e'grand Co., Ltd. (3294) AI Stock Analysis

• Market Cap: ¥12.59B
• Dividend Yield: 4.56%
• Average Volume (3M): 26.60K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.37
• Revenue Growth: 25.09%
• EPS Growth: 30.66%
• Country: JP
• Employees: 126
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 86.93
• Shares Outstanding: 6,379,100
• 10 Day Avg. Volume: 48,070
• 30 Day Avg. Volume: 26,596
• PEG Ratio: -0.32
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -2.75
• 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: 52 Neutral
• Price Target: ¥1,999.00 ▲(2.30% Upside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is held back primarily by weaker financial quality—margin compression, rising leverage, and negative operating/free cash flow in 2025—along with bearish technical momentum. These risks are partially offset by attractive valuation, with a low P/E and strong dividend yield.

Positive Factors

Revenue Growth Trend

Sustained top-line expansion (11.65% y/y) indicates underlying demand for the company’s services and provides a base for scaling fixed-costs. Over 2–6 months this supports cash generation potential and competitive positioning if cost discipline follows, enabling durable growth execution.

Stable Equity Ratio

A stable equity ratio near 36.7% signals a balanced asset-financing mix and a resilient capital structure. This durability helps absorb operating volatility and supports access to credit or capital markets over months ahead, preserving strategic flexibility during cyclical periods.

EPS Growth

Significant EPS growth suggests improved per-share profitability, reflecting operational leverage or better business mix. Over a multi-month horizon this can strengthen retained earnings and investor confidence, supporting reinvestment or shareholder returns if cash conversion issues are addressed.

Negative Factors

Rising Leverage

Higher leverage materially raises interest and refinancing risk and constrains maneuverability. With debt-to-equity rising meaningfully, the company is more exposed to rate or cash-flow shocks over coming months, limiting capacity for opportunistic investments or buffering cyclical downturns.

Declining Profit Margins

Compressing gross and net margins indicate rising costs or pricing pressure that erode long-term profitability. Lower margins reduce internal cash generation and make the business more sensitive to cost-side shocks, undermining sustainable earnings quality over the next several months.

Negative Operating & Free Cash Flow

Negative operating and free cash flow are structural concerns: the business cannot fund capex, dividends, or rising debt from operations. Over a 2–6 month horizon this forces reliance on external financing, increasing liquidity and solvency risk given the concurrent rise in leverage.

e'grand Co., Ltd. Business Overview & Revenue Model

Company Description

e'grand Co.,Ltd engages in the second-hand housing renovation activities in Japan. It also leases real estate properties. The company was founded in 1989 and is headquartered in Tokyo, Japan.

e'grand Co., Ltd. Financial Statement Overview

Summary

Top-line growth has been steady, but profitability has weakened materially (net margin ~2.9% in 2025 vs. ~4.6% in 2024 and ~6–7% in 2022–2023). Leverage increased (debt-to-equity ~1.62 in 2025), ROE cooled (~7.7%), and cash flow reliability is a key risk with negative operating and free cash flow in 2025.

Income Statement

Revenue has grown steadily over the period (with a strong expansion phase in 2022–2023 and a slower pace in 2024–2025), but profitability has clearly weakened in the most recent year. Gross margin and operating margin have compressed meaningfully from 2022–2023 levels, and net margin declined to ~2.9% in 2025 (vs. ~4.6% in 2024 and ~6–7% in 2022–2023). The company remains profitable, but the earnings trajectory is trending down despite higher sales—suggesting either cost pressure, pricing/mix headwinds, or higher operating burden.

Balance Sheet

The balance sheet shows moderate-to-high leverage for the sector, with debt exceeding equity and debt-to-equity rising to ~1.62 in 2025 from ~1.32 in 2024. Total assets have increased, but the step-up in debt is notable and raises sensitivity to funding conditions. Return on equity has also cooled to ~7.7% in 2025 from ~11.4% in 2024 and ~17% in 2022–2023, reflecting weaker profitability and/or higher balance-sheet intensity. Equity has grown over time, which helps, but leverage is trending the wrong way recently.

Cash Flow

Cash flow quality is the biggest concern due to volatility and recent deterioration. Operating cash flow turned negative in 2025 (after being strongly positive in 2024) and was also negative in several prior years (2022–2023), indicating inconsistent cash conversion. Free cash flow is negative in 2025 and was negative in 2022–2023, which can pressure liquidity and increase reliance on debt—particularly concerning given leverage increased in 2025. While 2024 was a strong cash year, the overall pattern suggests working-capital swings or investment demands that make cash generation less reliable.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.39B	30.50B	27.32B	25.79B	23.35B	20.27B
Gross Profit	4.72B	4.26B	4.47B	5.06B	4.88B	3.50B
EBITDA	1.84B	1.50B	2.08B	2.69B	2.55B	1.55B
Net Income	1.09B	880.15M	1.26B	1.74B	1.62B	934.82M
Balance Sheet
Total Assets	34.83B	31.29B	26.85B	27.43B	24.44B	20.56B
Cash, Cash Equivalents and Short-Term Investments	6.30B	7.25B	6.87B	4.79B	5.49B	5.54B
Total Debt	22.03B	18.67B	14.63B	15.64B	13.40B	11.18B
Total Liabilities	23.37B	19.79B	15.77B	17.12B	15.21B	12.46B
Stockholders Equity	11.46B	11.49B	11.08B	10.30B	9.23B	8.10B
Cash Flow
Free Cash Flow	0.00	-3.11B	3.57B	-2.34B	-1.56B	1.00B
Operating Cash Flow	0.00	-1.60B	4.55B	-706.53M	-1.28B	2.75B
Investing Cash Flow	0.00	-1.62B	-1.25B	-1.55B	-434.60M	-1.75B
Financing Cash Flow	0.00	3.54B	-1.50B	1.58B	1.67B	905.75M

e'grand Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1954.00
• 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:3294, the sentiment is Negative. The current price of 1954 is below the 20-day moving average (MA) of 2151.90, below the 50-day MA of 2149.26, and above the 200-day MA of 1819.31, indicating a neutral trend. The MACD of -23.46 indicates Positive momentum. The RSI at 38.31 is Neutral, neither overbought nor oversold. The STOCH value of 29.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3294.

e'grand Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8898	82 Outperform	¥11.89B	11.85	―	4.98%	3.29%	-1.74%
3276	76 Outperform	¥20.97B	15.65	―	4.36%	1.52%	16.04%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8999	60 Neutral	¥17.24B	24.88	―	5.27%	-1.41%	194.28%
2991	59 Neutral	¥13.53B	6.93	―	1.47%	20.82%	9.86%
5532	56 Neutral	¥15.81B	5.83	―	―	23.19%	44.46%
3294	52 Neutral	¥12.59B	5.62	―	4.56%	25.09%	30.66%