Environment Friendly Holdings Corp. (3777) AI Stock Analysis

• Market Cap: ¥16.74B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -62.84%
• EPS Growth: -27.61%
• Country: JP
• Employees: 33
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.33
• Shares Outstanding: 304,456,970
• 10 Day Avg. Volume: 1,889,820
• 30 Day Avg. Volume: 2,293,736
• PEG Ratio: 0.30
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -75.41
• 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: 60 Neutral
• Price Target: ¥62.00 ▲(24.00% Upside)

The score is held back most by weak fundamentals—negative margins and worsening free cash flow—despite a strong, low-leverage balance sheet. Technicals are a positive driver with price above key moving averages and positive MACD, while valuation remains pressured due to losses (negative P/E) and no dividend data.

Positive Factors

Balance sheet strength

Extremely low leverage and a high equity ratio provide a durable financial buffer against operational losses. This balance sheet strength supports continued investment in projects, access to financing on better terms, and resilience through multi‑month volatility without solvency pressure.

Diverse revenue streams & partnerships

Multiple revenue streams—product sales, services, and institutional contracts—reduce concentration risk and support steadier cash flows. Long‑term government/NGO contracts and grant access can stabilize revenue and fund project scale-ups over a 2–6 month horizon and beyond.

Favorable industry structural trends

Exposure to renewable energy and recycling aligns with structural decarbonization and circular‑economy trends. Policy support and growing corporate sustainability mandates should sustain demand and addressable markets, underpinning longer‑term growth opportunities beyond short cycles.

Negative Factors

Deteriorating free cash flow

Worsening negative free cash flow erodes liquidity and reduces internal funding for operations and capex. Persistent cash burn increases reliance on external financing, raising execution risk for projects and constraining strategic flexibility over the coming months if cash generation isn't restored.

Weak and negative margins

Very thin gross margins and negative operating and net margins indicate structural cost or pricing challenges. Low margin sustainability limits the ability to convert revenue growth into profits and cash, hampering reinvestment capacity and long‑term return on equity without operational fixes.

Sharp reported revenue decline

A large negative revenue growth figure signals loss of sales or contract attrition, undermining scale economics. Such a steep contraction pressures utilization, supplier leverage, and margin recovery, and may necessitate structural cost or business model adjustments to restore sustainable growth.

Environment Friendly Holdings Corp. Business Overview & Revenue Model

Company Description

Environment Friendly Holdings Corp. engages in the renewable energy business. It operates in the IT-related businesses. The company was formerly known as FHT holdings Corp. and changed its name to Environment Friendly Holdings Corp. in April 2024. Environment Friendly Holdings Corp. was incorporated in 1995 and is based in Tokyo, Japan.

How the Company Makes Money

Environment Friendly Holdings Corp. generates revenue through multiple streams, primarily from the sale of renewable energy products and services, including solar panels and energy storage solutions. Additionally, the company earns money through its waste management services, which involve recycling and processing waste materials for various industries. Significant partnerships with governmental and non-governmental organizations enhance its revenue potential by securing contracts for large-scale environmental projects. Furthermore, the company may also benefit from grants and incentives related to green energy initiatives, contributing to its overall earnings.

Environment Friendly Holdings Corp. Financial Statement Overview

Summary

Environment Friendly Holdings Corp. shows moderate revenue growth but faces challenges in profitability and operational efficiency, with negative profit margins and cash flows. The balance sheet is strong with low leverage, providing some financial stability, but cash flow issues need addressing.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.30B	17.24B	17.00B	754.09M	263.72M	354.31M
Gross Profit	448.99M	526.86M	1.05B	184.91M	62.36M	72.48M
EBITDA	36.82M	-114.42M	195.00M	-149.91M	261.52M	-3.24B
Net Income	-102.00M	-154.89M	153.00M	-171.31M	260.93M	-1.76B
Balance Sheet
Total Assets	3.67B	3.51B	3.38B	1.83B	1.64B	610.67M
Cash, Cash Equivalents and Short-Term Investments	514.95M	1.04B	1.13B	934.58M	897.34M	120.81M
Total Debt	9.84M	32.79M	18.70M	24.60M	33.28M	0.00
Total Liabilities	212.07M	309.45M	251.00M	159.61M	120.88M	501.53M
Stockholders Equity	3.46B	3.20B	3.12B	1.67B	1.52B	109.14M
Cash Flow
Free Cash Flow	0.00	-121.00M	-72.00M	-277.22M	-566.34M	-144.99M
Operating Cash Flow	0.00	-93.00M	-66.42M	-275.82M	-566.34M	-144.99M
Investing Cash Flow	0.00	-31.00M	65.90M	-2.45M	186.55M	600.00K
Financing Cash Flow	0.00	23.19M	196.47M	315.51M	1.16B	9.63M

Environment Friendly Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.00
• 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 50 is above the 20-day moving average (MA) of 49.40, above the 50-day MA of 48.04, and above the 200-day MA of 49.02, indicating a bullish trend. The MACD of 2.99 indicates Negative momentum. The RSI at 67.01 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 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
4389	80 Outperform	¥10.79B	17.63	―	1.48%	17.83%	34.25%
4495	78 Outperform	¥14.70B	22.98	―	1.16%	23.67%	24.95%
9553	69 Neutral	¥19.70B	100.27	―	―	14.28%	-30.60%
4412	67 Neutral	¥19.33B	166.19	―	―	39.66%	―
4168	64 Neutral	¥10.99B	13.19	―	0.70%	9.78%	-23.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3777	60 Neutral	¥16.74B	-88.38	―	―	-62.84%	-27.61%