tiprankstipranks
Trending News
More News >
Modec Inc (JP:6269)
:6269

Modec (6269) AI Stock Analysis

Compare
1 Followers

Top Page

JP

Modec

(OTC:6269)

Rating:80Outperform
Price Target:
¥6,138.00
▲(13.46%Upside)
Modec's strong financial performance, characterized by robust revenue and profit growth, and its attractive valuation are the primary strengths driving the stock's score. Despite the bullish momentum indicated by technical analysis, the stock's overbought conditions present some risk of a short-term correction. The absence of recent earnings call data and significant corporate events means these factors do not influence the score.

Modec (6269) vs. iShares MSCI Japan ETF (EWJ)

Modec Business Overview & Revenue Model

Company DescriptionModec, Inc. (6269) is a prominent Japanese company specializing in the engineering, procurement, construction, and operation of floating production systems, primarily for the offshore oil and gas industry. The company is a leader in the development and deployment of Floating Production Storage and Offloading (FPSO) vessels, which play a critical role in the extraction and processing of hydrocarbons from offshore fields. Modec serves a global clientele, delivering tailor-made solutions that address the unique challenges of offshore energy production.
How the Company Makes MoneyModec generates revenue through multiple streams, primarily from the design, construction, leasing, and operation of Floating Production Storage and Offloading (FPSO) vessels. These vessels are essential for offshore oil and gas extraction, and Modec contracts with major oil companies to provide custom-built FPSOs tailored to specific field requirements. The company earns money through long-term leasing agreements, which involve the construction and deployment of FPSOs for a set number of years, ensuring a steady income stream. Additionally, Modec offers operations and maintenance services for these vessels, creating another avenue for recurring revenue. Strategic partnerships with oil companies and joint ventures in specific projects also contribute significantly to Modec's financial performance, enabling the company to share risks and profits in large-scale offshore developments.

Modec Financial Statement Overview

Summary
Modec exhibits a robust financial performance with significant improvements across income, balance sheet, and cash flow metrics. The company has achieved strong revenue and profit growth, reduced financial leverage, and improved cash generation capabilities. While there are minor areas for improvement, such as further enhancing equity levels, the overall financial health appears solid, positioning Modec well for future growth in the Oil & Gas Equipment & Services industry.
Income Statement
85
Very Positive
Modec demonstrated strong revenue growth with an increase from $3.57 billion in 2023 to $4.19 billion in 2024, a growth rate of 17.1%. The gross profit margin improved significantly to 9.4% in 2024 from 7.0% in 2023, indicating better cost management. The net profit margin jumped to 5.3% in 2024, driven by a significant increase in net income. EBIT and EBITDA margins also improved, reflecting enhanced operational efficiency. Overall, the income statement shows robust growth and profitability improvements.
Balance Sheet
78
Positive
The balance sheet reveals a solid financial position with an improved debt-to-equity ratio of 0.44 in 2024, down from 0.57 in 2023, indicating reduced financial leverage. The equity ratio increased to 26.3% in 2024, reflecting a stronger balance sheet and a higher proportion of equity financing. The return on equity improved to 18.7% in 2024, showcasing enhanced profitability for shareholders. Overall, the balance sheet is stable with reduced debt levels and improved equity.
Cash Flow
91
Very Positive
Modec's cash flow statement highlights a strong free cash flow growth of 14.7% in 2024, indicating excellent cash generation capabilities. The operating cash flow to net income ratio stands at 2.54, showcasing effective conversion of income into cash. The free cash flow to net income ratio of 2.49 further emphasizes the company's strong cash flow position. Overall, Modec displays robust cash flow management with substantial free cash flow generation.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.19B3.57B2.74B3.90B3.01B
Gross Profit
392.81M250.38M68.26M-225.53M-93.07M
EBIT
322.90M192.94M139.72M-317.55M
EBITDA
207.69M324.46M179.32M-220.93M-56.26M
Net Income Common Stockholders
220.40M96.54M37.38M-359.92M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.31B1.07B529.91M824.30M641.09M
Total Assets
4.50B3.89B3.14B3.43B3.47B
Total Debt
514.43M570.75M393.38M426.92M160.07M
Net Debt
-738.84M-443.16M-99.25M-383.21M-481.02M
Total Liabilities
3.30B2.85B2.30B2.87B2.55B
Stockholders Equity
1.18B992.82M811.64M532.54M886.47M
Cash FlowFree Cash Flow
548.61M478.42M-215.78M122.88M262.40M
Operating Cash Flow
560.89M485.89M-208.90M152.24M300.62M
Investing Cash Flow
-122.58M-210.54M-56.85M-220.54M
Financing Cash Flow
-186.27M241.15M-49.01M265.96M

