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Besterra Co., Ltd (JP:1433)
:1433
Japanese Market

Besterra Co., Ltd (1433) AI Stock Analysis

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JP:1433

Besterra Co., Ltd

(1433)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥1,489.00
▲(14.19% Upside)
Action:UpgradedDate:03/01/26
The score is primarily driven by strong revenue growth and an improving margin profile, tempered by persistent cash flow weakness and thin operating profitability. Technicals are supportive given the clear uptrend, but overbought momentum signals add near-term risk, while valuation is fair rather than compelling.
Positive Factors
Scale & Revenue Base
Sustained growth to a larger revenue base demonstrates the company's ability to win and execute larger contracts, supporting diversification of project risk and bargaining power with suppliers. That scale provides a durable platform to invest in capabilities and capture incremental margins over time.
Improving Margins
An improving gross margin and positive net margin reflect better pricing, project selection or cost control. If sustained, these margin gains enhance resilience to input cost shocks, increase operating leverage on additional revenue, and support reinvestment without relying solely on external funding.
Manageable Leverage
A moderate debt-to-equity ratio and near-44% equity ratio indicate a conservative capital structure relative to aggressive peers. This provides financial flexibility to fund capex, absorb project delays or pursue strategic investments, reducing bankruptcy and refinancing risk over the medium term.
Negative Factors
Weak Cash Generation
Persistent negative free cash flow and an operating-cash-to-net-income deficit indicate the business struggles to convert accounting profits into cash. This structural cash gap limits ability to self-fund growth, dividends or debt paydown and raises reliance on external financing over months to years.
Declining Liquidity
Falling cash balances alongside growing debt erode the liquidity buffer, increasing refinancing and covenant risk. Reduced liquidity constrains operational flexibility, may force higher-cost funding or asset sales, and magnifies exposure to cyclical downturns over the medium term.
Low Operating Profitability
A low EBIT margin signals limited ability to absorb cost inflation or bid competitively while remaining profitable. Structural operating inefficiencies or low-margin project mix reduce free cash conversion and investment capacity, making long-term sustainable returns more challenging without operational improvements.

Besterra Co., Ltd (1433) vs. iShares MSCI Japan ETF (EWJ)

Besterra Co., Ltd Business Overview & Revenue Model

Company DescriptionBesterra Co., Ltd. engages in plant demolition work and other related business. It is involved in the dismantling of plant facilities, such as steelworks, power plants, gas plants, petroleum refining/petrochemical plants, PCB transformer, and various factories. The company also provides 3D measurement and human resource services. Besterra Co., Ltd. was founded in 1974 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyBesterra 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
Strong multi-year revenue growth and improved gross margin support the score, but profitability remains thin (low EBIT margin) and cash generation is a key concern due to recent negative free cash flow and weak operating cash flow conversion.
Income Statement
80
Positive
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
70
Positive
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
65
Positive
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.
BreakdownTTMJan 2025Jan 2024Jan 2023Jan 2022Jan 2021
Income Statement
Total Revenue10.23B10.90B9.39B5.46B5.97B3.68B
Gross Profit1.86B1.89B1.52B889.65M1.36B732.78M
EBITDA600.73M484.00M492.62M-9.31M2.16B247.15M
Net Income502.13M409.81M231.12M-64.36M1.47B142.57M
Balance Sheet
Total Assets8.41B11.05B10.88B8.43B9.02B6.03B
Cash, Cash Equivalents and Short-Term Investments1.61B1.60B1.44B1.34B2.12B1.37B
Total Debt1.05B3.75B4.29B2.43B2.39B2.53B
Total Liabilities3.19B6.19B6.78B4.05B4.67B3.44B
Stockholders Equity5.23B4.85B4.10B4.38B4.35B2.59B
Cash Flow
Free Cash Flow0.00-638.46M-1.44B-371.33M488.41M-159.46M
Operating Cash Flow0.00-607.47M-1.42B-354.78M537.85M-108.65M
Investing Cash Flow0.001.48B24.83M-515.15M-32.78M-101.06M
Financing Cash Flow0.00-719.14M1.50B85.31M250.05M638.16M

