Gecoss Corporation (9991) AI Stock Analysis

• Market Cap: ¥46.11B
• Dividend Yield: 3.89%
• Average Volume (3M): 38.02K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.77
• Revenue Growth: -9.58%
• EPS Growth: 13.22%
• Country: JP
• Employees: 1,385
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 38.53
• Shares Outstanding: 33,795,746
• 10 Day Avg. Volume: 28,110
• 30 Day Avg. Volume: 38,020
• PEG Ratio: 3.43
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 6.44
• 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: ¥1,450.00
• Price Target Upside: 6.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,450.00 ▲(6.15% Upside)

Gecoss Corporation's stock is rated highly due to its robust financial position, characterized by strong cash flows and a solid balance sheet, along with favorable technical trends and a compelling valuation. The lack of recent earnings call data or notable corporate events does not detract from the overall positive outlook.

Gecoss Corporation Business Overview & Revenue Model

Company Description

Gecoss Corporation rents and sells construction machinery and steel products in Japan. It is involved in the rental and sale of temporary construction steel materials, such as H-section steel, steel sheet piles, floor iron plates, lining boards, and mountain retaining materials. The company also design, manufactures and sells erection and demolition work of mountain retaining and gantry, pile driving and pulling work, and obstacle removal work; rents, sells, and constructs temporary bridges, station building platforms, stairs, shield mounts, road bridges, and bridge collapse prevention hardware; rents cars; and rents construction machinery, such as aerial work platforms, backhoe, generators, temporary houses and lights. In addition, it undertakes design and construction of pile punching work, mountain retaining erection and demolition, soil cement column wall construction, etc. Further, the company provides planning and design, and technical support services for temporary construction works. The company was incorporated in 1946 and is headquartered in Tokyo, Japan. Gecoss Corporation is a subsidiary of JFE Steel Corporation.

How the Company Makes Money

Gecoss Corporation generates revenue through a combination of rental and sales of temporary construction materials. The company's primary revenue stream comes from renting out its temporary steel materials, which are crucial for various types of construction projects, including civil engineering and building construction. By providing these materials on a rental basis, Gecoss can maintain a steady income stream from its extensive inventory. Additionally, Gecoss earns revenue from the direct sale of these materials to construction companies and contractors who prefer purchasing over renting. The company may also engage in partnerships with construction firms, offering integrated solutions that include both equipment and expertise, although specific partnership details are not available.

Gecoss Corporation Financial Statement Overview

Summary

Gecoss Corporation shows solid financial health with strong cash flows, a robust balance sheet, and efficient operations, albeit with challenges in revenue growth.

Income Statement

Gecoss Corporation exhibited a moderate gross profit margin of 20.89% in 2025, reflecting stable operational efficiency. The net profit margin improved slightly to 4.07% from the previous year, indicating better cost management. However, the revenue decreased by 12.97% from 2024, highlighting potential challenges in market demand or competition. The EBIT and EBITDA margins were 6.14% and 9.07%, respectively, showing a positive operating performance, albeit with some room for improvement.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01, suggesting conservative leverage and financial stability. The return on equity stood at 6.85%, indicating effective use of shareholder funds, although there is potential for higher returns. The equity ratio of 61.91% underscores a solid equity base, providing a cushion against liabilities.

