Modec (6269) AI Stock Analysis

• Market Cap: $420.05B
• Dividend Yield: 1.47%
• Average Volume (3M): 721.07K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.23
• Revenue Growth: 22.07%
• EPS Growth: 39.05%
• Country: JP
• Employees: 5,962
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 121.79
• Shares Outstanding: 68,345,300
• 10 Day Avg. Volume: 657,370
• 30 Day Avg. Volume: 721,069
• PEG Ratio: -0.01
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.71
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 0.01
• 1Y Price Target: $6,674.53
• Price Target Upside: 8.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥7,480.00 ▲(21.82%Upside)

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 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 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. 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.19B	3.57B	2.74B	3.90B	3.01B
Gross Profit	392.81M	250.38M	68.26M	-225.53M	-93.07M
EBITDA	207.69M	324.46M	179.32M	-220.93M	-56.26M
Net Income	220.40M	96.54M	37.38M	-359.92M	―
Balance Sheet
Total Assets	4.50B	3.89B	3.14B	3.43B	3.47B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.07B	529.91M	824.30M	641.09M
Total Debt	514.43M	570.75M	393.38M	426.92M	160.07M
Total Liabilities	3.30B	2.85B	2.30B	2.87B	2.55B
Stockholders Equity	1.18B	992.82M	811.64M	532.54M	886.47M
Cash Flow
Free Cash Flow	548.61M	478.42M	-215.78M	122.88M	262.40M
Operating Cash Flow	560.89M	485.89M	-208.90M	152.24M	300.62M
Investing Cash Flow	-122.58M	-210.54M	-56.85M	-220.54M	―
Financing Cash Flow	-186.27M	241.15M	-49.01M	265.96M	―

Modec Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6140.00
• 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:6269, the sentiment is Neutral. The current price of 6140 is below the 20-day moving average (MA) of 6462.00, above the 50-day MA of 5823.91, and above the 200-day MA of 4135.25, indicating a neutral trend. The MACD of 98.34 indicates Positive momentum. The RSI at 48.13 is Neutral, neither overbought nor oversold. The STOCH value of 28.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6269.

Modec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6269	78 Outperform	$420.05B	12.89	18.84%	1.47%	22.07%	39.05%
Sector *	52 Neutral	C$2.98B	-1.54	-3.48%	6.42%	2.99%	-49.41%
IDKOF	―	$8.29B	12.93	5.72%	0.02%	―	―
IPXHF	―	$16.88B	5.78	9.26%	0.31%	―	―
JPTXF	―	$1.84B	3.47	15.52%	1.68%	―	―
JXHGF	―	$14.10B	9.08	-0.17%	3.16%	―	―
5021	73 Outperform	¥572.62B	9.74		5.04%	2.58%	-28.45%

Modec Corporate Events

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

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.