Japan Engine Corp (6016) AI Stock Analysis

• Market Cap: ¥52.97B
• Dividend Yield: 1.72%
• Average Volume (3M): 248.46K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.48
• Revenue Growth: 37.64%
• EPS Growth: 69.78%
• Country: JP
• Employees: 345
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 65.87
• Shares Outstanding: 8,400,000
• 10 Day Avg. Volume: 403,320
• 30 Day Avg. Volume: 248,460
• PEG Ratio: -0.30
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 235.99
• 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: 66 Neutral
• Price Target: ¥6,815.00 ▲(7.66%Upside)

The overall score for Japan Engine Corp is driven primarily by its strong financial performance, showcasing robust revenue growth and solid cash flow. However, technical analysis indicates overbought conditions, which may lead to a short-term correction. Valuation metrics are reasonable, providing a balanced view for investors.

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 makes money primarily through the manufacturing and sale of marine diesel engines. Its key revenue streams include direct sales of new engines to shipbuilders and ship owners, providing maintenance and after-sales support services, and selling spare parts. The company may also generate income through licensing agreements and partnerships with other marine technology firms, enhancing its product offerings and market reach. Additionally, strategic collaborations with shipping companies and participation in joint ventures may contribute to its financial performance.

Japan Engine Corp Financial Statement Overview

Summary

Japan Engine Corp demonstrates strong financial performance with significant revenue growth, improved profit margins, and robust cash flow generation. The balance sheet is solid with low leverage and high equity, supporting financial stability. Despite room for operational efficiency improvements, the overall 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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
	EBIT
1.53B	5.09B	2.19B	442.08M	576.16M	429.14M
	EBITDA
2.31B	6.13B	3.91B	1.16B	1.03B	909.01M
	Net Income Common Stockholders
1.44B	4.33B	2.55B	808.85M	539.99M	323.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.79B	7.41B	4.28B	4.26B	4.09B	2.89B
	Total Assets
15.30B	32.96B	25.00B	20.42B	17.41B	16.88B
	Total Debt
2.85B	4.74B	3.21B	2.65B	3.85B	4.09B
	Net Debt
-942.10M	-2.68B	-1.07B	-1.61B	-239.73M	1.19B
	Total Liabilities
9.61B	19.08B	15.25B	13.07B	10.74B	10.67B
	Stockholders Equity
5.70B	13.88B	9.75B	7.34B	6.67B	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: 6330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 6330 is above the 20-day moving average (MA) of 4837.75, above the 50-day MA of 3808.48, and above the 200-day MA of 3844.86, indicating a bullish trend. The MACD of 700.74 indicates Negative momentum. The RSI at 80.76 is Negative, neither overbought nor oversold. The STOCH value of 86.99 is Negative, 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
6490	74 Outperform	¥87.25B	10.37		3.85%	-1.05%	-23.08%
6016	66 Neutral	¥52.97B	12.23		1.72%	37.64%	69.78%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
DDMGF		$331.54M	―	11.87%	406810.80%	―	―
6363	67 Neutral	¥48.17B	12.00		3.27%	6.66%	-34.80%
6486	67 Neutral	¥92.50B	17.52		5.31%	0.68%	-32.89%
6018	62 Neutral	¥9.71B	18.10		2.33%	15.54%	-47.78%