderate. Technicals are supportive with a strong uptrend, though overbought signals add near-term risk. Valuation is constrained by negative earnings and only a modest dividend yield.

Positive Factors

Low leverage / strong balance sheet

JGC’s very low debt-to-equity (0.09) and near 50% equity ratio give durable financial flexibility to underwrite large EPC project bonds, absorb delayed payments, and sustain capex or bid activity during sector cyclicality without immediate refinancing stress.

Strong cash generation & FCF recovery

A turnaround to significant positive free cash flow and an operating-CF to net-income ratio above 100% indicate persistent ability to convert project work into liquidity. That supports working capital for multi-year contracts and funds reinvestment or deleveraging over the medium term.

Diversified global EPC franchise

JGC’s core engineering, procurement and construction capabilities across LNG, petrochemical and industrial projects create a durable competitive position. Broad technical expertise and global project experience help secure FEED-to-EPC work and reduce dependence on any single commodity cycle.

Negative Factors

Negative returns / net losses

Negative ROE driven by net losses erodes retained capital and limits shareholder returns; over time persistent losses can reduce bidding capacity, restrict investment in margin-improving initiatives, and weaken stakeholder confidence in executing large projects profitably.

Very low gross and operating margins

Extremely thin gross margins and a negative EBIT margin point to structural cost or pricing pressure in project execution. Such persistent margin weakness undermines ability to generate surplus on long-term contracts and raises the risk that cost overruns will materially impair future profitability.

Weak EBITDA and operational efficiency

A low EBITDA margin signals limited operating leverage and a narrow cushion against project volatility. Over months, without efficiency gains, the company may struggle to absorb delays or inflation, reducing competitiveness in bidding and constraining sustainable free cash flow growth.

JGC Business Overview & Revenue Model

Company Description

JGC 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 Money

JGC generates revenue through a combination of fixed-price and cost-reimbursable contracts for engineering, procurement, and construction (EPC) services. The primary revenue streams include project execution in the oil and gas sector, where it undertakes large-scale refinery and petrochemical plant construction projects. Additionally, JGC earns income from maintenance and operational support services for the facilities they build. Significant partnerships with major oil companies and government entities also enhance its revenue potential, alongside joint ventures that expand its market reach and capabilities. The company's focus on securing long-term contracts and participating in global infrastructure projects further contributes to its stable earnings.

JGC Financial Statement Overview

Summary

Financials are stable but profitability is weak. Modest revenue growth (3.06%) is offset by very low gross margin (2.21%), negative EBIT margin (-1.34%), and net losses. Balance sheet leverage is low (debt-to-equity 0.09; equity ratio 49.81%), and cash flow is a relative strength with strong operating cash generation and a swing to positive free cash flow (37.18B JPY).

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	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	843.74B	858.08B	832.60B	606.89B	428.40B	433.97B
Gross Profit	18.79B	18.93B	10.66B	66.73B	45.37B	43.78B
EBITDA	20.08B	20.06B	13.88B	57.81B	-19.64B	29.31B
Net Income	-7.18B	-398.00M	-7.83B	30.66B	-35.55B	5.14B
Balance Sheet
Total Assets	738.65B	784.17B	792.30B	713.13B	694.27B	702.53B
Cash, Cash Equivalents and Short-Term Investments	302.71B	333.70B	324.96B	332.95B	288.16B	268.28B
Total Debt	34.41B	34.89B	39.27B	36.77B	72.32B	67.37B
Total Liabilities	357.35B	391.91B	404.41B	315.15B	306.61B	284.91B
Stockholders Equity	379.77B	390.66B	386.15B	397.34B	387.14B	417.12B
Cash Flow
Free Cash Flow	0.00	37.18B	-7.90B	98.63B	9.51B	2.26B
Operating Cash Flow	0.00	46.76B	11.09B	110.77B	19.31B	12.47B
Investing Cash Flow	0.00	-21.17B	-20.20B	-11.47B	-7.70B	-13.52B
Financing Cash Flow	0.00	-15.05B	-8.89B	-61.29B	-148.00M	196.00M

JGC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2041.50
• 50DMA: Positive
• 100DMA: Positive
• 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:1963, the sentiment is Positive. The current price of 2041.5 is below the 20-day moving average (MA) of 2300.55, below the 50-day MA of 2111.95, and above the 200-day MA of 1610.98, indicating a bullish trend. The MACD of 74.79 indicates Positive momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 46.76 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1417	76 Outperform	¥327.99B	15.60	8.12%	2.28%	6.50%	53.04%
1949	74 Outperform	¥346.51B	20.02	12.41%	1.68%	8.09%	20.78%
6366	73 Outperform	¥335.36B	4.00	117.82%	―	-12.14%	―
1942	72 Outperform	¥1.35T	23.84	14.15%	2.00%	16.43%	53.76%
1963	65 Neutral	¥597.82B	17.06	-0.24%	2.10%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6330	53 Neutral	¥171.17B	-11.48	2.62%	0.96%	-5.80%	-126.63%

JGC Corporate Events

JGC Holdings Overhauls Board and Executive Ranks in Governance Refresh

JGC Holdings Corporation has announced a wide-ranging reshuffle of its leadership, including directors, auditors and executive officers at both the holding company and its main operating subsidiary, JGC Corporation. The move signals continued strengthening of governance and management depth as the group navigates its engineering and energy project portfolio.

