Forum Engineering, Inc. (7088) AI Stock Analysis

• Market Cap: ¥67.39B
• Dividend Yield: 3.67%
• Average Volume (3M): 68.32K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.85
• Revenue Growth: 10.29%
• EPS Growth: 22.04%
• Country: JP
• Employees: 4,466
• Sector: Industrials
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): 15.41
• Shares Outstanding: 53,419,200
• 10 Day Avg. Volume: 94,270
• 30 Day Avg. Volume: 68,323
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥1,364.00
• Price Target Upside: 6.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥1,364.00 ▲(6.07% Upside)

The overall stock score of 77 reflects strong financial performance and bullish technical indicators, offset by fair valuation metrics. The company is financially stable with strong cash generation and minimal risk, but the technical indicators suggest the stock may be overbought.

Forum Engineering, Inc. Business Overview & Revenue Model

Company Description

Forum Engineering, Inc. is a Japanese company specializing in staffing services, primarily focusing on engineering roles. The company operates within the human resources sector, providing temporary staffing, permanent placement, and outsourcing solutions tailored to the needs of manufacturers and engineering firms across various industries. Forum Engineering aims to bridge the gap between skilled engineers and companies in need of specialized expertise, enhancing operational efficiency and innovation for its clients.

How the Company Makes Money

Forum Engineering, Inc. generates revenue through its staffing services by charging fees for temporary staffing placements, permanent recruitment services, and outsourcing solutions. The company earns money by matching skilled engineers with client companies, where it charges a markup on the salaries of temporary staff or a placement fee for permanent hires. Additionally, Forum Engineering may offer outsourcing services where it manages specific engineering projects or functions on behalf of clients, providing further revenue opportunities. The company's financial performance is influenced by the demand for engineering talent in various sectors, economic conditions affecting hiring trends, and its ability to maintain a strong network of qualified candidates and client relationships.

Forum Engineering, Inc. Financial Statement Overview

Summary

Forum Engineering, Inc. demonstrates impressive financial performance with strong revenue growth, solid profitability, a robust balance sheet, and excellent cash flow generation. The company maintains low leverage and strong liquidity, indicating financial stability.

Income Statement

Forum Engineering, Inc. shows strong performance with a consistent increase in total revenue over the years, achieving a revenue growth rate of 10.89% from 2024 to 2025. The company maintains healthy profit margins, with a gross profit margin of 30.28% and a net profit margin of 8.31% in 2025. EBIT and EBITDA margins are also robust, at 12.11% and 13.54% respectively, indicating efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet is solid, with a very low debt-to-equity ratio of 0.01, highlighting minimal reliance on debt financing. The equity ratio stands at 68.76%, indicating strong capitalization. Return on Equity (ROE) is a healthy 22.33%, showcasing effective use of equity to generate profits. The company's strong liquidity position is reinforced by high levels of cash and short-term investments, ensuring financial flexibility.

Cash Flow

The cash flow statement reflects excellent financial health, with a substantial increase in free cash flow by 19.25% from 2024 to 2025, supporting growth initiatives and shareholder returns. The operating cash flow to net income ratio of 1.38 suggests strong cash generation relative to accounting profits. Free cash flow to net income ratio of 1.28 further underscores the company's ability to generate cash efficiently.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.69B	31.28B	28.75B	26.91B	27.73B
Gross Profit	10.50B	9.14B	8.43B	7.89B	8.52B
EBITDA	4.70B	3.42B	1.97B	2.28B	2.73B
Net Income	2.88B	2.04B	1.16B	1.25B	1.34B
Balance Sheet
Total Assets	18.78B	17.92B	17.70B	20.77B	20.89B
Cash, Cash Equivalents and Short-Term Investments	11.63B	11.01B	10.60B	13.69B	14.30B
Total Debt	96.00M	12.00M	2.00B	5.00B	5.00B
Total Liabilities	5.61B	4.63B	5.73B	8.79B	8.82B
Stockholders Equity	12.91B	12.97B	11.97B	11.97B	12.07B
Cash Flow
Free Cash Flow	3.69B	3.09B	1.02B	841.00M	2.21B
Operating Cash Flow	3.97B	3.30B	1.51B	1.46B	2.69B
Investing Cash Flow	110.00M	-1.08B	-594.00M	-838.00M	-373.00M
Financing Cash Flow	-2.97B	-2.77B	-4.21B	-1.41B	2.81B

Forum Engineering, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1286.00
• 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:7088, the sentiment is Positive. The current price of 1286 is above the 20-day moving average (MA) of 1220.35, above the 50-day MA of 1184.16, and above the 200-day MA of 1037.19, indicating a bullish trend. The MACD of 26.49 indicates Negative momentum. The RSI at 78.36 is Negative, neither overbought nor oversold. The STOCH value of 90.03 is Negative, 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
7088	77 Outperform	¥67.39B	23.11		3.67%	10.29%	22.04%
4318	76 Outperform	¥42.98B	12.86		4.12%	9.05%	-3.95%
9164	73 Outperform	¥87.60B	40.61		2.40%	4.85%	-51.19%
4848	71 Outperform	¥60.31B	12.62		3.58%	0.16%	-21.98%
2429	70 Outperform	¥44.54B	6.46		3.49%	12.44%	37.34%
2475	67 Neutral	¥35.12B	10.40		3.49%	3.00%	-3.28%
Sector *	62 Neutral	C$7.21B	-5.53	-4.20%	2.31%	13.66%	-29.71%

Forum Engineering, Inc. Corporate Events

Forum Engineering Completes Disposal of Treasury Shares for Compensation

Forum Engineering Inc. has completed the payment procedures for the disposal of treasury shares as restricted stock compensation, a decision made during the Board of Directors meeting on June 25, 2025. This move involves the disposal of 52,135 shares at a price of 1,187 yen per share, totaling 61,884,245 yen, and is aimed at compensating certain directors and executive officers, potentially impacting the company’s financial strategy and stakeholder interests.

Forum Engineering Inc. Announces Leadership Changes

Forum Engineering Inc. announced several changes in its directors and executive officers following its 45th Annual General Meeting. These changes include the appointment of Tsutomu Sato as the Representative Director, President, and CEO, and the introduction of new directors such as Varun Modgill and Yuriko Yoshitsune. These leadership changes are expected to influence the company’s strategic direction and operational management.

Forum Engineering Announces Disposal of Treasury Shares to Enhance Corporate Value

Forum Engineering Inc. has announced the disposal of 52,135 treasury shares under its restricted stock unit plan, aimed at incentivizing directors and executive officers to enhance corporate value and align interests with shareholders. This move is part of a broader compensation strategy approved by shareholders, which includes a transfer restriction period of up to 30 years, ensuring long-term commitment from key personnel.

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.