MIYAJI ENGINEERING GROUP, INC. (3431) AI Stock Analysis

• Market Cap: ¥54.08B
• Dividend Yield: 4.96%
• Average Volume (3M): 64.12K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.89
• Revenue Growth: 6.33%
• EPS Growth: 17.95%
• Country: JP
• Employees: 780
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 34.81
• Shares Outstanding: 27,677,816
• 10 Day Avg. Volume: 82,160
• 30 Day Avg. Volume: 64,116
• PEG Ratio: 0.72
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -9.25
• 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: ¥2,073.00
• Price Target Upside: 5.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥2,073.00 ▲(5.66% Upside)

The company's stock benefits from strong financial performance and attractive valuation while facing challenges in cash flow management. Positive market momentum supports the stock's outlook, making it a compelling option for investors seeking growth and income.

MIYAJI ENGINEERING GROUP, INC. Business Overview & Revenue Model

Company Description

Miyaji Engineering Group, Inc. (3431) is a Japanese company specializing in the engineering and construction sectors. The company focuses on providing comprehensive engineering solutions, including design, construction, and maintenance services for various infrastructure projects. Their expertise extends to sectors such as civil engineering, architecture, and environmental engineering, allowing them to deliver a wide range of services tailored to meet the needs of public and private sector clients.

How the Company Makes Money

Miyaji Engineering Group, Inc. generates revenue primarily through contracts for engineering and construction projects. The company earns money by offering services such as project design, construction management, and ongoing maintenance for infrastructure developments. These projects can range from building roads and bridges to constructing commercial buildings and environmental facilities. Additionally, the company may form partnerships or collaborations with government bodies or private sector organizations, which can contribute to its earnings through long-term service agreements or strategic project alliances.

MIYAJI ENGINEERING GROUP, INC. Financial Statement Overview

Summary

The company shows strong revenue growth and effective margin management with a good equity position. However, cash flow management issues and negative free cash flow in the latest period pose potential liquidity risks.

Income Statement

The company has shown consistent revenue growth with a strong revenue growth rate of 7.73% from 2024 to 2025. The gross profit margin for 2025 is 19.0% and the net profit margin is 6.51%, reflecting good profitability. The EBIT margin of 12.27% and EBITDA margin of 14.57% further support the strong operational performance. Overall, the income statement reflects a solid growth trajectory and healthy margins.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio of 0.2, indicating low leverage. The equity ratio stands at 44.5%, suggesting a well-capitalized company. The return on equity (ROE) is 12.06%, highlighting efficient use of equity. Despite the solid equity position, the decline in cash and cash equivalents could be a point of concern.

Cash Flow

The cash flow statement indicates challenges in cash management with a negative free cash flow in 2025. The operating cash flow to net income ratio is negative, reflecting issues in converting sales into cash. Free cash flow to net income ratio is also negative, highlighting difficulties in generating free cash flow. Despite these challenges, the company managed a positive free cash flow growth from 2023 to 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.77B	74.72B	69.36B	60.28B	58.00B	55.27B
Gross Profit	14.54B	14.20B	12.83B	9.05B	9.24B	8.83B
EBITDA	10.99B	10.89B	9.01B	6.35B	7.08B	7.02B
Net Income	5.06B	4.86B	4.35B	3.08B	3.41B	3.81B
Balance Sheet
Total Assets	77.97B	90.60B	74.15B	63.05B	61.82B	60.74B
Cash, Cash Equivalents and Short-Term Investments	6.52B	16.50B	19.11B	13.62B	15.98B	8.52B
Total Debt	1.80B	8.04B	326.00M	81.00M	441.67M	3.01B
Total Liabilities	30.57B	42.44B	27.53B	21.48B	22.72B	25.73B
Stockholders Equity	40.21B	40.31B	39.70B	35.51B	33.38B	30.15B
Cash Flow
Free Cash Flow	0.00	-5.16B	6.88B	-751.00M	10.73B	-1.63B
Operating Cash Flow	0.00	-2.65B	8.84B	495.00M	11.92B	1.09B
Investing Cash Flow	0.00	-2.46B	-1.54B	-711.00M	-1.19B	-2.59B
Financing Cash Flow	0.00	2.50B	-1.80B	-2.15B	-3.27B	-1.74B

