Forum Engineering, Inc. (7088) AI Stock Analysis

• Market Cap: ¥65.13B
• Dividend Yield: 4.87%
• Average Volume (3M): 79.22K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.82
• Revenue Growth: 10.29%
• EPS Growth: 22.04%
• Country: JP
• Employees: 4,466
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 15.41
• Shares Outstanding: 53,419,200
• 10 Day Avg. Volume: 58,120
• 30 Day Avg. Volume: 79,220
• PEG Ratio: 0.46
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 14.38
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,375.00 ▲(11.70% Upside)

Forum Engineering, Inc. scores well due to its strong financial performance, characterized by robust revenue growth, profitability, and financial stability. The technical analysis presents mixed signals, with short-term weakness but longer-term support. The valuation is reasonable, with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Forum Engineering, Inc. Business Overview & Revenue Model

Company Description

Forum Engineering, Inc. (7088) is a specialized engineering firm that provides comprehensive solutions in the fields of mechanical, electrical, and structural engineering. The company operates across various sectors including aerospace, automotive, and construction, delivering high-quality design, consulting, and project management services. With a focus on innovation and technology integration, Forum Engineering aims to meet the unique needs of its clients through tailored engineering solutions and support.

How the Company Makes Money

Forum Engineering, Inc. primarily generates revenue through its engineering services, which include design, consulting, and project management. The company charges fees for its engineering expertise on a project-by-project basis, typically involving hourly billing or fixed-price contracts. Key revenue streams include contracts with government agencies, partnerships with private sector firms, and ongoing maintenance and support agreements. Significant partnerships with industry leaders enhance its market presence and contribute to a steady flow of projects, further driving revenue growth.

Forum Engineering, Inc. Financial Statement Overview

Summary

Forum Engineering, Inc. demonstrates impressive financial performance with strong revenue growth, solid profitability, a robust balance sheet, and excellent cash flow generation. The company is well-positioned to sustain its growth trajectory while maintaining financial stability and flexibility. Potential risks are minimal due to low leverage and strong liquidity.

Income Statement

Forum Engineering, Inc. shows strong performance with a consistent increase in total revenue over the years, achieving a revenue growth rate of 10.89% from 2024 to 2025. The company maintains healthy profit margins, with a gross profit margin of 30.28% and a net profit margin of 8.31% in 2025. EBIT and EBITDA margins are also robust, at 12.11% and 13.54% respectively, indicating efficient cost management and operational effectiveness.

Balance Sheet

The balance sheet is solid, with a very low debt-to-equity ratio of 0.01, highlighting minimal reliance on debt financing. The equity ratio stands at 68.76%, indicating strong capitalization. Return on Equity (ROE) is a healthy 22.33%, showcasing effective use of equity to generate profits. The company's strong liquidity position is reinforced by high levels of cash and short-term investments, ensuring financial flexibility.

Cash Flow

The cash flow statement reflects excellent financial health, with a substantial increase in free cash flow by 19.25% from 2024 to 2025, supporting growth initiatives and shareholder returns. The operating cash flow to net income ratio of 1.38 suggests strong cash generation relative to accounting profits. Free cash flow to net income ratio of 1.28 further underscores the company's ability to generate cash efficiently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.39B	34.69B	31.28B	28.75B	26.91B	27.73B
Gross Profit	10.67B	10.50B	9.14B	8.43B	7.89B	8.52B
EBITDA	4.72B	4.70B	3.42B	1.97B	2.28B	2.73B
Net Income	2.92B	2.88B	2.04B	1.16B	1.25B	1.34B
Balance Sheet
Total Assets	18.51B	18.78B	17.92B	17.70B	20.77B	20.89B
Cash, Cash Equivalents and Short-Term Investments	10.93B	11.63B	11.01B	10.60B	13.69B	14.30B
Total Debt	64.00M	96.00M	12.00M	2.00B	5.00B	5.00B
Total Liabilities	6.25B	5.61B	4.63B	5.73B	8.79B	8.82B
Stockholders Equity	12.02B	12.91B	12.97B	11.97B	11.97B	12.07B
Cash Flow
Free Cash Flow	0.00	3.69B	3.09B	1.02B	841.00M	2.21B
Operating Cash Flow	0.00	3.97B	3.30B	1.51B	1.46B	2.69B
Investing Cash Flow	0.00	110.00M	-1.08B	-594.00M	-838.00M	-373.00M
Financing Cash Flow	0.00	-2.97B	-2.77B	-4.21B	-1.41B	2.81B

Forum Engineering, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1231.00
• 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:7088, the sentiment is Neutral. The current price of 1231 is below the 20-day moving average (MA) of 1247.50, below the 50-day MA of 1265.94, and above the 200-day MA of 1110.95, indicating a neutral trend. The MACD of -7.25 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 19.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7088.

Forum Engineering, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2475	―	¥31.88B	9.44	―	3.81%	3.00%	-3.28%
7088	―	¥65.13B	22.01	―	4.87%	10.29%	22.04%
4318	―	¥43.74B	14.35	―	3.95%	8.08%	-19.45%
4848	―	¥59.09B	12.37	―	3.66%	0.16%	-21.98%
9164	―	―	―	―	―	4.85%	-51.19%
2429	―	¥44.94B	6.52	―	3.35%	12.44%	37.34%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Forum Engineering, Inc. Corporate Events

Forum Engineering Inc. Reports Q1 Financial Growth and Dividend Increase

Forum Engineering Inc. reported its financial results for the first quarter of the fiscal year ending March 2026, showing an increase in net sales and profits compared to the previous year. Despite a slight decrease in comprehensive income, the company maintained a stable financial position with a high equity ratio and announced an estimated increase in annual dividends, reflecting confidence in future growth.