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Japan Engine Corp (JP:6016)
:6016
Japanese Market

Japan Engine Corp (6016) AI Stock Analysis

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JP

Japan Engine Corp

(6016)

Rating:79Outperform
Price Target:
¥7,946.00
▲(16.17%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 (6016) vs. iShares MSCI Japan ETF (EWJ)

Japan Engine Corp Business Overview & Revenue Model

Company DescriptionJapan 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 MoneyJapan 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 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
85
Very Positive
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
78
Positive
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
90
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue17.98B28.86B20.97B15.25B13.16B11.69B
Gross Profit4.26B8.23B5.83B2.68B2.85B2.57B
EBITDA2.31B6.13B3.91B1.16B1.03B909.01M
Net Income1.44B4.33B2.55B808.85M539.99M323.48M
Balance Sheet
Total Assets15.30B32.96B25.00B20.42B17.41B16.88B
Cash, Cash Equivalents and Short-Term Investments3.79B7.41B4.28B4.26B4.09B2.89B
Total Debt2.85B4.74B3.21B2.65B3.85B4.09B
Total Liabilities9.61B19.08B15.25B13.07B10.74B10.67B
Stockholders Equity5.70B13.88B9.75B7.34B6.67B6.21B
Cash Flow
Free Cash Flow1.05B2.41B-378.62M1.44B1.45B-1.14B
Operating Cash Flow1.05B6.75B391.13M2.50B1.71B-76.45M
Investing Cash Flow0.00-4.70B-761.91M-1.06B-269.51M-1.06B
Financing Cash Flow0.001.08B389.47M-1.26B-247.81M144.55M

Japan Engine Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6840.00
Price Trends
50DMA
4941.40
Positive
100DMA
4142.86
Positive
200DMA
4046.86
Positive
Market Momentum
MACD
503.89
Positive
RSI
62.38
Neutral
STOCH
27.29
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 6840 is above the 20-day moving average (MA) of 6638.00, above the 50-day MA of 4941.40, and above the 200-day MA of 4046.86, indicating a bullish trend. The MACD of 503.89 indicates Positive momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.29 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥57.42B13.26
1.52%37.64%69.78%
77
Outperform
¥88.90B10.57
3.78%-1.05%-23.08%
76
Outperform
$54.81B11.9311.87%2.32%8.57%11.11%
75
Outperform
¥92.94B17.60
5.29%0.68%-32.97%
74
Outperform
¥54.37B13.54
2.90%6.66%-34.82%
71
Outperform
¥254.47B13.178.49%3.06%6.31%13.07%
62
Neutral
¥9.76B18.20
2.32%15.54%-47.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6016
Japan Engine Corp
6,880.00
795.48
13.07%
JP:6018
Hanshin Diesel Works, Ltd.
3,065.00
337.65
12.38%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,101.00
-978.52
-31.78%
JP:6486
Eagle Industry Co., Ltd.
1,902.00
123.86
6.97%
JP:6490
Nippon Pillar Packing Co., Ltd.
3,795.00
-1,608.54
-29.77%
JP:6023
Daihatsu Diesel Mfg Co
2,194.00
348.19
18.86%
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: Jul 01, 2025