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Econach Holdings Co., Ltd. (JP:3521)
:3521
Japanese Market
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Econach Holdings Co., Ltd. (3521) AI Stock Analysis

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JP

Econach Holdings Co., Ltd.

(3521)

Rating:76Outperform
Price Target:
¥168.00
▲(7.01%Upside)
Econach Holdings Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in the overall score. The technical analysis indicates stable momentum, while the valuation suggests the stock might be slightly overvalued. The absence of earnings call data and corporate events does not impact the score, as their weights are redistributed.

Econach Holdings Co., Ltd. (3521) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionEconach Holdings Co., Ltd. (3521) is a Japan-based company primarily engaged in the real estate business. The company operates through several segments, including real estate sales, real estate leasing, and other related business activities. Econach Holdings is involved in the development, sale, and leasing of residential and commercial properties, aiming to provide high-quality real estate solutions to its customers.
How the Company Makes MoneyEconach Holdings Co., Ltd. generates revenue through its core business activities in the real estate sector. The company makes money primarily through the sale and leasing of residential and commercial properties. Real estate sales involve the development and subsequent sale of properties, which provides a significant portion of the company's income. Additionally, the leasing segment contributes to steady revenue through rental income from properties that Econach Holdings owns and manages. Other related business activities, such as real estate management services, also supplement the company's earnings. Strategic partnerships and investments in property development projects enhance its revenue streams, ensuring a diversified approach to income generation.

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. Despite a moderate ROE, the financial statements reflect a well-managed company with a solid foundation for future growth.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.98B1.89B1.41B751.44M599.08M
Gross Profit509.25M338.06M196.24M54.04M-47.97M
EBITDA653.85M499.09M382.17M212.96M-17.28M
Net Income191.56M96.19M51.05M-22.00M-158.46M
Balance Sheet
Total Assets6.09B6.01B6.11B6.10B5.41B
Cash, Cash Equivalents and Short-Term Investments1.50B1.23B1.01B1.93B1.21B
Total Debt600.67M794.29M939.80M1.06B1.17B
Total Liabilities1.17B1.28B1.48B1.52B1.70B
Stockholders Equity4.92B4.73B4.63B4.58B3.72B
Cash Flow
Free Cash Flow470.43M364.50M-1.22B-48.71M-134.19M
Operating Cash Flow562.90M505.49M-25.13M134.41M-52.34M
Investing Cash Flow-95.09M-140.85M-778.09M-184.39M-81.86M
Financing Cash Flow-194.62M-146.02M-118.40M774.35M416.60M

Econach Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price157.00
Price Trends
50DMA
153.30
Positive
100DMA
151.72
Positive
200DMA
133.36
Positive
Market Momentum
MACD
1.35
Positive
RSI
50.69
Neutral
STOCH
17.86
Positive
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 157 is below the 20-day moving average (MA) of 158.60, above the 50-day MA of 153.30, and above the 200-day MA of 133.36, indicating a neutral trend. The MACD of 1.35 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥4.15B21.68
3.18%4.64%99.16%
66
Neutral
¥4.29B25.08
-2.33%-31.23%
63
Neutral
$7.01B18.75-1.93%6.79%4.65%-25.39%
62
Neutral
¥4.02B8.01
3.36%-3.26%-45.38%
62
Neutral
¥4.13B437.57
9.74%
58
Neutral
¥3.73B
8.81%-174.00%
51
Neutral
¥3.97B
3.00%171.68%-4626.45%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3521
Econach Holdings Co., Ltd.
157.00
28.06
21.76%
JP:3238
Central General Development Co., Ltd.
418.00
-91.33
-17.93%
JP:3474
G-FACTORY Co., Ltd.
574.00
-58.00
-9.18%
JP:4445
Living Technologies, Inc.
3,220.00
1,050.00
48.39%
JP:8836
RISE Inc.
40.00
23.00
135.29%
JP:8944
Land Business Co., Ltd.
199.00
-34.04
-14.61%

Econach Holdings Co., Ltd. Corporate Events

Econach Holdings Reports Strong Financial Growth and Announces Dividend
May 14, 2025

Econach Holdings Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 4.6% and profit attributable to owners of the parent increasing by 99.1%. The company also announced a dividend payment of 5 yen per share, reflecting a strong financial position and commitment to returning value to shareholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 27, 2025