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

• Market Cap: ¥32.61B
• Dividend Yield: 3.86%
• Average Volume (3M): 52.25K
• Price to Earnings (P/E): 9.3
• 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): -26.81
• 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: ¥1,905.00 ▲(8.24% 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

Revenue Growth

The company's robust revenue growth indicates effective market positioning and strong demand for its services, supporting long-term expansion.

Profitability Margins

Sustained profitability margins reflect efficient operational management, which can support reinvestment and shareholder returns over time.

Balance Sheet Health

A stable balance sheet with low leverage enhances financial flexibility, allowing the company to pursue growth opportunities without excessive risk.

Negative Factors

Debt Increase

Rising debt levels could strain future cash flows and limit financial flexibility, posing a risk to long-term stability if not managed carefully.

Free Cash Flow Volatility

Inconsistent cash flow generation may impact the company's ability to fund operations and growth initiatives, affecting financial resilience.

EBIT Margin Decline

A declining EBIT margin could indicate rising costs or inefficiencies, which may pressure profitability if not addressed.

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: Positive
• Last Price: 1760.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2153, the sentiment is Positive. The current price of 1760 is above the 20-day moving average (MA) of 1744.05, above the 50-day MA of 1684.49, and above the 200-day MA of 1631.69, indicating a bullish trend. The MACD of 35.27 indicates Negative momentum. The RSI at 75.65 is Negative, neither overbought nor oversold. The STOCH value of 79.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1827	78 Outperform	¥38.66B	12.24	―	1.96%	2.55%	-14.37%
1780	76 Outperform	¥28.58B	8.13	―	2.03%	26.15%	64.47%
2153	75 Outperform	¥32.61B	9.33	―	3.86%	18.41%	7.99%
1828	73 Outperform	¥29.41B	10.25	―	3.44%	-5.43%	34.48%
1866	72 Outperform	¥37.20B	13.77	―	2.04%	-3.21%	-45.14%
1811	69 Neutral	¥57.87B	14.12	―	1.57%	11.01%	231.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%