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

• Market Cap: ¥13.65B
• Dividend Yield: 4.56%
• Average Volume (3M): 26.60K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.35
• 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: ¥2,453.00 ▲(25.54% 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 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.

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: Neutral
• 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 Neutral. The current price of 1954 is below the 20-day moving average (MA) of 2215.20, below the 50-day MA of 2119.82, and above the 200-day MA of 1785.93, indicating a neutral trend. The MACD of 9.70 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 22.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥12.07B	11.85	―	4.98%	3.29%	-1.74%
3276	73 Outperform	¥22.29B	12.03	―	4.36%	1.52%	16.04%
3294	72 Outperform	¥13.65B	5.62	―	4.56%	25.09%	30.66%
2991	67 Neutral	¥14.95B	7.20	―	1.47%	20.82%	9.86%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	61 Neutral	¥18.34B	5.83	―	―	23.19%	44.46%
8999	60 Neutral	¥18.47B	24.88	―	5.27%	-1.41%	194.28%