Modec (6269) AI Stock Analysis

• Market Cap: $683.69B
• Dividend Yield: 0.9%
• Average Volume (3M): 642.30K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.24
• Revenue Growth: 13.44%
• EPS Growth: 21.48%
• Country: JP
• Employees: 5,962
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 185.72
• Shares Outstanding: 68,345,300
• 10 Day Avg. Volume: 689,420
• 30 Day Avg. Volume: 642,296
• 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: 0.40
• Enterprise Value/Revenue: 61.97
• Enterprise Value/Gross Profit: 696.85
• Enterprise Value/Ebitda: 1.42K
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥11,200.00 ▲(6.36% Upside)

Modec's stock score is driven primarily by its solid financial performance and strong technical indicators. The company's consistent revenue growth and profitability, along with a stable balance sheet, provide a strong foundation. Technical analysis shows bullish momentum, although caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly valued, with a modest dividend yield.

Modec Business Overview & Revenue Model

Company Description

Modec (6269) is a leading provider of offshore production solutions, primarily focusing on the design, construction, and operation of floating production storage and offloading (FPSO) units. The company operates within the oil and gas sector, delivering innovative and efficient solutions for the exploration and production of hydrocarbons in deepwater environments. Modec's core services include project management, engineering, and the provision of floating production units that enable oil and gas companies to extract resources from offshore locations.

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	4.39B	4.19B	3.57B	2.77B	3.90B	3.01B
Gross Profit	390.41M	392.81M	250.38M	69.01M	-225.53M	-93.07M
EBITDA	191.74M	207.69M	324.46M	-12.04M	-220.93M	-175.97M
Net Income	241.99M	220.40M	96.54M	37.38M	-363.98M	-126.63M
Balance Sheet
Total Assets	4.50B	4.50B	3.89B	3.14B	3.43B	3.47B
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.31B	1.07B	529.91M	824.30M	641.09M
Total Debt	419.54M	514.43M	570.75M	393.38M	426.92M	3.14B
Total Liabilities	3.19B	3.30B	2.85B	2.30B	2.87B	2.55B
Stockholders Equity	1.28B	1.18B	992.82M	811.64M	532.54M	886.47M
Cash Flow
Free Cash Flow	515.91M	548.61M	478.42M	-215.78M	122.88M	262.40M
Operating Cash Flow	522.68M	560.89M	485.89M	-208.90M	152.24M	300.62M
Investing Cash Flow	13.75M	-122.58M	-210.54M	-56.85M	-220.54M	-6.22M
Financing Cash Flow	-206.98M	-186.27M	241.15M	-49.01M	265.96M	-130.10M

Modec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10530.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 10530 is above the 20-day moving average (MA) of 9103.65, above the 50-day MA of 8410.66, and above the 200-day MA of 5787.27, indicating a bullish trend. The MACD of 597.34 indicates Negative momentum. The RSI at 68.92 is Neutral, neither overbought nor oversold. The STOCH value of 89.34 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1605	80 Outperform	¥3.47T	7.98	9.37%	3.12%	-6.76%	38.77%
1662	78 Outperform	$333.76B	3.91	16.81%	3.34%	8.04%	71.32%
6269	72 Outperform	$683.69B	19.03	20.23%	0.90%	13.44%	21.48%
5021	67 Neutral	¥583.42B	19.55	―	4.70%	0.62%	-72.08%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5019	63 Neutral	$1.40T	110.05	0.82%	3.29%	-4.23%	-95.01%
5020	62 Neutral	¥2.64T	20.48	-3.19%	2.78%	-12.88%	-55.89%

Modec Corporate Events

Modec Reports Revenue Growth Amidst Operating Profit Decline

Modec, Inc., a company listed on the Tokyo Stock Exchange, specializes in the engineering, procurement, construction, and operation of floating offshore oil and gas production facilities, with a strong focus on large-scale ultra-deepwater projects. In its latest earnings report for the first half of 2025, Modec reported a revenue increase of 10.5% year-on-year, reaching $2.07 billion, driven by steady progress in FPSO construction projects. Despite the revenue growth, operating profit saw a decline of 7.8% to $172.2 million, while profit attributable to owners of the parent rose by 17% to $145.1 million. Modec’s financial position remained stable, with total assets slightly increasing to $4.5 billion and total equity rising by $111.4 million to $1.31 billion, attributed mainly to increased retained earnings. The company also saw significant growth in orders received, amounting to $5.04 billion, largely due to new contracts in Brazil. Looking ahead, Modec maintains a positive outlook, with expectations of continued demand for its services in the deepwater oil field sector, despite global economic uncertainties.

Modec Reports Strong Revenue Growth and Increased Dividends for First Half of 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.

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.