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JGC
(1963)
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Rating:68Neutral
Price Target:
¥2,556.00
▲(14.85% Upside)
Action:Downgraded
Date:08/17/26
The score is driven primarily by solid financial resilience (low leverage and a strong FY2026 rebound in earnings and cash flow) and a reasonable valuation (P/E 11.85 with a ~2.22% yield). Offsetting these positives, technical signals are mixed with a negative MACD and the stock trading below key medium-term moving averages, and the company’s recent history shows meaningful volatility in profitability and cash flows.
Positive Factors
Conservative balance sheet
Low leverage gives JGC financial resilience through cyclical project markets, supports its ability to absorb execution setbacks, and preserves capacity to fund operations and pursue future infrastructure opportunities.
Negative Factors
Declining revenue
Sustained revenue contraction can indicate a thinner project pipeline, lower awards, or an unfavorable project mix. This may limit operating leverage and make future earnings recovery dependent on winning new large contracts.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage gives JGC financial resilience through cyclical project markets, supports its ability to absorb execution setbacks, and preserves capacity to fund operations and pursue future infrastructure opportunities.
Read all positive factors
JGC (1963) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥529.60B
Dividend Yield2.29%
Average Volume (3M)2.05M
Price to Earnings (P/E)11.5
Beta (1Y)1.20
Revenue Growth-15.29%
EPS GrowthN/A
CountryJP
Employees8,154
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)173.03
Shares Outstanding244,293,010
10 Day Avg. Volume2,906,950
30 Day Avg. Volume2,048,153
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.28
Price to Sales (P/S)0.74
P/FCF Ratio8.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)187.3
Revenue Forecast (FY)¥720.00B
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 se...
How the Company Makes Money
JGC makes money primarily by contracting to deliver large projects and recognizing revenue based on those contracts. The company’s main revenue model is EPC-style project contracting: it bids for projects (often through competitive tenders or nego...
JGC Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
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.
Read all updates
Q2-2024 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 745.28B | 858.08B | 832.60B | 606.89B | 428.40B |
| Gross Profit | 64.14B | 21.09B | 10.66B | 66.73B | 47.41B |
| EBITDA | 73.30B | 20.07B | 13.88B | 57.81B | -19.64B |
| Net Income | 41.84B | -398.00M | -7.83B | 30.66B | -35.55B |
Balance Sheet | |||||
| Total Assets | 838.79B | 784.17B | 796.63B | 716.99B | 699.67B |
| Cash, Cash Equivalents and Short-Term Investments | 400.48B | 333.70B | 324.96B | 332.95B | 288.16B |
| Total Debt | 35.18B | 36.63B | 41.61B | 39.65B | -50.98B |
| Total Liabilities | 407.60B | 391.91B | 408.74B | 319.01B | 312.01B |
| Stockholders Equity | 429.42B | 390.66B | 386.15B | 397.34B | 387.14B |
Cash Flow | |||||
| Free Cash Flow | 67.08B | 37.18B | -2.43B | 104.20B | 13.84B |
| Operating Cash Flow | 79.90B | 46.76B | 11.09B | 110.77B | 19.31B |
| Investing Cash Flow | -14.82B | -21.17B | -20.20B | -11.47B | -7.70B |
| Financing Cash Flow | -10.98B | -15.05B | -8.89B | -61.29B | -148.00M |
JGC Technical Analysis
Negative
2225.50
Price Trends
2408.51
Negative
2472.56
Negative
2221.67
Positive
Market Momentum
-25.11
Negative
44.59
Neutral
45.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1963, the sentiment is Negative. The current price of 2225.5 is below the 20-day moving average (MA) of 2292.50, below the 50-day MA of 2408.51, and above the 200-day MA of 2221.67, indicating a neutral trend. The MACD of -25.11 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 45.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1963.
JGC Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥174.28B | 2.19 | 114.61% | ― | 13.90% | 185.56% | |
68 Neutral | ¥529.60B | 11.48 | 10.15% | 2.34% | -15.29% | ― | |
66 Neutral | ¥1.08T | 17.10 | 16.33% | 2.00% | 3.66% | 35.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥285.75B | 11.81 | 8.82% | 2.31% | 4.87% | 77.41% | |
51 Neutral | ¥132.72B | -11.16 | -30.80% | 0.96% | -31.33% | -795.62% |
* Industrials Sector Average
JP:1963
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JGC Corporate Events
JGC Releases English Outline of 1Q FY2026 Financial Results
Aug 7, 2026
JGC Holdings Corporation has released an English translation of its outline of financial results for the first quarter of fiscal 2026, covering the period from April 1 to June 30, 2026. The document serves as an investor-oriented presentation, hig...
JGC Boosts First-Quarter Profit Despite Lower Sales, Keeps Dividend Outlook
Aug 7, 2026
JGC reported consolidated results for the first quarter of the fiscal year ending March 31, 2027, showing net sales of ¥159.3 billion, down 16.1% from a year earlier, but with a sharp improvement in profitability. Operating profit rose 56.4% ...
JGC Completes Disposal of Treasury Shares for Restricted Stock Compensation
Aug 6, 2026
JGC Holdings has completed the disposal of 76,941 treasury shares under its restricted stock compensation plan, following board approval in mid-July. The shares, priced at 2,336 yen each for a total value of about 172 million yen, were allocated t...
JGC Completes Disposal of Treasury Shares for Performance Share Unit Plan
Aug 6, 2026
JGC HOLDINGS CORPORATION has completed the disposal of 148,322 treasury shares under its Performance Share Unit scheme, following board approval in mid-July. The shares, priced at 2,336 yen each for a total of about 346.5 million yen, were allocat...
JGC Holdings to Grant Treasury Shares as Long-Term Restricted Stock Compensation
Jul 13, 2026
JGC Holdings has approved the disposal of 76,941 treasury shares as restricted stock compensation to directors, executive officers, and certain retired executives across the parent company and its subsidiaries. The shares, priced at 2,336 yen each...
JGC Holdings to Allocate Treasury Shares as Long-Term Performance Stock to Management
Jul 13, 2026
JGC Holdings’ board has approved the disposal of 148,322 treasury shares, valued at about ¥346 million, to be used as performance share units for 64 directors and executive officers of the parent company and its subsidiaries. The shares...
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.