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Original Engineering Consultants Co., Ltd. (JP:4642)
:4642
Japanese Market
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Original Engineering Consultants Co., Ltd. (4642) AI Stock Analysis

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JP:4642

Original Engineering Consultants Co., Ltd.

(4642)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
¥1,803.00
▲(5.25% Upside)
The overall stock score of 67 reflects a strong financial performance, which is the most significant factor, supported by solid revenue growth and profitability. However, the bearish technical indicators weigh heavily on the score, indicating potential short-term challenges. The valuation is reasonable, adding some stability to the stock's outlook.

Original Engineering Consultants Co., Ltd. (4642) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionOriginal Engineering Consultants Co., Ltd. (4642) is a leading engineering consultancy firm specializing in providing innovative solutions across various sectors, including infrastructure, construction, and environmental engineering. The company offers a range of core services, such as project management, design engineering, feasibility studies, and technical consulting, aimed at optimizing project outcomes and ensuring compliance with regulatory standards.
How the Company Makes MoneyThe company generates revenue primarily through consulting fees charged for its engineering and project management services. Key revenue streams include fixed-price contracts for specific projects, time-and-materials billing for ongoing services, and retainer agreements with clients for long-term consultancy. Additionally, Original Engineering Consultants Co., Ltd. may engage in partnerships with construction firms and governmental agencies, allowing for shared project opportunities and risk mitigation, which enhances its overall earnings potential.

Original Engineering Consultants Co., Ltd. Financial Statement Overview

Summary
Original Engineering Consultants Co., Ltd. exhibits a strong financial position with solid revenue growth, high profitability margins, and a robust balance sheet with low leverage. While cash flow generation has declined, the company maintains an efficient cash flow relative to net income, indicating a well-managed financial strategy poised for sustainable growth.
Income Statement
85
Very Positive
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
90
Very Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.68B7.12B6.63B6.49B6.21B6.27B
Gross Profit1.86B2.37B2.20B2.12B1.92B2.01B
EBITDA1.02B992.22M914.52M795.46M741.39M733.58M
Net Income574.94M650.18M477.35M415.61M376.06M375.46M
Balance Sheet
Total Assets11.56B8.31B7.89B7.60B7.10B7.02B
Cash, Cash Equivalents and Short-Term Investments6.60B3.85B3.98B3.74B3.55B3.38B
Total Debt1.51B29.66M58.23M84.29M111.34M119.83M
Total Liabilities3.90B1.25B1.39B1.44B1.18B1.32B
Stockholders Equity7.66B7.06B6.49B6.15B5.91B5.70B
Cash Flow
Free Cash Flow0.00151.89M346.85M623.33M220.90M-172.69M
Operating Cash Flow0.00241.63M399.40M691.72M282.42M-102.03M
Investing Cash Flow0.00-152.23M63.97M-277.00M120.90M-68.23M
Financing Cash Flow0.00-222.69M-224.58M-225.29M-227.52M-196.60M

Original Engineering Consultants Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1713.00
Price Trends
50DMA
1943.84
Negative
100DMA
1709.58
Negative
200DMA
1506.03
Positive
Market Momentum
MACD
-76.14
Positive
RSI
37.74
Neutral
STOCH
33.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4642, the sentiment is Negative. The current price of 1713 is below the 20-day moving average (MA) of 1817.05, below the 50-day MA of 1943.84, and above the 200-day MA of 1506.03, indicating a neutral trend. The MACD of -76.14 indicates Positive momentum. The RSI at 37.74 is Neutral, neither overbought nor oversold. The STOCH value of 33.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4642.

Original Engineering Consultants Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥8.76B12.213.19%0.05%10.31%
72
Outperform
¥8.36B8.374.16%6.74%543.41%
71
Outperform
¥6.25B39.141.70%-32.43%-64.37%
68
Neutral
¥7.22B15.183.95%13.11%-8.17%
67
Neutral
¥9.32B17.631.87%13.21%-11.58%
67
Neutral
¥10.55B18.410.96%21.18%53.16%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4642
Original Engineering Consultants Co., Ltd.
1,700.00
553.14
48.23%
JP:1401
MBS Co., Ltd.
1,373.00
698.22
103.47%
JP:1897
Kaneshita Construction Co., Ltd.
2,942.00
223.95
8.24%
JP:1905
Tenox Corporation
1,321.00
270.62
25.76%
JP:2311
EPCO Co.,Ltd.
810.00
59.68
7.95%
JP:6542
Founder's Consultants Holdings, Inc.
1,410.00
575.62
68.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 15, 2025