JGC Corp. (JP:1963)
:1963
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JGC
(1963)
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Rating:65Neutral
Price Target:
¥2,928.00
▲(43.42% Upside)
Action:ReiteratedDate: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
Durable EPC business model
JGC’s core EPC model—engineering, procurement and construction for large energy and industrial facilities—generates multi-year, milestone-driven cash flows. That project-based revenue mix (including FEED and consultancy) creates durable revenue visibility and repeatable contract opportunities tied to long-term infrastructure demand.
Negative Factors
Very thin margins
Extremely low gross and negative operating margins indicate structural cost pressure or pricing weakness on projects. In EPC, such thin margins leave little buffer for cost overruns or delays, raise execution risk on large contracts, and constrain the firm’s ability to rebuild profitability even if revenue stabilizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable EPC business model
JGC’s core EPC model—engineering, procurement and construction for large energy and industrial facilities—generates multi-year, milestone-driven cash flows. That project-based revenue mix (including FEED and consultancy) creates durable revenue visibility and repeatable contract opportunities tied to long-term infrastructure demand.
Read all positive factors
JGC (1963) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥665.83B
Dividend Yield2.1%
Average Volume (3M)2.05M
Price to Earnings (P/E)6.3
Beta (1Y)0.95
Revenue Growth-0.41%
EPS Growth80.25%
CountryJP
Employees8,865
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)75.46
Shares Outstanding244,293,010
10 Day Avg. Volume2,906,950
30 Day Avg. Volume2,048,153
Financial Highlights & Ratios
PEG Ratio7.52
Price to Book (P/B)0.73
Price to Sales (P/S)0.33
P/FCF Ratio7.65
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)135.2
Revenue Forecast (FY)¥761.50B
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 co...
How the Company Makes Money
JGC primarily makes money by delivering EPC and related project services under customer contracts. Revenue is largely generated from (1) engineering and design services, (2) procurement services where JGC sources and manages equipment/material pur...
JGC Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:May 14, 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
55
Neutral
Balance Sheet
68
Positive
Cash Flow
75
Positive
| 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 | 21.09B | 10.66B | 66.73B | 47.41B | 46.25B |
| EBITDA | -815.00M | -890.00M | -9.29B | 44.54B | 27.89B | 29.31B |
| Net Income | -7.18B | -398.00M | -7.83B | 30.66B | -35.55B | 5.14B |
Balance Sheet | ||||||
| Total Assets | 738.65B | 784.17B | 796.63B | 716.99B | 699.67B | 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 | 36.63B | 41.61B | 39.65B | -50.98B | 68.14B |
| Total Liabilities | 357.35B | 391.91B | 408.74B | 319.01B | 312.01B | 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 | -2.43B | 104.20B | 13.84B | 3.75B |
| 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
Positive
2041.50
Price Trends
2234.23
Positive
2054.71
Positive
1714.95
Positive
Market Momentum
111.77
Negative
72.61
Negative
93.99
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 2041.5 is below the 20-day moving average (MA) of 2250.73, below the 50-day MA of 2234.23, and above the 200-day MA of 1714.95, indicating a bullish trend. The MACD of 111.77 indicates Negative momentum. The RSI at 72.61 is Negative, neither overbought nor oversold. The STOCH value of 93.99 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥311.06B | 12.00 | 8.70% | 2.28% | 6.50% | 53.04% | |
74 Outperform | ¥314.39B | 0.79 | 164.12% | ― | -12.14% | ― | |
72 Outperform | ¥1.30T | 12.95 | 14.94% | 2.00% | 16.43% | 53.76% | |
65 Neutral | ¥665.83B | 6.30 | -0.24% | 2.10% | -0.41% | 80.25% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | ¥135.42B | -3.11 | -33.76% | 0.96% | -5.80% | -126.63% |
* Industrials Sector Average
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JGC Corporate Events
JGC Holdings Overhauls Board and Executive Ranks in Governance Refresh
Feb 10, 2026
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 stre...
JGC Books ¥3.8 Billion in FX Gains for Third Quarter
Feb 10, 2026
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 a...
JGC Holdings to Cancel 15.5 Million Treasury Shares to Tighten Capital Structure
Feb 10, 2026
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 capita...
JGC Outlines Nine-Month FY2025 Results and Full-Year Outlook
Feb 10, 2026
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 ...
JGC Swings Back to Profit as Earnings and Equity Position Improve
Feb 10, 2026
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 t...
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.