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JGC (1963) AI Stock Analysis
JGC
(TSE/TYO:1963)
JGC achieves a solid score of 77, driven predominantly by its strong underlying fundamentals—specifically its conservative balance sheet and stellar cash flow generation—paired with an attractive valuation. The score is primarily restrained by mixed intermediate technical trends indicating price consolidation, alongside some recent inconsistency in top-line revenue growth.
JGC (1963) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 3.17B
- Dividend Yield
- 2.46%
- Average Volume (3M)
- 1.39M
- Price to Earnings (P/E)
- 10.7
- Beta (1Y)
- 1.21
- Revenue Growth
- -15.29%
- EPS Growth
- ―
- Country
- Japan
- 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
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.
Q2-2024 Updates
Positive Updates
Negative 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
Reflects a fundamentally solid profile with an exceptionally conservative balance sheet (D/E ratio of ~0.08) and robust recent cash flow generation. This is partially tempered by a recent top-line revenue contraction and historical margin fluctuations.
Income Statement
68PositiveBalance Sheet
92Very PositiveCash Flow
86Very Positive| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 832.63B | 858.08B | 745.28B | 832.60B | 606.89B | 428.40B |
| Gross Profit | 21.84B | 21.09B | 64.14B | 10.66B | 66.73B | 47.41B |
| EBITDA | 22.22B | 20.07B | 73.30B | 13.88B | 57.81B | -19.64B |
| Net Income | -1.51B | -398.00M | 41.84B | -7.83B | 30.66B | -35.55B |
Balance Sheet | ||||||
| Total Assets | 791.70B | 784.17B | 838.79B | 796.63B | 716.99B | 699.67B |
| Cash, Cash Equivalents and Short-Term Investments | 304.77B | 333.70B | 400.48B | 324.96B | 332.95B | 288.16B |
| Total Debt | 34.44B | 36.63B | 35.18B | 41.61B | 39.65B | -50.98B |
| Total Liabilities | 379.14B | 391.91B | 407.60B | 408.74B | 319.01B | 312.01B |
| Stockholders Equity | 411.05B | 390.66B | 429.42B | 386.15B | 397.34B | 387.14B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 37.18B | 67.08B | -2.43B | 104.20B | 13.84B |
| Operating Cash Flow | 0 | 46.76B | 79.90B | 11.09B | 110.77B | 19.31B |
| Investing Cash Flow | 0 | -21.17B | -14.82B | -20.20B | -11.47B | -7.70B |
| Financing Cash Flow | 0 | -15.05B | -10.98B | -8.89B | -61.29B | -148.00M |
JGC Technical Analysis
Price Trends
Market Momentum
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 2114.00 is below the 20-day moving average (MA) of 2139.78, below the 50-day MA of 2244.83, and below the 200-day MA of 2329.46, indicating a bearish trend. The MACD of -41.75 indicates Negative momentum. The RSI at 43.18 is Neutral, neither overbought nor oversold. The STOCH value of 83.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1963.
JGC Peers Comparison
Overall Rating
- JP:196377Outperform
JP:636668Neutral
JP:194265Neutral
JP:141762Neutral
JP:633045Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:1963 | 77Outperform | JPY 502.17B | 10.68 | 11.30% | 2.46% | -15.29% | ― |
| JP:6366 | 68Neutral | JPY 151.75B | 1.83 | 101.68% | ― | 13.90% | 185.56% |
| JP:1942 | 65Neutral | JPY 939.40B | 14.54 | 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 | 45Neutral | JPY 127.86B | -10.44 | -27.55% | 1.15% | -31.33% | -795.62% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:1963 | JGC Corp | 2114.00 | 579.97 | 37.81% | |
| 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% |
JGC Corporate Events
JGC Releases English Outline of 1Q FY2026 Financial Results
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, highli...
JGC Boosts First-Quarter Profit Despite Lower Sales, Keeps Dividend Outlook
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% to...
JGC Completes Disposal of Treasury Shares for Restricted Stock Compensation
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 to d...
JGC Completes Disposal of Treasury Shares for Performance Share Unit Plan
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 allocated...
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.
Date of analysis: Aug 17, 2026