SPACE CO., LTD. (9622) AI Stock Analysis

• Market Cap: ¥42.13B
• Dividend Yield: 1.97%
• Average Volume (3M): 36.58K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.66
• Revenue Growth: 12.65%
• EPS Growth: 22.92%
• Country: JP
• Employees: 877
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 53.13
• Shares Outstanding: 26,600,320
• 10 Day Avg. Volume: 29,990
• 30 Day Avg. Volume: 36,580
• PEG Ratio: 0.21
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 15.21
• 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: 81 Outperform
• Price Target: ¥1,913.00 ▲(23.02% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance, led by an exceptionally conservative balance sheet and improving profitability, partially tempered by historically volatile cash-flow conversion. Technicals add support with a clear uptrend and positive momentum indicators, while valuation is favorable with a low P/E and a modest dividend yield.

Positive Factors

Conservative balance sheet

Near-zero leverage and steadily rising equity give the company durable financial flexibility. That conservatism supports multi-year R&D, bidding on large government/defense projects, and resilience through cycles, reducing refinancing risk and preserving strategic optionality.

Accelerating revenue & margins

Sustained revenue growth combined with expanding operating and net margins indicate improving project execution and pricing power. These structural improvements support higher recurring earnings and improved return on equity over the medium term if execution and healthy margins persist.

Improved free cash flow conversion

Marked improvement in free cash flow and high FCF-to-income conversion supports durable capital allocation: reinvestment, debt avoidance, and shareholder returns. Strong FCF also underpins weathering multi-year project cycles and funding working-capital swings without external financing.

Negative Factors

Cash-flow volatility / working-capital risk

Project-timing and working-capital swings have produced inconsistent operating cash flow historically. That structural volatility can pressure liquidity during large project phases, force short-term financing, and complicate reliable reinvestment or dividend policies over multi-quarter horizons.

Moderate margins sensitive to project mix

While margins improved recently, they remain modest and have been uneven, reflecting sensitivity to project complexity and cost inflation. This structural margin risk means profitability and ROE can swing materially with project mix or input-cost changes over several quarters.

Customer concentration on government/defense

Heavy reliance on government and defense contracts creates structural revenue concentration and exposure to budget cycles, procurement delays, and regulatory shifts. Such dependence can amplify revenue volatility and limit diversification of demand over the medium term.

SPACE CO., LTD. Business Overview & Revenue Model

Company Description

Space Co.,Ltd. engages in the planning, design, supervision, and construction of commercial facilities in Japan. The company's commercial facilities include shopping centers, department stores, specialty stores, restaurants, and cafes. It is also involved in the planning, design, supervision, and construction of museums and other cultural, sports, and entertainment facilities; and planning, design, production, sale, and import and export of display equipment and fixtures, indoor and outdoor decorative items, furniture, etc. The company plans, designs, supervises, and executes construction and interior finishing works; and plans, designs, supervises, and constructs projects related to shows and exhibitions. Further, it is involved in the planning, design, and production related to public relations and advertising; research, consultation, and publishing related to various items; provision of information; and real estate dealings, leasing, and brokerage activities. The company was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SPACE CO., LTD. generates revenue through multiple streams, primarily by selling high-tech aerospace equipment, satellite systems, and providing engineering services to both commercial and governmental clients. The company earns significant income from contracts with national space agencies and defense organizations for satellite launches and related services. Additionally, SPACE CO., LTD. benefits from partnerships with technology firms and research institutions to develop next-generation aerospace solutions, which further diversifies its revenue. Ongoing projects, maintenance contracts, and licensing agreements also contribute to its overall earnings.

SPACE CO., LTD. Financial Statement Overview

Summary

Strong fundamentals supported by accelerating revenue growth and improved profitability (net margin ~5.3% and operating margin ~6.8% in 2025). Balance sheet strength is a major positive with near-zero leverage and improving ROE (~10.8% in 2025). The main offset is cash-flow volatility (including negative operating cash flow in 2022), reflecting working-capital/project timing risk.

Income Statement

Revenue has grown consistently from 2021–2025, accelerating to 6.8% in 2025 (annual). Profitability also improved meaningfully: net margin rose from ~3.2% (2023) to ~5.3% (2025) and operating margin expanded to ~6.8% (2025), indicating better project execution and/or pricing. The key weakness is that margins remain moderate for the sector and were uneven earlier in the period, suggesting profitability can still be sensitive to cost swings and project mix.

Balance Sheet

The balance sheet is exceptionally conservative with near-zero leverage (debt-to-equity ~0.16% in 2025), providing strong financial flexibility and resilience through cycles. Equity has steadily increased alongside assets, and returns on equity improved to ~10.8% in 2025 from ~4.7–5.5% in 2022–2023. The main trade-off is that such low leverage can limit return enhancement, so future return improvement likely depends on sustaining margin and earnings gains.

