Hibiya Engineering,Ltd. (1982) AI Stock Analysis

• Market Cap: ¥141.46B
• Dividend Yield: 2.14%
• Average Volume (3M): 22.64K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.99
• Revenue Growth: 4.81%
• EPS Growth: -1.16%
• Country: JP
• Employees: 966
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 106.71
• Shares Outstanding: 23,756,320
• 10 Day Avg. Volume: 29,660
• 30 Day Avg. Volume: 22,643
• PEG Ratio: 0.46
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -82.22
• 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): 295.4
• Revenue Forecast (FY): ¥95.00B

• Rating: 74 Outperform
• Price Target: ¥7,672.00 ▲(60.67% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by strong financial performance (profitability growth and a very strong, low-risk balance sheet), partially offset by deteriorating free cash flow and overextended technical momentum signals that raise near-term pullback risk. Valuation appears reasonable but not meaningfully cheap based on P/E and dividend yield.

Positive Factors

Balance sheet strength

Extremely low leverage and a ~70.7% equity ratio provide durable financial flexibility. Substantial cash reserves and an 8.4% ROE mean the firm can withstand project timing swings, fund selective capex or M&A, and support operations without refinancing pressure for many quarters.

Consistent revenue growth and improving margins

Sustained top-line growth with simultaneous margin expansion demonstrates scalable project execution and pricing power. Continued revenue and profit margin improvement supports durable earnings capacity and strengthens free cash generation potential if cash conversion normalizes.

Healthy operational margins and profitability

Robust gross and EBITDA margins indicate efficient cost management and project controls endemic to the business model. Combined with a positive ROE, this suggests the company sustainably converts revenues into operating profits, supporting reinvestment and long-term competitiveness.

Negative Factors

Deteriorating free cash flow

A swing to negative FCF is a structural risk: persistent cash outflows reduce the buffer provided by cash reserves, constrain organic investment, and can force reliance on financing for capex or dividends. If unresolved, this undermines long-term capital allocation flexibility.

Weak cash conversion/quality of earnings

Negative operating cash flow relative to net income signals that reported profits are not converting to cash, possibly from receivables or inventory timing. Persisting poor cash conversion increases liquidity risk and may require operational fixes to restore durable free cash generation.

Industry cyclicality (Engineering & Construction)

Project-based revenue and sector cyclicality create structural volatility in backlog, margins, and working capital. Over multi-quarter horizons, this can amplify swings in cash flow and profitability, making planning and consistent free cash generation more challenging.

Hibiya Engineering,Ltd. Business Overview & Revenue Model

Company Description

Hibiya Engineering, Ltd., together with its subsidiaries, provides various engineering products and services primarily in Japan. The company operates in three segments: Construction, Equipment Sales, and Equipment Manufacturing. It offers a range of services comprising planning, design, and installation of air conditioning, sanitary, electrical, plumbing, and information and communications equipment, as well as maintenance, management, and upgrading activities. The company also undertakes building and public works design and construction; and building and building system maintenance and management, building security, and cleaning activities. In addition, it engages in the manufacture and sale of construction and sanitary equipment; development, design, installation, sale, and maintenance of building security systems; and provision of consulting services. The company was founded in 1966 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Hibiya Engineering generates revenue through a combination of project contracts, consulting services, and maintenance agreements. The company typically earns money by securing contracts for large-scale infrastructure projects, often funded by government agencies or private sector clients. Key revenue streams include fees for engineering design services, construction execution, and ongoing maintenance and operational support for the facilities they build. Additionally, Hibiya Engineering may engage in partnerships with other engineering firms or stakeholders in environmental initiatives, which can further enhance their service offerings and revenue potential.

Hibiya Engineering,Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: revenue grew ~7.2% (2024 to 2025), profitability improved (net margin ~6.6%), and the balance sheet is exceptionally low-leverage with a high equity ratio (~70.7%). The main offset is weaker cash generation, with free cash flow turning negative in 2025.

Income Statement

Hibiya Engineering, Ltd. demonstrates a strong and consistent performance in its income statement. The company has shown steady revenue growth, with an increase from 83.76 billion yen in 2024 to 89.79 billion yen in 2025, translating to a growth rate of approximately 7.2%. Gross profit margin is healthy at around 19.2% in 2025, indicating efficient cost management. Net profit margin improved to 6.6% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins are also robust, at 8.3% and 10.0% respectively, showcasing operational efficiency. Overall, the income statement exhibits growth and profitability, with no significant concerns.

Balance Sheet

The balance sheet of Hibiya Engineering, Ltd. is notably strong, with a low debt-to-equity ratio of 0.00024, indicating minimal leverage and financial risk. The equity ratio stands at 70.7%, reflecting a solid financial foundation with a high proportion of equity financing. Return on equity (ROE) is sound at 8.4%, demonstrating effective use of equity to generate profits. The company's substantial cash reserves further bolster its financial stability. Overall, the balance sheet reflects financial strength and low risk.

