JGC (1963) AI Stock Analysis

• Market Cap: ¥395.38B
• Dividend Yield: 2.56%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -1.54%
• EPS Growth: -26.26%
• Country: JP
• Employees: 8,865
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 23.17
• Shares Outstanding: 259,793,000
• 10 Day Avg. Volume: 2,054,430
• 30 Day Avg. Volume: 1,372,010
• PEG Ratio: 7.52
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 7.65
• 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: 61 Neutral
• Price Target: ¥1,584.00 ▲(5.28% Upside)

JGC's overall stock score reflects a stable financial position with strong cash flow management but significant profitability challenges. Technical indicators suggest a positive trend, but valuation is hindered by negative earnings. The dividend yield offers some compensation for the risks.

JGC Business Overview & Revenue Model

Company Description

JGC (1963) is a leading engineering and construction company based in Japan, specializing in the design and construction of large-scale industrial facilities. The company operates primarily in the sectors of oil and gas, petrochemicals, and environmental projects. JGC offers a range of core services including project management, engineering design, procurement, and construction management, catering to both domestic and international clients. The company is recognized for its commitment to quality and innovation, delivering complex projects that meet the evolving needs of the energy sector.

How the Company Makes Money

JGC generates revenue through a combination of fixed-price and cost-reimbursable contracts for engineering, procurement, and construction (EPC) services. The primary revenue streams include project execution in the oil and gas sector, where it undertakes large-scale refinery and petrochemical plant construction projects. Additionally, JGC earns income from maintenance and operational support services for the facilities they build. Significant partnerships with major oil companies and government entities also enhance its revenue potential, alongside joint ventures that expand its market reach and capabilities. The company's focus on securing long-term contracts and participating in global infrastructure projects further contributes to its stable earnings.

JGC Financial Statement Overview

Summary

JGC shows financial stability with strong cash flow management and low leverage. However, challenges in profitability are evident with negative net profit margins and return on equity. While revenue growth is modest, operational efficiencies are lacking.

Income Statement

JGC has shown a mixed performance in its income statement. The revenue growth rate from 2024 to 2025 was modest at 3.06%, suggesting a stable but slow growth trajectory. Gross profit margin for 2025 was low at 2.21%, reflecting significant cost pressures. The net profit margin was negative due to a net loss, indicating challenges in maintaining profitability. Additionally, both EBIT and EBITDA margins were weak, with a negative EBIT margin of -1.34% and a low EBITDA margin of 2.34% for 2025, highlighting operational inefficiencies.

Balance Sheet

The balance sheet of JGC reflects a stable financial position with a debt-to-equity ratio of 0.09 in 2025, indicating low leverage and financial prudence. The equity ratio is robust at 49.81%, showcasing a healthy proportion of equity financing. However, return on equity was negative at -0.10% due to net losses, pointing to challenges in generating returns for shareholders. Overall, the balance sheet suggests financial stability but lacks profitability.

Cash Flow

The cash flow statement reveals strong operational cash generation with an operating cash flow to net income ratio of 117.49 for 2025, indicating efficient cash management despite net losses. Free cash flow improved significantly with a positive growth rate, turning from negative in 2024 to a healthy 37.18 billion JPY in 2025. The free cash flow to net income ratio was also strong at -93.42, underscoring effective cash flow management despite profitability issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	843.74B	858.08B	832.60B	606.89B	428.40B	433.97B
Gross Profit	18.79B	18.93B	10.66B	66.73B	45.37B	43.78B
EBITDA	20.08B	20.06B	13.88B	57.81B	-19.64B	29.31B
Net Income	-7.18B	-398.00M	-7.83B	30.66B	-35.55B	5.14B
Balance Sheet
Total Assets	738.65B	784.17B	792.30B	713.13B	694.27B	702.53B
Cash, Cash Equivalents and Short-Term Investments	302.71B	333.70B	324.96B	332.95B	288.16B	268.28B
Total Debt	34.41B	34.89B	39.27B	36.77B	72.32B	67.37B
Total Liabilities	357.35B	391.91B	404.41B	315.15B	306.61B	284.91B
Stockholders Equity	379.77B	390.66B	386.15B	397.34B	387.14B	417.12B
Cash Flow
Free Cash Flow	0.00	37.18B	-7.90B	98.63B	9.51B	2.26B
Operating Cash Flow	0.00	46.76B	11.09B	110.77B	19.31B	12.47B
Investing Cash Flow	0.00	-21.17B	-20.20B	-11.47B	-7.70B	-13.52B
Financing Cash Flow	0.00	-15.05B	-8.89B	-61.29B	-148.00M	196.00M

JGC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1504.50
• 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:1963, the sentiment is Positive. The current price of 1504.5 is below the 20-day moving average (MA) of 1531.97, above the 50-day MA of 1483.05, and above the 200-day MA of 1277.87, indicating a bullish trend. The MACD of 31.74 indicates Negative momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 40.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1963.

JGC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1812	―	¥2.42T	17.36	11.30%	2.31%	9.40%	21.78%
1801	―	¥2.05T	15.40	15.06%	1.96%	12.91%	105.21%
1802	―	¥1.83T	13.50	12.51%	3.10%	6.50%	47.04%
1803	―	$1.31T	18.08	8.70%	1.90%	1.02%	5782.30%
1942	―	€876.88B	18.41	14.15%	1.74%	16.43%	53.76%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1963	―	¥395.38B	―	-1.77%	2.56%	-1.54%	-26.26%

JGC Corporate Events

JGC Corp Reports Challenging Start to Fiscal Year

JGC Corp, a prominent player in the engineering and construction sector, is known for its expertise in large-scale infrastructure projects and its commitment to sustainable development. The company operates globally, providing engineering, procurement, and construction services across various industries, including energy, petrochemicals, and environmental solutions.

JGC Holdings Reports Significant Foreign Exchange Losses

JGC Holdings Corporation reported non-operating expenses amounting to 3,355 million yen in the first quarter of fiscal year 2025 due to foreign exchange losses. This financial impact was caused by the appreciation of the yen, affecting the company’s foreign currency-denominated assets and liabilities, which could influence its financial results.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Holdings Completes Restricted Stock Compensation Share Issuance

JGC Holdings Corporation, a company listed on the Tokyo Stock Exchange, has completed the payment procedure for issuing new shares as Restricted Stock Compensation. This issuance, approved by the Board of Directors, involves 130,670 common shares at an issue price of 1,248 yen per share, amounting to 163,076,160 yen. The shares are allocated to directors and executive officers of JGC Holdings and its subsidiaries, potentially impacting the company’s executive compensation structure and aligning management interests with shareholder value.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.

JGC Holdings Completes New Share Issuance for Performance Units

JGC Holdings Corporation has completed the payment procedure for issuing new shares as a Performance Share Unit, as approved by its Board of Directors. This issuance involves 43,546 common shares at an issue price of 1,248 yen per share, amounting to 54,345,408 yen, and is directed towards directors and executive officers of its subsidiaries, potentially impacting the company’s governance and incentive structures.

The most recent analyst rating on (JP:1963) stock is a Hold with a Yen1200.00 price target. To see the full list of analyst forecasts on JGC stock, see the JP:1963 Stock Forecast page.