Cash Flow

Cash generation is generally supportive, with operating cash flow positive in 2023–2025 and free cash flow improving sharply to ~¥2.5B in 2025. Free cash flow has been solid relative to net income in 2024–2025 (~85–86%), which supports earnings quality. The weakness is volatility: operating cash flow turned slightly negative in 2022 and cash conversion versus reported profit appears inconsistent across years, highlighting working-capital/project timing risk typical in construction-related businesses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	66.93B	71.51B	64.18B	52.79B	46.71B	42.41B
Gross Profit	7.47B	8.27B	7.08B	6.11B	4.82B	4.78B
EBITDA	4.45B	5.18B	4.00B	3.12B	2.51B	2.69B
Net Income	2.88B	3.77B	2.55B	1.69B	1.39B	1.51B
Balance Sheet
Total Assets	43.53B	45.13B	40.95B	37.63B	35.40B	34.62B
Cash, Cash Equivalents and Short-Term Investments	16.13B	14.87B	13.85B	13.15B	14.05B	15.14B
Total Debt	55.44M	54.56M	60.12M	62.34M	61.13M	63.48M
Total Liabilities	10.00B	10.22B	8.27B	6.87B	5.81B	5.32B
Stockholders Equity	33.47B	34.85B	32.62B	30.70B	29.56B	29.28B
Cash Flow
Free Cash Flow	0.00	2.51B	1.75B	738.17M	-104.25M	2.25B
Operating Cash Flow	0.00	2.91B	2.05B	2.13B	-29.79M	2.28B
Investing Cash Flow	0.00	-1.33B	630.42M	-3.17B	-82.08M	-89.93M
Financing Cash Flow	0.00	-1.50B	-1.03B	-882.28M	-1.01B	-830.21M

SPACE CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1555.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9622, the sentiment is Positive. The current price of 1555 is below the 20-day moving average (MA) of 1626.25, below the 50-day MA of 1599.82, and above the 200-day MA of 1348.04, indicating a bullish trend. The MACD of 22.65 indicates Negative momentum. The RSI at 66.19 is Neutral, neither overbought nor oversold. The STOCH value of 70.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9622.

SPACE CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9622	81 Outperform	¥42.13B	11.10	―	1.97%	12.65%	22.92%
9768	77 Outperform	¥32.66B	13.72	―	2.37%	3.01%	-13.60%
9788	71 Outperform	¥24.61B	20.75	―	4.18%	5.13%	22.57%
6540	69 Neutral	¥20.79B	13.61	―	0.56%	13.31%	4.29%
9612	67 Neutral	¥20.01B	8.81	―	―	15.30%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SPACE CO., LTD. Corporate Events

Space Co. Books Strong 2025 Earnings, Lifts Dividend but Signals Softer Profit Outlook for 2026

Space Co., Ltd. reported consolidated net sales of ¥71.5 billion for the fiscal year ended December 31, 2025, up 11.4% year on year, with operating profit surging 39.4% to ¥4.83 billion and profit attributable to owners of parent rising 48.1% to ¥3.77 billion. Profitability metrics improved, with return on equity climbing to 11.2% and the operating margin reaching 6.8%, while total assets expanded to ¥45.1 billion and cash and cash equivalents held steady at around ¥13.5 billion.

Shareholders are set to receive a total annual dividend of ¥78 per share for 2025, including a commemorative component, representing a payout ratio of 50.7% and a higher dividend-on-net-assets ratio than the prior year. For 2026, the company forecasts modest top-line growth to ¥72 billion and higher operating profit of ¥5.04 billion, but expects profit attributable to owners of parent to decline 12.5% to ¥3.3 billion, implying some pressure on bottom-line earnings despite continued revenue gains and underscoring a more cautious outlook for stakeholders.

The most recent analyst rating on (JP:9622) stock is a Buy with a Yen1732.00 price target. To see the full list of analyst forecasts on SPACE CO., LTD. stock, see the JP:9622 Stock Forecast page.

SPACE unveils finalized “Expansion and Growth” plan with ambitious financial and strategic targets

SPACE CO., LTD. has finalized its three-year medium-term management plan, titled “Expansion and Growth,” covering fiscal years 2026 to 2028 and building on prior phases that culminated in record sales and profits. The plan refines previously disclosed concepts with concrete quantitative targets, including consolidated net sales of 80 billion yen, an operating profit margin of 8%, return on equity of 12%, and a shareholder payout ratio of at least 50%.

Management will pursue these goals under two group-wide policies: encouraging every employee to act with a managerial mindset and to leverage individual strengths to create optimal value. Qualitative targets include creating career-track roles for all employees and establishing the Group as a co-creation partner in commerce, signaling an emphasis on human capital and collaborative business development.

