Chiyoda (6366) AI Stock Analysis

• Market Cap: ¥335.36B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.81
• Revenue Growth: -12.14%
• EPS Growth: N/A
• Country: JP
• Employees: 3,496
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 260,324,520
• 10 Day Avg. Volume: 1,229,890
• 30 Day Avg. Volume: 1,293,136
• PEG Ratio: -0.01
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 1.56
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,452.00 ▲(74.10% Upside)
• Action: Upgraded Date: 02/13/26
• Date: Action: Upgraded 02/13/26

The score is driven primarily by improving financial performance (profitability recovery and strong free cash flow), supported by attractive valuation (low P/E). This is tempered by technical overextension (very high RSI/Stoch) and fundamental risks from declining revenue and a low equity ratio.

Positive Factors

Profitability Turnaround

A shift from prior losses to positive gross and net margins indicates durable improvements in project execution, pricing discipline and cost controls. Sustained margin recovery supports reinvestment capacity, bolsters bid competitiveness on future EPC work and improves resilience across project cycles.

Strong Free Cash Flow

Material free cash generation provides lasting flexibility to service debt, finance working capital for large projects, fund capex and meet bid bond requirements. Even with slower FCF growth, the absolute cash cushion reduces refinancing risk and supports steady operational funding.

Manageable Leverage & Liquidity

A near-1.0 debt-to-equity ratio with notable cash reserves signals a balanced capital structure for an EPC firm. Manageable leverage combined with liquidity enhances ability to absorb project delays, fund international operations, and participate in large tenders without immediate external financing.

Negative Factors

Low Equity Ratio

A very low equity ratio leaves the balance sheet thin and sensitive to project setbacks or cost overruns. That structural fragility raises refinancing and solvency risk in downturns, can constrain bidding capacity, and makes the company more reliant on debt or equity raises under stress.

Declining Revenue

Sustained top-line contraction reduces scale benefits and spreads fixed costs across a smaller revenue base. For an EPC business dependent on project volume, ongoing revenue declines can pressure margins, weaken backlog visibility, and impair long-term contract pipeline and workforce utilization.

Fixed-price EPC Execution Risk

Heavy exposure to lump-sum EPC contracts creates structural earnings volatility: execution, supply-chain, foreign logistics and subcontractor issues or currency swings can cause rapid margin erosion. This persistent contract risk demands conservative bidding and tight project governance.

Chiyoda Business Overview & Revenue Model

Company Description

Chiyoda Corporation operates as an integrated engineering company in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Chiyoda generates revenue primarily through contracts for engineering, procurement, and construction (EPC) services in the energy and chemical sectors. The company's key revenue streams include large-scale projects in oil and gas, petrochemicals, and power generation, where it charges fees based on project milestones, labor, and materials. Additionally, Chiyoda earns income from maintenance and operational support services for existing facilities. Significant partnerships with major oil and gas companies and government agencies enhance its project pipeline and market reach, contributing to its earnings. The company also focuses on international projects, which helps diversify its revenue sources and mitigate risks associated with domestic market fluctuations.

Chiyoda Financial Statement Overview

Summary

Turnaround in profitability (gross margin to 9.26% and net margin to 5.91% in 2025) and strong free cash flow (¥55.97B) support a solid financial profile. Offsetting this, revenue growth is negative (-9.68%) and the equity ratio is low (5.14%), which increases balance-sheet risk in weaker conditions.

Income Statement

Chiyoda's income statement shows a mixed performance. The gross profit margin improved significantly from a negative margin in 2024 to a positive 9.26% in 2025, reflecting a recovery in profitability. The net profit margin also turned positive at 5.91% in 2025, indicating a turnaround from previous losses. However, revenue growth is negative at -9.68%, suggesting challenges in sustaining top-line growth. EBIT and EBITDA margins have improved to 5.34% and 8.07% respectively in 2025, showing enhanced operational efficiency.

Balance Sheet

Chiyoda's balance sheet reflects a stable equity position with a notable increase in stockholders' equity to ¥23.7 billion in 2025. The debt-to-equity ratio stands at 0.99, indicating a balanced capital structure with manageable leverage. The equity ratio is relatively low at 5.14%, which suggests potential vulnerability to financial instability. The company maintains strong liquidity with significant cash reserves, enhancing its ability to meet short-term obligations.

Cash Flow

Chiyoda's cash flow statement indicates strong free cash flow of ¥55.97 billion in 2025, with a slight decline from the previous year. The operating cash flow to net income ratio is robust, suggesting efficient cash generation from operations. However, the free cash flow growth rate is negative, reflecting challenges in sustaining cash flow growth. Overall, the cash flow position supports operational needs and debt management effectively.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	430.41B	456.97B	505.98B	430.16B	311.12B	315.39B
Gross Profit	40.89B	42.32B	-157.00M	32.71B	22.79B	20.06B
EBITDA	37.63B	36.88B	-2.03B	24.95B	-5.29B	13.08B
Net Income	29.34B	26.99B	-15.83B	15.19B	-12.63B	7.99B
Balance Sheet
Total Assets	433.10B	461.03B	426.97B	406.59B	395.40B	329.58B
Cash, Cash Equivalents and Short-Term Investments	285.13B	307.28B	102.07B	61.24B	68.80B	106.99B
Total Debt	23.60B	23.60B	23.60B	29.09B	45.62B	45.75B
Total Liabilities	401.40B	435.57B	420.89B	384.28B	379.64B	292.84B
Stockholders Equity	29.87B	23.71B	4.86B	22.18B	15.65B	36.40B
Cash Flow
Free Cash Flow	0.00	55.97B	60.99B	41.37B	-27.73B	-22.95B
Operating Cash Flow	0.00	51.17B	62.75B	44.16B	-25.59B	-20.81B
Investing Cash Flow	0.00	-4.18B	-1.57B	7.89B	-3.79B	-2.25B
Financing Cash Flow	0.00	-298.00M	-5.85B	-17.06B	-4.20B	9.48B

Chiyoda Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 834.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6366, the sentiment is Positive. The current price of 834 is below the 20-day moving average (MA) of 1420.45, below the 50-day MA of 1061.64, and above the 200-day MA of 577.93, indicating a neutral trend. The MACD of 89.21 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 6.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6366.

Chiyoda Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1949	74 Outperform	¥346.51B	20.02	12.41%	1.68%	8.09%	20.78%
1959	74 Outperform	¥717.67B	21.37	―	2.15%	-5.20%	-1.20%
6366	73 Outperform	¥335.36B	4.00	117.82%	―	-12.14%	―
1942	72 Outperform	¥1.35T	23.84	14.15%	2.00%	16.43%	53.76%
1963	65 Neutral	¥597.82B	17.06	-0.24%	2.10%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6330	53 Neutral	¥171.17B	-11.48	2.62%	0.96%	-5.80%	-126.63%