Japan Engine Corp (6016) AI Stock Analysis

• Market Cap: ¥101.08B
• Dividend Yield: 0.58%
• Average Volume (3M): 345.05K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.53
• Revenue Growth: 9.04%
• EPS Growth: -7.84%
• Country: JP
• Employees: 345
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 144.35
• Shares Outstanding: 8,400,000
• 10 Day Avg. Volume: 341,970
• 30 Day Avg. Volume: 345,046
• PEG Ratio: 0.09
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 11.86
• 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): 89,285.71
• Revenue Forecast (FY): ¥4.83T

• Rating: 75 Outperform
• Price Target: ¥16,214.00 ▲(12.60% Upside)

Japan Engine Corp's strong financial performance and positive technical indicators are the primary drivers of its stock score. The robust revenue growth and profitability improvements, along with solid cash flow, position the company well for future growth. However, the relatively high P/E ratio and low dividend yield suggest valuation concerns, slightly tempering the overall score.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong demand and business expansion, which is crucial for sustaining long-term competitive advantage and market presence.

Cash Generation

Strong cash generation supports future investments and debt repayments, ensuring financial stability and strategic growth opportunities.

Financial Stability

A solid balance sheet with low leverage provides financial flexibility, enabling the company to withstand economic fluctuations and invest in growth.

Negative Factors

Earnings Decline

Declining earnings per share can signal challenges in maintaining profitability, potentially impacting investor confidence and future capital raising.

Operational Efficiency

Suboptimal operational efficiency may limit profitability improvements, necessitating strategic initiatives to enhance cost management and productivity.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially impacting the stock's attractiveness in the market.

Japan Engine Corp Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Japan Engine Corp generates revenue through multiple channels, primarily by manufacturing and selling engines and engine parts for various applications, including marine vessels, industrial machinery, and power generation units. The company benefits from long-term contracts with major clients in the shipping and energy sectors, providing a stable revenue stream. Additionally, it earns income from aftermarket services and maintenance contracts, ensuring ongoing support for its products. Strategic partnerships with other engineering firms and collaborations on research projects further enhance its market presence and contribute to profitability.

Japan Engine Corp Financial Statement Overview

Summary

Japan Engine Corp exhibits a strong financial profile with impressive revenue growth and profitability improvements. The balance sheet is robust with low leverage and high equity, ensuring financial stability. The cash flow generation is solid, supporting the company's growth trajectory and strategic initiatives. While there are opportunities for enhancing operational margins, the company's financial health 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.98B	28.86B	20.97B	15.25B	13.16B	11.69B
Gross Profit	4.26B	8.23B	5.83B	2.68B	2.85B	2.57B
EBITDA	2.31B	6.13B	3.91B	1.16B	1.03B	909.01M
Net Income	1.44B	4.33B	2.55B	808.85M	539.99M	323.48M
Balance Sheet
Total Assets	25.47B	32.96B	25.00B	20.42B	17.41B	16.88B
Cash, Cash Equivalents and Short-Term Investments	5.06B	7.41B	4.28B	4.26B	4.09B	2.89B
Total Debt	3.00B	4.74B	3.21B	2.65B	3.85B	4.09B
Total Liabilities	17.09B	19.08B	15.25B	13.07B	10.88B	10.67B
Stockholders Equity	8.37B	13.88B	9.75B	7.34B	6.55B	6.21B
Cash Flow
Free Cash Flow	1.05B	2.41B	-378.62M	1.44B	1.45B	-1.14B
Operating Cash Flow	1.05B	6.75B	391.13M	2.50B	1.71B	-76.45M
Investing Cash Flow	0.00	-4.70B	-761.91M	-1.06B	-269.51M	-1.06B
Financing Cash Flow	0.00	1.08B	389.47M	-1.26B	-247.81M	144.55M

Japan Engine Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14400.00
• 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:6016, the sentiment is Positive. The current price of 14400 is above the 20-day moving average (MA) of 12455.00, above the 50-day MA of 11792.16, and above the 200-day MA of 7091.22, indicating a bullish trend. The MACD of 512.77 indicates Negative momentum. The RSI at 63.84 is Neutral, neither overbought nor oversold. The STOCH value of 79.41 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	75 Outperform	¥101.08B	23.59	―	0.58%	9.04%	-7.84%
6023	71 Outperform	¥73.28B	14.66	11.47%	1.49%	-0.04%	15.59%
6018	71 Outperform	¥12.42B	18.23	―	2.96%	38.48%	100.84%
6486	69 Neutral	¥136.61B	24.01	―	3.82%	1.70%	18.50%
6490	67 Neutral	¥121.53B	14.42	―	2.66%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6363	62 Neutral	¥49.35B	14.08	―	3.20%	6.35%	-34.20%