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Japan Engine Corp (JP:6016)
:6016
Japanese Market
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Japan Engine Corp (6016) AI Stock Analysis

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JP:6016

Japan Engine Corp

(6016)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
¥8,630.00
▼(-28.74% Downside)
Action:Downgraded
Date:05/15/26
The score is supported by strong income-statement growth and a healthier balance sheet, but is held back by volatile cash flow (including negative free cash flow in 2026) and clearly weak technical trends and momentum. Valuation is neutral with a low dividend yield.
Positive Factors
Sustained revenue and profit expansion
Multi‑year top‑line and profit expansion indicates durable demand and execution. Persistent revenue scale supports investment in capacity and drives operating leverage, making future margin improvement and reinvestment into service networks more sustainable across shipping cycles.
Negative Factors
Volatile free cash flow
Inconsistent FCF despite strong accounting profits signals weak earnings-to-cash conversion. Persistent volatility complicates capital allocation, increases reliance on external funding for growth or dividends, and raises execution risk if working capital or capex needs spike.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue and profit expansion
Multi‑year top‑line and profit expansion indicates durable demand and execution. Persistent revenue scale supports investment in capacity and drives operating leverage, making future margin improvement and reinvestment into service networks more sustainable across shipping cycles.
Read all positive factors

Japan Engine Corp (6016) vs. iShares MSCI Japan ETF (EWJ)

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. Th...
How the Company Makes Money
Revenue is primarily generated by (1) selling marine engines and associated equipment to shipbuilders and vessel owners/operators (newbuild and replacement demand), and (2) providing after-sales services that support installed engines over their o...

Japan Engine Corp Financial Statement Overview

Summary
Strong multi-year revenue and profit expansion with improving leverage and higher equity, but cash generation is inconsistent: free cash flow has been volatile and turned slightly negative in 2026 despite high earnings, lowering confidence in earnings-to-cash conversion.
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
54
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue17.98B29.71B28.86B20.97B15.25B13.16B
Gross Profit4.26B9.75B8.23B5.83B2.68B2.85B
EBITDA2.31B6.44B6.13B3.91B1.16B1.03B
Net Income1.44B4.76B4.33B2.55B808.85M539.99M
Balance Sheet
Total Assets25.47B31.96B33.09B25.04B20.45B17.47B
Cash, Cash Equivalents and Short-Term Investments5.06B5.43B7.41B4.28B4.26B4.09B
Total Debt3.26B3.96B4.74B3.21B2.65B3.76B
Total Liabilities17.09B13.57B19.21B15.29B13.10B10.91B
Stockholders Equity8.37B18.39B13.88B9.75B7.34B6.55B
Cash Flow
Free Cash Flow0.00-250.86M2.41B-293.40M1.44B1.60B
Operating Cash Flow0.002.55B6.75B391.13M2.50B1.80B
Investing Cash Flow0.00-3.11B-4.70B-761.91M-1.06B-269.69M
Financing Cash Flow0.00-1.42B1.08B389.47M-1.26B-247.81M

Japan Engine Corp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12110.00
Price Trends
50DMA
11408.52
Negative
100DMA
12672.68
Negative
200DMA
12084.87
Negative
Market Momentum
MACD
-1040.43
Positive
RSI
29.17
Positive
STOCH
12.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6016, the sentiment is Negative. The current price of 12110 is above the 20-day moving average (MA) of 9483.00, above the 50-day MA of 11408.52, and above the 200-day MA of 12084.87, indicating a bearish trend. The MACD of -1040.43 indicates Positive momentum. The RSI at 29.17 is Positive, neither overbought nor oversold. The STOCH value of 12.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6016.

Japan Engine Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥64.15B11.913.95%2.75%25.75%
80
Outperform
¥71.72B12.872.63%2.11%0.91%
74
Outperform
¥18.65B25.012.78%5.18%37.11%
70
Outperform
¥68.08B11.8511.47%1.88%-0.81%28.73%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥65.86B12.073.09%7.43%47.68%
61
Neutral
¥66.07B14.410.55%2.93%10.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6016
Japan Engine Corp
8,180.00
3,192.82
64.02%
JP:6023
Daihatsu Diesel Mfg Co
2,758.00
877.41
46.66%
JP:6018
Hanshin Diesel Works, Ltd.
5,680.00
2,635.47
86.56%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,719.00
882.97
48.09%
JP:6381
ANEST IWATA Corp.
1,620.00
292.60
22.04%
JP:6517
Denyo Co., Ltd.
3,575.00
879.16
32.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 15, 2026