Cash Flow

Cash flow performance is mixed for Hibiya Engineering, Ltd. The free cash flow decreased significantly from 3.86 billion yen in 2024 to -847 million yen in 2025, indicating challenges in cash generation. However, operating cash flow to net income ratio is negative, suggesting potential short-term liquidity issues. Despite this, the company has managed to maintain a healthy cash position, mitigating some cash flow concerns. While there are areas for improvement, the company's liquidity remains adequate.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	91.32B	89.79B	83.76B	83.98B	75.50B	73.12B
Gross Profit	17.96B	17.27B	14.90B	15.13B	14.69B	12.27B
EBITDA	9.74B	8.98B	7.04B	6.81B	6.57B	4.77B
Net Income	6.43B	5.91B	4.80B	4.64B	4.37B	3.08B
Balance Sheet
Total Assets	91.29B	99.92B	98.23B	94.69B	87.47B	86.14B
Cash, Cash Equivalents and Short-Term Investments	30.53B	26.77B	31.95B	29.93B	33.96B	34.90B
Total Debt	2.13B	17.00M	7.00M	13.00M	21.00M	15.00M
Total Liabilities	20.05B	28.23B	28.31B	29.98B	24.06B	23.55B
Stockholders Equity	70.22B	70.68B	68.92B	63.75B	61.98B	61.23B
Cash Flow
Free Cash Flow	0.00	-847.00M	3.86B	751.00M	1.59B	10.71B
Operating Cash Flow	0.00	-616.00M	4.17B	1.12B	1.70B	10.77B
Investing Cash Flow	0.00	-1.79B	244.00M	-2.55B	-269.00M	172.00M
Financing Cash Flow	0.00	-3.77B	-3.38B	-3.60B	-2.87B	-1.94B

Hibiya Engineering,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4775.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1982, the sentiment is Positive. The current price of 4775 is below the 20-day moving average (MA) of 5739.50, below the 50-day MA of 5237.50, and above the 200-day MA of 4396.08, indicating a bullish trend. The MACD of 377.89 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 49.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1982.

Hibiya Engineering,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1926	82 Outperform	¥151.20B	14.74	―	3.22%	12.23%	43.29%
1879	80 Outperform	¥121.07B	8.73	―	2.81%	-3.99%	13.29%
1870	79 Outperform	¥106.40B	9.99	―	3.63%	35.73%	62.37%
1939	76 Outperform	¥97.52B	18.09	―	4.38%	-0.84%	-1.80%
1982	74 Outperform	¥141.46B	17.22	―	2.14%	4.81%	-1.16%
1762	64 Neutral	¥121.95B	13.28	―	2.13%	7.22%	21.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hibiya Engineering,Ltd. Corporate Events

Hibiya Engineering Releases Q3 FY2025 Fact Book on Key Financial Trends

Hibiya Engineering, Ltd. has released a fact book for the third quarter of the fiscal year ending March 31, 2026, providing trends in major management indicators on a consolidated basis. The materials highlight movements in orders received, net sales, the balance sheet, the statement of income, and segment information, giving investors and stakeholders an overview of the company’s financial health and business performance during the period.

By disclosing these trends, the company aims to enhance transparency around its operational momentum and financial structure. The focus on consolidated data and segment information suggests attention to both overall corporate performance and the contribution of individual business segments, which may be used by analysts to assess growth trajectories and risk profiles.

The most recent analyst rating on (JP:1982) stock is a Buy with a Yen5750.00 price target. To see the full list of analyst forecasts on Hibiya Engineering,Ltd. stock, see the JP:1982 Stock Forecast page.

Hibiya Engineering Lifts FY2026 Forecast, Hikes Dividend and Announces Stock Split

Hibiya Engineering has raised its full-year forecast for the fiscal year ending March 31, 2026, citing stronger-than-expected project progress and improved profit margins from enhanced productivity. Consolidated net sales are now projected at ¥94.3 billion, with operating profit of ¥9.4 billion and profit attributable to owners of parent of ¥7.3 billion, all marking double-digit percentage increases versus the previous outlook.

Non-consolidated figures were also upgraded, with net sales now seen at ¥86.8 billion and profit attributable to owners of parent at ¥7.0 billion, reflecting robust project execution. The company expects consolidated orders to reach ¥102.0 billion, supported by solid gains in large-scale contracts, underlining a strong demand environment and potentially reinforcing its competitive position in the engineering sector.

Hibiya Engineering also revised its dividend forecast upward and announced a 2-for-1 stock split effective March 31, 2026, aiming to enhance shareholder returns and improve stock liquidity. The year-end dividend forecast, presented on a post-split basis, represents an increase compared with previous guidance, signaling management’s confidence in the company’s earnings trajectory and cash-generation capacity.

