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

• Market Cap: ¥7.25B
• Dividend Yield: 3.77%
• Average Volume (3M): 26.39K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.43
• Revenue Growth: 11.25%
• EPS Growth: 26.01%
• Country: JP
• Employees: 543
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 14.43
• Shares Outstanding: 9,316,000
• 10 Day Avg. Volume: 31,870
• 30 Day Avg. Volume: 26,386
• PEG Ratio: 0.57
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 24.06
• 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: 70 Outperform
• Price Target: ¥893.00 ▲(12.47% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is primarily supported by healthy financial fundamentals—especially a conservatively positioned balance sheet and steady revenue growth—tempered by profitability and cash-flow variability. Valuation is a positive contributor due to the strong dividend yield with a reasonable P/E, while technical indicators point to weaker near-term momentum, limiting the overall score.

Positive Factors

Conservative balance sheet

A strong equity base and historically low leverage give the company durable financial flexibility. This conservative capital structure supports investment during downturns, enables debt capacity for growth, and reduces refinancing risk over the next several quarters.

Steady revenue growth

Consistent top-line expansion, including acceleration in 2025, indicates sustained market demand and execution capability. Reliable revenue momentum improves capacity planning, supports long-term contracting leverage, and underpins margin recovery potential.

Improving cash generation

Return to positive operating and free cash flow in recent years strengthens internal funding for capex, working capital and shareholder returns. Improved cash conversion reduces dependency on external financing and supports strategic investments over the medium term.

Negative Factors

Volatile profitability

Earnings and operating profit swings complicate forecasting and weaken confidence in sustainable margins. Variable profitability can limit reinvestment capacity, raise hurdle rates for new projects, and make capital allocation outcomes more uncertain over coming quarters.

Choppy cash flows historically

Intermittent negative OCF/FCF years indicate cash conversion risk tied to project timing or working capital. Such swings constrain consistent debt reduction, dividends, or growth spending and increase vulnerability if revenue or margins weaken again.

Recent rise in debt

Taking on new debt after a zero-debt position is a structural change that reduces financial slack. Even modest leverage magnifies downside when profitability or cash flow are volatile, tightening coverage metrics and limiting flexibility if conditions deteriorate.

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

Strong balance sheet (low leverage, solid equity base) and steady revenue growth support resilience. Offsetting this are volatile operating profitability and uneven cash flow history, including prior periods of negative operating/free cash flow and swings in free cash flow.

Income Statement

Revenue has grown steadily over the last several years, accelerating to strong growth in 2025 (annual). Profitability is solid but less consistent: net income declined from 2023 to 2024 before rebounding in 2025, and operating profit levels have been volatile across the period. Overall, the company shows healthy top-line momentum with some variability in earnings quality and margin stability.

Balance Sheet

The balance sheet looks conservatively positioned with a strong equity base relative to assets and low leverage overall. Debt increased to 500M in 2024–2025 after being zero in prior years, but leverage remains modest (debt-to-equity ~0.11 in 2024). Return on equity has been acceptable but uneven (stronger in 2021/2023, softer in 2024), indicating profitability can fluctuate even with a solid capital structure.

Cash Flow

Cash generation is generally positive, with operating cash flow and free cash flow positive in most years and improving again in 2024–2025. However, cash flow has been choppy: 2022 showed negative operating cash flow and negative free cash flow, and 2024 free cash flow declined meaningfully versus 2023 before recovering in 2025. Overall cash conversion is decent in normal years, but the historical swings reduce confidence in consistency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.16B	6.25B	5.61B	5.06B	4.82B	4.70B
Gross Profit	1.83B	1.84B	1.74B	1.32B	1.21B	1.46B
EBITDA	750.73M	491.75M	459.00M	920.65M	615.86M	589.14M
Net Income	468.10M	424.87M	327.11M	626.53M	359.25M	658.10M
Balance Sheet
Total Assets	5.73B	5.84B	5.82B	5.60B	5.08B	6.38B
Cash, Cash Equivalents and Short-Term Investments	2.59B	2.82B	2.17B	1.50B	1.41B	2.15B
Total Debt	500.00M	500.00M	500.00M	0.00	0.00	0.00
Total Liabilities	1.25B	1.17B	1.18B	924.54M	686.37M	1.33B
Stockholders Equity	4.48B	4.67B	4.65B	4.68B	4.39B	5.05B
Cash Flow
Free Cash Flow	0.00	299.11M	247.63M	436.99M	-401.35M	192.22M
Operating Cash Flow	0.00	370.03M	321.77M	465.72M	-167.99M	230.05M
Investing Cash Flow	0.00	571.80M	-395.36M	303.14M	-330.11M	483.38M
Financing Cash Flow	0.00	-286.39M	213.91M	-325.34M	-298.67M	-267.44M

EPCO Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 794.00
• 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:2311, the sentiment is Positive. The current price of 794 is below the 20-day moving average (MA) of 821.20, below the 50-day MA of 819.77, and above the 200-day MA of 774.86, indicating a bullish trend. The MACD of -1.49 indicates Positive momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2311.

EPCO Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1841	82 Outperform	¥5.68B	10.02	―	1.88%	-16.60%	-19.91%
2311	70 Outperform	¥7.25B	17.40	―	3.77%	11.25%	26.01%
4642	70 Outperform	¥8.30B	16.96	―	2.03%	16.10%	-10.63%
6171	69 Neutral	¥6.35B	13.57	―	2.86%	2.87%	55.82%
1438	66 Neutral	¥6.04B	13.08	―	1.99%	20.63%	11.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6085	47 Neutral	¥27.45B	-75.95	―	―	78.27%	72.99%

EPCO Co.,Ltd. Corporate Events

EPCO Posts Double-Digit Profit Growth and Lifts Dividend on Solid 2025 Results

EPCO Co., Ltd. reported consolidated net sales of ¥6,252 million for the year ended December 31, 2025, up 11.5% year on year, with operating profit rising 12.6% to ¥376 million and profit attributable to owners of parent jumping 29.9% to ¥424 million. Earnings per share increased to ¥47.47, return on equity improved to 9.1%, and the company maintained a robust equity ratio of 80.0% and cash and cash equivalents of ¥2,351 million, underscoring solid financial health.

The company raised its annual dividend to ¥35 per share for 2025 from ¥32 in 2024, lowering the consolidated payout ratio to 73.7% while slightly increasing the ratio of dividends to net assets, signaling continued commitment to shareholder returns. For 2026, EPCO forecasts further growth with full-year net sales of ¥6,680 million, a 6.9% increase, operating profit of ¥399 million, ordinary profit of ¥624 million, and profit attributable to owners of parent of ¥485 million, indicating expectations of sustained earnings expansion and stronger profitability.

The most recent analyst rating on (JP:2311) stock is a Buy with a Yen945.00 price target. To see the full list of analyst forecasts on EPCO Co.,Ltd. stock, see the JP:2311 Stock Forecast page.