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Modec Inc (JP:6269)
:6269
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Modec (6269) AI Stock Analysis

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JP:6269

Modec

(OTC:6269)

Rating:78Outperform
Price Target:
¥7,480.00
▼(-3.61% Downside)
Modec demonstrates strong financial performance and bullish technical momentum, driving the overall score. Financial health improvements and robust cash flow generation underpin confidence in future growth. However, overbought technical indicators and an average valuation slightly temper the outlook.

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

Modec Business Overview & Revenue Model

Company DescriptionMODEC, 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 MoneyModec generates revenue primarily through the construction and leasing of floating production systems, such as FPSOs, FSRUs, and TLPs, to major oil and gas companies around the world. The company enters into long-term contracts with these energy companies, which include both the sale and lease of its floating units along with the provision of operations and maintenance services. Modec's business model is heavily reliant on securing engineering, procurement, construction, and installation contracts, as well as operational contracts, which provide a steady stream of income through charter fees and service agreements. Additionally, strategic partnerships and joint ventures with leading oil companies help Modec expand its market presence and secure new projects, further contributing to its revenue.

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.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.23B4.19B3.57B2.77B3.90B3.01B
Gross Profit399.61M392.81M250.38M68.26M-225.53M-93.07M
EBITDA260.35M207.69M324.46M-12.04M-220.93M-175.97M
Net Income213.34M220.40M96.54M37.38M-363.98M-126.63M
Balance Sheet
Total Assets4.35B4.50B3.89B3.14B3.43B3.47B
Cash, Cash Equivalents and Short-Term Investments1.49B1.31B1.07B529.91M824.30M641.09M
Total Debt498.92M514.43M570.75M393.38M426.92M3.14B
Total Liabilities3.12B3.30B2.85B2.30B2.87B2.55B
Stockholders Equity1.19B1.18B992.82M811.64M532.54M848.94M
Cash Flow
Free Cash Flow694.56M548.61M478.42M-215.78M122.88M262.40M
Operating Cash Flow704.03M560.89M485.89M-208.90M152.24M300.62M
Investing Cash Flow13.49M-122.58M-210.54M-56.85M-220.54M-7.19M
Financing Cash Flow-183.37M-186.27M241.15M-49.01M265.96M-130.10M

Modec Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7760.00
Price Trends
50DMA
6827.20
Positive
100DMA
5803.42
Positive
200DMA
4668.03
Positive
Market Momentum
MACD
326.34
Positive
RSI
59.57
Neutral
STOCH
42.41
Neutral
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 7760 is above the 20-day moving average (MA) of 7451.50, above the 50-day MA of 6827.20, and above the 200-day MA of 4668.03, indicating a bullish trend. The MACD of 326.34 indicates Positive momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 42.41 is Neutral, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$530.01B14.7520.23%1.16%13.44%21.48%
65
Neutral
$15.01B7.393.39%5.33%4.10%-61.80%
$8.79B102.160.82%3.53%
$21.07B6.509.37%5.46%
$2.16B3.8016.81%11.94%
$16.24B19.46-3.19%2.69%
73
Outperform
¥588.43B19.83
4.58%0.62%-72.08%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6269
Modec
7,760.00
5,144.69
196.71%
IDKOF
Idemitsu Kosan Co
6.84
0.05
0.74%
IPXHF
INPEX
15.70
2.12
15.61%
JPTXF
Japan Petroleum Exploration Co
8.42
1.08
14.71%
JXHGF
ENEOS Holdings
6.04
0.94
18.43%
JP:5021
Cosmo Energy Holdings Co., Ltd.
7,212.00
143.84
2.04%

Modec Corporate Events

Modec Reports Strong Revenue Growth and Increased Dividends for First Half of 2025
Aug 7, 2025

Modec, Inc. reported consolidated financial results for the first half of 2025, showing a 10.5% increase in revenue compared to the previous year. Despite a decrease in operating profit by 7.8%, the company experienced a 10.7% rise in profit, indicating strong performance in other financial areas. The company also announced a significant increase in dividends, reflecting confidence in its financial stability and future growth prospects.

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 03, 2025