INFRONEER Holdings Inc. (5076) AI Stock Analysis

• Market Cap: ¥297.78B
• Dividend Yield: 4.99%
• Average Volume (3M): 837.04K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.45
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 8,037
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 42.33
• Shares Outstanding: 274,845,030
• 10 Day Avg. Volume: 665,330
• 30 Day Avg. Volume: 837,040
• PEG Ratio: 3.22
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.38
• 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

• Rating: 76 Outperform
• Price Target: ¥1,335.00 ▲(11.11%Upside)

The overall stock score is driven by strong financial performance and attractive valuation. The company's solid financial foundation, with good revenue growth and profitability metrics, underpins its positive outlook. Valuation metrics, including a low P/E ratio and high dividend yield, further boost the stock's attractiveness. Technical indicators suggest market indecision, which slightly tempers the overall score.

INFRONEER Holdings Inc. Business Overview & Revenue Model

Company Description

INFRONEER Holdings Inc. (5076) is a Japan-based company primarily engaged in the infrastructure business. It operates in various sectors including civil engineering, construction, and real estate development. The company is involved in the planning, design, and execution of infrastructure projects such as roads, bridges, tunnels, and urban facilities. INFRONEER Holdings also provides maintenance and operational services to ensure the longevity and efficiency of its projects.

How the Company Makes Money

INFRONEER Holdings Inc. generates revenue primarily through its involvement in large-scale infrastructure projects. The company earns money by securing contracts for the design, construction, and maintenance of infrastructure facilities. Key revenue streams include government contracts for public works projects, private sector partnerships for commercial and residential developments, and ongoing maintenance services. The company may also engage in joint ventures and collaborations with other construction and engineering firms to expand its market reach and capabilities.

INFRONEER Holdings Inc. Financial Statement Overview

Summary

INFRONEER Holdings Inc. demonstrates strong revenue growth and maintains profitability, although margins suggest room for improvement. The balance sheet is moderately leveraged, with reasonable equity levels, but potential risks from debt should be monitored. Cash flow management appears challenging, with significant negative free cash flow impacting liquidity.

Income Statement

The company shows a solid gross profit margin of 13.08% and a net profit margin of 3.47% for TTM, indicating effective cost management and profitability, albeit with some room for improvement. Revenue growth is strong at 18.12% from 2023 to 2024, demonstrating a positive growth trajectory. EBIT and EBITDA margins of 5.72% and 9.64% respectively highlight operational efficiency but suggest potential for higher profitability.

Balance Sheet

The debt-to-equity ratio stands at 0.93 for TTM, reflecting moderate leverage that could pose risks if not managed properly. The return on equity (ROE) is 5.79%, indicating reasonable returns on shareholder investments, though lower than ideal. An equity ratio of 34.91% suggests a balanced approach to financing with a fair reliance on equity.

Cash Flow

The company experienced a significant decline in free cash flow, showing a negative growth rate from the previous year. The operating cash flow to net income ratio is positive at 0.05 for TTM, indicating some level of cash generation efficiency. However, the free cash flow to net income ratio is negative, underlining challenges in cash generation relative to reported profits.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
836.28B	793.26B	709.64B	682.91B	678.06B	487.86B
	Gross Profit
109.44B	111.89B	98.12B	91.61B	89.96B	67.56B
	EBIT
47.88B	49.79B	40.49B	37.49B	46.34B	34.05B
	EBITDA
80.61B	87.65B	80.33B	69.13B	77.54B	48.79B
	Net Income Common Stockholders
29.06B	32.57B	33.49B	26.69B	23.27B	14.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.71B	113.42B	88.83B	78.06B	100.72B	122.53B
	Total Assets
1.44T	1.41T	926.56B	926.43B	928.89B	942.92B
	Total Debt
465.74B	504.28B	154.94B	194.17B	263.50B	296.56B
	Net Debt
352.38B	390.86B	66.14B	116.14B	164.53B	174.65B
	Total Liabilities
914.08B	991.38B	564.25B	570.57B	561.36B	584.33B
	Stockholders Equity
502.17B	399.92B	352.69B	346.91B	270.02B	228.39B
Cash Flow		Free Cash Flow
-37.03B	-5.65B	50.91B	-38.03B	34.00B	14.07B
	Operating Cash Flow
1.46B	38.92B	70.95B	-16.33B	59.77B	32.37B
	Investing Cash Flow
-37.40B	-279.25B	-5.29B	-22.55B	-13.98B	-38.55B
	Financing Cash Flow
35.66B	261.32B	-56.38B	15.29B	-75.95B	71.67B

INFRONEER Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1201.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5076, the sentiment is Positive. The current price of 1201.5 is above the 20-day moving average (MA) of 1188.95, above the 50-day MA of 1192.65, and above the 200-day MA of 1157.91, indicating a bullish trend. The MACD of -2.71 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 60.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5076.

