Besterra Co., Ltd (1433) AI Stock Analysis

• Market Cap: ¥11.30B
• Dividend Yield: 1.98%
• Average Volume (3M): 88.35K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.47
• Revenue Growth: -3.20%
• EPS Growth: 150.33%
• Country: JP
• Employees: 228
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 8.44
• Shares Outstanding: 9,230,600
• 10 Day Avg. Volume: 60,720
• 30 Day Avg. Volume: 88,346
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,173.00
• Price Target Upside: -6.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥1,173.00 ▼(-6.90% Downside)

Besterra Co., Ltd scores moderately at 63. The company's strong revenue growth and stable financial structure are positive factors, but challenges in profitability and cash flow management weigh on the score. Technical indicators suggest a neutral market sentiment, and the valuation remains balanced. Improvement in operational efficiency and cash management is crucial for future performance.

Besterra Co., Ltd Business Overview & Revenue Model

Company Description

Besterra Co., Ltd (1433) is a Japanese company primarily engaged in the engineering and construction sectors. The company specializes in providing decommissioning services for industrial plants and facilities, focusing on eco-friendly and efficient demolition processes. Besterra leverages advanced technology and expertise to minimize environmental impact while maximizing safety and cost-effectiveness in its operations.

How the Company Makes Money

Besterra Co., Ltd generates revenue through its specialized decommissioning services for industrial plants, which includes dismantling and demolition activities. The company earns money by contracting with various industrial clients in sectors such as energy, petrochemicals, and manufacturing, providing them with tailored solutions for plant decommissioning and site remediation. Besterra also benefits from strategic partnerships and collaborations that enhance its technological capabilities and market reach, further contributing to its revenue streams. The company's focus on eco-friendly and sustainable demolition practices also positions it favorably in markets with stringent environmental regulations, potentially leading to increased demand for its services.

Besterra Co., Ltd Financial Statement Overview

Summary

Besterra Co., Ltd demonstrates strong revenue growth and moderate financial stability. However, the company faces challenges in maintaining profitability and generating positive cash flow. The leverage is manageable, but increasing debt levels could pose future risks. 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	10.90B	10.90B	9.39B	5.46B	5.97B	3.68B
Gross Profit	1.89B	1.89B	1.52B	889.65M	1.36B	732.78M
EBITDA	552.95M	484.00M	492.62M	-9.31M	2.16B	247.15M
Net Income	409.00M	409.81M	231.12M	-64.36M	1.39B	142.57M
Balance Sheet
Total Assets	11.05B	11.05B	10.88B	8.43B	9.02B	6.03B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.60B	1.44B	1.34B	2.12B	1.37B
Total Debt	3.75B	3.75B	4.29B	2.43B	2.39B	2.53B
Total Liabilities	6.19B	6.19B	6.78B	4.05B	4.67B	3.44B
Stockholders Equity	4.85B	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: 1260.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1260 is above the 20-day moving average (MA) of 1241.95, above the 50-day MA of 1167.02, and above the 200-day MA of 1049.16, indicating a bullish trend. The MACD of 21.97 indicates Positive momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 43.09 is Neutral, 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	¥15.71B	7.41		3.32%	-5.06%	2.78%
1966	77 Outperform	¥11.65B	5.78		4.41%	7.07%	-0.67%
1960	74 Outperform	¥15.54B	9.51		3.95%	28.15%	895.81%
1853	72 Outperform	¥10.81B	10.22		4.17%	-4.01%	42.07%
1450	68 Neutral	¥12.47B	7.86		3.76%	19.17%	32.15%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%
1433	63 Neutral	¥11.30B	18.84		1.98%	-3.20%	150.33%

Besterra Co., Ltd Corporate Events

Besterra Co., Ltd Completes Significant Treasury Share Cancellation

Besterra Co., Ltd has completed the cancellation of 1,440,000 treasury shares, which constituted 13.50% of its total issued shares prior to the cancellation. This strategic move, resolved by the Board of Directors, is expected to impact the company’s share structure and potentially enhance shareholder value.

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

Besterra Co., Ltd announced the monthly exercise status of its 10th Stock Acquisition Rights for June 2025, revealing that 60.96% of the rights were exercised, resulting in the issuance of 310,900 shares. This development indicates a significant level of investor engagement and could potentially impact the company’s capital structure and market positioning.

Besterra Co., Ltd Announces Large-Scale Exercise of Stock Acquisition Rights

Besterra Co., Ltd announced the large-scale exercise of its 10th series of Stock Acquisition Rights, originally issued in February 2021. This exercise, which took place from June 1 to June 10, 2025, involved 60.06% of the total rights issued, significantly impacting the company’s share structure by increasing the number of shares issued and potentially affecting market dynamics and stakeholder interests.

Besterra Co., Ltd Announces Cancellation of Treasury Shares

Besterra Co., Ltd announced the cancellation of 1,440,000 treasury shares, representing 13.91% of its total issued shares, as part of a strategic decision by its Board of Directors. This move, scheduled for July 15, 2025, is expected to impact the company’s share structure by reducing the number of outstanding shares, potentially enhancing shareholder value.

Besterra Co., Ltd Revises Financial Forecasts and Announces Commemorative Dividend

Besterra Co., Ltd has revised its financial forecasts for the six months ending July 31, 2025, and the full fiscal year ending January 31, 2026, alongside announcing a commemorative dividend to mark its tenth anniversary on the stock exchange. The revision includes an increase in the profit forecast attributable to owners of the parent by 50 million yen, reflecting a 5.5% rise, due to factors such as the sale of cross-shareholdings. Additionally, the company has increased its annual dividend forecast to 40 yen, including a 10 yen commemorative dividend, indicating a strong financial position and commitment to shareholder returns.

Besterra Completes Treasury Share Disposal for Stock Compensation

Besterra Co., Ltd has completed the payment process for the disposal of treasury shares as restricted stock compensation, a move approved by its Board of Directors in April 2025. This strategic decision involves the allocation of 13,837 shares to key company personnel, which may enhance employee alignment with corporate goals and potentially impact shareholder value.