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

• Market Cap: ¥2.01B
• Dividend Yield: 1.92%
• Average Volume (3M): 7.82K
• Price to Earnings (P/E): 73.3
• Beta (1Y): 0.67
• Revenue Growth: -1.19%
• EPS Growth: -89.91%
• Country: JP
• Employees: 305
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -9.29
• Shares Outstanding: 4,789,041
• 10 Day Avg. Volume: 12,210
• 30 Day Avg. Volume: 7,816
• PEG Ratio: -2.56
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 47.25
• 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: 56 Neutral
• Price Target: ¥440.00 ▲(5.01% Upside)

The overall stock score is primarily influenced by the company's stable financial foundation, despite mixed profitability and liquidity challenges. Technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The dividend yield provides some support but is not sufficient to counterbalance the high valuation.

Positive Factors

Revenue Growth

The company has demonstrated a solid revenue growth rate of over 9%, indicating strong demand for its environmental solutions and potential for market expansion.

Recurring Revenue Model

The recurring revenue model from maintenance contracts provides a stable income stream, enhancing financial predictability and supporting long-term business sustainability.

Strategic Partnerships

Partnerships with governmental agencies expand market access and foster joint projects, strengthening the company's competitive position in the environmental sector.

Negative Factors

Profitability Volatility

Fluctuations in net profit margins suggest instability in profitability, which could impact the company's ability to consistently generate returns for shareholders.

Cash Flow Volatility

Inconsistent free cash flow growth raises concerns about liquidity management, potentially affecting the company's capacity to invest in growth opportunities.

Declining Return on Equity

A declining return on equity suggests difficulties in efficiently utilizing shareholder funds, potentially impacting investor confidence and long-term growth prospects.

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

Company Description

Environmental Control Center Co., Ltd. (4657) is a leading provider of environmental management solutions, specializing in the design, manufacturing, and installation of advanced air quality control systems and water treatment technologies. The company operates primarily in the environmental sector, catering to various industries including manufacturing, commercial buildings, and public institutions. Its core products include air purification systems, wastewater treatment facilities, and monitoring equipment aimed at ensuring compliance with environmental regulations and promoting sustainable practices.

How the Company Makes Money

Environmental Control Center Co., Ltd. generates revenue through multiple streams, primarily from the sale of its environmental control systems and services. The company earns money by selling its proprietary air quality and water treatment products to businesses and government entities. Additionally, the company provides installation services and ongoing maintenance contracts, which create a recurring revenue model. Strategic partnerships with governmental agencies and other corporations enhance their market reach and lead to joint projects, contributing significantly to their revenue. Furthermore, the company may also benefit from grants and incentives related to environmental initiatives, which can further bolster its earnings.

Environmental Control Center Co., Ltd. Financial Statement Overview

Summary

The company demonstrates a stable financial foundation with mixed profitability trends. The income statement shows variability in net profit margins, and the balance sheet indicates a balanced leverage strategy. However, cash flow analysis highlights potential liquidity challenges.

Income Statement

The company shows a mixed performance in its income statement. While there is a slight decline in revenue growth rate recently, the company has maintained a consistent gross profit margin over the years. However, the net profit margin has seen fluctuations, indicating potential volatility in profitability. The EBIT and EBITDA margins have also shown variability, suggesting some instability in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The equity ratio is healthy, suggesting that the company is not overly reliant on debt. Return on equity has been positive, although it has shown some decline, which may indicate challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals some concerns, particularly with the volatility in free cash flow growth. The operating cash flow to net income ratio suggests that the company is generating sufficient cash from operations relative to its net income, but the free cash flow to net income ratio has been inconsistent, indicating potential challenges in maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.66B	6.10B	5.59B	5.34B	4.75B	4.39B
Gross Profit	1.54B	1.34B	1.46B	1.20B	1.04B	1.14B
EBITDA	567.54M	379.50M	586.26M	334.00M	368.04M	513.92M
Net Income	178.95M	7.90M	218.41M	-41.60M	222.99M	231.25M
Balance Sheet
Total Assets	6.61B	5.42B	5.60B	5.24B	5.73B	4.74B
Cash, Cash Equivalents and Short-Term Investments	1.10B	828.18M	675.55M	651.23M	542.77M	476.63M
Total Debt	2.50B	1.75B	1.48B	1.74B	1.89B	1.19B
Total Liabilities	4.00B	2.97B	3.17B	3.01B	3.45B	2.67B
Stockholders Equity	2.50B	2.34B	2.36B	2.16B	2.23B	2.01B
Cash Flow
Free Cash Flow	0.00	41.20M	349.32M	340.90M	-223.69M	576.36M
Operating Cash Flow	0.00	189.28M	479.61M	570.55M	54.94M	730.02M
Investing Cash Flow	0.00	-189.06M	-139.88M	-272.84M	-307.38M	-160.91M
Financing Cash Flow	0.00	156.63M	-314.45M	-188.47M	320.59M	-452.32M

Environmental Control Center Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 419.00
• 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:4657, the sentiment is Negative. The current price of 419 is below the 20-day moving average (MA) of 424.00, below the 50-day MA of 432.34, and below the 200-day MA of 422.64, indicating a bearish trend. The MACD of -4.81 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	81 Outperform	¥4.71B	8.40	―	1.79%	-0.27%	0.09%
4125	76 Outperform	¥8.21B	11.11	―	2.35%	7.54%	-0.55%
6403	75 Outperform	¥13.62B	23.17	―	1.71%	23.19%	-37.04%
4245	67 Neutral	¥9.41B	39.79	―	3.35%	7.12%	-43.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4657	56 Neutral	¥2.01B	73.32	―	1.92%	-1.19%	-89.91%