Modec (6269) AI Stock Analysis

• Market Cap: ¥951.08B
• Dividend Yield: 0.6%
• Average Volume (3M): 3.15M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.35
• 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: 4,759,680
• 30 Day Avg. Volume: 3,149,866
• 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: 73 Outperform
• Price Target: ¥15,492.00 ▲(2.80% Upside)

Modec's strong technical indicators and solid financial performance are the primary drivers of its stock score. The upward price momentum and stable financial health outweigh concerns about valuation and declining free cash flow growth. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Modec's FPSO units and services, supporting long-term business expansion and stability.

Balance Sheet Health

A manageable debt level ensures financial flexibility and reduces risk, allowing Modec to invest in growth opportunities and withstand industry volatility.

Return on Equity

High ROE suggests efficient management and strong profitability, enhancing shareholder value and supporting sustainable growth.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth could limit Modec's ability to fund new projects and return capital to shareholders, impacting long-term financial health.

Operational Efficiency

Lower operational efficiency may hinder profitability and competitiveness, requiring strategic improvements to enhance margins and cost management.

Cash Flow to Net Income Ratio

A low cash flow to net income ratio suggests challenges in converting income to cash, which could affect liquidity and financial flexibility.

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: 15070.00
• 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 Positive. The current price of 15070 is above the 20-day moving average (MA) of 13554.90, above the 50-day MA of 10510.36, and above the 200-day MA of 6682.44, indicating a bullish trend. The MACD of 1344.35 indicates Positive momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 34.24 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1662	81 Outperform	$333.76B	3.91	16.04%	3.34%	4.14%	91.38%
1605	79 Outperform	$3.94T	9.17	9.52%	2.93%	-11.79%	18.12%
5021	73 Outperform	¥583.42B	19.55	―	4.25%	2.57%	-4.79%
6269	73 Outperform	¥951.08B	21.75	24.31%	0.60%	10.13%	25.50%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5020	64 Neutral	¥2.82T	12.76	-0.15%	2.87%	-14.13%	33.18%
5019	63 Neutral	$1.40T	110.05	2.23%	3.19%	-7.68%	-73.03%

Modec Corporate Events

Modec Reports Strong Growth in 2025 Earnings

Modec, Inc., a company listed on the Tokyo Stock Exchange, specializes in the construction and operation of floating production, storage, and offloading (FPSO) systems for the oil and gas industry, with a focus on large-scale ultra-deepwater projects.

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.

The most recent analyst rating on (JP:6269) stock is a Buy with a Yen11200.00 price target. To see the full list of analyst forecasts on Modec stock, see the JP:6269 Stock Forecast page.

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.

The most recent analyst rating on (JP:6269) stock is a Buy with a Yen11200.00 price target. To see the full list of analyst forecasts on Modec stock, see the JP:6269 Stock Forecast page.