Chiyoda (6366) AI Stock Analysis

• Market Cap: $106.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.83
• Revenue Growth: -12.14%
• EPS Growth: N/A
• Country: JP
• Employees: 3,496
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 41.22
• 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: 0.91
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: 2.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥750.00 ▲(19.43% Upside)

Chiyoda's stock score is driven by strong technical indicators and a favorable valuation, reflecting bullish momentum and relative undervaluation. The financial performance shows a positive recovery, though revenue growth remains a concern. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Improved Profit Margins

The improvement in profit margins indicates enhanced operational efficiency and a successful turnaround from previous losses, supporting long-term profitability.

Stable Cash Position

A stable cash position with strong free cash flow supports operational needs and debt management, enhancing financial flexibility and resilience.

Balanced Capital Structure

A balanced capital structure with manageable leverage reduces financial risk and supports sustainable growth and investment capacity.

Negative Factors

Negative Revenue Growth

Negative revenue growth reflects difficulties in expanding market share and generating sales, which may hinder long-term business expansion and competitiveness.

Low Equity Ratio

A low equity ratio indicates potential financial instability, limiting the company's ability to absorb losses and invest in growth opportunities.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can strain future investment and operational capabilities, impacting the company's ability to fund new projects and initiatives.

Chiyoda Business Overview & Revenue Model

Company Description

Chiyoda Corporation (6366) is a leading engineering and construction company based in Japan, specializing in the fields of energy, chemicals, and infrastructure. The company provides comprehensive services including project management, engineering, procurement, construction, and maintenance across various sectors such as oil and gas, power generation, and environmental projects. Chiyoda is known for its innovative technologies and commitment to sustainability, offering solutions that meet the growing demands of global energy markets.

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

Chiyoda's financial performance in 2025 shows a recovery with improved profitability margins and a stable cash position. The company has turned around from losses in 2024, indicating resilience in operational efficiency. However, the negative revenue growth suggests challenges in market expansion, and the low equity ratio could pose risks in volatile market 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 628.00
• 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:6366, the sentiment is Positive. The current price of 628 is above the 20-day moving average (MA) of 604.05, above the 50-day MA of 480.52, and above the 200-day MA of 377.63, indicating a bullish trend. The MACD of 61.66 indicates Positive momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 40.69 is Neutral, 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
1976	80 Outperform	¥78.02B	10.69	―	3.59%	-3.62%	9.37%
1871	79 Outperform	¥85.80B	10.63	―	4.22%	5.39%	33.02%
6366	78 Outperform	$106.95B	3.65	117.82%	―	-12.14%	―
1982	77 Outperform	¥99.72B	15.18	―	2.30%	4.81%	-1.16%
1762	73 Outperform	¥103.65B	16.55	―	2.46%	7.22%	21.92%
1963	65 Neutral	$488.25B	―	-0.24%	2.19%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%