Modec (6269) AI Stock Analysis

• Market Cap: ¥369.50B
• Dividend Yield: 2.03%
• Average Volume (3M): 418.37K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.25
• Revenue Growth: 22.07%
• EPS Growth: 39.05%
• Country: JP
• Employees: 5,962
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 121.79
• Shares Outstanding: 68,345,300
• 10 Day Avg. Volume: 314,080
• 30 Day Avg. Volume: 418,370
• PEG Ratio: -0.12
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.73
• Enterprise Value/Market Cap: <0.01
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 4.71
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥6,138.00 ▲(11.60%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 Business Overview & Revenue Model

Company Description

Modec, 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 Money

Modec 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

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
	EBIT
322.90M	192.94M	139.72M	-317.55M	―
	EBITDA
207.69M	324.46M	179.32M	-220.93M	-56.26M
	Net Income Common Stockholders
220.40M	96.54M	37.38M	-359.92M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.31B	1.07B	529.91M	824.30M	641.09M
	Total Assets
4.50B	3.89B	3.14B	3.43B	3.47B
	Total Debt
514.43M	570.75M	393.38M	426.92M	160.07M
	Net Debt
-738.84M	-443.16M	-99.25M	-383.21M	-481.02M
	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: Positive
• Last Price: 5500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5500 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6269	80 Outperform	¥369.50B	11.34	18.84%	2.03%	22.07%	39.05%
1605	78 Outperform	$2.37T	5.58	9.26%	4.08%	1.00%	32.18%
1662	76 Outperform	¥254.03B	3.16	15.52%	5.28%	8.62%	58.30%
5021	73 Outperform	¥539.05B	9.16		5.35%	2.58%	-28.45%
5019	67 Neutral	$1.11T	11.10	5.72%	3.98%	5.40%	-51.83%
5020	62 Neutral	$1.88T	8.71	-0.17%	3.45%	-11.07%	-15.69%
Sector *	57 Neutral	$7.22B	3.15	-4.49%	5.63%	0.82%	-49.15%

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.

Modec Revises Shareholder Classification, Impacting Strategic Alignments

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

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

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.