Environment Friendly Holdings Corp. (3777) AI Stock Analysis

• Market Cap: ¥9.29B
• Dividend Yield: N/A
• Average Volume (3M): 455.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -36.38%
• EPS Growth: -159.04%
• Country: JP
• Employees: 33
• Sector: Technology
• Sector Strength: 81
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 299,757,000
• 10 Day Avg. Volume: 500,410
• 30 Day Avg. Volume: 455,483
• PEG Ratio: 33.21
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 56 Neutral
• Price Target: ¥37.00 ▲(19.35%Upside)

The company's stock is moderately rated due to stable financial performance, highlighted by a strong balance sheet with low leverage. However, it faces significant challenges with profitability and cash flow, impacting its financial health. The technical indicators show positive short-term trends, but bearish momentum is a concern. The valuation is weak due to a lack of profitability and dividend yield, which further dampens the overall score.

Environment Friendly Holdings Corp. Business Overview & Revenue Model

Company Description

Environment Friendly Holdings Corp. (3777) is a company focused on sustainable and environmentally conscious business practices. Operating within the green technology and renewable energy sectors, the company offers a range of products and services designed to reduce environmental impact and promote sustainability. Its core offerings include renewable energy solutions, waste management systems, and eco-friendly product innovations, aimed at both corporate and individual clients seeking to minimize their carbon footprint.

How the Company Makes Money

Environment Friendly Holdings Corp. generates revenue through multiple streams aligned with its commitment to sustainability. Key revenue streams include the sale and installation of renewable energy systems, such as solar panels and wind turbines, as well as ongoing maintenance and support services for these systems. The company also earns income from its waste management division, which provides recycling and waste reduction services to businesses and municipalities. Additionally, the company collaborates with partners in the eco-friendly products sector, earning revenue through the sale and distribution of sustainable consumer goods. Strategic partnerships with governments and private enterprises further enhance its revenue capabilities by integrating its solutions into larger sustainable development projects.

Environment Friendly Holdings Corp. Financial Statement Overview

Summary

Moderate revenue growth with significant profitability and operational efficiency challenges. The balance sheet is strong, but cash flow issues need addressing to improve overall financial health.

Income Statement

The company experienced a slight increase in revenue from $16.999 billion to $17.237 billion, translating to a modest revenue growth rate of 1.41%. However, profitability metrics such as gross profit margin (3.06%) and net profit margin (-0.89%) are below industry standards, indicating challenges in maintaining efficient operations and cost management. Negative EBIT margin (-0.31%) and EBITDA margin (-0.10%) highlight ongoing operational inefficiencies.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.01 and an equity ratio of 91.18%. The company's return on equity is negative at -4.81%, driven by net losses. Overall, the company's balance sheet is stable with strong asset coverage, but profitability remains a concern.

Cash Flow

The company's free cash flow decreased significantly from -$72 million to -$121 million, indicating deteriorating cash-generating ability from operations. The operating cash flow to net income ratio is negative, reflecting challenges in converting income into cash. The company needs to improve operational cash flows to enhance financial stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.24B	17.00B	754.09M	263.72M	354.31M
	Gross Profit
526.86M	1.05B	184.91M	62.36M	72.48M
	EBIT
-53.64M	205.00M	-109.28M	-153.03M	-269.04M
	EBITDA
-114.42M	231.00M	-149.91M	261.52M	-109.00M
	Net Income Common Stockholders
-154.89M	153.00M	-171.31M	260.93M	-1.76B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	1.13B	934.58M	897.34M	120.81M
	Total Assets
3.51B	3.38B	1.83B	1.64B	610.67M
	Total Debt
32.79M	17.00M	24.60M	33.28M	0.00
	Net Debt
-1.01B	-1.11B	-909.98M	-864.06M	-120.81M
	Total Liabilities
309.45M	251.00M	159.61M	120.88M	501.53M
	Stockholders Equity
3.20B	3.12B	1.67B	1.52B	109.14M
Cash Flow		Free Cash Flow
-121.00M	-72.00M	-277.22M	-566.34M	-144.99M
	Operating Cash Flow
-93.00M	-66.00M	-275.82M	-566.34M	-144.99M
	Investing Cash Flow
-31.00M	65.90M	-2.45M	186.55M	600.00K
	Financing Cash Flow
23.19M	196.47M	315.51M	1.16B	9.63M

Environment Friendly Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3777, the sentiment is Positive. The current price of 31 is below the 20-day moving average (MA) of 32.15, below the 50-day MA of 33.00, and below the 200-day MA of 32.13, indicating a bullish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 65.95 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3777.

Environment Friendly Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4495	78 Outperform	¥10.29B	17.59		1.65%	16.72%	18.48%
4389	77 Outperform	¥10.73B	17.13		1.29%	31.93%	110.94%
4168	76 Outperform	¥10.16B	16.89		―	11.74%	158.89%
9553	63 Neutral	¥11.90B	70.58		―	16.04%	-104.99%
Sector *	62 Neutral	$11.92B	10.03	-7.37%	3.70%	7.32%	-8.25%
3777	56 Neutral	¥9.29B	―		―	-36.38%	-159.04%
4412	55 Neutral	¥9.08B	―		―	34.58%	93.03%