The most recent analyst rating on (JP:1982) stock is a Buy with a Yen5750.00 price target. To see the full list of analyst forecasts on Hibiya Engineering,Ltd. stock, see the JP:1982 Stock Forecast page.

Hibiya Engineering Delivers Strong Profit Surge on Robust Orders and Higher Margins

Hibiya Engineering, Ltd. reported strong consolidated results for the first three quarters of the fiscal year ending March 31, 2026, with net sales rising 13.3% year on year to 64.3 billion yen and orders received jumping 48.4% to 85.9 billion yen. Profitability improved significantly, as gross profit climbed 34.3% and operating profit surged 85.3%, supported by steady execution of carried-over projects and productivity and margin gains from construction technologies, reinforcing the company’s operational efficiency and competitive position in large-scale engineering projects.

Ordinary profit grew 76.3% to 7.2 billion yen, while profit attributable to owners of parent increased 65.6% to 5.1 billion yen, underscoring broad-based earnings strength. The steady flow of large projects, particularly in data centers and information-related facilities, suggests continued demand in Hibiya Engineering’s core markets and indicates a favorable backdrop for stakeholders as the company leverages its technical capabilities to enhance profitability and sustain growth.

The most recent analyst rating on (JP:1982) stock is a Buy with a Yen5750.00 price target. To see the full list of analyst forecasts on Hibiya Engineering,Ltd. stock, see the JP:1982 Stock Forecast page.

Hibiya Engineering Lifts Profit Outlook, Announces Stock Split and Higher Dividend

Hibiya Engineering reported strong consolidated results for the first three quarters of the fiscal year ending March 31, 2026, with net sales up 13.3% year on year to ¥64.3 billion and profit attributable to owners of parent surging 65.6% to ¥5.1 billion, driving basic earnings per share to ¥236.86. The company’s financial position also improved, with total assets rising to ¥104.2 billion and the equity ratio strengthening to 72.4%, underscoring a solid balance sheet.

In tandem with these results, Hibiya raised its full-year forecast, now projecting ¥94.3 billion in net sales and a 23.6% increase in full-year profit attributable to owners of parent to ¥7.3 billion. The board also approved a two-for-one stock split effective April 1, 2026 and sharply increased the planned year-end dividend to the equivalent of ¥80 per share pre-split, lifting the annual dividend to ¥130, moves that signal management’s confidence and are likely to be welcomed by shareholders.

The most recent analyst rating on (JP:1982) stock is a Buy with a Yen5750.00 price target. To see the full list of analyst forecasts on Hibiya Engineering,Ltd. stock, see the JP:1982 Stock Forecast page.

Hibiya Engineering Completes ¥2.1 Billion Share Buyback Program

Hibiya Engineering has completed a board-approved share buyback program authorized in May 2025, acquiring 27,900 of its own shares between January 5 and January 30, 2026 for a total of ¥139.87 million via market purchases on the Tokyo Stock Exchange. Cumulatively under this authorization, the company has purchased 541,400 shares for approximately ¥2.10 billion as of January 31, 2026, effectively exhausting the approved monetary limit and signaling continued focus on shareholder returns and capital efficiency through active balance sheet management.

The most recent analyst rating on (JP:1982) stock is a Hold with a Yen5490.00 price target. To see the full list of analyst forecasts on Hibiya Engineering,Ltd. stock, see the JP:1982 Stock Forecast page.

Hibiya Engineering Nears Cap on ¥2.1 Billion Share Buyback Program

Hibiya Engineering, Ltd. has continued its share buyback program authorized by its board in May 2025, repurchasing 26,800 shares on the Tokyo Stock Exchange between December 1 and December 23, 2025, for a total of ¥122.19 million. Cumulatively under this program through December 31, 2025, the company has bought back 513,500 shares at a total cost of approximately ¥1.96 billion, nearing the approved ceiling of 600,000 shares and ¥2.1 billion, a move that tightens its share float and is likely aimed at enhancing capital efficiency and shareholder returns.

The most recent analyst rating on (JP:1982) stock is a Buy with a Yen5054.00 price target. To see the full list of analyst forecasts on Hibiya Engineering,Ltd. stock, see the JP:1982 Stock Forecast page.

Hibiya Engineering Acquires Own Shares to Optimize Capital Structure

Hibiya Engineering, Ltd. announced the acquisition of 33,900 of its own shares from November 4 to November 28, 2025, at a cost of 151,107,000 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 600,000 shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:1982) stock is a Buy with a Yen5054.00 price target. To see the full list of analyst forecasts on Hibiya Engineering,Ltd. stock, see the JP:1982 Stock Forecast page.