MIYAJI ENGINEERING GROUP, INC. (3431) AI Stock Analysis

• Market Cap: ¥52.95B
• Dividend Yield: 5.38%
• Average Volume (3M): 59.03K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.85
• Revenue Growth: -9.27%
• EPS Growth: -6.86%
• Country: JP
• Employees: 780
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 23.45
• Shares Outstanding: 27,677,816
• 10 Day Avg. Volume: 44,490
• 30 Day Avg. Volume: 59,030
• PEG Ratio: 0.72
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -9.25
• 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: 68 Neutral
• Price Target: ¥2,194.00 ▲(16.70% Upside)
• Action: Downgraded Date: 12/02/25
• Date: Action: Downgraded 12/02/25

The overall stock score of 68 reflects a balance between strong financial performance and attractive valuation against technical challenges. The company's robust revenue growth and profitability are offset by cash flow management issues. The stock's low P/E ratio and high dividend yield are positive, but bearish technical indicators suggest caution. Investors should monitor cash flow improvements and technical trends for a clearer investment outlook.

Positive Factors

Healthy margins and recent revenue growth

Sustained gross, EBIT and net margins alongside reported revenue growth indicate the company maintains pricing power and operational efficiency. Over 2-6 months this supports predictable profitability, capacity to reinvest in projects, and resilience to cyclical demand shifts in engineering services.

Low leverage and solid capitalization

A low debt-to-equity ratio and a near-45% equity ratio provide durable financial flexibility, lowering refinancing and interest risks. This capital structure supports funding of capital projects and tender-backed working capital needs without over-reliance on external borrowing.

Efficient return on equity

A double-digit ROE reflects the company’s ability to convert shareholder capital into profits over time. Persistently positive ROE suggests competent capital allocation and management execution, supporting sustainable shareholder returns and reinvestment capacity.

Negative Factors

Negative free cash flow in 2025

Negative free cash flow in the most recent year signals the company struggled to generate surplus cash after investments. Over months this can constrain discretionary spending, dividend sustainability, and force borrowing or asset sales to fund growth or working capital.

Weak cash conversion from profit

A negative operating cash flow to net income ratio shows reported earnings are not translating into cash. Structurally poor cash conversion raises concerns about receivables, contract timing or working capital strain that can persist and impair liquidity or margin realization.

Decline in cash and potential liquidity pressure

The reported drop in cash balances, despite a strong equity base, heightens short-term liquidity risk if negative cash trends continue. Over a multi-month horizon this can limit operational flexibility, increase reliance on credit, and elevate vulnerability to project timing shocks.

MIYAJI ENGINEERING GROUP, INC. Business Overview & Revenue Model

Company Description

Miyaji Engineering Group,Inc., through its subsidiaries, engages in the construction and civil engineering activities in Japan. The company produces, erects, installs, maintains, and repairs bridges, steel frames, and other steel structures; designs and produces prestressed concrete; and constructs, manages, and assembles steel frames, steel towers, and large space structures. It sells bolts and welding materials; and provides staffing and other services. The company was founded in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

MIYAJI ENGINEERING GROUP, INC. generates revenue primarily through contracts for engineering services, which include project management, design, and construction oversight in various sectors such as public infrastructure, private construction, and energy projects. The company often engages in long-term contracts with government entities and private corporations, providing a stable revenue stream. Additionally, MIYAJI may partner with other firms for joint ventures on large-scale projects, which can enhance its capabilities and market reach. The firm may also generate income through consulting services, offering expertise in project feasibility, environmental assessments, and regulatory compliance, further diversifying its revenue sources.

MIYAJI ENGINEERING GROUP, INC. Financial Statement Overview

Summary

MIYAJI ENGINEERING GROUP, INC. demonstrates strong revenue growth and effective margin management in the income statement, supported by a robust equity position in the balance sheet. However, cash flow management presents challenges with negative free cash flow in the latest period, suggesting potential liquidity risks. The overall financial health is positive but requires attention to cash flow generation.

Income Statement

The company has shown consistent revenue growth with a strong revenue growth rate of 7.73% from 2024 to 2025. The gross profit margin for 2025 is 19.0% and the net profit margin is 6.51%, reflecting good profitability. The EBIT margin of 12.27% and EBITDA margin of 14.57% further support the strong operational performance. Overall, the income statement reflects a solid growth trajectory and healthy margins.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio of 0.2, indicating low leverage. The equity ratio stands at 44.5%, suggesting a well-capitalized company. The return on equity (ROE) is 12.06%, highlighting efficient use of equity. Despite the solid equity position, the decline in cash and cash equivalents could be a point of concern.

