Econach Holdings Co., Ltd. (3521) AI Stock Analysis

• Market Cap: ¥4.68B
• Dividend Yield: 2.94%
• Average Volume (3M): 40.58K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.39
• Revenue Growth: 15.50%
• EPS Growth: -9.91%
• Country: JP
• Employees: 30
• Sector: Real Estate
• Sector Strength: 53
• Industry: Personal Products & Services
• EPS (TTM): 2.60
• Shares Outstanding: 26,466,366
• 10 Day Avg. Volume: 29,390
• 30 Day Avg. Volume: 40,583
• PEG Ratio: 0.21
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 8.49
• 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: 73 Outperform
• Price Target: ¥195.00 ▲(10.80% Upside)

The overall stock score of 73.4 reflects a strong financial performance, characterized by robust revenue growth and improved profitability. The technical analysis presents mixed signals, with some bearish momentum indicators. The valuation is reasonable, supported by a fair P/E ratio and a solid dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Revenue Growth & Improving Margins

Sustained top-line expansion and rising margins indicate durable product demand and improving unit economics. Higher gross and net margins support reinvestment, resilience to cost shocks, and the ability to fund growth initiatives while maintaining profitability over the medium term.

Robust Cash Generation

Consistently strong operating and free cash flow provides financial flexibility for capex, dividends, and strategic investments. High cash conversion versus net income reduces refinancing risk and supports durable operations and strategic optionality across economic cycles.

Strong Balance Sheet & Low Leverage

A high equity ratio and minimal leverage materially lower financial risk and interest burden. This balance sheet strength preserves strategic flexibility, supports investment or M&A without stressing liquidity, and provides a buffer during adverse industry or macro scenarios.

Negative Factors

Modest Return on Equity

ROE near 4% despite a strong equity base signals limited efficiency in converting capital into shareholder returns. Over the medium term, persistently low ROE can constrain total shareholder return unless management improves capital allocation, leverage strategy, or operational returns.

Negative EPS Growth

Material negative EPS growth contrasts with revenue gains, indicating per-share profitability volatility. This may reflect non-operating items, capital structure changes, or uneven margin realization, and it reduces predictability of earnings power for investors over the medium term.

Small Scale & Workforce Concentration

A very small employee base constrains operational scale, increases key-person risk, and may limit capacity to pursue rapid geographic or product expansion. Over months-to-years this raises execution and continuity risks relative to larger competitors in the industry.

Econach Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Econach Holdings Co.,Ltd. operates in the spa and real estate businesses in Japan. The company also sells and rents real estate properties, as well as owns shares. In addition, it manufactures and sells lace and embroidery products. The company was formerly known as Econach Co., Ltd. and changed its name to Econach Holdings Co.,Ltd. in August 2010. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Econach Holdings generates revenue through multiple streams, primarily by investing in technology startups and holding equity stakes in these companies, which yield returns as these businesses grow and potentially go public or are acquired. Additionally, the company earns revenue from real estate development projects, through sales and leasing of properties, and by providing property management services. In the renewable energy sector, Econach partners with local governments and private entities to develop solar and wind energy projects, receiving income from energy sales and government incentives. Strategic partnerships with established firms in these sectors enhance its market reach and revenue potential.

Econach Holdings Co., Ltd. Financial Statement Overview

Summary

Econach Holdings Co., Ltd. exhibits a robust financial position with strong revenue growth, improved profitability margins, low leverage, and healthy cash flows. The company's focus on operational efficiency and prudent financial management has resulted in improved financial health. However, there is room for further improvement in return on equity to optimize shareholder returns.

Income Statement

The company has demonstrated strong revenue growth over recent years, particularly from 2021 to 2025, with revenue increasing from ¥599M to ¥1,981M. Gross profit margins have been solid, improving significantly to 25.7% in 2025. Net profit margins have also improved, reaching 9.7% in 2025. The EBIT margin has substantially improved as well, reaching 17.2% in 2025. The EBITDA margin stands strong at 33.0%, indicating healthy operational efficiency. Overall, the income statement reflects a robust financial performance with consistent growth and improved profitability.

