Forum Engineering, Inc. (7088) AI Stock Analysis

• Market Cap: ¥58.27B
• Dividend Yield: 4.77%
• Average Volume (3M): 81.99K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.87
• Revenue Growth: 10.90%
• EPS Growth: 40.18%
• Country: JP
• Employees: 4,466
• Sector: Industrials
• Sector Strength: 93
• Industry: Staffing & Employment Services
• EPS (TTM): 10.55
• Shares Outstanding: 53,419,200
• 10 Day Avg. Volume: 72,330
• 30 Day Avg. Volume: 81,990
• PEG Ratio: 3.36
• Price to Book (P/B): 4.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 78 Outperform
• Price Target: ¥1,242.00 ▲(11.69%Upside)

Forum Engineering, Inc. scores well due to its strong financial performance and positive technical indicators. The company's robust financial health, characterized by strong revenue growth, profitability, and cash flow generation, is the primary driver of the score. Technical indicators support a stable stock performance. The moderate valuation with an attractive dividend yield adds to its appeal, although no recent earnings call or corporate events data is available for consideration.

Forum Engineering, Inc. Business Overview & Revenue Model

Company Description

Forum Engineering, Inc. is a Japanese company specializing in staffing services, particularly in the engineering sector. The company provides skilled engineers and technical staff to various industries, including automotive, electronics, and information technology. By offering a range of human resource solutions, Forum Engineering supports businesses in meeting their engineering needs efficiently and effectively.

How the Company Makes Money

Forum Engineering, Inc. generates revenue primarily through its staffing services, where it places engineers and technical staff in both temporary and permanent positions across different industries. The company earns money by charging client companies fees for recruitment services, which may include hourly rates for temporary staffing or placement fees for permanent hires. Additionally, Forum Engineering may engage in consulting services and training programs, offering further value-added services to its clients. Strategic partnerships and industry connections also play a role in sustaining and expanding its client base, contributing to its overall revenue.

Forum Engineering, Inc. Financial Statement Overview

Summary

Forum Engineering, Inc. demonstrates strong financial health with impressive revenue and profit growth, robust profitability margins, and a solid balance sheet characterized by low leverage. However, recent cash flow issues may pose risks if not addressed. Continued focus on cash flow management will be crucial to sustaining financial stability.

Income Statement

Forum Engineering, Inc. has shown strong revenue growth with a 12.5% increase from the previous year to the current TTM (Trailing-Twelve-Months). The company maintains healthy margins, with a TTM gross profit margin of 30.2% and a net profit margin of 8.1%. Both EBIT and EBITDA margins have improved significantly to 22.2% and 13.1% respectively, indicating enhanced operational efficiency and profitability.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.005, reflecting minimal leverage and financial risk. The equity ratio stands at a strong 71.6%, indicating a solid capital structure. Return on equity is commendable at 22.1% TTM, suggesting effective utilization of shareholders' equity to generate profits.

Cash Flow

Cash flow analysis indicates some weaknesses, primarily due to zero reported operating and free cash flows in the TTM period. This could imply cash management challenges. Historically, the company showed a positive free cash flow growth rate of 204.3% from 2022 to 2023, but this momentum has not continued into the TTM period.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
33.84B	31.28B	28.75B	26.91B	27.73B	32.12B
	Gross Profit
10.22B	9.14B	8.43B	7.89B	8.52B	11.04B
	EBIT
7.50B	3.03B	1.62B	1.83B	2.35B	4.08B
	EBITDA
4.44B	3.42B	1.97B	2.28B	2.73B	3.85B
	Net Income Common Stockholders
2.74B	2.04B	1.16B	1.25B	1.34B	2.13B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.95B	11.01B	10.60B	13.69B	14.30B	9.35B
	Total Assets
17.28B	17.92B	17.70B	20.77B	20.89B	17.06B
	Total Debt
67.00M	12.00M	2.00B	5.00B	5.00B	8.36M
	Net Debt
-9.88B	-10.99B	-8.39B	-8.69B	-9.30B	-9.34B
	Total Liabilities
4.63B	4.63B	5.73B	8.79B	8.82B	4.22B
	Stockholders Equity
12.37B	12.97B	11.97B	11.97B	12.07B	12.84B
Cash Flow		Free Cash Flow
0.00	3.09B	1.02B	841.00M	2.21B	1.99B
	Operating Cash Flow
0.00	3.30B	1.51B	1.46B	2.69B	2.89B
	Investing Cash Flow
0.00	-1.08B	-594.00M	-838.00M	-373.00M	-895.14M
	Financing Cash Flow
0.00	-2.77B	-4.21B	-1.41B	2.81B	-2.36B

Forum Engineering, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1112.00
• 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:7088, the sentiment is Positive. The current price of 1112 is above the 20-day moving average (MA) of 1092.10, above the 50-day MA of 1037.66, and above the 200-day MA of 981.06, indicating a bullish trend. The MACD of 18.06 indicates Positive momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7088.

Forum Engineering, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9164	82 Outperform	¥56.00B	20.18		3.75%	7.66%	-35.51%
4318	80 Outperform	¥41.66B	11.70		4.28%	10.22%	2.21%
7088	78 Outperform	¥58.27B	20.19		4.77%	10.90%	40.18%
4848	74 Outperform	¥61.32B	13.30		3.52%	-2.99%	-27.98%
2475	67 Neutral	¥36.79B	12.00		3.35%	3.45%	-10.57%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
2429	64 Neutral	¥39.33B	6.22		3.83%	11.59%	21.11%

Forum Engineering, Inc. Corporate Events

Forum Engineering Revises Financial Targets Upward for FY 2026

Forum Engineering Inc. has revised its financial targets for the fiscal year ending March 31, 2026, under its ‘cognavi Vision 2026’ plan. The company has increased its operating profit forecast due to a steady rise in hiring and higher contract prices, which are expected to enhance its profitability and return on equity.

Forum Engineering Inc. Announces Dividend Increase

Forum Engineering Inc. has announced an increase in its year-end dividend to 32.00 yen per share, reflecting a positive adjustment based on recent business performance trends. This move, which includes the introduction of an interim dividend starting from the fiscal year ending March 2025, signifies the company’s strategic efforts to enhance shareholder returns and adapt to market conditions.

Forum Engineering Inc. Announces Board Diversity Enhancements

Forum Engineering Inc. has announced changes to its Board of Directors, aiming to enhance diversity and global perspective by appointing its first foreign director and several female directors. These appointments are expected to be confirmed at the upcoming Ordinary General Meeting of Shareholders in June 2025, reflecting the company’s commitment to sustainable growth and increased corporate value.

Forum Engineering Announces Director Change

Forum Engineering Inc. has announced a change in its Board of Directors, effective April 1, 2025. Tsutomu Sato will continue as the Representative Director, President, and CEO, with expanded responsibilities to include the System Development Section and Cognavi System Department, in addition to his current roles.

Forum Engineering Announces Executive Officer Changes

Forum Engineering Inc. has announced changes in its executive officers, effective April 1, 2025. These changes involve shifts in responsibilities across various departments, including administration, accounting, finance, system development, corporate planning, and public relations. The reorganization is expected to streamline operations and enhance the company’s strategic focus, potentially impacting its market positioning and stakeholder relations.