INFRONEER Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1719	81 Outperform	€263.30B	8.66	16.30%	4.94%	7.87%	90.40%
5076	76 Outperform	¥297.78B	9.16		4.99%	―	―
1893	69 Neutral	$248.56B	19.76	7.12%	2.63%	17.77%	-29.70%
1860	69 Neutral	¥277.87B	10.84		3.31%	12.29%	59.70%
1820	67 Neutral	¥189.74B	10.82		4.58%	-8.67%	40.83%
Sector *	66 Neutral	$4.51B	12.29	5.40%	248.53%	4.14%	-12.41%
1963	56 Neutral	$313.05B	―	-0.17%	3.05%	3.06%	94.99%

INFRONEER Holdings Inc. Corporate Events

INFRONEER Holdings Announces Executive Officer Changes

INFRONEER Holdings Inc. announced changes in its executive officer lineup, effective June 24, 2025, aimed at strengthening its business segments and operational strategies. The reshuffling includes new appointments and retirements, with some executives retaining positions in subsidiary companies, indicating a strategic alignment to enhance the company’s infrastructure and technology capabilities.

INFRONEER Holdings to Acquire Sumitomo Mitsui Construction

INFRONEER Holdings Inc. has announced its decision to acquire Sumitomo Mitsui Construction Co., Ltd. through a tender offer, aiming to make it a wholly-owned subsidiary. This strategic move is expected to enhance INFRONEER’s market position and operational capabilities in the construction sector, although the process is subject to regulatory approval in the Philippines and other conditions.

INFRONEER Holdings Reports Fiscal Year 2025 Financial Results

INFRONEER Holdings Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 6.8% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced declines in business profit and operating profit by 5.7% and 7.7%, respectively. The company’s total assets increased, and the equity attributable to owners of the parent improved, indicating a stable financial position. The company forecasts continued growth in net sales and profits for the fiscal year ending March 31, 2026, reflecting a positive outlook for future operations.

INFRONEER Holdings Revises Medium-term Vision 2027 Targets

INFRONEER Holdings Inc. announced corrections to its ‘Medium-term Vision 2027’ disclosure, initially released in March 2025. The corrections pertain to the performance target figures related to the added value amount for FY2027, indicating a review and adjustment of these targets to ensure accuracy and alignment with the company’s strategic goals.

INFRONEER Holdings Adjusts Conversion Price for Green Bonds

INFRONEER Holdings Inc. announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds (Green CBs) due 2029. This adjustment, effective from April 1, 2025, is a result of an extraordinary dividend payment of ¥30 per share, approved by the board of directors, which impacts the conversion price from ¥1,808.0 to ¥1,761.2.

INFRONEER Holdings Inc. Announces Dividend Payout for Fiscal Year 2025

INFRONEER Holdings Inc. has announced a resolution to pay dividends of surplus for the fiscal year ending March 31, 2025. The company will distribute a dividend of ¥30.00 per common share and ¥65.00 per Series 1 Bond-Type Class Share, aligning with its shareholder return policy targeting a payout ratio of 40% or higher. This decision reflects INFRONEER’s strategic focus on rewarding shareholders while adhering to its medium-term management plan, ‘INFRONEER Medium-term Vision 2027.’

INFRONEER Holdings Announces Board of Directors Nomination

INFRONEER Holdings Inc. has announced a resolution by its Nominating Committee to propose candidates for its Board of Directors at the upcoming General Meeting of Shareholders. The company is transitioning to a ‘Company with Nominating Committee’ governance system to enhance management transparency and efficiency, aiming to increase corporate value by delegating more authority to the executive side while the Board focuses on supervisory functions.

INFRONEER Holdings Unveils Medium-term Vision 2027 for Sustainable Growth

INFRONEER Holdings Inc. has announced its ‘INFRONEER Medium-term Vision 2027,’ which aims to expand its investment business and achieve sustainable growth by 2027. The plan includes specific financial targets, such as a business profit of 70 billion yen and an EBITDA of 110 billion yen, while also focusing on improving governance structures and maintaining a balanced approach to social contributions.