Strategically, SPACE will deepen its existing businesses by reinforcing its distinctive, integrated business model, expanding its core domestic markets, and growing its overseas operations. In parallel, it will push into new value-creation domains through initiatives to solve local issues, building a cross-business creative organization, and participating in facility management and event planning.

The Group also plans to strengthen its value chain by expanding its “Brain Network,” combining its capabilities with consulting, art, digital technologies, and environmental materials to deliver sustainable spaces for clients. Additionally, it aims to make manufacturing more resilient through enhanced in-house production technology, stronger support for production and supervision specialists, and closer collaboration with partner companies to ensure quality, safety, and reliability in construction.

The most recent analyst rating on (JP:9622) stock is a Buy with a Yen1732.00 price target. To see the full list of analyst forecasts on SPACE CO., LTD. stock, see the JP:9622 Stock Forecast page.

SPACE CO., LTD. Lifts Annual Dividend Payout on Strong FY2025 Results

SPACE CO., LTD. has approved a year-end dividend of 51 yen per share for the fiscal year ended December 31, 2025, including an ordinary dividend of 43 yen and a special dividend of 8 yen, subject to shareholder approval at the March 2026 AGM. This brings the total annual dividend to 78 yen per share, up sharply from 54 yen the previous year, with total dividends rising to 1,251 million yen and reflecting stronger business results.

The company states that the payout aligns with its basic policy of balancing growth investments and financial soundness while maintaining stable shareholder returns. The significant increase in both ordinary and special dividends underscores management’s confidence in earnings momentum and signals a more shareholder-friendly capital allocation stance, potentially enhancing the stock’s appeal within the Japanese prime market.

The most recent analyst rating on (JP:9622) stock is a Buy with a Yen1732.00 price target. To see the full list of analyst forecasts on SPACE CO., LTD. stock, see the JP:9622 Stock Forecast page.

SPACE CO., LTD. Delivers Record Sales and Profits on Large-Scale Project Wins

SPACE CO., LTD. reported record-high net sales and profits for the fiscal year ended December 31, 2025, with net sales rising 11.4% year on year to ¥71,511 million. Operating profit reached ¥4,879 million, ordinary profit ¥4,830 million, and profit attributable to owners of parent ¥3,770 million, all showing strong double-digit growth compared with the previous year.

Management attributed the robust performance to securing large-scale projects through strengthened cross-divisional collaboration between the sales division and specialized teams. Enhanced recruitment and training, together with ongoing digital transformation initiatives, have improved execution capabilities, supporting sustained growth and reinforcing the company’s competitive position in its market.

The most recent analyst rating on (JP:9622) stock is a Buy with a Yen1732.00 price target. To see the full list of analyst forecasts on SPACE CO., LTD. stock, see the JP:9622 Stock Forecast page.

SPACE CO., LTD. Announces Transfer of MSC CO., LTD. Shares

SPACE CO., LTD. has decided to transfer all its shares in MSC CO., LTD., effectively removing MSC from its consolidated subsidiaries. This strategic move follows successful synergies between the two companies and aims to allow each entity to pursue its unique growth strategies independently. Despite the share transfer, SPACE CO., LTD. will continue to collaborate with MSC CO., LTD. to enhance corporate value. The impact on SPACE CO., LTD.’s financial performance is expected to be negligible.

The most recent analyst rating on (JP:9622) stock is a Buy with a Yen1529.00 price target. To see the full list of analyst forecasts on SPACE CO., LTD. stock, see the JP:9622 Stock Forecast page.

SPACE CO., LTD. Unveils ‘Expansion and Growth’ Plan for 2026-2028

SPACE CO., LTD. has announced its new medium-term management plan, ‘Expansion and Growth,’ covering 2026 to 2028. The plan aims to deepen existing business strengths, create new client value, and strengthen the value chain while focusing on sustainable growth. The company targets significant financial metrics, including net sales of 80,000 million yen and an operating profit margin of 8%. The strategy involves enhancing its organizational culture and promoting innovative business practices to maintain its competitive edge.

The most recent analyst rating on (JP:9622) stock is a Buy with a Yen1529.00 price target. To see the full list of analyst forecasts on SPACE CO., LTD. stock, see the JP:9622 Stock Forecast page.

SPACE CO., LTD. Revises Financial and Dividend Forecasts Upward

SPACE CO., LTD. has revised its financial and dividend forecasts for the fiscal year ending December 31, 2025, due to a strong performance trend and increased investment appetite among clients. The company expects higher net sales and profits, driven by securing large-scale projects and improving operational efficiency, leading to an upward revision of its dividend forecast to 70 yen per share.

The most recent analyst rating on (JP:9622) stock is a Buy with a Yen1529.00 price target. To see the full list of analyst forecasts on SPACE CO., LTD. stock, see the JP:9622 Stock Forecast page.