Chiyoda AI Stock Analysis
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Chiyoda (6366) AI Stock Analysis
Chiyoda
(TSE/TYO:6366)
Chiyoda scores 62, reflecting a turnaround in progress with meaningful upside potential but substantial execution risk. The most significant positive factor is the extremely low P/E of 2.27x, suggesting deep value if the earnings recovery proves durable. FY2025 financials confirm genuine improvement with restored profitability and strong free cash flow generation. However, the score is moderated by a still-fragile balance sheet (thin equity cushion), a history of severe earnings volatility inherent to large-scale EPC projects, and mixed technical signals showing the stock trading well below its longer-term moving averages despite a short-term bounce. The absence of a dividend and the market's evident skepticism about forward earnings sustainability are additional headwinds.
Chiyoda (6366) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 1.01B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.80M
- Price to Earnings (P/E)
- 2.2
- Beta (1Y)
- 0.94
- Revenue Growth
- 15.86%
- EPS Growth
- 179.87%
- Country
- Japan
- Employees
- 3,489
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Engineering & Construction
Chiyoda Business Overview & Revenue Model
Company Description
Chiyoda Corporation functions as a comprehensive engineering enterprise, conducting business both within Japan and across international territories. The company provides an extensive range of services, encompassing everything from initial consulting...
How the Company Makes Money
Chiyoda primarily makes money by executing project-based contracts for industrial facilities, where it is paid for delivering engineering and construction services under agreed commercial terms. Key revenue streams and how they work: 1) EPC and relat...
Chiyoda Financial Statement Overview
Summary
Chiyoda is a turnaround story with significant volatility. FY2025 showed strong recovery (¥27B net income, ~5.9% net margin, robust operating cash flow of ¥56B), and FY2026 projections are ambitious with ~17% net margins. However, two loss-making years in the last five, a dangerously thin equity base (only ~5% of total assets in FY2025), and a history of sharp earnings swings due to EPC project execution risk temper the outlook. Cash flow quality is a positive, with free cash flow consistently tracking operating cash flow. The balance sheet score of 48 drags the composite down, while income statement (62) and cash flow (65) scores reflect the improving but still uncertain trajectory.
Income Statement
62PositiveBalance Sheet
48NeutralCash Flow
65Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 480.03B | 493.90B | 456.97B | 505.98B | 430.16B | 311.12B |
| Gross Profit | 101.42B | 100.50B | 42.32B | -157.00M | 32.71B | 22.79B |
| EBITDA | 92.72B | 96.62B | 36.88B | -2.03B | 24.95B | -5.29B |
| Net Income | 85.11B | 84.70B | 26.99B | -15.83B | 15.19B | -12.63B |
Balance Sheet | ||||||
| Total Assets | 384.33B | 513.82B | 461.03B | 426.97B | 406.59B | 395.40B |
| Cash, Cash Equivalents and Short-Term Investments | 301.61B | 313.20B | 377.29B | 315.29B | 269.88B | 220.23B |
| Total Debt | 1.80B | 22.40B | 24.95B | 25.49B | 30.36B | 46.90B |
| Total Liabilities | 309.26B | 397.95B | 435.57B | 420.89B | 384.27B | 379.63B |
| Stockholders Equity | 72.73B | 113.86B | 23.71B | 4.86B | 22.18B | 15.65B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 39.13B | 55.97B | 45.68B | 59.85B | 56.57B |
| Operating Cash Flow | 0 | 39.87B | 57.66B | 47.43B | 60.80B | 57.09B |
| Investing Cash Flow | 0 | -3.28B | -4.18B | -1.57B | 7.89B | -3.79B |
| Financing Cash Flow | 0 | -1.65B | -298.00M | -5.85B | -17.06B | -4.20B |
Chiyoda Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6366, the sentiment is Positive. The current price of 721.00 is above the 20-day moving average (MA) of 642.20, above the 50-day MA of 666.28, and below the 200-day MA of 858.92, indicating a neutral trend. The MACD of 22.24 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 77.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6366.
Chiyoda Peers Comparison
Overall Rating
JP:196377Outperform
JP:194275Outperform
JP:195971Outperform- JP:636662Neutral
JP:633041Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:1963 | 77Outperform | JPY 500.15B | 7.87 | 14.95% | 2.47% | -15.29% | ― |
| JP:1942 | 75Outperform | JPY 950.23B | 14.15 | 16.79% | 3.10% | 3.74% | 30.42% |
| JP:1959 | 71Outperform | JPY 557.27B | 11.98 | ― | 3.18% | 5.31% | 51.56% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| JP:6366 | 62Neutral | JPY 186.72B | 2.22 | 95.14% | ― | 15.86% | 179.87% |
| JP:6330 | 41Neutral | JPY 120.89B | -17.06 | -16.86% | 1.21% | -27.13% | -200.86% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6366 | Chiyoda Corp | 721.00 | 122.00 | 20.37% | |
| JP:1963 | JGC Corp | 2105.50 | 339.28 | 19.21% | |
| JP:6330 | Toyo Engineering Corporation | 2063.00 | -627.00 | -23.31% | |
| JP:1942 | Kandenko Co., Ltd. | 4651.00 | -139.95 | -2.92% | |
| JP:1959 | Kraftia Corporation | 7866.00 | 402.04 | 5.39% |
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