Japan Engine Corp (6016) AI Stock Analysis

• Market Cap: ¥60.02B
• Dividend Yield: 1.45%
• Average Volume (3M): 489.28K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.50
• Revenue Growth: 37.64%
• EPS Growth: 69.78%
• Country: JP
• Employees: 345
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 65.87
• Shares Outstanding: 8,400,000
• 10 Day Avg. Volume: 374,110
• 30 Day Avg. Volume: 489,276
• PEG Ratio: -0.42
• Price to Book (P/B): 4.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 330.48
• 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: ¥7,784.00
• Price Target Upside: 8.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥7,946.00 ▲(11.13%Upside)

The overall stock score of 79 reflects Japan Engine Corp's strong financial performance and positive technical indicators. The solid financial foundation, including revenue growth and cash flow strength, are the most significant factors. Technical analysis supports a bullish outlook, although valuation is moderate due to a low dividend yield.

Japan Engine Corp Business Overview & Revenue Model

Company Description

Japan Engine Corporation (6016) is a Japanese company specializing in the design, manufacture, and sale of marine propulsion engines. The company primarily caters to the shipping industry, providing high-performance and reliable engines that power commercial vessels. Japan Engine Corp is known for its innovative engineering solutions and commitment to sustainability, offering a range of products that include diesel engines and related components.

How the Company Makes Money

Japan Engine Corporation generates revenue through the sale of its marine propulsion engines and related components to shipbuilders and ship owners. The company's key revenue streams include the manufacturing and sales of new engines, spare parts, and maintenance services. Additionally, Japan Engine Corp may engage in partnerships with other marine technology companies to enhance its product offerings and expand its market reach. Service contracts for engine maintenance and repairs also contribute to the company's earnings by ensuring long-term customer relationships and recurring revenue.

Japan Engine Corp Financial Statement Overview

Summary

Japan Engine Corp shows strong financial health with significant revenue growth, improved profitability, and a solid balance sheet. The cash flow is robust, providing a strong foundation for future growth. While operational margins can improve, the company's financial position is commendable.

Income Statement

Japan Engine Corp has demonstrated strong revenue growth, with a significant increase from ¥20.97 billion in 2024 to ¥28.86 billion in 2025, indicating robust demand and business expansion. The gross profit margin has improved over the years, reflecting efficient cost management. The net profit margin has also shown a positive trend, reaching 15.0% in 2025, indicating strong profitability. However, the EBIT and EBITDA margins suggest room for further operational efficiency improvements.

Balance Sheet

The balance sheet of Japan Engine Corp is solid, characterized by a healthy equity ratio of 42.1% in 2025, showcasing good financial stability. The debt-to-equity ratio is relatively low at 0.34, indicating prudent leverage use. The return on equity has been improving, reaching 31.2% in 2025, which signifies efficient use of equity capital. While the company maintains low leverage, ensuring financial flexibility, it should continue to monitor debt levels to preserve this advantage.

Cash Flow

The cash flow statement reveals a strong financial position with free cash flow turning positive and growing to ¥2.41 billion in 2025. The operating cash flow to net income ratio of 1.56 in 2025 demonstrates effective cash generation from operations. Furthermore, the free cash flow to net income ratio indicates that the company is generating ample cash relative to its net income, providing a solid foundation for future investments or debt repayments.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.86B	20.97B	15.25B	13.16B	11.69B
Gross Profit	8.23B	5.83B	2.68B	2.85B	2.57B
EBITDA	6.13B	3.91B	1.16B	1.03B	909.01M
Net Income	4.33B	2.55B	808.85M	539.99M	323.48M
Balance Sheet
Total Assets	32.96B	25.00B	20.42B	17.41B	16.88B
Cash, Cash Equivalents and Short-Term Investments	7.41B	4.28B	4.26B	4.09B	2.89B
Total Debt	4.74B	3.21B	2.65B	3.85B	4.09B
Total Liabilities	19.08B	15.25B	13.07B	10.74B	10.67B
Stockholders Equity	13.88B	9.75B	7.34B	6.67B	6.21B
Cash Flow
Free Cash Flow	2.41B	-378.62M	1.44B	1.45B	-1.14B
Operating Cash Flow	6.75B	391.13M	2.50B	1.71B	-76.45M
Investing Cash Flow	-4.70B	-761.91M	-1.06B	-269.51M	-1.06B
Financing Cash Flow	1.08B	389.47M	-1.26B	-247.81M	144.55M

Japan Engine Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7150.00
• 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:6016, the sentiment is Positive. The current price of 7150 is above the 20-day moving average (MA) of 6924.50, above the 50-day MA of 5312.50, and above the 200-day MA of 4127.75, indicating a bullish trend. The MACD of 442.02 indicates Positive momentum. The RSI at 61.22 is Neutral, neither overbought nor oversold. The STOCH value of 74.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6016.

Japan Engine Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6016	79 Outperform	¥60.02B	14.05		1.45%	37.64%	69.78%
6490	77 Outperform	¥89.26B	10.64		3.76%	-1.05%	-23.08%
6023	76 Outperform	$55.52B	12.40	11.87%	2.29%	8.57%	11.11%
6486	75 Outperform	¥94.51B	18.02		5.20%	0.68%	-32.97%
6363	74 Outperform	¥54.21B	13.51		2.90%	6.66%	-34.82%
Sector *	71 Outperform	¥254.15B	13.65	8.48%	3.02%	6.34%	13.16%
6018	62 Neutral	¥9.56B	18.50		2.37%	15.54%	-47.78%