Modec (6269) AI Stock Analysis

• Market Cap: ¥817.55B
• Dividend Yield: 0.76%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 1.33
• Revenue Growth: 10.13%
• EPS Growth: 25.50%
• Country: JP
• Employees: 5,962
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 227.23
• Shares Outstanding: 68,345,300
• 10 Day Avg. Volume: 2,602,820
• 30 Day Avg. Volume: 3,645,780
• PEG Ratio: 0.06
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 2.65
• 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): 652.99
• Revenue Forecast (FY): ¥647.65B

• Rating: 67 Neutral
• Price Target: ¥12,819.00 ▼(-14.94% Downside)

Modec's overall stock score of 67 reflects strong financial performance, particularly in revenue growth and profitability, despite cash flow challenges. Technical analysis indicates mixed signals with potential short-term weakness, while valuation metrics suggest the stock is fairly valued. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

The significant revenue growth rate indicates a strong recovery and expansion, suggesting Modec's ability to capture market opportunities and enhance its market position.

Profitability

Strong profit margins demonstrate Modec's effective cost management and pricing strategies, ensuring sustainable profitability in the competitive oil and gas sector.

Balance Sheet Health

A low debt-to-equity ratio suggests Modec maintains a healthy balance sheet, providing financial stability and flexibility for future investments and growth.

Negative Factors

Cash Flow Challenges

Negative cash flows indicate potential liquidity issues, which could hinder Modec's ability to finance operations and invest in growth opportunities without external funding.

Operational Efficiency

While profitability is strong, the need for improved operational efficiency could impact Modec's ability to maximize profit from its revenue, affecting long-term competitiveness.

Cash Generation Alignment

Although cash generation aligns with net income, the lack of growth in free cash flow highlights potential constraints in liquidity, affecting Modec's financial flexibility.

Modec Business Overview & Revenue Model

Company Description

MODEC, Inc., a general contractor, engages in the engineering, procurement, construction, and installation of floating production systems worldwide. The company provides floating production storage and offloading vessels; floating storage and offloading vessels; floating LNGs; floating storage regasification water-desalination and power generation; tension leg platforms; production semi-submersibles; mooring systems; and other technologies. It also offers operation and maintenance services. The company was founded in 1968 and is headquartered in Tokyo, Japan. MODEC, Inc. is a subsidiary of Mitsui E&S Holdings Co., Ltd.

How the Company Makes Money

Modec generates revenue primarily through long-term contracts with oil and gas companies for the leasing and operation of its FPSO units. The company earns money from the day rates charged for the use of its production units, as well as from additional services such as maintenance and technical support. Key revenue streams include fixed contracts with established clients in the oil and gas industry, which provide stable income over several years. Modec also benefits from partnerships with major oil companies, which can lead to further opportunities for contracts and joint ventures in new projects. Additionally, the company may see revenue from project financing and construction services linked to the development of new FPSO units.

Modec Financial Statement Overview

Summary

Modec demonstrates solid financial health with consistent revenue growth and profitability. The company's balance sheet is stable, with a manageable level of debt and strong return on equity. However, the decline in free cash flow growth is a potential risk that needs to be addressed to ensure long-term sustainability.

Income Statement

Modec has shown a positive trajectory in revenue growth with a 3.7% increase in the TTM period. The company maintains a healthy gross profit margin of 9.4% and a net profit margin of 5.0%, indicating profitability. However, the EBIT margin of 5.2% suggests room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio of 0.42 indicates a moderate level of leverage, which is manageable. The return on equity (ROE) of 20.4% is strong, reflecting effective use of equity to generate profits. The equity ratio of 28.5% suggests a balanced capital structure, though there is potential risk if debt levels increase.

Cash Flow

The free cash flow growth rate has declined by 25.7% in the TTM, which is a concern. However, the operating cash flow to net income ratio of 0.27 and free cash flow to net income ratio of 0.99 indicate that the company is generating sufficient cash relative to its net income, supporting its liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	191.66B	4.19B	3.57B	2.77B	3.90B	3.01B
Gross Profit	27.49B	392.81M	250.38M	69.01M	-225.53M	-93.07M
EBITDA	22.62B	207.69M	324.46M	-12.04M	-220.93M	-175.97M
Net Income	15.01B	220.40M	96.54M	37.38M	-363.98M	-126.63M
Balance Sheet
Total Assets	665.74B	4.50B	3.89B	3.14B	3.43B	3.47B
Cash, Cash Equivalents and Short-Term Investments	192.21B	1.31B	1.07B	529.91M	824.30M	641.09M
Total Debt	62.01B	514.43M	570.75M	393.38M	426.92M	3.14B
Total Liabilities	461.24B	3.30B	2.85B	2.30B	2.87B	2.55B
Stockholders Equity	197.69B	1.18B	992.82M	811.64M	532.54M	886.47M
Cash Flow
Free Cash Flow	-20.73B	548.61M	478.42M	-215.78M	122.88M	262.40M
Operating Cash Flow	-20.53B	560.89M	485.89M	-208.90M	152.24M	300.62M
Investing Cash Flow	-1.54B	-122.58M	-210.54M	-56.85M	-220.54M	-6.22M
Financing Cash Flow	-19.51B	-186.27M	241.15M	-49.01M	265.96M	-130.10M

Modec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6269, the sentiment is Positive. The current price of 15070 is above the 20-day moving average (MA) of 13914.00, above the 50-day MA of 11465.26, and above the 200-day MA of 7124.21, indicating a neutral trend. The MACD of 63.68 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 16.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6269.

Modec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1662	81 Outperform	¥353.70B	4.07	16.04%	3.29%	4.14%	91.38%
1605	79 Outperform	$3.74T	8.70	9.52%	3.00%	-11.79%	18.12%
5021	73 Outperform	¥689.10B	11.61	―	3.98%	2.57%	-4.79%
6269	67 Neutral	¥817.55B	18.70	24.31%	0.76%	10.13%	25.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5020	64 Neutral	¥2.95T	13.35	-0.15%	2.81%	-14.13%	33.18%
5019	63 Neutral	¥1.51T	36.99	2.23%	3.06%	-7.68%	-73.03%

Modec Corporate Events

Modec Announces Upward Revisions to 2025 Earnings and Dividend Forecasts

Modec, Inc. has revised its earnings and dividend forecasts for the fiscal year ending December 2025, citing steady progress in EPCI projects and improved operating performance of existing vessels. The company anticipates an 18.9% increase in revenue and a 29.6% rise in profit attributable to owners, leading to a higher year-end dividend forecast, which will be submitted for approval at the upcoming Annual General Meeting.

Modec Reports Strong Financial Growth and Upward Earnings Forecast for 2025

Modec, Inc. reported a significant increase in its financial performance for the nine months ending September 30, 2025, with revenue rising by 11.9% and profit attributable to owners of the parent increasing by 43.6% compared to the previous year. The company also announced an upward revision in its earnings forecast for the full year 2025, indicating strong growth expectations and a positive outlook for stakeholders.