Japan Engine Corp (6016) AI Stock Analysis

1 Followers

Japan Engine Corp

(TSE/TYO:6016)

Select Model

Rating:82Outperform

Price Target:JPY 11,600.00▲(2.20% Upside)

Action:reiterated

Date:09/18/26

Japan Engine Corp's strong score of 82 is driven primarily by its exceptional top-line and bottom-line growth alongside a highly robust balance sheet. Technical indicators further bolster the rating, showing sustained bullish momentum across all major timeframes. Valuation is fair given the company's growth trajectory, with the only notable headwind being the inherent cash flow volatility typical of its capital-intensive industry.

Positive Factors

Revenue and profit scalingThe substantial expansion in revenue and net income shows that Japan Engine has increased its business scale while converting growth into stronger profitability. This operating leverage can support reinvestment, strengthen customer and market positioning, and provide a larger earnings base over the next several quarters.

Negative Factors

Volatile cash conversionUneven operating cash flow and repeated swings between positive and negative free cash flow reduce confidence that reported earnings consistently convert into cash. Working-capital or investment timing effects may continue to make funding capacity and internally generated liquidity less predictable.

Japan Engine Corp (6016) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 95.15B
Dividend Yield: 0.86%
Average Volume (3M): 122.87K
Price to Earnings (P/E): 18.4
Beta (1Y): 1.66
Revenue Growth: -0.25%
EPS Growth: 20.72%
Country: Japan
Employees: 394
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Japan Engine Corp Business Overview & Revenue Model

Company Description

Headquartered in Akashi, Japan, Japan Engine Corporation, established in 1910, is a comprehensive engineering firm engaged in the design, development, production, maintenance, sales, and licensing of engines and related components throughout Japan. T...

How the Company Makes Money

Japan Engine Corp makes money primarily through (1) sales of new marine engines and related equipment and (2) recurring aftermarket services tied to its installed base. New engine revenue is generated when shipyards and vessel owners procure main pro...

Japan Engine Corp Financial Statement Overview

Summary

The company showcases spectacular revenue and profit growth with expanding margins, supported by a rock-solid balance sheet and low leverage (debt-to-equity of 0.22). However, cash generation is volatile, with periodic negative free cash flows acting as a slight drag on an otherwise exceptional financial profile.

Income Statement

92Very Positive

Balance Sheet

89Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	17.98B	29.71B	28.86B	20.97B	15.25B	13.16B
Gross Profit	4.26B	9.75B	8.23B	5.83B	2.68B	2.85B
EBITDA	2.31B	7.44B	6.13B	3.91B	1.16B	1.03B
Net Income	1.44B	4.76B	4.33B	2.55B	808.85M	539.99M
Balance Sheet
Total Assets	25.47B	31.96B	33.09B	25.04B	20.45B	17.47B
Cash, Cash Equivalents and Short-Term Investments	5.06B	5.43B	7.41B	4.28B	4.26B	4.09B
Total Debt	3.26B	3.96B	4.74B	3.21B	2.65B	3.76B
Total Liabilities	17.09B	13.57B	19.21B	15.29B	13.10B	10.91B
Stockholders Equity	8.37B	18.39B	13.88B	9.75B	7.34B	6.55B
Cash Flow
Free Cash Flow	0	-250.86M	2.41B	-293.40M	1.44B	1.60B
Operating Cash Flow	0	2.55B	6.75B	391.13M	2.50B	1.80B
Investing Cash Flow	0	-3.11B	-4.70B	-761.91M	-1.06B	-269.69M
Financing Cash Flow	0	-1.42B	1.08B	389.47M	-1.26B	-247.81M

Japan Engine Corp Technical Analysis

Technical Analysis SentimentPositive

Last Price11350.00

Price Trends

50DMA11470.39Negative

100DMA10269.19Positive

200DMA11188.31Positive

Market Momentum

MACD-65.18Negative

RSI51.09Neutral

STOCH81.57Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6016, the sentiment is Positive. The current price of 11350.00 is above the 20-day moving average (MA) of 11114.50, below the 50-day MA of 11470.39, and above the 200-day MA of 11188.31, indicating a neutral trend. The MACD of -65.18 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 81.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6016.

Japan Engine Corp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6016 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6016	82Outperform	JPY 95.28B	18.42	―	0.86%	-0.25%	20.72%
JP:6363	74Outperform	JPY 65.66B	6.05	―	2.59%	-1.87%	215.36%
JP:6517	71Outperform	JPY 67.85B	12.18	―	4.10%	9.85%	33.61%
JP:6018	70Outperform	JPY 15.72B	17.67	―	1.88%	6.90%	30.47%
JP:6381	67Neutral	JPY 67.65B	11.41	―	5.24%	13.76%	38.30%
JP:6023	63Neutral	JPY 60.43B	9.27	13.32%	4.29%	10.53%	30.30%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6016 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6016	Japan Engine Corp	11350.00	-1552.07	-12.03%
JP:6023	Daihatsu Diesel Mfg Co	2376.00	-373.58	-13.59%
JP:6018	Hanshin Diesel Works, Ltd.	4850.00	1098.16	29.27%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2550.00	710.52	38.63%
JP:6381	ANEST IWATA Corp.	1700.00	273.28	19.15%
JP:6517	Denyo Co., Ltd.	3415.00	358.45	11.73%

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.

Date of analysis: Sep 18, 2026

Japan Engine Corp AI Stock Analysis