Japan Foundation Engineering Co., Ltd. (1914) AI Stock Analysis

• Market Cap: ¥13.45B
• Dividend Yield: 3.79%
• Average Volume (3M): 80.03K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.01
• Revenue Growth: 32.17%
• EPS Growth: 298.59%
• Country: JP
• Employees: 395
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): -15.53
• Shares Outstanding: 29,346,400
• 10 Day Avg. Volume: 69,490
• 30 Day Avg. Volume: 80,033
• PEG Ratio: 0.14
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 70 Neutral
• Price Target: ―

Japan Foundation Engineering Co., Ltd. demonstrates solid financial health with strong revenue growth and a robust balance sheet. However, the lack of recent cash flow data and historical variability pose risks. The technical analysis indicates a potential downward price trend, but the attractive valuation with a low P/E ratio and solid dividend yield provides investment appeal.

Japan Foundation Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Foundation Engineering Co., Ltd. (1914) is a construction and engineering company specializing in foundation work and ground improvement solutions. The company is involved in the development of infrastructure projects, offering services such as foundation construction, soil stabilization, and geotechnical engineering. Its core products and services cater to a range of sectors including commercial, residential, and industrial construction projects, ensuring structural stability and safety.

How the Company Makes Money

Japan Foundation Engineering Co., Ltd. generates revenue primarily through contracts for foundation and geotechnical engineering services. The company engages in large-scale infrastructure projects, collaborating with construction firms and government bodies to provide specialized engineering solutions. It earns money by bidding on and securing projects that require expertise in foundation and ground improvement, charging for its technical services, and supplying related materials. Additionally, partnerships with construction companies and involvement in public infrastructure projects are significant contributors to its earnings.

Japan Foundation Engineering Co., Ltd. Financial Statement Overview

Summary

Japan Foundation Engineering Co., Ltd. shows strong revenue growth and profitability, supported by a robust balance sheet with low leverage. However, cash flow management is an area of concern due to historical variability and missing recent data.

Income Statement

The company shows strong financial performance in TTM with a significant increase in revenue and net income compared to the previous year. Gross profit margin stands at 17.52%, while the net profit margin is a healthy 7.31%. The EBIT and EBITDA margins are also strong at 6.90% and 11.02%, respectively. Revenue growth is notable, indicating positive business momentum. The company demonstrates solid profitability and growth potential.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.17, indicating conservative leverage. Return on equity is solid at 9.66%, reflecting efficient use of equity to generate profits. The equity ratio is high at 69.10%, suggesting financial stability and a strong capital base. Overall, the company's balance sheet reflects financial health and prudent management of liabilities.

Cash Flow

The cash flow statement reveals challenges, with operating cash flow and free cash flow data missing for the TTM period. Historically, the company has shown variability in free cash flow, with growth in some years and declines in others. This variability poses potential risks in cash flow management. The free cash flow to net income ratio was 0.52 last year, indicating moderate cash generation relative to earnings.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
30.13B	23.58B	23.91B	22.11B	22.85B	24.12B
	Gross Profit
5.28B	3.93B	3.37B	3.42B	3.02B	3.60B
	EBIT
2.08B	1.01B	778.93M	751.47M	568.99M	1.03B
	EBITDA
3.32B	2.41B	2.02B	2.05B	1.63B	1.84B
	Net Income Common Stockholders
2.20B	932.86M	526.97M	498.10M	213.28M	507.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.22B	6.22B	6.21B	6.43B	5.77B	5.38B
	Total Assets
32.84B	32.84B	30.24B	30.09B	30.86B	30.75B
	Total Debt
3.32B	3.32B	3.34B	2.72B	1.25B	249.31M
	Net Debt
-2.42B	-2.47B	-2.46B	-3.28B	-3.78B	-4.66B
	Total Liabilities
10.90B	10.90B	9.61B	8.98B	8.22B	7.59B
	Stockholders Equity
21.94B	21.94B	20.63B	21.11B	22.64B	23.16B
Cash Flow		Free Cash Flow
0.00	484.31M	-173.48M	-10.49M	204.65M	-217.78M
	Operating Cash Flow
0.00	1.65B	969.54M	1.19B	1.37B	484.45M
	Investing Cash Flow
0.00	-1.43B	-945.98M	-325.95M	-783.67M	-177.11M
	Financing Cash Flow
0.00	-383.00M	-276.96M	48.60M	-350.03M	-1.32B

Japan Foundation Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 633.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1914, the sentiment is Negative. The current price of 633 is above the 20-day moving average (MA) of 627.90, below the 50-day MA of 645.06, and below the 200-day MA of 633.71, indicating a bearish trend. The MACD of -10.69 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 80.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1914.

Japan Foundation Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1802	78 Outperform	$1.55T	10.51	12.49%	3.58%	12.68%	94.75%
1812	77 Outperform	$1.73T	13.33	10.06%	2.84%	9.25%	11.64%
1801	76 Outperform	$1.47T	11.79	13.61%	2.49%	22.05%	215.16%
1803	76 Outperform	$1.04T	16.40	7.47%	2.26%	-3.05%	301.87%
1914	70 Neutral	¥13.45B	8.42		3.79%	32.17%	298.59%
1820	67 Neutral	¥189.34B	10.79		4.60%	-8.67%	40.83%
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%