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

• Market Cap: ¥7.33B
• Dividend Yield: 3.77%
• Average Volume (3M): 26.39K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.42
• Revenue Growth: 11.25%
• EPS Growth: 26.01%
• Country: JP
• Employees: 543
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 10.57
• Shares Outstanding: 9,316,000
• 10 Day Avg. Volume: 31,870
• 30 Day Avg. Volume: 26,386
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥891.00 ▲(12.22% Upside)

The score is primarily driven by solid balance-sheet strength and steady revenue growth, tempered by margin volatility and uneven cash-flow conversion. Technicals are supportive with the stock trading above key moving averages, and valuation is helped by a moderate P/E and a strong dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial flexibility and reduces risk, supporting sustainable growth and resilience.

Profit Growth

Significant profit growth reflects operational efficiency and effective cost management, improving shareholder value and competitive positioning.

Negative Factors

Margin Volatility

Volatile margins indicate potential challenges in cost control and pricing power, which could impact profitability and strategic flexibility.

Cash Flow Conversion

Uneven cash flow conversion can strain liquidity and limit investment capacity, posing risks to financial stability and growth initiatives.

Profitability Volatility

Volatile profitability may hinder consistent earnings growth, affecting investor confidence and the ability to fund strategic projects.

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

Steady revenue growth through 2024 and a conservatively positioned balance sheet with low leverage support the score. Offsetting this, profitability is volatile (notably weaker net margin in 2024) and cash-flow conversion has been uneven despite a strong free-cash-flow rebound in 2024.

Income Statement

Revenue has grown steadily from 2019 to 2024, with a notably strong acceleration in 2024. However, profitability has become less consistent: gross margin improved in 2024 versus 2023, but net profit margin fell sharply in 2024 and is below the stronger levels seen in 2020–2021. Operating profitability also looks volatile across years, suggesting sensitivity to project mix and costs.

Balance Sheet

The balance sheet appears conservatively positioned, with very low leverage historically and only modest debt in 2024 (low debt relative to equity). Equity remains a large portion of the capital base, supporting financial flexibility. A watch item is that returns on equity have declined in 2024 versus 2023, indicating weaker efficiency in generating profit from shareholder capital despite the solid balance sheet.

Cash Flow

Cash generation is positive in most years, and 2024 produced solid free cash flow with strong year-over-year growth. That said, cash flow conversion has been uneven (including negative operating and free cash flow in 2022), and 2024 operating cash flow covered a smaller share of earnings than in 2023, pointing to working-capital or timing volatility that can be common in project-based businesses.

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: 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 821.95, below the 50-day MA of 813.72, and above the 200-day MA of 760.51, indicating a bullish trend. The MACD of 4.62 indicates Positive momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 31.31 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
1768	74 Outperform	¥10.45B	10.83	―	2.16%	24.11%	1644.12%
1434	70 Outperform	¥12.80B	9.34	―	2.65%	28.80%	5.92%
2311	69 Neutral	¥7.33B	13.68	―	3.77%	11.25%	26.01%
1401	67 Neutral	¥11.67B	20.71	―	0.99%	21.18%	53.16%
1438	66 Neutral	¥5.76B	14.97	―	1.99%	20.63%	11.92%
1446	66 Neutral	¥6.09B	26.71	―	1.44%	4.81%	42.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

EPCO Co.,Ltd. Corporate Events

EPCO Co., Ltd. Reports Strong Financial Growth for 2025

EPCO Co., Ltd. reported a significant improvement in its financial performance for the nine months ended September 30, 2025, with net sales increasing by 13.2% and profit attributable to owners of the parent rising by 250.5% compared to the previous year. This strong performance reflects the company’s robust operational strategies and positions it favorably within its industry, potentially benefiting shareholders and investors.