Besterra Co., Ltd (1433) AI Stock Analysis

• Market Cap: ¥11.56B
• Dividend Yield: 2%
• Average Volume (3M): 154.41K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.59
• Revenue Growth: -5.00%
• EPS Growth: 77.99%
• Country: JP
• Employees: 228
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 23.84
• Shares Outstanding: 9,337,400
• 10 Day Avg. Volume: 56,630
• 30 Day Avg. Volume: 154,413
• PEG Ratio: 0.27
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -13.38
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,138.00 ▼(-9.18% Downside)

Besterra Co., Ltd's overall stock score is primarily influenced by its strong revenue growth and moderate financial stability, despite challenges in profitability and cash flow generation. Technical indicators suggest potential bearish momentum, while the valuation is moderate with a reasonable dividend yield. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Revenue Growth

Significant revenue growth over five years highlights Besterra's expanding market presence and successful product adoption, supporting long-term business sustainability.

Market Position

As a leader in environmental solutions, Besterra benefits from a strong market position, enabling it to capitalize on growing demand for sustainable practices.

Product Diversification

Diversified product offerings in waste management and recycling enhance Besterra's resilience against market fluctuations and broaden revenue streams.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, despite revenue growth, suggest potential inefficiencies in cost management, which could impact long-term financial health.

Cash Flow Issues

Negative free cash flow indicates difficulties in cash generation, potentially limiting Besterra's ability to invest in growth opportunities and manage debt.

Increasing Debt Levels

Rising debt levels can strain financial resources, reducing flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Besterra Co., Ltd Business Overview & Revenue Model

Company Description

Besterra Co., Ltd (1433) is a leading company specializing in the development and manufacture of innovative environmental solutions, primarily focusing on waste management and recycling technologies. The company operates in the environmental sector, offering products and services that promote sustainable practices and resource optimization. Besterra's core offerings include advanced waste treatment systems, recycling equipment, and consulting services aimed at helping businesses and municipalities improve their waste management processes.

How the Company Makes Money

Besterra Co., Ltd generates revenue through multiple streams, primarily by selling its proprietary waste management and recycling technologies to both government and private sector clients. This includes capital equipment sales, where the company provides advanced machinery and systems for waste processing. Additionally, Besterra offers consulting services that help organizations optimize their waste management strategies, which contributes to its service-based revenue. The company may also engage in long-term partnerships with municipalities for waste management contracts, providing ongoing services and solutions that create a steady income stream. These partnerships often involve performance-based incentives that align with the company’s sustainability goals, further enhancing its revenue potential.

Besterra Co., Ltd Financial Statement Overview

Summary

Besterra Co., Ltd shows strong revenue growth and moderate financial stability, but faces challenges in maintaining profitability and generating positive cash flow. The company's leverage is manageable, yet increasing debt levels could pose future risks. Focus on improving operational efficiency and cash management is essential for sustainable growth.

Income Statement

Besterra Co., Ltd has demonstrated substantial revenue growth, increasing from 3,436 million to 10,897 million over five years. The gross profit margin improved to 17.35%, and net profit margin reached 3.75%. However, EBIT margin is relatively low at 3.42%, indicating potential cost management issues. Despite strong revenue growth, maintaining profitability remains a challenge.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.77, indicating manageable leverage. The equity ratio stands at 43.92%, showcasing a stable financial structure. However, the decline in cash equivalents and an increasing debt burden over time pose potential financial risks.

Cash Flow

Besterra Co., Ltd has struggled with negative free cash flow in recent years, demonstrating challenges in generating cash. Operating cash flow to net income ratio is negative, and free cash flow to net income ratio indicates cash flow inefficiencies. These trends suggest potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.23B	10.90B	9.39B	5.46B	5.97B	3.68B
Gross Profit	1.86B	1.89B	1.52B	889.65M	1.36B	732.78M
EBITDA	600.73M	484.00M	492.62M	-9.31M	2.16B	247.15M
Net Income	502.13M	409.81M	231.12M	-64.36M	1.47B	142.57M
Balance Sheet
Total Assets	8.41B	11.05B	10.88B	8.43B	9.02B	6.03B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.60B	1.44B	1.34B	2.12B	1.37B
Total Debt	1.05B	3.75B	4.29B	2.43B	2.39B	2.53B
Total Liabilities	3.19B	6.19B	6.78B	4.05B	4.67B	3.44B
Stockholders Equity	5.23B	4.85B	4.10B	4.38B	4.35B	2.59B
Cash Flow
Free Cash Flow	0.00	-638.46M	-1.44B	-371.33M	488.41M	-159.46M
Operating Cash Flow	0.00	-607.47M	-1.42B	-354.78M	537.85M	-108.65M
Investing Cash Flow	0.00	1.48B	24.83M	-515.15M	-32.78M	-101.06M
Financing Cash Flow	0.00	-719.14M	1.50B	85.31M	250.05M	638.16M

Besterra Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1253.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1433, the sentiment is Positive. The current price of 1253 is above the 20-day moving average (MA) of 1148.55, above the 50-day MA of 1097.24, and above the 200-day MA of 1089.08, indicating a bullish trend. The MACD of 46.97 indicates Negative momentum. The RSI at 71.32 is Negative, neither overbought nor oversold. The STOCH value of 84.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1433.

Besterra Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1867	82 Outperform	¥17.03B	7.43	―	3.06%	4.18%	1.38%
1966	77 Outperform	¥12.66B	9.19	―	4.06%	5.33%	-27.53%
1960	73 Outperform	¥21.03B	8.13	―	2.92%	22.32%	5024.88%
1853	68 Neutral	¥10.48B	11.91	―	4.37%	-7.40%	60.55%
1450	68 Neutral	¥12.21B	8.32	―	3.92%	12.31%	1.81%
1433	65 Neutral	¥11.56B	17.91	―	2.00%	-5.00%	77.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Besterra Co., Ltd Corporate Events

Besterra Co., Ltd Reports November 2025 Stock Acquisition Rights Exercise

Besterra Co., Ltd announced the exercise status of its 10th series of Stock Acquisition Rights for November 2025, with 26,400 shares issued and 264 rights exercised, representing 5.18% of the total issued rights. This exercise activity reflects the company’s ongoing financial strategies and impacts its share distribution, potentially influencing market perceptions and shareholder value.

Besterra Co., Ltd Enhances Board Effectiveness and Governance

Besterra Co., Ltd has conducted an evaluation of its Board of Directors’ effectiveness, aiming to improve governance and corporate value. The evaluation highlighted improvements in board diversity and shareholder dialogue but identified areas for further enhancement, such as board composition and executive compensation systems. The company plans to implement measures to address these issues, focusing on diversity, meeting efficiency, and succession planning to strengthen governance and stakeholder relationships.

Besterra Unveils Ambitious Medium-Term Management Plan 2030

Besterra Co., Ltd has announced its Medium-Term Management Plan 2030, aiming to become a leader in plant demolition by developing decarbonized demolition methods and expanding its market presence. The plan includes enhancing competitiveness through AI, accelerating growth by expanding into areas with plant concentration, and exploring overseas markets to build a foundation for future development.

Besterra Revises Financial Forecasts Amid Project Challenges and Subsidiary Sales

Besterra Co., Ltd announced a revision of its financial forecasts for the fiscal year ending January 31, 2026, due to discrepancies between previous forecasts and actual results. The company has faced challenges in securing high-margin projects and experienced delays in revenue recognition due to project suspensions. Additionally, Besterra plans to sell two unprofitable subsidiaries to improve its financial standing.