JGC (1963) AI Stock Analysis

• Market Cap: ¥482.81B
• Dividend Yield: 2.1%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -0.41%
• EPS Growth: 80.25%
• Country: JP
• Employees: 8,865
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 25.07
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,939.00 ▲(1.07% Upside)

JGC's overall stock score is driven by strong technical momentum and financial stability, but is tempered by significant profitability challenges and valuation concerns. The stock's bullish trend is a positive indicator, yet the negative P/E ratio and modest revenue growth highlight areas needing improvement.

Positive Factors

Financial Stability

Low leverage indicates financial prudence, allowing JGC to maintain stability and flexibility in capital management over the long term.

Cash Flow Management

Strong cash generation supports operational needs and strategic investments, enhancing JGC's ability to weather financial challenges.

Revenue Streams

Diverse revenue streams from long-term contracts provide stability and predictability, supporting sustained business operations.

Negative Factors

Profitability Challenges

Negative profitability impacts JGC's ability to generate shareholder returns and may limit reinvestment in growth opportunities.

Operational Inefficiencies

Low operational efficiency reduces competitiveness and profitability, necessitating improvements in cost management and execution.

Revenue Growth

Modest revenue growth suggests limited market expansion, potentially impacting JGC's ability to scale and capture new opportunities.

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

JGC demonstrates a stable financial structure with low leverage and strong cash flow management. However, profitability is a concern with 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: 1918.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 1918.5 is above the 20-day moving average (MA) of 1869.38, above the 50-day MA of 1735.01, and above the 200-day MA of 1383.13, indicating a bullish trend. The MACD of 33.05 indicates Positive momentum. The RSI at 61.94 is Neutral, neither overbought nor oversold. The STOCH value of 83.36 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
1801	74 Outperform	¥2.41T	18.11	15.61%	1.83%	6.60%	114.38%
1802	73 Outperform	¥2.30T	13.70	14.23%	2.47%	2.27%	70.36%
1812	71 Outperform	¥2.87T	16.49	13.03%	1.96%	10.52%	71.09%
1803	69 Neutral	¥1.78T	18.03	11.22%	1.48%	5.14%	773.86%
1942	69 Neutral	¥1.03T	20.05	14.15%	2.00%	16.43%	53.76%
1963	65 Neutral	¥482.81B	-306.79	-0.24%	2.10%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

JGC Corporate Events

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.

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.