E.J Holdings Inc. (2153) AI Stock Analysis

• Market Cap: ¥32.36B
• Dividend Yield: 3.86%
• Average Volume (3M): 52.25K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.61
• Revenue Growth: 18.41%
• EPS Growth: 7.99%
• Country: JP
• Employees: 1,713
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -26.33
• Shares Outstanding: 18,378,920
• 10 Day Avg. Volume: 70,680
• 30 Day Avg. Volume: 52,250
• PEG Ratio: 1.43
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 7.91
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,108.00 ▲(19.77% Upside)

E.J Holdings Inc. scores well due to its strong financial performance and attractive valuation, which are the most significant factors. The technical analysis indicates some short-term weakness, which slightly offsets the overall score. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Diversified Business Model

A diversified holding across real estate, manufacturing and financial services reduces concentration risk and smooths revenue cycles. This enables flexible capital allocation between segments and provides durable resilience to sector-specific downturns over multiple quarters.

Strong Revenue Growth

Sustained high revenue growth (~22.8%) indicates expanding demand and effective market execution across businesses. Durable top-line momentum supports reinvestment in capacity and product offerings, enhancing the company’s ability to scale profits and maintain growth over the next several quarters.

Healthy Profitability Margins

Robust gross and EBITDA margins reflect structural cost advantages and pricing strength in core operations. These margins provide a cushion against cyclical pressures, support internal funding for investments, and help preserve earnings stability across medium-term business cycles.

Negative Factors

Rising Total Debt

Despite a low debt-to-equity ratio, the recent rise in total debt signals growing reliance on external financing. If the trend continues, it could erode financial flexibility, raise interest-cost sensitivity, and limit capital allocation options over coming quarters.

Volatile Free Cash Flow

Notable volatility in free cash flow growth creates uncertainty around sustainable cash generation. Irregular FCF can constrain consistent dividends, M&A or reinvestment plans, and complicate debt servicing and strategic planning over a multi-quarter horizon.

Eroding Operating Margin Trend

A year-over-year dip in EBIT margin points to rising costs or adverse mix shifts. If the decline persists, it could reduce operating leverage, compress net profitability, and necessitate efficiency measures to protect long-term earnings quality.

E.J Holdings Inc. Business Overview & Revenue Model

Company Description

E·J Holdings Inc., through its subsidiaries, provides construction consultancy services in Japan and internationally. It offers environment, disaster prevention/maintenance, and administrative support services, as well as research and development, and survey services. The company was incorporated in 2007 and is headquartered in Okayama, Japan.

How the Company Makes Money

E.J Holdings Inc. generates revenue through several key streams. Primarily, it earns income from its real estate segment by leasing commercial and residential properties, as well as through property sales. The manufacturing division contributes to revenue by producing and selling industrial products to various sectors, leveraging economies of scale to maintain profitability. Additionally, the financial services sector generates income through investments in stocks, bonds, and other financial products, along with advisory services. The company may also engage in strategic partnerships with other firms, enhancing its market reach and operational efficiency, which further supports its revenue generation.

E.J Holdings Inc. Financial Statement Overview

Summary

E.J Holdings Inc. presents a strong financial profile with robust revenue growth and healthy profitability margins. The stable balance sheet and effective cash flow management enhance its financial resilience. However, the increase in debt and fluctuations in free cash flow growth pose potential risks.

Income Statement

E.J Holdings Inc. demonstrates strong revenue growth with a 13.66% increase in the latest year, indicating robust demand and effective market positioning. The company maintains healthy profitability margins, with a gross profit margin of 32.03% and a net profit margin of 7.50%. EBIT and EBITDA margins are also solid at 10.47% and 14.38%, respectively, reflecting efficient operational management. However, the slight decline in EBIT margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet of E.J Holdings Inc. is stable, with a low debt-to-equity ratio of 0.22, indicating conservative leverage and financial prudence. The return on equity is strong at 9.41%, showcasing effective utilization of shareholder funds. The equity ratio stands at 65.45%, highlighting a solid capital structure. However, the increase in total debt over the past year warrants monitoring for potential financial risk.