Modec Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5410.00
Price Trends
50DMA
4322.00
Positive
100DMA
4041.40
Positive
200DMA
3599.95
Positive
Market Momentum
MACD
270.39
Negative
RSI
76.38
Negative
STOCH
91.10
Negative
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 5410 is above the 20-day moving average (MA) of 4943.25, above the 50-day MA of 4322.00, and above the 200-day MA of 3599.95, indicating a bullish trend. The MACD of 270.39 indicates Negative momentum. The RSI at 76.38 is Negative, neither overbought nor oversold. The STOCH value of 91.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6269.

Modec Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$369.50B11.3418.84%2.03%22.07%39.05%
78
Outperform
$2.37T5.589.26%4.08%1.00%32.18%
76
Outperform
$254.03B3.1615.52%5.28%8.62%58.30%
73
Outperform
¥539.05B9.16
5.35%2.58%-28.45%
67
Neutral
$1.11T11.105.72%3.98%5.40%-51.83%
62
Neutral
$1.88T8.71-0.17%3.45%-11.07%-15.69%
57
Neutral
$7.23B3.16-4.49%5.63%0.82%-49.15%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6269
Modec
5,410.00
2,779.84
105.69%
JP:5021
Cosmo Energy Holdings Co., Ltd.
6,166.00
-1,277.59
-17.16%
JP:5019
Idemitsu Kosan Co
863.90
-174.94
-16.84%
JP:1662
Japan Petroleum Exploration Co
994.00
-233.48
-19.02%
JP:5020
ENEOS Holdings
696.50
-78.38
-10.12%
JP:1605
INPEX
1,975.00
-279.05
-12.38%

Modec Corporate Events

Modec, Inc. Reports Q1 2025 Financial Results Amid Profitability Challenges
May 13, 2025

Modec, Inc. reported its financial results for the first quarter of 2025, showing a 6.1% increase in revenue compared to the same period last year. However, the company experienced declines in operating profit, profit before tax, and profit attributable to owners, indicating challenges in maintaining profitability despite revenue growth. The company’s total assets decreased slightly, but the equity ratio improved, suggesting a stronger financial position. Modec also announced a forecasted increase in annual dividends for 2025, reflecting confidence in future earnings despite current profit pressures.

The most recent analyst rating on (JP:6269) stock is a Buy with a Yen4800.00 price target. To see the full list of analyst forecasts on Modec stock, see the JP:6269 Stock Forecast page.

Modec Revises Shareholder Classification, Impacting Strategic Alignments
Mar 27, 2025

Modec, Inc. announced a correction to its previous notice regarding changes in its largest shareholder. Initially, Mitsui O.S.K. Lines, Ltd. was categorized as an ‘Other Affiliated Company’ due to holding a significant percentage of voting rights. However, after further examination, this classification was revised, impacting the company’s shareholder structure and possibly its strategic partnerships.

MODEC Secures Major FPSO Contract with Shell for Brazilian Oil Field
Mar 25, 2025

MODEC has signed a Purchase and Sales Agreement and a 20-year operations and maintenance contract with Shell for the FPSO Gato do Mato project in Brazil. This project marks MODEC’s 19th FPSO development in Brazil and the second unit delivered to Shell, enhancing MODEC’s presence in the Brazilian offshore oil market and reinforcing its strategic partnership with Shell.

SOFEC CEO Dr. Arun Duggal Honored with OTC 2025 Heritage Award
Mar 18, 2025

Dr. Arun Duggal, President and CEO of SOFEC, a MODEC Group company, has been awarded the prestigious OTC 2025 Heritage Award for his significant contributions to the offshore industry over a 30-year career. His pioneering work in mooring systems has set new industry benchmarks, and his leadership has been crucial in developing SOFEC’s innovative solutions, securing patents, and mentoring the next generation of engineers, thereby advancing the industry and enhancing MODEC’s market position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.