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

• Market Cap: ¥47.35B
• Dividend Yield: 5.38%
• Average Volume (3M): 59.03K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.83
• 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: 63 Neutral
• Price Target: ¥1,830.00 ▼(-2.66% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by solid underlying profitability trends but tempered by weak and volatile cash flow (including negative operating/free cash flow in 2025) and higher leverage. Technicals are notably bearish with the stock below key moving averages and negative MACD, while the high dividend yield provides some valuation support.

Positive Factors

Improved margins

Margins and underlying profitability improved into 2025, with gross margins around 19% and net margins ~6.5%. Sustained margin expansion increases earnings durability in project cycles, supports reinvestment capacity, and indicates competitive pricing or cost control that benefits medium-term cash generation.

Historically conservative balance sheet

The company maintained very low leverage across 2023–2024 and healthy equity levels, giving it historically strong financial flexibility. This conservatism supports resilience through project cyclicality and provides capacity to finance selective growth or withstand temporary revenue pressure without immediate refinancing risks.

Shareholder-friendly dividend policy

A high yield and a maintained dividend outlook signal disciplined capital allocation and a management preference to return cash. For income-focused investors, consistent dividends provide durable total-return support and indicate confidence in recurring cash generation despite cyclical revenues.

Negative Factors

Weak cash conversion

Cash generation is volatile and 2025 showed negative operating and free cash flow despite higher reported earnings, suggesting working-capital or project timing strains. Persistent weak cash conversion undermines funding for capex, dividends, and debt service, increasing reliance on external financing.

Rising leverage in 2025

Leverage jumped in 2025 from near-zero levels to a materially higher debt-to-equity, eroding prior balance-sheet conservatism. Higher leverage raises interest and refinancing risk, reduces bidding and investment flexibility, and amplifies vulnerability if cash flows remain volatile or decline further.

Material recent revenue and profit declines

Significant y/y declines in sales and profits and a materially weaker full-year guidance point to structural demand or execution headwinds. Prolonged revenue contraction reduces operating leverage, pressures margins and returns, and impairs the company’s ability to rebuild cash buffers and fund growth initiatives.

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

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MIYAJI ENGINEERING GROUP, INC. Financial Statement Overview

Summary

Profitability and margins improved into 2025 with steady revenue growth year over year, but cash conversion is a key weakness (2025 negative operating and free cash flow) and leverage rose sharply in 2025 versus prior very low-debt years.

Income Statement

Revenue has expanded steadily from 2022–2025 (2025 up ~5.3% year over year), and profitability has improved meaningfully versus earlier years, with stronger gross profit and operating profit margins (2025 gross profit margin ~19.0% and net profit margin ~6.5% vs. 2020 ~13.5% and ~4.1%). Operating performance looks solid for the industry, but growth is not consistent across the full period (notably a revenue decline in 2021) and margins still show some cyclicality typical of project-driven construction/engineering.

Balance Sheet

The balance sheet is generally conservative with low leverage in most years and healthy equity levels (debt-to-equity near 0.0–0.01 in 2023–2024). However, 2025 shows a sharp increase in debt (debt-to-equity ~0.20) alongside a jump in total assets, which raises financial risk versus the prior two years. Returns on equity remain respectable (~8.7%–12.6% over 2023–2025), suggesting good underlying profitability, but the sudden leverage step-up is the key watch item.

Cash Flow

Cash generation is volatile. While 2022 and 2024 produced strong operating cash flow and positive free cash flow (including 2024 free cash flow growth of ~10.2%), other years were weak or negative (free cash flow negative in 2021 and 2023). Most notably, 2025 shows negative operating cash flow and negative free cash flow despite higher earnings, indicating potential working-capital or project timing headwinds and weaker cash conversion in the latest period.

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	10.79B	10.45B	8.86B	6.15B	6.91B	6.51B
Net Income	5.06B	4.86B	4.35B	3.08B	3.41B	3.81B
Balance Sheet
Total Assets	77.97B	90.60B	74.15B	64.11B	62.78B	61.59B
Cash, Cash Equivalents and Short-Term Investments	6.52B	16.50B	19.11B	13.62B	15.98B	8.52B
Total Debt	1.80B	8.07B	389.00M	155.00M	441.67M	3.01B
Total Liabilities	30.57B	42.26B	27.53B	22.54B	23.69B	26.58B
Stockholders Equity	40.21B	40.48B	39.70B	35.51B	33.38B	30.15B
Cash Flow
Free Cash Flow	0.00	-5.16B	7.06B	-615.00M	10.84B	-1.54B
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: Negative
• Last Price: 1880.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3431, the sentiment is Negative. The current price of 1880 is above the 20-day moving average (MA) of 1823.15, below the 50-day MA of 1900.14, and below the 200-day MA of 1921.02, indicating a bearish trend. The MACD of -44.15 indicates Positive momentum. The RSI at 29.16 is Positive, neither overbought nor oversold. The STOCH value of 5.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1810	79 Outperform	¥48.89B	6.41	―	3.97%	2.85%	317.62%
1827	73 Outperform	¥46.95B	7.92	―	1.96%	2.55%	-14.37%
1786	70 Outperform	¥49.15B	18.57	―	3.53%	-2.95%	-35.66%
1967	67 Neutral	¥48.04B	11.76	―	2.19%	5.45%	86.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3431	63 Neutral	¥47.35B	20.04	―	5.38%	-9.27%	-6.86%
1887	50 Neutral	¥45.31B	8.96	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.