Balance Sheet

The company has a strong equity position, with an equity ratio of 80.8% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.12, suggesting low leverage and reduced financial risk. Return on equity has improved to 3.9% in 2025, showing that the company is generating returns on equity, albeit at a moderate rate. The balance sheet reflects stability with a strong equity base and low financial risk, although the ROE could be improved further.

Cash Flow

Operating cash flow has been consistently positive, with a notable increase to ¥562M in 2025, reflecting strong cash generation from operations. The free cash flow improved significantly to ¥470M in 2025. The operating cash flow to net income ratio is healthy at 2.94, indicating efficient cash generation relative to net income. The free cash flow to net income ratio stands at 2.45, suggesting strong cash flow relative to earnings. Overall, the cash flow statement reflects strong cash generation and financial flexibility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.01B	1.98B	1.89B	1.41B	751.44M	599.08M
Gross Profit	543.95M	509.25M	338.06M	196.24M	54.04M	-47.97M
EBITDA	652.74M	653.85M	499.09M	382.17M	212.96M	-17.28M
Net Income	193.88M	191.56M	96.19M	51.05M	-22.00M	-158.46M
Balance Sheet
Total Assets	5.92B	6.09B	6.01B	6.11B	6.10B	5.41B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.50B	1.23B	1.01B	1.93B	1.21B
Total Debt	554.32M	600.67M	794.29M	939.80M	1.06B	1.17B
Total Liabilities	1.10B	1.17B	1.28B	1.48B	1.52B	1.70B
Stockholders Equity	4.82B	4.92B	4.73B	4.63B	4.58B	3.72B
Cash Flow
Free Cash Flow	78.13M	470.43M	364.50M	-1.22B	-48.71M	-134.19M
Operating Cash Flow	112.88M	562.90M	505.49M	-25.13M	134.41M	-52.34M
Investing Cash Flow	-35.04M	-95.09M	-140.85M	-778.09M	-184.39M	-81.86M
Financing Cash Flow	-51.82M	-194.62M	-146.02M	-118.40M	774.35M	416.60M

Econach Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 176.00
• 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:3521, the sentiment is Neutral. The current price of 176 is below the 20-day moving average (MA) of 177.85, below the 50-day MA of 177.42, and above the 200-day MA of 161.78, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3521.

Econach Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3521	73 Outperform	¥4.68B	28.67	―	2.94%	15.50%	-9.91%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
7502	64 Neutral	¥1.71B	13.90	―	2.62%	11.55%	28.89%
2305	58 Neutral	¥33.80B	24.88	―	2.48%	-4.39%	31.40%
2438	56 Neutral	¥6.44B	-24.33	―	2.01%	-0.15%	-270.19%
7127	54 Neutral	¥5.13B	92.56	―	―	12.42%	4.67%
3041	49 Neutral	¥1.94B	-1,576.55	―	1.19%	6.83%	1654.82%

Econach Holdings Co., Ltd. Corporate Events

Thermae-Yu Holdings Lifts Sales but Sees Profit Dip, Keeps Full-Year Outlook Intact

Thermae-Yu Holdings reported consolidated net sales of ¥1,999 million for the nine months ended December 31, 2025, up 33.0% year on year, but operating profit slipped 5.3% to ¥237 million and profit attributable to owners of parent fell 18.3% to ¥126 million, reflecting margin pressure despite strong top-line growth. The company maintained a solid financial position with an equity-to-asset ratio of 81.0%, confirmed its plan to pay a full-year dividend of ¥5.00 per share, and left its upbeat full-year forecast unchanged, targeting a 38.9% rise in net sales and 23.0% growth in profit, supported in part by the consolidation of newly added subsidiary Aoyagi Food Sales.

Management’s decision not to revise earnings or dividend guidance suggests confidence in the underlying business trajectory, even as recent profit declined, signaling to investors a commitment to stable shareholder returns. The addition of Aoyagi Food Sales broadens the group’s revenue base within its leisure and food-related operations and may enhance synergies across its spa and hospitality portfolio over the medium term, reinforcing its position in Japan’s wellness and lifestyle market.

The most recent analyst rating on (JP:3521) stock is a Buy with a Yen198.00 price target. To see the full list of analyst forecasts on Econach Holdings Co., Ltd. stock, see the JP:3521 Stock Forecast page.