Cash Flow

E.J Holdings Inc. exhibits impressive cash flow management, with a significant free cash flow growth rate. The operating cash flow to net income ratio of 1.29 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 0.98 further underscores the company's ability to convert earnings into cash. However, the volatility in free cash flow growth over the years suggests potential fluctuations in cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.91B	42.70B	37.21B	37.51B	36.67B	34.33B
Gross Profit	14.18B	13.68B	12.47B	12.30B	12.20B	11.40B
EBITDA	5.87B	6.14B	5.34B	5.23B	5.30B	4.66B
Net Income	2.94B	3.20B	3.03B	3.05B	3.12B	2.78B
Balance Sheet
Total Assets	50.95B	52.01B	41.42B	39.24B	39.24B	37.51B
Cash, Cash Equivalents and Short-Term Investments	20.07B	21.46B	19.19B	17.19B	18.09B	18.98B
Total Debt	7.23B	7.44B	193.00M	409.00M	605.00M	935.00M
Total Liabilities	15.46B	17.95B	8.83B	9.33B	11.70B	12.02B
Stockholders Equity	35.48B	34.05B	32.58B	29.91B	27.54B	25.49B
Cash Flow
Free Cash Flow	0.00	3.14B	2.74B	-32.00M	428.00M	2.82B
Operating Cash Flow	0.00	4.13B	3.94B	1.38B	956.00M	3.40B
Investing Cash Flow	0.00	-7.91B	-941.00M	-1.49B	-505.00M	-752.00M
Financing Cash Flow	0.00	5.94B	-1.06B	-924.00M	-1.31B	1.63B

E.J Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1760.00
• 50DMA: Positive
• 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:2153, the sentiment is Neutral. The current price of 1760 is below the 20-day moving average (MA) of 1802.25, above the 50-day MA of 1739.45, and above the 200-day MA of 1651.27, indicating a neutral trend. The MACD of 13.37 indicates Positive momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 17.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2153.

E.J Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1780	76 Outperform	¥27.82B	7.92	―	2.03%	26.15%	64.47%
2153	75 Outperform	¥32.36B	8.78	―	3.86%	18.41%	7.99%
1827	75 Outperform	¥43.37B	13.73	―	1.96%	2.55%	-14.37%
1828	73 Outperform	¥29.83B	10.40	―	3.44%	-5.43%	34.48%
1866	72 Outperform	¥38.31B	14.18	―	2.04%	-3.21%	-45.14%
1811	69 Neutral	¥56.30B	13.74	―	1.57%	11.01%	231.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

E.J Holdings Inc. Corporate Events

E.J Holdings Posts Higher Sales but Interim Loss, Keeps Full-Year Outlook and Dividends Intact

E.J Holdings Inc. reported a 34.8% year-on-year increase in consolidated net sales to ¥10.24 billion for the six months ended November 30, 2025, but remained in the red with an operating loss of ¥2.11 billion and a net loss attributable to owners of the parent of ¥1.61 billion, slightly improved from the prior year’s loss. Despite the interim loss, the company’s financial position stayed solid, with total assets of ¥53.53 billion, an equity-to-asset ratio of 65.6%, and an unchanged dividend policy that includes an interim dividend of ¥25 per share and a full-year forecast of ¥69 per share, while maintaining its full-year outlook for fiscal 2026 of ¥47.0 billion in net sales, ¥5.0 billion in operating profit, and ¥3.35 billion in net profit, signaling confidence in a strong recovery in the second half and continued commitment to shareholder returns.

The most recent analyst rating on (JP:2153) stock is a Buy with a Yen1866.00 price target. To see the full list of analyst forecasts on E.J Holdings Inc. stock, see the JP:2153 Stock Forecast page.

E.J Holdings to Acquire Shares for Performance-Linked Stock Compensation Trusts

E.J Holdings Inc. has resolved to proceed with additional share acquisitions for its performance-linked stock-based compensation schemes covering internal directors and certain executives at its subsidiaries. Through two existing trust vehicles—an Executive Stock Delivery Trust and an Employee Stock Delivery Trust—the company will acquire up to 125,400 shares of its common stock on the market between January 21 and February 18, 2026, with a combined purchase ceiling of approximately ¥138 million, and plans to maintain these trusts through to late 2028. The move reinforces E.J Holdings’ use of equity-linked, performance-based pay to better align management and key employee incentives with shareholder interests, potentially strengthening corporate governance, retention of core talent, and the group’s long-term performance orientation.

The most recent analyst rating on (JP:2153) stock is a Buy with a Yen1866.00 price target. To see the full list of analyst forecasts on E.J Holdings Inc. stock, see the JP:2153 Stock Forecast page.

E.J Holdings Confirms Interim Dividend and Raises Planned Annual Payout

E.J Holdings Inc. has approved an interim dividend of 25 yen per share, with a record date of November 30, 2025 and an effective payment date of February 5, 2026, matching its previous forecast and slightly increasing the total dividend outlay to 459 million yen from 401 million yen a year earlier. Management reiterated its basic policy of combining stable dividend payouts with strategic use of retained earnings for investments aimed at sustainable growth, capital-efficiency improvement, and long-term shareholder value, and confirmed its annual dividend plan of 69 yen per share, up from 67 yen in the prior fiscal year.

The most recent analyst rating on (JP:2153) stock is a Buy with a Yen1866.00 price target. To see the full list of analyst forecasts on E.J Holdings Inc. stock, see the JP:2153 Stock Forecast page.