At the holding company level, former JERA Co., Inc. chairman Toshihiro Sano will join as an outside director in June 2026, while Hiroyuki Miyoshi will become an Audit and Supervisory Board member and two associate executive officers, Tomoyuki Igarashi and Hisanori Kato, will be promoted to executive officers. Longstanding audit and executive leaders Kazuyoshi Muto, Takeshi Kawasaki and Satoshi Kurata will retire or transition to senior advisor roles, with Miyoshi also appointed corporate auditor at JGC Corporation, underscoring a coordinated succession plan across the group’s governance structure.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen2408.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Books ¥3.8 Billion in FX Gains for Third Quarter

JGC Holdings has recorded non-operating income of ¥3,751 million in foreign exchange gains for the third quarter of its fiscal year ending March 31, 2026. The gains stem mainly from valuation increases on foreign currency-denominated assets and liabilities remeasured at quarter-end exchange rates.

The company indicated that detailed effects of this non-operating income on its overall financial performance are disclosed in its consolidated third-quarter financial statements released the same day. The announcement underscores the material impact of currency fluctuations on JGC’s earnings profile and highlights foreign exchange movements as a notable factor in its quarterly results.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen2408.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Holdings to Cancel 15.5 Million Treasury Shares to Tighten Capital Structure

JGC Holdings Corporation said its board has approved the cancellation of 15.5 million treasury shares, representing 5.97% of its issued shares as of January 31, 2026. The move, scheduled for February 27, 2026, is part of the company’s capital management strategy and reflects an effort to enhance capital efficiency and optimize its equity structure.

Following the cancellation, the total number of shares outstanding will fall from 259,793,008 to 244,293,008, while treasury shares will drop sharply from 17,942,089 to 2,442,089, or about 1.0% of shares issued. This significant reduction in treasury stock is likely to be viewed positively by shareholders, as it effectively reduces share supply and may support shareholder value over the longer term.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen2408.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Outlines Nine-Month FY2025 Results and Full-Year Outlook

JGC Holdings Corporation has released an outline of its financial results for the first nine months of fiscal 2025, covering the period from April 1 to December 31, 2025. The document also indicates that the company has prepared forecasts for its full-year fiscal 2025 performance, suggesting ongoing monitoring of business trends and operational progress.

While the release provided here is limited to a high-level contents overview, it signals that JGC continues to report and manage its performance through detailed quarterly disclosures. Stakeholders can infer that the company is maintaining transparency about its financial status and outlook, which is important for investors, clients, and partners assessing its stability and future project capacity.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen2408.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Swings Back to Profit as Earnings and Equity Position Improve

JGC Holdings reported consolidated net sales of ¥566.8 billion for the nine months ended December 31, 2025, down 6.2% year-on-year, but swung from an operating loss to an operating profit of ¥26.7 billion and posted profit attributable to owners of the parent of ¥29.9 billion, compared with a loss a year earlier. The balance sheet strengthened, with total assets rising to ¥830.9 billion and the equity ratio improving to 51.6%, and the company maintained its dividend outlook for the fiscal year ending March 31, 2026 at an annual ¥40 per share, underscoring confidence in earnings recovery and capital soundness despite softer sales.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen2408.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Holdings Revises Earnings Forecast Upward for FY 2025

JGC Holdings Corporation has revised its earnings forecast for the fiscal year ending March 2026, reflecting significant improvements in net sales, operating profit, ordinary income, and profit attributable to owners of the parent. This revision is attributed to increased revenue from additional agreements in overseas EPC projects and improved profitability from steady execution of multiple projects. The company also adjusted its exchange rate assumptions, contributing to the optimistic forecast. The annual dividend forecast remains unchanged, maintaining a payout ratio of 30% with a minimum annual dividend of 40 yen per share.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1584.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Holdings Reports Mixed Financial Results for Q2 2026

JGC Holdings Corporation reported its consolidated financial results for the second quarter ending March 31, 2026. The company experienced a decline in net sales by 6.3% compared to the previous year, while operating profit increased by 26.9%. Despite the decrease in net sales, the company managed to improve its operating profit, indicating operational efficiency. The equity ratio also improved, suggesting a stronger financial position. However, the profit attributable to owners of the parent decreased by 8.7%, reflecting challenges in maintaining profitability amidst declining sales.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1584.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.