Balance Sheet StrengthLow leverage and a 42.1% equity ratio provide durable financial flexibility. A 31.2% ROE in 2025 indicates efficient capital deployment, supporting long-term investments in manufacturing, service networks and resilience through downturns without needing aggressive external financing.

Cash GenerationStrong free cash flow and a 1.56 OCF-to-net-income ratio show reliable cash conversion from operations. This durable cash generation can fund capex, aftermarket service expansion, and debt reduction, enabling sustainable reinvestment into core capabilities over multiple business cycles.

Revenue & Profitability ImprovementMaterial revenue increase and a 15% net margin reflect stronger demand and operational leverage. A growing installed base and recurring aftermarket parts & service revenue support durable, repeatable cash flows and higher long-term revenue visibility beyond one-off newbuild cycles.

Bears Say

Recent Growth MetricsTrailing metrics showing negative revenue and EPS growth point to recent deterioration in core top-line and profitability trends. If persistent, this can erode backlog, weaken aftermarket volumes and complicate forecasting and capital allocation over the coming months.

Cyclical Demand ExposureRevenue is structurally tied to newbuild ship orders and fleet utilization, making sales volatile across cycles. This structural exposure can produce multi-period swings in capital requirements and revenues, limiting predictability despite aftermarket support.

Operational Margin PressureAlthough net margins improved, explicit note that EBIT/EBITDA margins need efficiency gains signals potential vulnerability to raw material and manufacturing cost inflation. Without productivity or pricing improvements, operating margins could compress over time.

6016 FAQ

What was Japan Engine Corp’s price range in the past 12 months?

Japan Engine Corp lowest stock price was ¥2381.00 and its highest was ¥17090.00 in the past 12 months.

What is Japan Engine Corp’s market cap?

Japan Engine Corp’s market cap is ¥111.40B.

When is Japan Engine Corp’s upcoming earnings report date?

Japan Engine Corp’s upcoming earnings report date is May 07, 2026 which is in 60 days.

How were Japan Engine Corp’s earnings last quarter?

Japan Engine Corp released its earnings results on Feb 10, 2026. The company reported ¥156.53 earnings per share for the quarter, beating the consensus estimate of N/A by ¥156.53.

Is Japan Engine Corp overvalued?

According to Wall Street analysts Japan Engine Corp’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Japan Engine Corp pay dividends?

Japan Engine Corp pays a Semiannually dividend of ¥60 which represents an annual dividend yield of 0.55%. See more information on Japan Engine Corp dividends here

What is Japan Engine Corp’s EPS estimate?

Japan Engine Corp’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Japan Engine Corp have?

Japan Engine Corp has 8,400,000 shares outstanding.

What happened to Japan Engine Corp’s price movement after its last earnings report?

Japan Engine Corp reported an EPS of ¥156.53 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.643%.

Which hedge fund is a major shareholder of Japan Engine Corp?

Currently, no hedge funds are holding shares in JP:6016

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Japan Engine Corp

Japan Engine Corporation designs, develops, manufactures, maintains, repairs, sells, and licenses engines and other components in Japan. It offers UE engines used in bulk carriers, tankers, car carrier ships, container ships, and other vessels. The company also engages in the manufacture and sale of shield machine components for subway construction and tunnel boring; and machining and assembly of large sized products, including injection molding machines and testing devices. In addition, it provides pressure-relief control valve blocks, cylinder covers, piston crowns, piston heads and metallic sliding bearings, bedplates and shield machines, and resin granulators. The company was formerly known as Kobe Diesel Co., Ltd. and changed its name to Japan Engine Corporation in April 2017. Japan Engine Corporation was founded in 1910 and is headquartered in Akashi, Japan.