Chiyoda (6366) AI Stock Analysis

• Market Cap: ¥318.01B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 0.8
• Beta (1Y): 0.90
• 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: 72 Outperform
• Price Target: ¥1,242.00 ▲(48.92% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by improving financial performance and strong cash flow generation, supported by an exceptionally low P/E valuation. These positives are tempered by declining revenue and mixed technicals, with near-term weakness versus the 20-day average and subdued momentum indicators.

Positive Factors

Margin recovery and improved profitability

Sustained margin recovery indicates structural improvement in project execution and cost control. Higher gross and operating margins widen the buffer against project shocks, support reinvestment, and make earnings more resilient across the company’s project lifecycle over the next several quarters.

Strong free cash flow generation

Material free cash flow provides durable capacity to fund working capital, service debt, and invest in pre-FEED/engineering activities that win future work. Even with uneven FCF growth, a strong absolute FCF position enhances financial flexibility and supports operations through project cycles.

Integrated EPC business model and lifecycle services

End-to-end EPC plus FEED, EPCM and after-completion services create diversified revenue streams and client stickiness. Fee-based engineering and lifecycle work reduces reliance on single lump-sum contracts and supports repeatable service revenues and long-term relationships with energy and petrochemical clients.

Negative Factors

Very low equity ratio

A thin equity base leaves limited capital buffer against project losses or cost overruns; adverse shocks could quickly impair solvency metrics. Even with manageable leverage, low equity restricts balance-sheet flexibility for bidding large projects or absorbing unexpected contract setbacks over the medium term.

Declining revenue trend

Falling top-line suggests weaker project awards or lower activity; sustained revenue decline can erode backlog, underutilize engineering capacity and pressure margins. Profit recovery is positive, but durable growth depends on reversing revenue contraction and securing new large-scale contracts.

Structural fixed-price and overseas project risk

Reliance on lump-sum EPC exposes earnings to contract execution, currency and logistics risk from large overseas projects. Such structural risk can cause sizable profit volatility and demands strong project controls and subcontractor management to preserve margins over multiple reporting periods.

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

Profitability recovered meaningfully (gross and net margins turned positive; EBIT/EBITDA margins improved) and cash generation is strong with solid free cash flow. Offsetting this, revenue declined (-9.68%) and the low equity ratio (5.14%) adds balance-sheet risk despite manageable leverage (debt-to-equity 0.99) and strong liquidity.

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	38.18B	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	377.29B	315.29B	269.88B	220.23B	163.83B
Total Debt	23.60B	24.95B	25.49B	30.36B	46.90B	46.81B
Total Liabilities	401.40B	435.57B	420.89B	384.27B	379.63B	292.83B
Stockholders Equity	29.87B	23.71B	4.86B	22.18B	15.65B	36.40B
Cash Flow
Free Cash Flow	0.00	55.97B	45.68B	59.85B	56.57B	-59.01B
Operating Cash Flow	0.00	57.66B	47.43B	60.80B	57.09B	-58.40B
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: Negative
• Last Price: 834.00
• 50DMA: Negative
• 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 Negative. The current price of 834 is below the 20-day moving average (MA) of 1211.95, below the 50-day MA of 1172.72, and above the 200-day MA of 636.08, indicating a neutral trend. The MACD of -56.90 indicates Positive momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 34.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6366.

Chiyoda Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1959	74 Outperform	¥705.77B	12.93	―	2.15%	-5.20%	-1.20%
6366	72 Outperform	¥318.01B	0.79	164.12%	―	-12.14%	―
1942	72 Outperform	¥1.30T	12.95	14.94%	2.00%	16.43%	53.76%
1963	65 Neutral	¥537.80B	6.30	-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	¥205.09B	-3.11	-33.76%	0.96%	-5.80%	-126.63%