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

• Market Cap: ¥91.83B
• Dividend Yield: 1.25%
• Average Volume (3M): 38.41K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.61
• 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: ¥3,724.00 ▲(25.30% 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 provide durable financial flexibility for bidding on public infrastructure contracts, absorbing project timing risks and supporting capital spending or working-capital needs without forcing asset sales or emergency financing. This underpins long-term stability.

Consistent revenue growth

Multi-year, steady top-line growth reflects repeatable demand from public infrastructure and recurring tender activity. A stable revenue base reduces recovery risk between projects, enabling predictable backlog conversion and planning of staffing and technical investments over coming quarters.

Healthy return on equity

Sustained ROE in the low double-digits signals efficient use of capital in an engineering services business where margins are modest. This suggests competent project selection and pricing discipline, supporting the company’s ability to generate shareholder returns across economic cycles.

Negative Factors

Volatile cash generation

Inconsistent operating cash flows and intermittent negative free cash flow weaken the firm's ability to self-fund working capital and capex needs, increasing reliance on external financing in some years and raising execution risk on multi-year public projects where payment timing and retainage matter.

Recent margin softening

Profitability compression despite revenue growth implies rising cost pressures or unfavorable project mix. If persistent, margin erosion can reduce reinvestment capacity and ROE, and force tougher bidding that could compromise long-term pricing power in competitive public tenders.

Rising debt in 2025

An increase in debt levels after a period of low leverage raises the firm's fixed-charge obligations and reduces financial slack. If debt funds working capital or one-off items rather than growth investments, it could pressure margins and limit strategic optionality over the next several quarters.

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 generates revenue primarily through its civil engineering and construction services. The company earns money by engaging in contracts for public and private infrastructure projects, where it charges fees based on the scope and complexity of the work. Key revenue streams include project management fees, consulting services, and construction contracts. Additionally, CTI Engineering may form strategic partnerships with government agencies and other firms to secure large-scale projects, which contribute significantly to its earnings. The company's focus on sustainable development and technological innovation also positions it to benefit from emerging trends in the infrastructure sector.

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: 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:9621, the sentiment is Neutral. The current price of 2972 is below the 20-day moving average (MA) of 3333.25, below the 50-day MA of 3129.00, and above the 200-day MA of 2888.89, indicating a neutral trend. The MACD of 85.34 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 31.42 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	¥97.23B	15.89	―	3.63%	35.73%	62.37%
1871	75 Outperform	¥154.91B	8.40	―	3.13%	5.39%	33.02%
9621	73 Outperform	¥91.83B	12.54	―	1.25%	2.61%	-13.38%
1882	70 Outperform	¥94.17B	12.57	―	8.02%	2.51%	4.02%
1888	65 Neutral	¥60.00B	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	¥77.42B	7.46	―	3.84%	-8.79%	―