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

• Market Cap: ¥8.17B
• Dividend Yield: 2.03%
• Average Volume (3M): 11.99K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.61
• Revenue Growth: 16.10%
• EPS Growth: -10.63%
• Country: JP
• Employees: 343
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 22.99
• Shares Outstanding: 7,396,800
• 10 Day Avg. Volume: 9,840
• 30 Day Avg. Volume: 11,990
• PEG Ratio: -0.99
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 18.69
• 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: 70 Outperform
• Price Target: ¥1,683.00 ▲(9.50% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is led by solid financial performance (strong margins and major revenue growth) but tempered by weaker 2025 earnings vs. 2024, a meaningful 2025 debt increase, and uneven cash-flow conversion. Valuation is reasonable with a moderate P/E and ~2.29% yield, while technical indicators are broadly neutral with the stock still below longer-term moving averages.

Positive Factors

Sustained Profitability

Stable gross margins near 33% with improving net margins to ~9.1% indicate the company maintains pricing power or cost structure advantages in its engineering services. This margin profile supports durable earnings resilience and internal cash generation across cycles, aiding reinvestment and dividends.

Negative Factors

Profitability vs. 2025 Net Income Drop

Net income falling while revenue surged suggests margin compression from higher operating costs, adverse project mix, or non-operating charges. Such structural cost pressures can erode the benefit of revenue growth and signal that profitability may not scale proportionally without margin remediation.

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

Company Description

Original Engineering Consultants Co., Ltd. provides engineering consultancy services in Japan. The company offers various consulting services, such as prefeasibility study, investigation, planning, detailed design, diagnosis, construction supervis...

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Original Engineering Consultants Co., Ltd. provides engineering consultancy services in Japan. The company offers various consulting services, such as prefeasibility study, investigation, planning, detailed design, diagnosis, construction supervis...

How the Company Makes Money

The 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, ...

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The 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, ...

Original Engineering Consultants Co., Ltd. Financial Statement Overview

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.68B	8.52B	7.12B	6.63B	6.49B	6.21B
Gross Profit	1.86B	2.85B	2.37B	2.18B	2.10B	1.90B
EBITDA	1.03B	1.15B	949.81M	899.64M	848.90M	687.97M
Net Income	574.94M	541.34M	650.18M	477.35M	415.61M	376.06M
Balance Sheet
Total Assets	11.56B	11.96B	8.35B	7.93B	7.60B	7.11B
Cash, Cash Equivalents and Short-Term Investments	6.60B	3.99B	3.85B	3.98B	3.74B	3.55B
Total Debt	1.51B	1.84B	29.66M	58.23M	84.29M	111.34M
Total Liabilities	3.90B	4.06B	1.29B	1.44B	1.44B	1.20B
Stockholders Equity	7.66B	7.90B	7.06B	6.49B	6.15B	5.91B
Cash Flow
Free Cash Flow	0.00	486.31M	193.69M	388.94M	668.23M	266.88M
Operating Cash Flow	0.00	604.47M	241.63M	399.40M	691.72M	282.42M
Investing Cash Flow	0.00	-1.50B	-152.23M	63.97M	-277.00M	120.90M
Financing Cash Flow	0.00	1.31B	-222.69M	-224.58M	-225.29M	-227.52M

Original Engineering Consultants Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1537.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 1537 is above the 20-day moving average (MA) of 1492.55, above the 50-day MA of 1504.32, and below the 200-day MA of 1606.56, indicating a neutral trend. The MACD of 2.31 indicates Negative momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 72.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	77 Outperform	¥27.77B	11.92	―	2.37%	3.01%	-13.60%
9621	73 Outperform	¥89.00B	13.86	―	1.25%	2.61%	-13.38%
1828	73 Outperform	¥26.63B	9.70	―	3.44%	-5.43%	34.48%
4642	70 Outperform	¥8.17B	16.79	―	2.03%	16.10%	-10.63%
4673	70 Outperform	¥4.71B	6.39	―	1.16%	29.12%	428.78%
1914	67 Neutral	¥15.02B	4.49	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%