CTI Engineering Co., Ltd. (9621) AI Stock Analysis

• Market Cap: ¥86.88B
• Dividend Yield: 1.25%
• Average Volume (3M): 38.41K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.69
• Revenue Growth: 2.61%
• EPS Growth: -13.38%
• Country: JP
• Employees: 3,966
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 59.25
• Shares Outstanding: 28,318,172
• 10 Day Avg. Volume: 51,290
• 30 Day Avg. Volume: 38,413
• PEG Ratio: -1.18
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 17.92
• 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: ¥3,302.00 ▲(11.10% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven mainly by solid financial health (steady growth, strong balance sheet) and supportive technical momentum (price above key moving averages with positive MACD). This is tempered by uneven cash-flow conversion and only moderate valuation support (P/E ~15 with a ~2.25% dividend yield).

Positive Factors

Conservative balance sheet

Low leverage and a rising equity base give CTI structural financial resilience. Conservatism reduces refinancing and covenant risk, supports bidding on long-cycle public projects, and preserves capacity to fund capex or strategic moves when opportunities arise over the next several quarters.

Stable public-sector revenue model

A business model centered on public infrastructure tenders and lifecycle engineering services offers multi-quarter visibility and lower demand cyclicality versus pure private construction. Steady project pipelines and repeat public clients support consistent contract flow and revenue renewal.

Sustained profitability / ROE

Consistent ROE in the low double digits and sector-appropriate margins reflect durable operational competence and pricing power on engineering services. This enables reinvestment in technical talent and bidding capacity, reinforcing competitive position in infrastructure consulting.

Negative Factors

Volatile cash generation

Irregular operating and free cash flows increase funding uncertainty for working capital, capex, and distributions. Project timing and receivable collection variability can force short-term financing or constrain reinvestment, raising execution risk on multi-stage public projects.

Softening margins and earnings

A decline in margins and reported earnings signals pressure from costs or adverse project mix. If tender pricing, input costs, or lower-margin work persist, internal cash generation and capacity to invest in technical resources will be impaired, weakening competitive flexibility.

Higher debt in 2025

The increase in total debt suggests rising external funding needs. Even if leverage remains moderate, higher debt raises interest and refinancing risk and heightens sensitivity to the company's volatile cash conversion, reducing balance sheet buffer for project delays.

CTI Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

CTI Engineering Co., Ltd. operates as a consulting engineering company in Japan and internationally. It offers professional consulting services related to civil engineering and construction works, including planning, research, scheduling, design, and project management services. The company offers its services in the areas of water and land sector, including river and coast management, land erosion disaster prevention works, dam management, water supply and sewerage management, harbors and oceans, agricultural water utilization facilities, forestry, and fishing facilities; and transport and urban sector that consists of roads, urban management and architecture, transportation, PFI and PPP, bridges, and railways. It also provides its services in the areas of environmental and social sector comprising information technology and disaster prevention, geology and geotechnical properties, environmental management and energy, project management, and resource circulation management. The company was formerly known as Kensetsu Gijyutsu Co., Ltd. and changed its name to CTI Engineering Co., Ltd. in February 1964. CTI Engineering Co., Ltd. was founded in 1945 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CTI Engineering primarily earns revenue by delivering professional engineering and construction-consulting services on a project/contract basis. Key revenue streams generally include: (1) design and engineering services (e.g., civil/structural design, detailed engineering, and technical specifications) billed as contracted fees tied to defined scopes and milestones; (2) surveying, investigation, and analysis work (e.g., field surveys, geotechnical/hydrological studies, and related technical reporting) billed per engagement; and (3) construction-related support such as project management assistance, supervision/inspection support, and consulting for maintenance/rehabilitation, which are typically billed as time-and-materials or fixed-fee service contracts depending on the procurement terms. A major driver of earnings is demand for public infrastructure planning, renewal, and disaster-resilience projects, which tends to translate into recurring tendered work from government and public-sector entities. Specific details on customer concentration, segment-level revenue breakdowns, and named partnerships are not available in the provided prompt; therefore: null.

CTI Engineering Co., Ltd. Financial Statement Overview

Summary

Steady revenue growth and solid profitability are supported by a conservative, low-leverage balance sheet. The main offset is volatile operating/free cash flow and some recent margin/earnings softening.

Income Statement

Revenue has grown steadily over the period (2020–2025), with growth moderating to low single-digits in the latest year. Profitability is solid for the sector, with net margin around 6.9% in 2024, but margins and earnings appear to have softened from 2023 to 2024 (net income down despite higher revenue), suggesting some cost pressure or mix shift. Overall, a good earnings profile with a slightly weaker recent profitability trend.

Balance Sheet

The balance sheet looks conservative with low leverage in recent years (debt-to-equity ~5–7% during 2020–2024) and a rising equity base over time, supporting financial flexibility. Return on equity has been healthy (about 11–14% in 2022–2024), though it eased in 2024 versus 2023. A watch item is the jump in total debt in 2025 versus 2024, which may indicate higher funding needs, but leverage still appears manageable relative to equity.

Cash Flow

Cash generation is mixed: operating cash flow has been volatile (weak in 2023 and 2024, then stronger in 2025), and free cash flow swung from positive (2020–2022) to slightly negative in 2023 before recovering in 2024–2025. In 2024, free cash flow covered only about two-thirds of net income, indicating earnings-to-cash conversion was not especially strong. The latest year shows improvement, but the multi-year variability keeps the score moderate.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.73B	101.04B	97.68B	93.06B	83.48B	74.41B
Gross Profit	28.40B	29.58B	28.43B	27.06B	23.42B	20.73B
EBITDA	10.49B	11.51B	11.51B	11.90B	9.82B	8.29B
Net Income	5.64B	5.95B	6.75B	7.53B	5.87B	4.47B
Balance Sheet
Total Assets	87.92B	96.34B	87.69B	79.91B	73.30B	71.88B
Cash, Cash Equivalents and Short-Term Investments	29.20B	15.99B	15.52B	19.65B	22.59B	20.53B
Total Debt	539.00M	8.52B	4.03B	2.88B	2.89B	2.48B
Total Liabilities	24.73B	29.52B	26.02B	24.82B	25.58B	33.06B
Stockholders Equity	62.98B	66.53B	61.45B	54.89B	47.52B	38.67B
Cash Flow
Free Cash Flow	0.00	4.60B	1.56B	-96.00M	3.14B	4.78B
Operating Cash Flow	0.00	5.77B	2.41B	874.00M	3.80B	5.34B
Investing Cash Flow	0.00	-612.00M	-4.80B	-912.00M	-752.00M	-671.00M
Financing Cash Flow	0.00	-5.09B	-2.11B	-3.29B	-1.29B	-1.13B

CTI Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2972.00
• 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:9621, the sentiment is Neutral. The current price of 2972 is below the 20-day moving average (MA) of 3292.80, below the 50-day MA of 3142.94, and above the 200-day MA of 2907.75, indicating a neutral trend. The MACD of -31.62 indicates Positive momentum. The RSI at 42.92 is Neutral, neither overbought nor oversold. The STOCH value of 24.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9621.

CTI Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1870	79 Outperform	¥95.85B	15.89	―	3.63%	35.73%	62.37%
1871	75 Outperform	¥139.77B	8.40	―	3.13%	5.39%	33.02%
9621	73 Outperform	¥86.88B	12.54	―	1.25%	2.61%	-13.38%
1882	70 Outperform	¥92.32B	12.57	―	8.02%	2.51%	4.02%
1888	65 Neutral	¥56.87B	9.11	―	2.84%	15.45%	43.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥76.09B	7.46	―	3.84%	-8.79%	―