EPCO Co.,Ltd. (2311) AI Stock Analysis

• Market Cap: ¥7.22B
• Dividend Yield: 3.95%
• Average Volume (3M): 25.90K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.32
• Revenue Growth: 13.11%
• EPS Growth: -8.17%
• Country: JP
• Employees: 543
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 16.57
• Shares Outstanding: 9,316,000
• 10 Day Avg. Volume: 14,320
• 30 Day Avg. Volume: 25,900
• PEG Ratio: -0.44
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 28.10
• 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

• Rating: 68 Neutral
• Price Target: ―

EPCO Co.,Ltd. showcases a solid financial foundation with strong revenue growth and a robust equity position. However, rising operational costs and declining free cash flow growth are areas of concern. Technical indicators suggest a neutral to slightly negative short-term outlook, while the valuation remains reasonable with an appealing dividend yield.

EPCO Co.,Ltd. Business Overview & Revenue Model

Company Description

EPCO Co., Ltd. (2311) is a company engaged in various sectors, primarily focusing on the construction and renewable energy industries. The company is known for its comprehensive services in solar power, including the design, installation, and maintenance of solar power systems. EPCO is also involved in the development of real estate projects, leveraging its expertise in construction to deliver sustainable and energy-efficient solutions.

How the Company Makes Money

EPCO Co., Ltd. generates revenue through several key streams. Primarily, the company earns income from the sale and installation of solar power systems, capitalizing on the growing demand for renewable energy solutions. Additionally, EPCO engages in real estate projects, where it combines construction capabilities with a focus on energy efficiency, thus creating value in both the real estate and energy sectors. The company may also benefit from government incentives and subsidies related to renewable energy initiatives, which can enhance its revenue potential. Strategic partnerships with other firms in the energy and construction industries further contribute to EPCO's revenue by expanding its market reach and enhancing its service offerings.

EPCO Co.,Ltd. Financial Statement Overview

Summary

EPCO Co.,Ltd. demonstrates strong financial health with growing revenues and stable profitability. The robust equity position and absence of debt highlight exceptional financial stability. However, there are concerns regarding rising costs impacting EBITDA margins and declining free cash flow growth, which could pose future challenges.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a noticeable improvement in gross profit and net profit margins. The latest annual report shows a gross profit margin of 31.1% and a net profit margin of 5.8%, indicating solid profitability. However, there was a decline in EBITDA margin from the previous year, which could point to rising operational costs.

Balance Sheet

EPCO Co.,Ltd. maintains a strong equity position with an equity ratio of 79.8% in the latest report, showcasing financial stability. The company has no debt, resulting in an excellent debt-to-equity ratio. Return on equity is moderately strong at 7.0%, reflecting efficient use of equity capital.

Cash Flow

The company’s cash flow position is stable with a positive operating cash flow to net income ratio of 0.98, indicating effective conversion of income into cash. However, free cash flow saw a significant decline in growth, suggesting decreased cash available for new investments or debt repayment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	5.61B	5.06B	4.82B	4.70B	4.38B
Gross Profit	1.83B	1.74B	1.32B	1.21B	1.46B	1.47B
EBITDA	750.73M	459.00M	920.65M	615.86M	589.14M	614.76M
Net Income	468.10M	327.11M	626.53M	359.25M	658.10M	438.08M
Balance Sheet
Total Assets	5.73B	5.82B	5.60B	5.08B	6.38B	5.40B
Cash, Cash Equivalents and Short-Term Investments	2.59B	2.17B	1.50B	1.41B	2.15B	1.64B
Total Debt	500.00M	500.00M	0.00	0.00	0.00	0.00
Total Liabilities	1.25B	1.18B	924.54M	686.37M	1.33B	1.13B
Stockholders Equity	4.48B	4.65B	4.68B	4.39B	5.05B	4.27B
Cash Flow
Free Cash Flow	0.00	247.63M	436.99M	-401.35M	192.22M	347.30M
Operating Cash Flow	0.00	321.77M	465.72M	-167.99M	230.05M	513.02M
Investing Cash Flow	0.00	-395.36M	303.14M	-330.11M	483.38M	-411.75M
Financing Cash Flow	0.00	213.91M	-325.34M	-298.67M	-267.44M	-267.75M

EPCO Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 794.00
• 50DMA: Negative
• 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:2311, the sentiment is Negative. The current price of 794 is below the 20-day moving average (MA) of 827.55, below the 50-day MA of 816.68, and above the 200-day MA of 739.86, indicating a neutral trend. The MACD of -8.74 indicates Positive momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 29.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2311.

EPCO Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1434	76 Outperform	¥8.30B	7.57	―	3.40%	28.80%	5.99%
1438	76 Outperform	¥6.33B	16.83	―	1.85%	18.23%	1.32%
1768	72 Outperform	¥7.17B	10.55	―	3.05%	12.81%	614.41%
2311	68 Neutral	¥7.22B	15.18	―	3.95%	13.11%	-8.17%
1401	67 Neutral	¥10.55B	18.41	―	0.96%	21.18%	53.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1446	62 Neutral	¥5.81B	48.34	―	1.48%	7.16%	-34.36%

EPCO Co.,Ltd. Corporate Events

EPCO Co., Ltd. Reports 2024 Financial Results with Increased Sales

EPCO Co., Ltd. reported its consolidated financial results for the year ending December 31, 2024, showing a year-on-year increase in net sales by 10.8% to 5,607 million yen despite a 47.8% decline in profit attributable to owners. The company is preparing for a general shareholders meeting and aims to maintain steady dividend payments, indicating a focus on shareholder value amidst fluctuating profits.