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

• Market Cap: ¥4.58B
• Dividend Yield: 2.94%
• Average Volume (3M): 40.58K
• Price to Earnings (P/E): 16.9
• 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: ¥194.00 ▲(10.23% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Sustained Revenue Growth

Multi-year revenue growth from ¥599M to ¥1,981M signals durable demand expansion and successful market penetration. This revenue momentum supports scaling advantages, improves fixed-cost absorption, and provides a foundation for sustained margin improvement and reinvestment over the next 2–6 months and beyond.

Strong Cash Generation

Robust operating and free cash flow provides durable financial flexibility: funds capital expenditure, supports dividends or buybacks, and cushions cyclical revenue swings. High OCF-to-income ratios indicate earnings are converting to cash, reducing refinancing risk and enabling strategic investments over the medium term.

Conservative Balance Sheet

A strong equity base and very low leverage materially lower financial risk and increase resilience to shocks. This conservative capital structure preserves investment-grade-like flexibility, enabling opportunistic M&A, or capex without stressing liquidity, and supports long-term stability of operations.

Negative Factors

Low Return on Equity

ROE near 4% suggests capital is not being converted into shareholder returns efficiently. Even with strong revenue and cash flow, low ROE may indicate underutilized assets or conservative capital allocation, limiting long-term shareholder value creation unless operational leverage or margin expansion accelerates.

Negative EPS Growth

A material negative EPS growth rate indicates per-share earnings contraction despite top-line gains. This gap can reflect dilution, one-offs, or margin pressures and may impede sustainable EPS compounding. Persistent EPS weakness would constrain dividend growth and investor return over the medium term.

Limited Operational Scale

A very small headcount implies limited operational capacity and higher key-person risk. Scaling into new channels or markets may require disproportionate incremental hires and systems investment; execution bottlenecks or single-point failures could slow growth or raise operating leverage as the business expands.

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

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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	544.97M	509.25M	338.06M	196.24M	54.04M	-47.97M
EBITDA	676.41M	647.50M	495.23M	209.13M	63.43M	-4.94M
Net Income	194.13M	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	369.57M	-1.21B	-46.89M	-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: Negative
• 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 Negative. The current price of 176 is above the 20-day moving average (MA) of 174.70, below the 50-day MA of 177.96, and above the 200-day MA of 164.00, indicating a neutral trend. The MACD of -1.05 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 55.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥4.58B	16.94	―	2.94%	15.50%	-9.91%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
7502	64 Neutral	¥1.70B	12.62	―	2.62%	11.55%	28.89%
2305	58 Neutral	¥33.82B	5.66	―	2.48%	-4.39%	31.40%
2438	56 Neutral	¥6.27B	8.44	―	2.01%	-0.15%	-270.19%
7127	54 Neutral	¥5.20B	8.38	―	―	12.42%	4.67%
3041	49 Neutral	¥2.09B	42.21	―	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.