Environment Friendly Holdings Corp. (3777) AI Stock Analysis

• Market Cap: ¥20.70B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -62.84%
• EPS Growth: -27.61%
• Country: JP
• Employees: 33
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.42
• Shares Outstanding: 304,456,970
• 10 Day Avg. Volume: 1,889,820
• 30 Day Avg. Volume: 2,293,736
• PEG Ratio: 41.69
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 10.84
• P/FCF Ratio: 48.84
• 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: 51 Neutral
• Price Target: ¥59.00 ▲(18.00% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back mainly by volatile financial performance (sharp revenue decline, inconsistent profitability, and a limited history of positive cash generation) and a negative P/E with no dividend support. These are partially offset by strong technical momentum, with price above key moving averages and a positive MACD.

Positive Factors

Equity cushion / balance sheet resilience

A sizable equity base provides a durable financial buffer that supports solvency through downturns, preserves borrowing capacity and limits dilution pressure. Over 2-6 months this cushion helps absorb shocks while management repairs operations or pursues opportunistic investments.

Recent positive cash generation

Turning to positive operating and free cash flow in 2025 materially improves the company's near-term self-funding ability and reduces reliance on external financing. If sustained, this change enhances flexibility to invest in product or sales and lowers refinancing risk over the next several quarters.

Lean operating structure (small headcount)

A small employee base implies a lower fixed cost footprint and operational agility. This structural advantage supports faster breakeven on incremental revenue, enables disciplined cash management, and makes it easier to scale or reallocate resources as demand recovers over the medium term.

Negative Factors

Severe revenue volatility

An extreme swing from growth to an ~83.5% revenue collapse undermines revenue predictability and planning. Such volatility weakens pricing leverage, makes long-term resource allocation risky, and raises the probability that recent cash improvements are transient without durable revenue restorations.

Inconsistent profitability and earnings quality

Wide swings between profit, loss, and near break-even indicate unstable margins and weak earnings quality. This inconsistency makes it difficult to rely on earnings for reinvestment or debt service, complicates forecasting, and increases execution risk for multi-quarter plans.

Step-up in leverage increases financial risk

A rapid increase in debt raises interest and refinancing risk and reduces optionality. With uneven profits and a short cash-positive track record, higher leverage constrains strategic flexibility and raises the chance of funding stress if revenue or margins deteriorate again.

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

Underlying results are unstable: revenue surged in 2023 but collapsed in 2025, profitability swung from profit to loss and back near break-even, and multi-year negative operating/free cash flow only turned positive in 2025. Balance sheet risk also rose with a sharp increase in leverage (debt-to-equity ~0.44 in 2025).

Income Statement

Profitability and growth are volatile. Revenue expanded strongly in 2023 (up ~21.5%) but then collapsed in 2025 (down ~83.5%), creating major questions about revenue durability. Margins also swung widely: 2023 was modestly profitable, 2024 turned loss-making, and 2025 was near break-even but still slightly negative on net income despite a much higher gross margin. Overall, the income statement shows inconsistent operating performance and weak earnings quality/visibility.

Balance Sheet

The balance sheet is mixed. Historically leverage was very low (debt-to-equity near zero from 2020–2024), but 2025 shows a sharp step-up in debt (debt-to-equity ~0.44), increasing financial risk and reducing flexibility. Equity remains sizable versus assets, which provides a cushion, but the abrupt leverage change combined with uneven profitability is a key watch item.

Cash Flow

Cash generation has been inconsistent. Operating and free cash flow were negative from 2020–2024, indicating the business did not self-fund through the cycle. 2025 shows a clear improvement with positive operating cash flow and positive free cash flow, but the track record is short and coverage has historically been weak/negative. The recent rebound is encouraging, yet not enough to offset multiple years of cash burn.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.30B	1.37B	17.24B	17.00B	754.09M	263.72M
Gross Profit	448.99M	783.20M	526.86M	1.05B	184.91M	62.36M
EBITDA	36.82M	270.18M	-114.42M	195.00M	-149.91M	261.52M
Net Income	-102.00M	-3.65M	-154.89M	153.00M	-171.31M	260.93M
Balance Sheet
Total Assets	3.67B	6.39B	3.51B	3.38B	1.83B	1.64B
Cash, Cash Equivalents and Short-Term Investments	514.95M	1.25B	1.04B	1.13B	934.58M	897.34M
Total Debt	9.84M	1.64B	32.79M	18.70M	24.60M	33.28M
Total Liabilities	212.07M	2.66B	309.45M	251.00M	159.61M	120.88M
Stockholders Equity	3.46B	3.73B	3.20B	3.12B	1.67B	1.52B
Cash Flow
Free Cash Flow	0.00	304.34M	-121.00M	-72.00M	-277.22M	-566.34M
Operating Cash Flow	0.00	687.60M	-93.00M	-66.42M	-275.82M	-566.34M
Investing Cash Flow	0.00	-727.68M	-31.00M	65.90M	-2.45M	186.55M
Financing Cash Flow	0.00	-2.45M	23.19M	196.47M	315.51M	1.16B

Environment Friendly Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.00
• 50DMA: Positive
• 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:3777, the sentiment is Positive. The current price of 50 is below the 20-day moving average (MA) of 63.65, below the 50-day MA of 59.06, and below the 200-day MA of 53.80, indicating a bullish trend. The MACD of 1.30 indicates Positive momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 44.05 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
9651	80 Outperform	¥17.56B	11.33	―	2.99%	12.78%	90.80%
157A	64 Neutral	¥3.62B	-188.89	―	1.27%	―	―
3913	63 Neutral	¥2.51B	12.77	―	―	14.42%	3652.58%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3777	51 Neutral	¥20.70B	-20,000.00	―	―	-62.84%	-27.61%
4169	45 Neutral	¥11.39B	4.99	―	―	14.25%	―
2334	44 Neutral	¥16.48B	226.20	―	―	56.35%	―