Besterra Co., Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1304.00
Price Trends
50DMA
1254.49
Positive
100DMA
1161.37
Positive
200DMA
1134.11
Positive
Market Momentum
MACD
18.39
Negative
RSI
73.24
Negative
STOCH
86.74
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 1304 is above the 20-day moving average (MA) of 1236.45, above the 50-day MA of 1254.49, and above the 200-day MA of 1134.11, indicating a bullish trend. The MACD of 18.39 indicates Negative momentum. The RSI at 73.24 is Negative, neither overbought nor oversold. The STOCH value of 86.74 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥4.10B6.681.16%29.12%428.78%
70
Outperform
¥12.43B19.342.00%-5.00%77.99%
70
Outperform
¥8.45B16.962.03%16.10%-10.63%
67
Neutral
¥15.87B12.393.68%5.82%-22.14%
66
Neutral
¥6.11B13.081.99%20.63%11.92%
65
Neutral
¥12.51B35.480.57%40.93%14.18%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1433
Besterra Co., Ltd
1,341.00
426.41
46.62%
JP:1436
GreenEnergy & Company
3,175.00
682.50
27.38%
JP:1438
Gifu landscape architect Co.,Ltd.
1,861.00
-23.13
-1.23%
JP:1914
Japan Foundation Engineering Co., Ltd.
770.00
102.10
15.29%
JP:4642
Original Engineering Consultants Co., Ltd.
1,525.00
127.27
9.11%
JP:4673
Kawasaki Geological Engineering Co., Ltd.
4,675.00
1,815.94
63.52%

Besterra Co., Ltd Corporate Events

Besterra Secures TSE Prime Listing Compliance and Launches New Growth Plan
Feb 26, 2026

Besterra Co., Ltd. has confirmed that it now meets all the continued listing criteria for the Tokyo Stock Exchange Prime Market, following a multi-year plan launched in November 2021. As of January 31, 2026, the company satisfies requirements for shareholder count, tradable share volume, market capitalization, tradable share ratio, and liquidity, securing its Prime Market status.

To achieve compliance, Besterra focused on improving earnings per share, raising its price-earnings ratio, and increasing the number of tradable shares. Through promoting its Decarbonization Action Plan 2025, bolstering investor relations, and enhancing stock liquidity, the company lifted the market value of its tradable shares and now aims to drive further growth under its new “Leading the Future 2030” plan while strengthening its role in the demolition and recycling-oriented sectors.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1344.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Reshuffles Top Shareholders as Chairperson Becomes Largest Investor
Feb 9, 2026

Besterra Co., Ltd. has announced a shift in its major shareholder structure as of January 31, 2026, following confirmation of the shareholder register by Mitsubishi UFJ Trust and Banking Corporation. Former top shareholder Akitatsu Yoshino saw his stake fall to 9.87% and drop to the second-largest position, while Chairperson Yoshihide Yoshino became the largest shareholder with 10.42% of voting rights.

The change represents an internal rebalancing of ownership among key individual shareholders rather than an external takeover or strategic stake by a new investor. Besterra has stated that this revision in its largest shareholder will have no impact on its current-period business results, suggesting limited immediate operational or financial implications for stakeholders.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1287.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Completes Targeted Share Buyback, Shift in Largest Shareholder Following Chair’s Sale
Jan 15, 2026

Besterra Co., Ltd. has completed a share buyback via the Tokyo Stock Exchange’s off-auction own share repurchase system (ToSTNeT-3), acquiring 320,000 common shares for approximately 412 million yen on January 15, 2026, following a board resolution the previous day. The buyback was prompted by an offer to sell from major shareholder and chairperson Yoshihide Yoshino, with the company aiming to mitigate short-term supply-demand shocks in its stock, reduce the impact on existing shareholders, and improve capital efficiency and shareholder returns by easing the concentration of shares in specific hands. As a result of the transaction, Akitatsu Yoshino has become the largest shareholder with 10.43% of voting rights, replacing Yoshihide Yoshino, signaling a shift within the company’s major shareholder structure that may influence future governance and capital management policies while maintaining significant family-linked ownership.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1101.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Chairman Yoshino Steps Down as Representative Director in Leadership Transition
Jan 14, 2026

Besterra Co., Ltd. announced that Chairman and Representative Director Yoshihide Yoshino has resigned from his roles as Representative Director and Director, effective January 14, 2026, and will remain solely as Chairman. Yoshino, a key figure since the company’s founding and a driving force behind signature demolition technologies like the Apple Peeling Method, is stepping aside from executive representation as part of a planned generational transition intended to accelerate the company’s new medium-term growth strategy, support the maintenance of its Prime Market listing, and further its leadership ambitions in the demolition industry; following his resignation, the number of Representative Directors is reduced from two to one, leaving President and Representative Director Yutaka Honda as the sole Representative Director.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1101.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Launches Targeted Share Buyback as Chairman Sells Part of Stake
Jan 14, 2026

