Original Engineering Consultants Co., Ltd. (4642) AI Stock Analysis

• Market Cap: ¥8.42B
• Dividend Yield: 2.13%
• Average Volume (3M): 5.04K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.35
• Revenue Growth: 5.77%
• EPS Growth: 7.02%
• Country: JP
• Employees: 343
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 59.84
• Shares Outstanding: 7,396,800
• 10 Day Avg. Volume: 4,140
• 30 Day Avg. Volume: 5,043
• PEG Ratio: -1.71
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 156.26
• 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: ¥1,508.00
• Price Target Upside: -2.52% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,745.00 ▲(12.80%Upside)

The strong financial performance, particularly the robust balance sheet and profitability, significantly boosts the score. Technical analysis reveals positive stock momentum, supporting a favorable outlook. Valuation metrics are fair, providing additional confidence in the stock's current pricing. Lack of recent earnings call data and corporate events does not affect the assessment.

Original Engineering Consultants Co., Ltd. Business Overview & Revenue Model

Company Description

Original Engineering Consultants Co., Ltd. (4642) is a specialized consulting firm focused on providing comprehensive engineering solutions. The company operates predominantly in the civil engineering and architecture sectors, offering services ranging from project planning and design to construction management and environmental consulting. Its core products and services are tailored to meet the needs of public and private sector clients, ensuring sustainable and efficient infrastructure development.

How the Company Makes Money

Original Engineering Consultants Co., Ltd. makes money through a diversified revenue model primarily based on project-based contracts with governmental bodies and private corporations. Key revenue streams include consulting fees for engineering design, project management, and environmental assessment services. The company also engages in partnerships and collaborations with other engineering firms and technology providers to enhance service offerings and expand its client base, contributing to its earnings. These strategic collaborations often result in joint projects that leverage combined expertise to deliver comprehensive solutions, further solidifying the company's market position.

Original Engineering Consultants Co., Ltd. Financial Statement Overview

Summary

The company demonstrates robust financial health with strong revenue growth and profitability margins. The balance sheet is solid with low leverage, although cash flow performance has room for improvement.

Income Statement

The company demonstrates solid revenue growth, with a year-over-year increase of 7.37% from 2023 to 2024, and significant improvements in profitability metrics. The gross profit margin stands at a healthy 33.53% for 2024, with a net profit margin of 9.13%, reflecting strong operational efficiency. The EBIT margin is 11.88% and the EBITDA margin is 13.93%, both indicating robust earnings potential. The company's consistent revenue growth and improving profit margins contribute positively to its financial health.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.0042, indicating minimal leverage risk. The return on equity (ROE) is 9.21%, showcasing efficient use of shareholders' funds to generate earnings. The equity ratio is an impressive 84.93%, pointing to a solid capital structure with the majority of assets financed through equity. These metrics highlight the company's financial stability and low risk profile.

Cash Flow

The cash flow performance is stable, with a marginal decline in free cash flow growth, which fell by 56.21% from 2023 to 2024 due to lower operating cash flows and capital expenditures. However, the operating cash flow to net income ratio remains positive at 0.37, and the free cash flow to net income ratio is 0.23, indicating that the company generates sufficient cash to cover its net income, though there is room for improvement in cash generation efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.12B	6.63B	6.49B	6.21B	6.27B
Gross Profit	2.37B	2.20B	2.12B	1.92B	2.01B
EBITDA	992.22M	914.52M	795.46M	741.39M	733.58M
Net Income	650.18M	477.35M	415.61M	376.06M	375.46M
Balance Sheet
Total Assets	8.31B	7.89B	7.60B	7.10B	7.02B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.98B	3.74B	3.55B	3.38B
Total Debt	29.66M	58.23M	84.29M	111.34M	119.83M
Total Liabilities	1.25B	1.39B	1.44B	1.18B	1.32B
Stockholders Equity	7.06B	6.49B	6.15B	5.91B	5.70B
Cash Flow
Free Cash Flow	151.89M	346.85M	623.33M	220.90M	-172.69M
Operating Cash Flow	241.63M	399.40M	691.72M	282.42M	-102.03M
Investing Cash Flow	-152.23M	63.97M	-277.00M	120.90M	-68.23M
Financing Cash Flow	-222.69M	-224.58M	-225.29M	-227.52M	-196.60M

Original Engineering Consultants Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1547.00
• 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:4642, the sentiment is Positive. The current price of 1547 is above the 20-day moving average (MA) of 1475.65, above the 50-day MA of 1437.00, and above the 200-day MA of 1294.61, indicating a bullish trend. The MACD of 17.05 indicates Positive momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4642.

Original Engineering Consultants Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6542	79 Outperform	¥7.18B	12.06		3.88%	0.36%	-33.75%
4642	78 Outperform	¥8.42B	15.41		2.13%	5.77%	7.02%
1897	71 Outperform	¥6.07B	30.67		1.77%	-30.79%	-51.74%
1401	70 Outperform	¥9.37B	18.77		1.07%	2.39%	5.65%
1905	70 Outperform	¥7.90B	11.00		3.97%	20.94%	107.44%
2311	68 Neutral	¥6.46B	17.95		4.42%	10.82%	-47.86%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%