Environmental Control Center Co., Ltd. (4657) AI Stock Analysis

• Market Cap: ¥2.04B
• Dividend Yield: 2.82%
• Average Volume (3M): 15.98K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.47
• Revenue Growth: 30.90%
• EPS Growth: 1369.18%
• Country: JP
• Employees: 305
• Sector: Industrials
• Sector Strength: 83
• Industry: Waste Management
• EPS (TTM): 36.00
• Shares Outstanding: 4,789,041
• 10 Day Avg. Volume: 6,940
• 30 Day Avg. Volume: 15,980
• PEG Ratio: 0.43
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.16
• 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: 65 Neutral
• Price Target: ¥443.00 ▲(4.24%Upside)

The overall stock score of 65 is driven primarily by solid financial performance with some concerns over cash flow management. Valuation metrics are favorable, indicating the stock may be undervalued. Technical indicators present mixed signals, highlighting short-term uncertainty.

Environmental Control Center Co., Ltd. Business Overview & Revenue Model

Company Description

Environmental Control Center Co., Ltd. (4657) specializes in providing environmental management and consulting services. The company operates within sectors such as environmental assessment, air and water quality monitoring, and waste management. Its core services include environmental measurement, analysis, and consulting solutions aimed at helping organizations comply with environmental regulations and improve their environmental impact.

How the Company Makes Money

Environmental Control Center Co., Ltd. generates revenue primarily through service contracts and consulting fees. The company offers a range of services that include environmental assessments, monitoring, and analysis, which are crucial for businesses needing to adhere to environmental laws and standards. By partnering with industrial, governmental, and commercial clients, the company secures recurring contracts for ongoing environmental monitoring and compliance services. Additionally, it may collaborate with other firms in the industry to provide comprehensive environmental solutions, enhancing its service offerings and revenue potential.

Environmental Control Center Co., Ltd. Financial Statement Overview

Summary

Environmental Control Center Co., Ltd. shows strong revenue growth and profitability metrics with a solid balance sheet. However, cash flow issues are significant, with zero operating and free cash flow, suggesting liquidity challenges and a need for better cash management.

Income Statement

Environmental Control Center Co., Ltd. demonstrates strong growth with a consistent increase in total revenue, achieving a TTM revenue growth rate of approximately 15.3% from the previous year. Gross profit margin remains healthy at 24.1%, and the EBIT margin is 4.9% for TTM, indicating effective cost management. However, the net profit margin decreased to 2.8% in TTM, highlighting potential areas for cost reduction or revenue enhancement.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 36.7% as of the latest TTM period. The debt-to-equity ratio stands at 0.97, indicating a balanced financial structure with manageable leverage. Return on equity (ROE) is 7.6% for TTM, showing moderate profitability. The overall balance sheet suggests stability, though increasing liabilities warrant close monitoring to avoid over-leverage.

Cash Flow

Cash flow analysis reveals challenges, with zero operating cash flow reported in TTM, indicating potential liquidity issues. The free cash flow growth rate is unavailable due to zero free cash flow in TTM, highlighting a critical area for improvement. This suggests the need for better working capital management and cash generation strategies to enhance financial flexibility.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.16B	5.59B	5.34B	4.75B	4.39B	4.26B
	Gross Profit
1.49B	1.46B	1.20B	1.04B	1.14B	1.06B
	EBIT
299.94M	329.17M	52.97M	113.42M	252.27M	227.28M
	EBITDA
552.86M	586.26M	334.00M	368.04M	513.92M	469.95M
	Net Income Common Stockholders
170.81M	218.41M	-41.60M	222.99M	231.25M	152.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
984.00M	675.55M	651.23M	542.77M	476.63M	360.13M
	Total Assets
6.14B	5.60B	5.24B	5.73B	4.74B	4.53B
	Total Debt
2.18B	1.48B	1.74B	1.89B	1.19B	1.61B
	Net Debt
1.20B	800.73M	1.09B	1.35B	713.35M	1.25B
	Total Liabilities
3.79B	3.17B	3.01B	3.45B	2.67B	2.67B
	Stockholders Equity
2.25B	2.36B	2.16B	2.23B	2.01B	1.80B
Cash Flow		Free Cash Flow
0.00	349.32M	340.90M	-223.69M	576.36M	160.61M
	Operating Cash Flow
0.00	479.61M	570.55M	54.94M	730.02M	380.64M
	Investing Cash Flow
0.00	-139.88M	-272.84M	-307.38M	-160.91M	-235.56M
	Financing Cash Flow
0.00	-314.45M	-188.47M	320.59M	-452.32M	-108.35M

Environmental Control Center Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 425.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4657, the sentiment is Positive. The current price of 425 is above the 20-day moving average (MA) of 407.35, above the 50-day MA of 403.62, and below the 200-day MA of 432.36, indicating a neutral trend. The MACD of 4.71 indicates Negative momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 72.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4657.

Environmental Control Center Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5699	84 Outperform	¥4.55B	6.77		1.86%	3.62%	48.23%
6403	72 Outperform	¥8.35B	19.54		2.82%	20.02%	17.25%
4245	69 Neutral	¥8.84B	16.04		3.61%	8.60%	55.62%
4125	67 Neutral	¥6.32B	10.68		2.94%	2.61%	-43.23%
Sector *	66 Neutral	$4.46B	12.15	5.40%	4.71%	4.16%	-11.97%
4657	65 Neutral	¥2.04B	11.45		2.82%	30.90%	1369.18%