SPACE CO., LTD. (9622) AI Stock Analysis

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SPACE CO., LTD.

(TSE/TYO:9622)

Select Model

Rating:75Outperform

Price Target:JPY 1,513.00▲(2.44% Upside)

Action:reiterated

Date:11/07/26

The score is supported primarily by strong financial strength (especially the very low leverage and improving profitability) and attractive valuation (low P/E and high dividend yield). These positives are partially offset by weaker technicals, with the stock trading below key moving averages and a negative MACD indicating soft near-term momentum.

Positive Factors

Revenue and Profit GrowthConsistent revenue expansion alongside a substantial improvement in net and operating margins indicates stronger project execution and/or pricing. If sustained, this combination can increase internal funding capacity, support reinvestment, and improve the company’s earnings power over the next several quarters.

Negative Factors

Cash Flow VolatilityUneven cash conversion creates a durable execution risk even when accounting earnings are improving. Working-capital and project-timing swings can temporarily absorb cash, making liquidity planning and capital allocation less predictable and potentially reducing the flexibility of future investments or distributions.

SPACE CO., LTD. (9622) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 36.28B
Dividend Yield: 5.89%
Average Volume (3M): 50.72K
Price to Earnings (P/E): 8.6
Beta (1Y): 0.66
Revenue Growth: 3.41%
EPS Growth: 30.11%
Country: Japan
Employees: 990
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

SPACE CO., LTD. Business Overview & Revenue Model

Company Description

Space Co., Ltd., established in 1948 and headquartered in Tokyo, Japan, offers a comprehensive range of services, including the conceptualization, architectural design, project supervision, and construction of various facilities throughout Japan. The...

How the Company Makes Money

SPACE CO., LTD. primarily makes money by delivering commercial interior and store-development projects for corporate clients. Revenue is generated mainly through (1) design and planning work (fees for space planning, interior design, and related cons...

SPACE CO., LTD. Financial Statement Overview

Summary

Strong fundamentals overall: accelerating revenue growth through 2025 with improving profitability (net margin ~5.3%, operating margin ~6.8%). Balance sheet is exceptionally conservative with near-zero leverage (debt-to-equity ~0.16%) and improving ROE (~10.8% in 2025). Main risk is cash flow volatility and inconsistent cash conversion in some years, reflecting working-capital/project timing sensitivity.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

67Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	70.56B	71.51B	64.18B	52.79B	46.71B	42.41B
Gross Profit	8.15B	8.27B	7.08B	6.11B	4.82B	4.78B
EBITDA	5.25B	5.18B	4.00B	3.12B	2.51B	2.69B
Net Income	3.85B	3.77B	2.55B	1.69B	1.39B	1.51B
Balance Sheet
Total Assets	44.23B	45.13B	40.95B	37.63B	35.40B	34.62B
Cash, Cash Equivalents and Short-Term Investments	16.89B	14.87B	13.85B	13.15B	14.05B	15.14B
Total Debt	0	54.56M	60.12M	62.34M	61.13M	62.48M
Total Liabilities	8.58B	10.22B	8.27B	6.87B	5.81B	5.32B
Stockholders Equity	35.65B	34.85B	32.62B	30.70B	29.56B	29.28B
Cash Flow
Free Cash Flow	0	2.51B	1.75B	738.17M	-104.25M	2.25B
Operating Cash Flow	0	2.91B	2.05B	2.13B	-29.79M	2.28B
Investing Cash Flow	0	-1.33B	630.42M	-3.17B	-82.08M	-89.93M
Financing Cash Flow	0	-1.50B	-1.03B	-882.28M	-1.01B	-830.21M

SPACE CO., LTD. Technical Analysis

Technical Analysis SentimentPositive

Last Price1477.00

Price Trends

50DMA1407.76Positive

100DMA1422.51Positive

200DMA1460.03Positive

Market Momentum

MACD0.40Negative

RSI64.65Neutral

STOCH82.16Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9622, the sentiment is Positive. The current price of 1477.00 is above the 20-day moving average (MA) of 1395.25, above the 50-day MA of 1407.76, and above the 200-day MA of 1460.03, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 64.65 is Neutral, neither overbought nor oversold. The STOCH value of 82.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9622.

SPACE CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9622 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9768	78Outperform	JPY 25.31B	9.41	―	3.33%	4.52%	33.33%
JP:9622	75Outperform	JPY 34.54B	8.60	―	5.89%	3.41%	30.11%
JP:9621	73Outperform	JPY 103.29B	14.03	―	2.05%	8.63%	25.25%
JP:4642	67Neutral	JPY 7.36B	12.91	―	2.59%	24.04%	13.29%
JP:9233	67Neutral	JPY 19.45B	12.09	―	4.05%	1.71%	20.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6085	37Underperform	JPY 7.35B	-8.33	―	―	-9.88%	-12.16%

* General Sector Average

Performance Comparison

JP:9622 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9622	SPACE CO., LTD.	1477.00	178.78	13.77%
JP:4642	Original Engineering Consultants Co., Ltd.	1353.00	-110.22	-7.53%
JP:6085	Architects Studio Japan, Inc.	53.00	23.70	80.89%
JP:9233	Asia Air Survey Co., Ltd.	1086.00	-23.22	-2.09%
JP:9621	CTI Engineering Co., Ltd.	3665.00	725.12	24.66%
JP:9768	Idea Consultants,inc.	3545.00	-80.07	-2.21%

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: Nov 07, 2026

SPACE CO., LTD. AI Stock Analysis