C.E.Management Integrated Laboratory Co., Ltd. (6171) AI Stock Analysis

• Market Cap: ¥6.35B
• Dividend Yield: 2.86%
• Average Volume (3M): 191.95K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.52
• Revenue Growth: 2.87%
• EPS Growth: 55.82%
• Country: JP
• Employees: 525
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 21.22
• Shares Outstanding: 14,237,995
• 10 Day Avg. Volume: 112,150
• 30 Day Avg. Volume: 191,953
• PEG Ratio: 0.37
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 23.03
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥484.00 ▲(16.07% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by solid financial quality (low leverage and improving profitability) tempered by cash flow volatility. Valuation is supportive with a moderate P/E and a decent dividend yield, while technical signals are mixed and do not strongly reinforce upside momentum.

Positive Factors

Conservative Balance Sheet

A very low debt-to-equity ratio and steady equity growth give the company durable financial flexibility to fund lab investments and absorb industry cycles without heavy reliance on external borrowing. This reduces solvency risk and supports long-term strategic spending and partnerships.

Stable and Improving Margins

Consistently healthy gross margins and improvement in operating and net margins indicate structural pricing power and service mix benefits. Sustained margins enable reinvestment in equipment and quality control, supporting competitive positioning and longer-term profitability resilience.

Diverse Fee-for-Service Revenue and Partnerships

A diversified fee-for-service model across pharmaceuticals, environment, and food safety, plus long-term contracts and regulatory relationships, creates recurring demand and reduces client concentration. Structural demand from regulated sectors supports steady revenue over multi-year horizons.

Negative Factors

Choppy Cash Conversion

Material variability in cash conversion and a sharp FCF decline reduce the company's ability to self-fund capex, acquisitions, or dividends consistently. Persistent working-capital swings can constrain operational flexibility and increase sensitivity to timing of client billings and collections.

Uneven Revenue Growth

Irregular top-line progress points to demand cyclicality or timing of contracts across end markets. This uneven growth complicates capacity planning and long-range investment decisions, making it harder to sustainably scale lab footprint and staffing without risking over- or under-utilization.

Inconsistent Return on Equity

Volatile ROE suggests inconsistent capital efficiency from year to year, possibly driven by margin swings or uneven cash flows. For investors and management, stabilizing returns is key to demonstrating repeatable profitability and justifying reinvestment or dividend policies over time.

C.E.Management Integrated Laboratory Co., Ltd. Business Overview & Revenue Model

Company Description

C.E.Management Integrated Laboratory Co.Ltd provides services in the areas of civil engineering and construction in Japan. The company conducts geological surveys to obtain ground information for the construction for civil engineering structures and buildings; surveys and diagnosis of various infrastructures; disaster prevention systems, including the installation of debris flow warning systems, automatic monitoring systems, and measurement equipment to ensure safety of construction sites; and ground survey services, such as conducting of surveys and tests in various situations ranging from quality control, form control, and data provision. It also offers environmental research services that include surveys and tests on the natural environment, which comprise soil against environmental pollution concerned about human body and nature impact; and non-destructive testing services, including investigation and diagnosis of social infrastructures, such as roads, railways, ports, airports, water, gas, and electricity, as well as buildings and condominiums. In addition, the company provides survey and design services comprising slope stability analysis consulting, pollution diffusion analysis, and drawing preparation services; and undertakes soil purification and ground reinforcement works that include forming a reinforcing body in the ground that secures stable strength and residential environment. C.E.Management Integrated Laboratory Co.Ltd was founded in 1985 and is headquartered in Chikuma, Japan.

How the Company Makes Money

C.E.Management Integrated Laboratory Co., Ltd. generates revenue primarily through its laboratory services, which are billed on a fee-for-service basis. The key revenue streams include contract testing services for pharmaceutical companies, environmental monitoring services, and food safety testing for manufacturers. Additionally, the company may engage in long-term contracts or partnerships with industry clients, providing a stable income source. Significant partnerships with regulatory bodies and industry associations also enhance its credibility, potentially leading to increased demand for its services and contributing to its overall earnings.

C.E.Management Integrated Laboratory Co., Ltd. Financial Statement Overview

Summary

Solid profitability and improving operating performance alongside a conservatively leveraged balance sheet support the score. The main offset is inconsistent cash conversion, with free cash flow volatility and weaker coverage of net income in 2025.

