Chiyoda (6366) AI Stock Analysis

Chiyoda

(TSE/TYO:6366)

Select Model

Rating:70Outperform

Price Target:JPY 645.00▲(6.97% Upside)

Action:upgraded

Date:08/17/26

The score is driven mainly by improving financial performance (FY2026 turnaround with stronger profitability, healthier leverage, and supportive free cash flow) and a very low P/E that boosts valuation appeal. Offsetting this, technicals are only moderate—near-term strength but still below longer-term moving averages—while the company’s historical earnings and balance-sheet volatility reduces confidence in durability.

Positive Factors

FY2026 Profit ReboundThe sharp FY2026 improvement shows Chiyoda can generate stronger earnings when project execution and mix are favorable. Higher margins provide more capacity to absorb cost pressures, fund operations, and rebuild resilience, although durability still depends on sustaining performance across future contracts.

Negative Factors

Project-Cycle Earnings VolatilityThe history of losses and sharply varying margins shows that earnings remain sensitive to project mix and execution outcomes. For an EPC contractor, this volatility can make the current profit rebound less dependable and complicate forecasting of sustainable earnings over the next several quarters.

Chiyoda (6366) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.01B
Dividend Yield: ―
Average Volume (3M): 2.25M
Price to Earnings (P/E): 1.9
Beta (1Y): 1.22
Revenue Growth: 13.90%
EPS Growth: 185.56%
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

Financial results improved sharply in FY2026 with strong revenue growth, materially higher margins, improved leverage, and free cash flow broadly matching net income. The score is tempered by a history of volatility (prior loss years, previously stressed leverage, and uneven cash-flow strength), indicating meaningful project-cycle/execution risk despite the current turnaround.

Income Statement

76Positive

Balance Sheet

72Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	490.21B	493.90B	456.97B	505.98B	430.16B	311.12B
Gross Profit	100.15B	100.50B	42.32B	-157.00M	32.71B	22.79B
EBITDA	94.10B	96.62B	36.88B	-2.03B	24.95B	-5.29B
Net Income	83.80B	84.70B	26.99B	-15.83B	15.19B	-12.63B
Balance Sheet
Total Assets	421.43B	513.82B	461.03B	426.97B	406.59B	395.40B
Cash, Cash Equivalents and Short-Term Investments	334.63B	313.20B	377.29B	315.29B	269.88B	220.23B
Total Debt	2.40B	22.40B	24.95B	25.49B	30.36B	46.90B
Total Liabilities	355.18B	397.95B	435.57B	420.89B	384.27B	379.63B
Stockholders Equity	64.06B	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

Technical Analysis SentimentNegative

Last Price603.00

Price Trends

50DMA668.78Negative

100DMA683.96Negative

200DMA867.50Negative

Market Momentum

MACD-22.03Negative

RSI36.68Neutral

STOCH64.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6366, the sentiment is Negative. The current price of 603.00 is below the 20-day moving average (MA) of 620.50, below the 50-day MA of 668.78, and below the 200-day MA of 867.50, indicating a bearish trend. The MACD of -22.03 indicates Negative momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6366.

Chiyoda Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:6366 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1959	77Outperform	JPY 549.41B	11.91	―	3.19%	5.31%	51.56%
JP:1963	77Outperform	JPY 502.17B	10.72	11.30%	2.45%	-15.29%	―
JP:6366	70Outperform	JPY 151.75B	1.89	101.68%	―	13.90%	185.56%
JP:1942	65Neutral	JPY 939.40B	13.97	16.79%	3.13%	3.74%	30.42%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:6330	47Neutral	JPY 127.86B	-10.67	-27.55%	1.12%	-31.33%	-795.62%

* Industrials Sector Average

Performance Comparison

JP:6366 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6366	Chiyoda Corp	603.00	190.00	46.00%
JP:1963	JGC Corp	2122.00	568.34	36.58%
JP:6330	Toyo Engineering Corporation	2229.00	-163.00	-6.81%
JP:1942	Kandenko Co., Ltd.	4594.00	-115.95	-2.46%
JP:1959	Kraftia Corporation	7825.00	275.39	3.65%

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: Aug 17, 2026

Chiyoda AI Stock Analysis