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

• Market Cap: ¥14.14B
• Dividend Yield: 4.56%
• Average Volume (3M): 26.60K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.34
• 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: 72 Outperform
• Price Target: ¥2,488.00 ▲(27.33% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

The stock's overall score is driven by strong technical analysis indicators, suggesting bullish momentum, and a reasonable valuation with an attractive dividend yield. However, financial performance concerns, particularly in profitability and cash flow, pose risks that temper the overall score.

Positive Factors

Revenue Growth

Sustained high revenue growth provides durable support for scale and reinvestment. Over several periods the company has expanded top line, which helps amortize fixed costs, funds product or service expansion, and underpins longer-term market share gains despite margin pressure.

EPS Growth

Material EPS improvement signals improving profitability drivers or operational leverage that can persist beyond short-term cycles. Strong EPS growth enhances retained earnings, supports debt servicing and potential investment, strengthening long-term capital allocation flexibility.

Stable Equity Ratio

A stable equity ratio around mid-30s indicates a balanced capital structure that provides a cushion against shocks. This structural stability supports borrowing capacity and preserves solvency, enabling the company to finance growth or weather downturns without immediate equity dilution.

Negative Factors

Negative Operating Cash Flow

Turning operating cash flow and free cash flow negative is a durable red flag: it undermines internal funding for capex, debt service and dividends. Persistent cash conversion weakness forces reliance on external financing, raising cost of capital and constraining long-term investment.

Rising Leverage

A meaningful rise in debt-to-equity increases fixed financial obligations and reduces balance sheet flexibility. Higher leverage elevates refinancing and interest-rate sensitivity, limiting strategic options and amplifying downside risk if cash flow recovery lags over the medium term.

Declining Profitability Margins

Consistent margin compression across gross and net levels erodes core earnings power and return on capital. If cost structure or pricing issues persist, lower margins hinder the company’s ability to self-fund growth, reduce resilience to cost shocks, and depress long-term shareholder returns.

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.

How the Company Makes Money

e'grand Co., Ltd. generates revenue through multiple streams, including the sale of consumer electronics, licensing of software solutions, and providing industrial automation services. The company earns income from direct product sales to retailers and consumers, as well as through strategic partnerships with other technology firms and distributors. Additionally, e'grand may benefit from recurring revenue through subscription models for its software applications and maintenance contracts for its industrial solutions, which provide ongoing support and updates to customers.

e'grand Co., Ltd. Financial Statement Overview

Summary

e'grand Co., Ltd. shows revenue growth but faces profitability and cash flow challenges. Increased leverage and declining margins suggest potential financial risks. The stable equity ratio is a positive, but cost management and cash flow generation need improvement.

Income Statement

The company shows a consistent increase in total revenue over the years, with a notable revenue growth rate of 11.65% from 2024 to 2025. However, gross profit margin has slightly decreased from 16.36% in 2024 to 13.98% in 2025, indicating potential cost management issues. Net profit margin also declined from 4.63% to 2.88% over the same period, reflecting reduced profitability. EBIT and EBITDA margins have decreased, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased from 1.32 in 2024 to 1.62 in 2025, indicating higher leverage and potential risk. However, the equity ratio remains stable at around 36.73% in 2025, showing a balanced asset structure. Return on equity has decreased from 11.41% in 2024 to 7.66% in 2025, reflecting lower returns for shareholders.

Cash Flow

The company experienced a significant decline in operating cash flow, turning negative in 2025. Free cash flow also turned negative, indicating cash management issues. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is also negative, suggesting difficulties in generating cash from operations.

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: Positive
• Last Price: 1954.00
• 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:3294, the sentiment is Positive. The current price of 1954 is below the 20-day moving average (MA) of 2214.20, below the 50-day MA of 2093.02, and above the 200-day MA of 1767.43, indicating a bullish trend. The MACD of 37.67 indicates Positive momentum. The RSI at 65.75 is Neutral, neither overbought nor oversold. The STOCH value of 51.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥11.84B	15.01	―	4.98%	3.29%	-1.74%
3276	73 Outperform	¥22.41B	12.77	―	4.36%	1.52%	16.04%
3294	72 Outperform	¥14.14B	8.26	―	4.56%	25.09%	30.66%
2991	67 Neutral	¥15.71B	6.42	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	61 Neutral	¥17.79B	18.22	―	―	23.19%	44.46%
8999	60 Neutral	¥19.30B	24.68	―	5.27%	-1.41%	194.28%