Hibiya Engineering,Ltd. (1982) AI Stock Analysis

• Market Cap: ¥108.52B
• Dividend Yield: 2.14%
• Average Volume (3M): 22.64K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.85
• Revenue Growth: 4.81%
• EPS Growth: -1.16%
• Country: JP
• Employees: 966
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 68.06
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥5,969.00 ▲(25.01% Upside)

Hibiya Engineering, Ltd. has a strong financial foundation with excellent balance sheet stability and effective cost management, which are the most significant factors driving the score. The technical analysis suggests a neutral to slightly positive outlook, while the valuation indicates the stock is fairly priced with a decent dividend yield. The absence of earnings call data and corporate events does not impact the overall score.

Positive Factors

Very low leverage and strong equity base

Extremely low leverage and a high equity ratio materially reduce financial risk, improving the firm's capacity to bid on large, capital-intensive infrastructure projects. This balance sheet strength supports sustaining operations, funding capex or M&A, and maintaining credit access over the medium term.

Consistent revenue growth with healthy margins

Steady top-line growth alongside durable gross and operating margins shows the company can win projects while managing costs. Sustainable margins support reinvestment in capabilities, long-term competitiveness in engineering contracts, and the ability to fund dividends or strategic initiatives without degrading fundamentals.

Business model anchored in infrastructure and water treatment

Focus on water, wastewater and environmental projects creates structural demand from public and regulated clients, providing long contract visibility and recurring maintenance revenue. Government funding and essential services lower cyclical exposure and support stable project pipelines over multiple quarters.

Negative Factors

Sharp deterioration in free cash flow

A swing to negative free cash flow signals material timing or working-capital stress in project execution. If persistent, it can erode cash reserves, constrain hiring or capex, and force external financing. This undermines otherwise strong balance-sheet metrics and raises funding risk over the medium term.

Operating cash flow does not align with reported income

When earnings are not converting to cash, receivables, retainage, or project billing timing may be strained. For an engineering firm, this pressures liquidity during long project cycles and could necessitate working-capital financing, increasing costs and reducing flexibility to pursue new contracts or investments.

Negative EPS growth

Reported negative EPS growth indicates profitability volatility or one-off impacts affecting shareholder returns. Over 2–6 months, continued EPS weakness can limit retained earnings for reinvestment, constrain dividend sustainability, and signal operational or margin pressures that may slow strategic initiatives.

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

Hibiya Engineering, Ltd. shows strong financial performance with robust revenue and profit growth, excellent balance sheet stability with low leverage, and a strong equity base. Despite some short-term challenges in cash flow generation, the overall financial health is solid, supported by substantial cash reserves and effective cost management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• Last Price: 4775.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1982, the sentiment is Neutral. The current price of 4775 is below the 20-day moving average (MA) of 5028.00, below the 50-day MA of 4786.30, and above the 200-day MA of 4169.62, indicating a neutral trend. The MACD of 34.29 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1982.

Hibiya Engineering,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1976	80 Outperform	¥80.94B	10.27	―	3.46%	-3.62%	9.37%
1965	78 Outperform	¥156.27B	16.08	―	1.55%	20.44%	106.45%
1982	77 Outperform	¥108.52B	17.09	―	2.14%	4.81%	-1.16%
1871	75 Outperform	¥141.83B	16.04	―	3.13%	5.39%	33.02%
1835	73 Outperform	¥160.25B	12.51	―	3.44%	11.25%	36.92%
1952	73 Outperform	¥156.36B	12.69	―	2.81%	8.83%	49.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hibiya Engineering,Ltd. Corporate Events

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.

Hibiya Engineering Reports Strong First Half Financial Results

Hibiya Engineering, Ltd. reported a positive financial performance for the first half of the fiscal year ending March 31, 2026, with increases in net sales, operating profit, and profit attributable to owners of the parent. The company maintained a strong equity ratio and announced a forecast for continued growth in the full fiscal year. This performance reflects Hibiya Engineering’s stable market position and potential positive implications for stakeholders.

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 Announces Share Buyback Progress

Hibiya Engineering, Ltd. announced the acquisition of its own shares as per a resolution by its Board of Directors. The company acquired 43,100 shares at a cost of 189,582,000 yen through market purchases on the Tokyo Stock Exchange, as part of a larger plan to acquire up to 600,000 shares by March 31, 2026.

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.