S E Corporation (3423) AI Stock Analysis

• Market Cap: ¥8.70B
• Dividend Yield: 4.94%
• Average Volume (3M): 21.34K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.42
• Revenue Growth: -4.23%
• EPS Growth: -64.20%
• Country: JP
• Employees: 558
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 3.77
• Shares Outstanding: 31,256,600
• 10 Day Avg. Volume: 19,600
• 30 Day Avg. Volume: 21,343
• PEG Ratio: -0.34
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 8.64
• 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: ¥311.00 ▲(16.48% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by mixed financial performance: strong revenue growth and a stable balance sheet are offset by significant margin/ROE deterioration and uneven cash-flow history. Valuation helps, supported by a high dividend yield and a reasonable P/E, while technical signals are broadly neutral with only mild longer-term strength.

Positive Factors

Revenue Growth

S E Corporation showed a clear top-line expansion with a notable jump in 2025. Durable revenue growth improves scale economics, supports investment and pricing flexibility, and provides a platform to recover margins and earnings power over the next several quarters.

Improving Balance Sheet / Lower Leverage

Leverage has declined to roughly 0.50 and equity has grown, strengthening the capital structure. Improved balance-sheet resilience reduces refinancing and liquidity risk, enabling sustained capex, dividend support and capacity to weather cyclical construction demand.

Recent Positive Cash Generation

Operating and free cash flow turned positive in 2024–2025 and free cash flow covers a meaningful portion of net income. Recent consistent cash generation supports dividends, reinvestment and lowers dependence on external financing, improving medium-term financial flexibility.

Negative Factors

Margin Compression

Operating and net margins have contracted materially since 2022, indicating cost pressure or adverse sales mix. Sustained margin weakness reduces earnings power and cash conversion, limiting the company's ability to fund growth, service capital and sustain shareholder returns over time.

Return on Equity Decline

ROE plunged from mid-teens to below 5%, signaling much weaker profitability on invested capital. This structural decline undermines long-term value creation, hampers capital attraction and suggests persistent issues with margins, asset efficiency or competitive positioning.

Volatile Cash Flow History

Historic swings include negative operating and free cash flow in 2023 and 2020 despite recent positives, raising planning and financing risk. Persistent volatility makes consistent capital allocation harder and increases the likelihood of reactive funding or cuts in downturns.

S E Corporation Business Overview & Revenue Model

Company Description

SE Corporation engages in construction material and equipment business in Japan and internationally. The company supplies environmental and disaster prevention equipment, such as environmental conservation and landslide prevention, anti-seismic reinforcement of port and harbor facilities and underground structures, anti-seismic ties for bridge girders, and systems for durability monitoring; SEEE prestressing cables for prestressed concrete, outer cables, stay cables, and other products, as well as incidental engineering services for bridge and civil structures field; and PPP/concession works. It also manufactures and sells snap ties for construction of buildings and condominiums; and metal components for concrete forming and interior finishing materials. In addition, the company offers construction consulting services; repair and reinforcement services for roads, bridges, tunnels, dams, ports, and other facilities; construction management services for expressways; design check services for cable-stayed bridges; slope countermeasure survey and design services to prevent soil disasters; and stay materials and cable erection services for the bridge. SE Corporation was founded in 1967 and is headquartered in Tokyo, Japan.

S E Corporation Financial Statement Overview

Summary

Revenue growth is strong (notably in 2025), and leverage is moderate with improving debt-to-equity, but profitability has deteriorated materially since 2022 (sharp operating and net margin compression) and cash flows have been volatile despite being positive in the last two years.

Income Statement

Revenue has grown over the last several years, including a very strong jump in 2025 (annual report), but profitability has clearly weakened from the 2022 peak. Gross margin has drifted down (about 29% in 2022 to ~27% in 2024 and ~27% in 2025), and bottom-line margin fell sharply in 2025 (~2.1%) versus 2024 (~3.7%) and 2022 (~6.7%). Operating profitability also compressed meaningfully (operating margin ~10.0% in 2022 to ~3.3% in 2025), suggesting cost pressure and/or mix issues despite higher sales.

Balance Sheet

Leverage looks manageable and has improved modestly, with debt-to-equity declining from the higher levels seen in 2020–2021 (~0.66–0.64) to ~0.50 in 2025. Equity has grown over time, supporting balance-sheet resilience. The main drawback is returns have cooled substantially versus 2022 (return on equity ~16.3% in 2022 down to ~4.9% in 2025), indicating weaker earnings power even though the capital structure is reasonably balanced.

Cash Flow

Cash generation is mixed: operating cash flow and free cash flow are positive in 2025 and 2024, but the business has shown volatility with negative operating and free cash flow in 2023 (and also negative operating/free cash flow in 2020). Free cash flow in 2025 covers a moderate portion of reported earnings (free cash flow to net income ~0.56), which is acceptable but not strong. Overall, cash flow quality is adequate in the last two years but the historical swings increase risk and reduce confidence in consistency.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	25.40B	25.89B	26.47B	25.45B	24.15B	22.80B
Gross Profit	6.86B	6.92B	7.18B	6.68B	7.12B	6.00B
EBITDA	1.53B	1.60B	2.07B	1.95B	2.52B	1.74B
Net Income	505.02M	543.83M	969.86M	870.02M	1.61B	632.41M
Balance Sheet
Total Assets	23.80B	25.55B	26.52B	25.56B	23.73B	23.79B
Cash, Cash Equivalents and Short-Term Investments	4.08B	5.12B	5.35B	4.63B	5.17B	4.55B
Total Debt	4.86B	5.59B	6.16B	5.92B	4.61B	5.58B
Total Liabilities	13.04B	14.33B	15.49B	15.13B	13.77B	14.98B
Stockholders Equity	10.73B	11.20B	10.98B	10.39B	9.91B	8.79B
Cash Flow
Free Cash Flow	0.00	951.15M	1.01B	-1.55B	1.70B	1.58B
Operating Cash Flow	0.00	1.71B	2.11B	-637.94M	2.31B	2.13B
Investing Cash Flow	0.00	-897.87M	-1.15B	-656.17M	-367.19M	-654.52M
Financing Cash Flow	0.00	-1.04B	-254.05M	749.14M	-1.25B	-347.87M

S E Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 267.00
• 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:3423, the sentiment is Neutral. The current price of 267 is below the 20-day moving average (MA) of 291.45, below the 50-day MA of 287.62, and below the 200-day MA of 269.98, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3423.

S E Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1997	80 Outperform	¥8.27B	8.77	―	2.89%	3.52%	42.80%
2311	70 Outperform	¥6.92B	16.94	―	3.77%	11.25%	26.01%
4642	70 Outperform	¥8.00B	16.72	―	2.03%	16.10%	-10.63%
3423	65 Neutral	¥8.70B	17.68	―	4.94%	-4.23%	-64.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5923	55 Neutral	¥8.85B	-10.52	―	4.38%	-16.09%	-163.96%
5915	51 Neutral	¥9.08B	-81.16	―	3.74%	-29.79%	278.17%