Environment Friendly Holdings Corp. (3777) AI Stock Analysis

• Market Cap: ¥14.31B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• 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: 47 Neutral
• Price Target: ¥52.00 ▲(13.04% Upside)

The overall stock score is primarily influenced by weak financial performance and negative technical indicators. The company's robust balance sheet provides some stability, but significant challenges in profitability and cash flow generation weigh heavily on the score. The bearish technical outlook and poor valuation metrics further contribute to the low score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratio provides financial stability and flexibility, supporting long-term growth initiatives.

Sustainability Focus

Focus on sustainability aligns with global trends towards green energy, positioning the company to benefit from increasing demand for eco-friendly solutions.

Diverse Revenue Streams

Diverse revenue streams and strategic partnerships reduce risk and enhance revenue stability, supporting long-term business resilience.

Negative Factors

Profitability Challenges

Ongoing profitability issues, indicated by negative margins, suggest operational inefficiencies that could hinder long-term financial performance.

Weak Cash Flow Generation

Deteriorating cash flow generation limits the company's ability to fund operations and invest in growth, posing a risk to financial health.

Operational Inefficiencies

Operational inefficiencies, as reflected in negative margins, can impede cost management and profitability, affecting long-term competitiveness.

Environment Friendly Holdings Corp. Business Overview & Revenue Model

Company Description

Environment Friendly Holdings Corp. (3777) is a company dedicated to sustainability and environmental conservation, operating primarily in the renewable energy and waste management sectors. The company develops, manufactures, and distributes eco-friendly products and solutions aimed at reducing environmental impact. Its core offerings include renewable energy technologies, waste recycling services, and sustainable materials, catering to both commercial and residential markets.

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: Negative
• Last Price: 46.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 46 is below the 20-day moving average (MA) of 50.15, below the 50-day MA of 53.98, and below the 200-day MA of 46.81, indicating a bearish trend. The MACD of -2.57 indicates Positive momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥14.87B	22.54	―	1.21%	23.67%	24.95%
4389	67 Neutral	¥9.12B	14.94	―	1.48%	17.83%	34.25%
4168	64 Neutral	¥12.32B	16.36	―	0.63%	9.78%	-23.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4412	55 Neutral	¥13.67B	122.94	―	―	39.66%	―
9553	50 Neutral	¥13.78B	69.52	―	―	14.28%	-30.70%
3777	47 Neutral	¥14.31B	―	―	―	-62.84%	-27.61%