Cash Flow

The cash flow statement indicates challenges in cash management with a negative free cash flow in 2025. The operating cash flow to net income ratio is negative, reflecting issues in converting sales into cash. Free cash flow to net income ratio is also negative, highlighting difficulties in generating free cash flow. Despite these challenges, the company managed a positive free cash flow growth from 2023 to 2024.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	73.77B	74.72B	69.36B	60.28B	58.00B	55.27B
Gross Profit	14.54B	14.20B	12.83B	9.05B	9.24B	8.83B
EBITDA	10.99B	10.89B	9.01B	6.35B	7.08B	7.02B
Net Income	5.06B	4.86B	4.35B	3.08B	3.41B	3.81B
Balance Sheet
Total Assets	77.97B	90.60B	74.15B	63.05B	61.82B	60.74B
Cash, Cash Equivalents and Short-Term Investments	6.52B	16.50B	19.11B	13.62B	15.98B	8.52B
Total Debt	1.80B	8.04B	326.00M	81.00M	441.67M	3.01B
Total Liabilities	30.57B	42.44B	27.53B	21.48B	22.72B	25.73B
Stockholders Equity	40.21B	40.31B	39.70B	35.51B	33.38B	30.15B
Cash Flow
Free Cash Flow	0.00	-5.16B	6.88B	-751.00M	10.73B	-1.63B
Operating Cash Flow	0.00	-2.65B	8.84B	495.00M	11.92B	1.09B
Investing Cash Flow	0.00	-2.46B	-1.54B	-711.00M	-1.19B	-2.59B
Financing Cash Flow	0.00	2.50B	-1.80B	-2.15B	-3.27B	-1.74B

MIYAJI ENGINEERING GROUP, INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1880.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3431, the sentiment is Neutral. The current price of 1880 is below the 20-day moving average (MA) of 1932.20, below the 50-day MA of 1921.70, and below the 200-day MA of 1918.44, indicating a neutral trend. The MACD of -9.74 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 78.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3431.

MIYAJI ENGINEERING GROUP, INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1967	83 Outperform	¥54.54B	12.62	―	2.19%	5.45%	86.27%
1810	79 Outperform	¥58.29B	11.75	―	3.97%	2.85%	317.62%
1827	73 Outperform	¥56.05B	17.17	―	1.96%	2.55%	-14.37%
1786	70 Outperform	¥55.77B	16.87	―	3.53%	-2.95%	-35.66%
3431	68 Neutral	¥52.95B	14.45	―	5.38%	-9.27%	-6.86%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1887	50 Neutral	¥53.32B	26.08	1.27%	3.81%	-4.92%	―

MIYAJI ENGINEERING GROUP, INC. Corporate Events

Miyaji Engineering Group Posts Profit Slump but Holds Dividend Outlook

MIYAJI ENGINEERING GROUP, INC., a Tokyo-listed engineering group, reported a sharp year-on-year decline in performance for the nine months ended December 31, 2025, with net sales down 24.1% to ¥40.9 billion and profit attributable to owners of parent falling 34.7% to ¥2.4 billion. Operating and ordinary profit were more than halved, even as the equity-to-asset ratio improved to 53.5%, reflecting a stronger balance sheet despite weaker earnings.

The company maintained its dividend stance, confirming an annual dividend forecast of ¥97.50 per share for the year ending March 31, 2026, effectively flat on an adjusted basis versus the prior year after accounting for a two-for-one share split. Full-year guidance remains unchanged, projecting a 22.4% drop in net sales and a near 50% fall in operating profit, signaling a tougher operating environment but also providing visibility for shareholders on expected returns and capital allocation.

The most recent analyst rating on (JP:3431) stock is a Hold with a Yen2194.00 price target. To see the full list of analyst forecasts on MIYAJI ENGINEERING GROUP, INC. stock, see the JP:3431 Stock Forecast page.

MIYAJI ENGINEERING Announces Interim Dividend Amid Strategic Growth Plans

MIYAJI ENGINEERING GROUP, INC. announced an interim dividend of ¥42.50 per share for the fiscal year ending March 31, 2026, consistent with previous forecasts. The company emphasizes its commitment to shareholder returns and aims to achieve a 10% ROE under its Medium-Term Business Plan, balancing capital reinvestment for growth with shareholder dividends.

The most recent analyst rating on (JP:3431) stock is a Buy with a Yen2176.00 price target. To see the full list of analyst forecasts on MIYAJI ENGINEERING GROUP, INC. stock, see the JP:3431 Stock Forecast page.

MIYAJI ENGINEERING Reports Decline in Financial Performance for First Half of 2025

MIYAJI ENGINEERING GROUP, INC. reported a significant decline in its financial performance for the six months ending September 30, 2025, with net sales dropping by 21.6% and operating profit by 36.4% compared to the previous year. The company has revised its financial forecasts for the fiscal year ending March 31, 2026, indicating expected decreases in net sales, operating profit, and profit attributable to owners, reflecting ongoing challenges in the market.

The most recent analyst rating on (JP:3431) stock is a Buy with a Yen2176.00 price target. To see the full list of analyst forecasts on MIYAJI ENGINEERING GROUP, INC. stock, see the JP:3431 Stock Forecast page.