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: 69 Neutral
• Price Target: ¥321.00 ▲(20.22% Upside)
• Action: Downgraded Date: 09/23/25
• Date: Action: Downgraded 09/23/25

S E Corporation's stock score is driven by solid financial performance, particularly in revenue growth and a strong balance sheet. However, challenges in profitability and cash flow consistency, along with neutral technical indicators, moderate the overall score. The valuation is attractive due to a reasonable P/E ratio and a high dividend yield, which supports the stock's appeal.

Positive Factors

Stable gross margins & revenue trend

S E Corporation's sustained top-line expansion from 2020–2024 combined with stable gross margins indicates durable demand and effective direct cost control. This supports long‑term earnings capacity, underpins margin resilience through cycles, and makes operational leverage more achievable over a multi‑quarter horizon.

Healthy equity base & balance-sheet stability

A healthy equity ratio and overall balance-sheet stability provide a durable buffer against revenue volatility and permit funding of capex or strategic initiatives without excessive leverage. This structural strength reduces default risk and preserves financial flexibility for multi‑period investments or downturns.

Generally positive operating cash flow

Consistent positive operating cash flow in most years demonstrates the business can generate internal liquidity to fund operations, service liabilities and pay distributions. Over 2–6 months this indicates a stronger ability to sustain operations and finance near‑term strategic spending without heavy external financing.

Negative Factors

Declining return on equity

A falling ROE signals the company is generating lower returns on shareholders' capital, which may reflect deteriorating profitability, inefficient capital allocation, or rising capital intensity. Persisting ROE decline undermines shareholder value creation and can pressure strategic choices over ensuing quarters.

Inconsistent free cash flow and cash conversion

Volatile FCF and weak cash-to-income alignment indicate working capital swings or timing issues that reduce the predictability of internally available funds. This hampers reliable reinvestment, dividend sustainability, and increases reliance on external financing in stress periods, raising structural funding risk.

Declining net profit margin and EPS weakness

A falling net profit margin alongside severe EPS contraction points to rising operating costs, lower pricing power, or one‑off shocks reducing core profitability. If persistent, margin erosion and weak EPS growth will constrain retained earnings, limit reinvestment and reduce the firm’s ability to improve returns over several quarters.

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.

How the Company Makes Money

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S E Corporation Financial Statement Overview

Summary

S E Corporation demonstrates solid revenue growth and stable gross margins, but faces challenges in maintaining net profitability and consistent cash flow. The balance sheet is strong, with a healthy equity position, but declining ROE highlights potential inefficiencies. Cash flow management shows variability, suggesting the need for improved operational cash conversion.

Income Statement

S E Corporation has shown a consistent revenue growth trend over the years, with a notable increase from 2020 to 2024. The gross profit margin has been stable, indicating efficient cost management. However, there is a decline in net profit margin from 2022 to 2025, suggesting rising expenses or other operational challenges. The EBIT and EBITDA margins have also shown fluctuations, reflecting some volatility in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity has seen a decline, which could be a concern for investors seeking high returns. The equity ratio is healthy, demonstrating a strong asset base relative to liabilities. Overall, the balance sheet reflects stability but with some room for improvement in profitability.

Cash Flow

Operating cash flow has been positive in most years, except for 2023, indicating generally good cash generation from operations. Free cash flow growth has been inconsistent, with a significant drop in 2023. The operating cash flow to net income ratio suggests that cash generation is not always aligned with reported earnings, which could indicate timing issues or working capital fluctuations.

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 291.65, below the 50-day MA of 286.86, and below the 200-day MA of 269.64, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 68.18 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	78 Outperform	¥8.68B	8.77	―	2.89%	3.52%	42.80%
5915	72 Outperform	¥9.35B	-81.16	―	3.74%	-29.79%	278.17%
5923	71 Outperform	¥8.83B	-10.52	―	4.38%	-16.09%	-163.96%
2311	70 Outperform	¥7.16B	16.94	―	3.77%	11.25%	26.01%
4642	70 Outperform	¥8.19B	16.72	―	2.03%	16.10%	-10.63%
3423	69 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%