Income Statement

Revenue growth has been positive but uneven, with a notable step-up in 2025 (annual revenue up ~4.4%) after a flat 2024. Profitability is solid for the sector: gross margin has been stable in the mid-to-high 30% range, and operating profitability improved in 2025 versus 2023–2024. Net margin also strengthened in 2025 (~6.3%) after a weaker 2023, but overall earnings remain somewhat cyclical year-to-year.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage: debt-to-equity is ~0.12 in 2025 and has trended down from higher levels in 2021–2023. Equity has steadily grown over the period, supporting asset growth and reducing financial risk. A key watch item is that returns on equity have fluctuated (mid-single-digit in 2023 and higher in 2022/2024), indicating profitability consistency is still developing.

Cash Flow

Cash generation is positive (operating cash flow and free cash flow are both positive in each year shown), but conversion has been choppy. Free cash flow fell sharply in 2024 versus 2023, and in 2025 free cash flow covered only about half of net income (~0.53x), down from stronger levels in 2022–2024. Operating cash flow relative to revenue is also moderate and inconsistent, suggesting working-capital swings and variability in cash realization.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.37B	7.70B	7.35B	7.33B	7.00B	7.34B
Gross Profit	2.91B	2.84B	2.87B	2.74B	2.65B	2.53B
EBITDA	903.67M	973.45M	919.26M	739.14M	921.58M	801.64M
Net Income	356.59M	482.99M	362.56M	190.06M	349.82M	213.30M
Balance Sheet
Total Assets	7.09B	7.35B	7.03B	6.86B	7.00B	6.92B
Cash, Cash Equivalents and Short-Term Investments	2.50B	2.22B	2.27B	2.14B	1.75B	1.81B
Total Debt	741.04M	612.19M	671.35M	840.94M	1.10B	1.04B
Total Liabilities	2.15B	2.18B	2.16B	2.23B	2.42B	2.56B
Stockholders Equity	4.94B	5.17B	4.87B	4.63B	4.57B	4.36B
Cash Flow
Free Cash Flow	0.00	257.46M	459.85M	899.84M	285.69M	251.13M
Operating Cash Flow	0.00	490.31M	686.40M	952.55M	329.49M	641.46M
Investing Cash Flow	0.00	-219.39M	-111.49M	-82.05M	545.84M	-1.16B
Financing Cash Flow	0.00	-317.04M	-443.83M	-479.71M	-340.95M	363.95M

C.E.Management Integrated Laboratory Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 417.00
• 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:6171, the sentiment is Neutral. The current price of 417 is below the 20-day moving average (MA) of 454.80, below the 50-day MA of 444.25, and below the 200-day MA of 423.89, indicating a neutral trend. The MACD of 2.21 indicates Positive momentum. The RSI at 45.97 is Neutral, neither overbought nor oversold. The STOCH value of 47.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6171.

C.E.Management Integrated Laboratory Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	77 Outperform	¥31.56B	13.72	―	2.37%	3.01%	-13.60%
4673	73 Outperform	¥4.04B	6.68	―	1.16%	29.12%	428.78%
9621	73 Outperform	¥95.79B	16.27	―	1.25%	2.61%	-13.38%
4642	70 Outperform	¥8.30B	16.96	―	2.03%	16.10%	-10.63%
6171	69 Neutral	¥6.35B	13.57	―	2.86%	2.87%	55.82%
1914	67 Neutral	¥16.36B	12.39	―	3.68%	5.82%	-22.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

C.E.Management Integrated Laboratory Co., Ltd. Corporate Events

C.E.Management Integrated Laboratory Delivers Strong 2025 Results, Guides for Moderate Growth in 2026

C.E.Management Integrated Laboratory reported steady growth for the year ended December 31, 2025, with net sales rising 4.8% to ¥7.70 billion and operating profit climbing 15.3%, while profit attributable to owners of parent jumped 33.2%, lifting earnings per share to ¥33.96. The balance sheet remained robust, with total assets of ¥7.35 billion, an equity ratio of 70.4% and stable cash levels, and the company maintained its annual dividend at ¥12 per share, implying a lower payout ratio as profitability improved.

For 2026, the company forecasts a further 4.0% increase in full-year net sales to ¥8.0 billion and modest operating profit growth, but expects profit attributable to owners of parent to decline 6.0%, signaling some pressure on bottom-line margins despite top-line expansion. Management introduced changes in accounting policies due to revised standards yet kept the consolidation scope unchanged, suggesting continuity in operations, while dividend guidance indicates an ongoing commitment to shareholder returns even as earnings are projected to soften slightly.

The most recent analyst rating on (JP:6171) stock is a Buy with a Yen567.00 price target. To see the full list of analyst forecasts on C.E.Management Integrated Laboratory Co., Ltd. stock, see the JP:6171 Stock Forecast page.