Besterra Co., Ltd. has resolved at its board meeting on January 14, 2026 to conduct a share buyback of up to 350,000 shares, or 3.81% of its outstanding stock excluding treasury shares, for a maximum of ¥451.15 million through the Tokyo Stock Exchange’s off-auction own share repurchase system (ToSTNeT-3) at ¥1,289 per share, the prior day’s closing price. The buyback, prompted by Chairman and major shareholder Yoshihide Yoshino’s stated intention to sell part of his holdings, is aimed at mitigating short-term supply-demand pressure on the stock, reducing concentration of ownership, and improving shareholder returns and capital efficiency, while the company has implemented measures to ensure fairness and avoid conflicts of interest, including excluding Yoshino from the board’s deliberation and resolution and executing the transaction via a market mechanism that does not guarantee purchases from any specific counterparty, which is expected to result in a change in major shareholders.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1101.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Chairperson Becomes Largest Shareholder After Change in Major Holdings
Jan 7, 2026

Besterra Co., Ltd. has announced a change in its largest shareholder following the submission of a large shareholding change report to the Kanto Local Finance Bureau. As of January 5, 2026, Yoshihide Yoshino, who serves as the company’s chairperson and representative director, has become the largest shareholder with 13.55% of voting rights, overtaking Akitatsu Yoshino, whose stake has decreased to 10.07%. The shift, driven by changes in individual holdings and an increase in total voting rights due to the exercise of stock acquisition rights, consolidates control in the hands of the company’s top executive. Besterra states that the change stems solely from the reported shareholdings and indicates no specific impact or changes to its business outlook at this time, suggesting limited immediate operational consequences but a clearer alignment between management and shareholder control.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1138.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Completes Early Transfer of Two Subsidiaries, Books Small Extraordinary Gain
Dec 26, 2025

Besterra Co., Ltd. has completed the transfer of all shares in its subsidiaries Hiro Engineering and 3D Visual Co., Ltd. to Ourakousoku Co., Ltd. earlier than planned, with the deal closing on December 26, 2025 instead of the originally scheduled January 30, 2026. The transaction will generate an extraordinary gain of approximately ¥1 million in the fourth quarter of the fiscal year ending January 31, 2026, and both subsidiaries will be excluded from Besterra’s scope of consolidation from that quarter, though the company expects the impact on its consolidated financial results to be immaterial.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1138.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Co., Ltd Transfers Subsidiaries to Focus on Plant Dismantling
Dec 10, 2025

Besterra Co., Ltd has decided to transfer its shares in subsidiaries Hiro Engineering and 3D Visual Co., Ltd to Ourakousoku Co., Ltd. This strategic move aims to concentrate Besterra’s resources on its core plant dismantling business, leveraging Ourakousoku’s expertise in architectural surveying and 3D measurement. The transfer is expected to enhance Besterra’s operational focus and industry positioning.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1138.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Cancels Planned Share Transfer Agreement
Dec 10, 2025

Besterra Co., Ltd announced the cancellation of a previously planned share transfer agreement with Suido Kiko Kaisha, LTD. The decision to terminate the agreement, which involved the transfer of shares in Hiro Engineering and 3D Visual Co., Ltd., may affect Besterra’s strategic positioning and operational plans.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1138.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Co., Ltd Announces Strong Financial Performance for 2025
Dec 10, 2025

Besterra Co., Ltd reported its consolidated financial results for the nine months ending October 31, 2025, showing a slight increase in net sales and significant growth in operating and ordinary profits compared to the previous year. The company also announced a forecast for the fiscal year ending January 31, 2026, with expected growth in net sales and profits, indicating a positive outlook for the company and its stakeholders.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1138.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

Besterra Co., Ltd Reports November 2025 Stock Acquisition Rights Exercise
Dec 1, 2025

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.

The most recent analyst rating on (JP:1433) stock is a Hold with a Yen1138.00 price target. To see the full list of analyst forecasts on Besterra Co., Ltd stock, see the JP:1433 Stock Forecast page.

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: Mar 01, 2026