MIYAJI ENGINEERING GROUP, INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1962.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3431, the sentiment is Neutral. The current price of 1962 is below the 20-day moving average (MA) of 2059.02, below the 50-day MA of 2000.44, and above the 200-day MA of 1845.32, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.52 is Neutral, neither overbought nor oversold. The STOCH value of 4.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3431.

MIYAJI ENGINEERING GROUP, INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1921	81 Outperform	¥60.75B	4.20	23.93%	1.02%	3.22%	390.93%
3431	78 Outperform	¥54.08B	10.32	―	4.96%	6.33%	17.95%
1786	76 Outperform	¥54.71B	14.58	7.25%	3.46%	-4.08%	-29.10%
1898	68 Neutral	¥52.79B	12.81	9.32%	5.42%	9.19%	45.78%
1929	68 Neutral	¥50.92B	17.96	―	3.94%	1.11%	0.17%
1888	58 Neutral	¥61.15B	16.20	7.64%	2.61%	1.00%	-6.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

MIYAJI ENGINEERING GROUP, INC. Corporate Events

MIYAJI ENGINEERING GROUP, INC. Aims for Sustainable Growth with Strategic Management Initiatives

MIYAJI ENGINEERING GROUP, INC. has announced its commitment to sustainable growth and enhancing corporate value by implementing management strategies conscious of capital cost and stock price. Despite challenges in the market environment, the company aims to achieve a 10% ROE by optimizing resource allocation and improving productivity through technology and human resource development. The company is also actively engaging with shareholders and investors through enhanced communication efforts, including an English website and increased investor relations activities, to expand its market reach and maintain a flexible capital policy.

MIYAJI ENGINEERING Reports Mixed Financial Results Amid Market Challenges

MIYAJI ENGINEERING GROUP, INC. reported a decline in net sales for the three months ended June 30, 2025, compared to the same period in 2024. Despite the decrease in sales, the company achieved significant growth in operating profit and profit attributable to owners of the parent, indicating improved operational efficiency. The company also provided forecasts for the fiscal year ending March 31, 2026, predicting a notable decrease in net sales and profits, reflecting potential challenges in the market environment.

MIYAJI ENGINEERING GROUP Announces Corrections to Financial Results

MIYAJI ENGINEERING GROUP, INC. announced corrections to its previously released consolidated financial results for the fiscal year ended March 31, 2025. These corrections were necessary due to errors in the initially reported data, impacting the company’s financial statements and potentially affecting stakeholders’ understanding of its financial performance.

MIYAJI ENGINEERING Enhances Shareholder Engagement and Transparency

MIYAJI ENGINEERING GROUP, INC. has been actively engaging with shareholders and investors to communicate its growth strategies and capital policies as part of its Medium-Term Business Plan. The company has increased its meetings with institutional investors and has implemented several initiatives, such as expanding its Integrated Report and adopting electronic voting systems, to enhance transparency and shareholder engagement. These efforts aim to support sustainable growth and improve corporate value over the medium to long term.

MIYAJI ENGINEERING GROUP Announces Dividend Payment Strategy

MIYAJI ENGINEERING GROUP, INC. announced its decision to pay dividends of surplus following a board resolution, with a record date of March 31, 2025. The company aims to maintain or increase shareholder returns, targeting a 10% ROE and a total return ratio of 60% by FY2026. The annual dividend for FY2025 is set at ¥97.50 per share, with a payout ratio of 53.6%, reflecting their commitment to a balanced capital policy and sustainable growth.