Cash Flow

Gecoss Corporation's cash flow statement shows impressive free cash flow growth, turning from negative in 2024 to a robust positive in 2025. The operating cash flow to net income ratio of 1.93 indicates strong cash generation ability relative to earnings. The free cash flow to net income ratio of 1.20 further emphasizes the company's ability to generate cash effectively, supporting reinvestment and debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.78B	111.55B	128.19B	120.52B	114.00B	110.21B
Gross Profit	24.01B	23.31B	22.07B	19.74B	19.01B	19.97B
EBITDA	10.57B	10.12B	9.83B	8.41B	7.64B	8.87B
Net Income	4.94B	4.54B	4.41B	3.43B	3.33B	4.55B
Balance Sheet
Total Assets	102.55B	107.07B	107.04B	108.98B	107.75B	102.85B
Cash, Cash Equivalents and Short-Term Investments	2.19B	3.09B	1.14B	1.27B	10.29B	7.02B
Total Debt	628.00M	632.00M	2.60B	2.25B	2.11B	4.08B
Total Liabilities	35.91B	40.79B	44.13B	49.88B	48.32B	43.05B
Stockholders Equity	66.63B	66.28B	62.91B	59.10B	59.43B	59.79B
Cash Flow
Free Cash Flow	0.00	5.43B	-1.19B	110.00M	6.00B	5.80B
Operating Cash Flow	0.00	8.78B	2.06B	2.95B	9.10B	8.50B
Investing Cash Flow	0.00	-3.28B	-4.80B	-4.75B	-2.61B	-2.43B
Financing Cash Flow	0.00	-3.56B	-894.00M	-3.73B	-3.23B	-1.27B

Gecoss Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1366.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9991, the sentiment is Neutral. The current price of 1366 is below the 20-day moving average (MA) of 1396.72, above the 50-day MA of 1354.17, and above the 200-day MA of 1129.09, indicating a neutral trend. The MACD of 7.46 indicates Positive momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9991.

Gecoss Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9991	80 Outperform	¥46.11B	9.30	―	3.89%	-9.58%	13.22%
9619	75 Outperform	¥45.93B	6.94	10.27%	3.73%	7.39%	-46.08%
7081	71 Outperform	¥12.78B	7.24	14.00%	3.46%	1.58%	28.43%
9763	71 Outperform	¥11.07B	8.58	7.24%	4.10%	9.16%	6.01%
5834	70 Outperform	¥38.49B	7.80	17.43%	4.30%	14.18%	45.35%
2445	62 Neutral	¥16.35B	16.05	5.49%	3.99%	0.02%	-36.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Gecoss Corporation Corporate Events

Gecoss Corporation Corrects Notice on FUCHI Acquisition

Gecoss Corporation announced a correction to its previous notice regarding the conversion of FUCHI Pte. Ltd. into a consolidated subsidiary. The company confirmed its acquisition of 5,333,333 shares in FUCHI, resulting in a 70% voting rights ratio, which will facilitate the conversion of FUCHI into a consolidated subsidiary. This move is expected to strengthen Gecoss’s operational capabilities and expand its influence in the construction sector.

Gecoss Corporation Expands International Presence by Acquiring Majority Stake in FUCHI Pte. Ltd.

Gecoss Corporation has decided to convert its affiliate, FUCHI Pte. Ltd., into a consolidated subsidiary by increasing its stake to 70% through a capital increase. This strategic move aims to leverage FUCHI’s technical expertise and strong customer base in Singapore to enhance Gecoss’s international expansion and strengthen its financial position, particularly in public infrastructure projects like MRT and expressways.

Gecoss Corporation Reports Strong Q1 2025 Financial Results

Gecoss Corporation reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 0.8% compared to the previous year. The company experienced significant growth in operating income, ordinary income, and profit attributable to owners of the parent, with increases of 23.8%, 37.9%, and 43.8% respectively. The company’s equity capital ratio improved to 65.0% from 61.9% as of March 31, 2025, indicating a stronger financial position. Gecoss also announced a forecasted increase in dividends for the year ending March 31, 2026, reflecting confidence in its financial stability and future growth prospects.

Gecoss Corporation Highlights Strategic Positioning within JFE Group

Gecoss Corporation announced its positioning within the JFE Group, highlighting the significant influence of JFE Holdings, Inc. and JFE Steel Corporation due to their substantial voting rights. The company also maintains a strategic relationship with Mizuho Leasing Company, Limited, its second-largest shareholder, ensuring collaborative management decisions to enhance risk management and operational efficiency.