JGC (JGCCF) AI Stock Analysis

JGC

(Other OTC:JGCCF)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Conservative balance sheetThe large equity base relative to debt gives JGC financial resilience through cyclical EPC conditions and project swings. Low leverage preserves capacity to absorb weaker periods and supports continued investment or shareholder distributions without relying heavily on additional borrowing.

Negative Factors

Revenue contractionThe revenue decline indicates that JGC’s recent earnings rebound was achieved despite a smaller top line rather than through broad-based expansion. Continued contraction could reduce operating scale, limit future profit growth, and make results more dependent on project mix and execution.

JGC (JGCCF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $3.17B
Dividend Yield: 2.48%
Average Volume (3M): 1,000
Price to Earnings (P/E): 10.7
Beta (1Y): 0.71
Revenue Growth: -17.62%
EPS Growth: ―
Country: US
Employees: 8,154
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

JGC Business Overview & Revenue Model

Company Description

JGC Holdings Corporation, together with its subsidiaries, delivers comprehensive engineering, procurement, and construction (EPC) solutions for a wide array of industrial plants and facilities worldwide. The company operates through two primary segme...

JGC Earnings Call Summary

Earnings Call Date:Nov 11, 2024(Q2-2024)|% Change Since:52.52%|Next Earnings Date:Nov 10, 2026

Earnings Call SentimentNeutral

The earnings call highlighted strong growth in net sales and demand in specific segments like functional materials and Total Engineering. However, this growth was overshadowed by declining profits, challenges in overseas projects, and a significant reduction in net income. While the market outlook remains positive in certain areas, the financial results reflect significant challenges that need to be addressed.

Positive Updates

Significant Increase in Net Sales

Net sales rose by 51% year-over-year to JPY 403.2 billion, driven by domestic projects related to clean energy and life sciences, as well as large-scale projects in Saudi Arabia and Iraq.

Negative Updates

Decline in Profit Margins

Gross profit fell by 11% to JPY 28.4 billion, and the profit ratio declined by 4.9% to 7.1%, primarily due to lower profit in the Total Engineering segment.

Company Guidance

During the earnings call for the second quarter of 2024, the executives provided detailed financial guidance, highlighting several key metrics. Net sales increased by 51% year-over-year to JPY 403.2 billion, while gross profit fell by 11% to JPY 28.4 billion. The profit ratio declined by 4.9% to 7.1%, primarily due to challenges in the Total Engineering segment. Operating profit decreased by 31% to JPY 13 billion, and ordinary profit fell 17% to JPY 25.4 billion. Net income attributable to owners of the parent dropped 39% to JPY 12.5 billion, influenced by a higher effective tax rate from overseas business losses. The company maintained its full-year forecast but adjusted the yen-dollar exchange rate from JPY 133 to JPY 140. New contracts in the Total Engineering segment amounted to JPY 158.9 billion, with an order backlog of JPY 1,484.9 billion at the end of September, down JPY 79 billion quarter-over-quarter. The executives emphasized efforts to improve profitability and the impact of exchange rate fluctuations, noting that each one yen change against the U.S. dollar could affect net sales by JPY 2 billion, gross profit by JPY 0.4 billion, and ordinary profit by JPY 0.8 billion.

JGC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JGCCF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6366	80Outperform	JPY 151.75B	1.83	101.68%	―	13.90%	185.56%
JP:1942	65Neutral	JPY 939.40B	13.98	16.79%	3.13%	3.74%	30.42%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1417	62Neutral	JPY 273.05B	11.04	9.82%	2.74%	4.87%	77.41%
JP:6330	47Neutral	JPY 127.86B	-10.44	-27.55%	1.15%	-31.33%	-795.62%

* Industrials Sector Average

Performance Comparison

JGCCF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JGCCF	JGC Corp	13.19	3.27	32.94%
JP:6366	Chiyoda Corp	586.00	177.00	43.28%
JP:6330	Toyo Engineering Corporation	2182.00	-413.00	-15.92%
JP:1417	Mirait Holdings Corporation	3290.00	372.41	12.76%
JP:1942	Kandenko Co., Ltd.	4598.00	-5.57	-0.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

JGC AI Stock Analysis