Japan Engine Corp (6016) AI Stock Analysis

• Market Cap: ¥82.27B
• Dividend Yield: 0.74%
• Average Volume (3M): 423.68K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.51
• Revenue Growth: 18.23%
• EPS Growth: 3.26%
• Country: JP
• Employees: 345
• Sector: Industrials
• Sector Strength: 74
• Industry: Industrial - Machinery
• EPS (TTM): 173.70
• Shares Outstanding: 8,400,000
• 10 Day Avg. Volume: 451,110
• 30 Day Avg. Volume: 423,676
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥8,594.00
• Price Target Upside: -11.68% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥8,594.00 ▼(-11.68% Downside)

Japan Engine Corp's stock is rated positively due to its strong financial performance, characterized by robust revenue growth, profitability, and cash flow generation. Technical analysis supports bullish momentum with current price trends indicating positive investor sentiment. The valuation appears fair, with a reasonable P/E ratio and modest dividend yield, making it attractive within its industry.

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 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 exhibits strong financial health with significant revenue growth and profitability improvements. The balance sheet is robust with low leverage and high equity, ensuring financial stability. Cash flow generation is solid, supporting growth and strategic initiatives. Operational margins could improve further, but overall, 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	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	10.74B	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: 9730.00
• 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 9730 is above the 20-day moving average (MA) of 9591.50, above the 50-day MA of 8135.60, and above the 200-day MA of 4943.93, indicating a bullish trend. The MACD of 578.24 indicates Positive momentum. The RSI at 56.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 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	80 Outperform	¥82.27B	19.57		0.74%	18.23%	3.26%
6490	77 Outperform	¥94.10B	11.16		3.09%	-0.98%	-18.48%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
DDMGF	―	$371.63M	―	12.02%	―	―	―
6486	74 Outperform	¥127.67B	22.43		3.57%	>-0.01%	-26.82%
6018	66 Neutral	¥9.93B	21.25		2.28%	44.84%	-15.31%
6363	66 Neutral	¥53.03B	21.58		2.99%	9.31%	-62.88%