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

• Market Cap: ¥1.98B
• Dividend Yield: 1.94%
• Average Volume (3M): 6.19K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.51
• Revenue Growth: 30.90%
• EPS Growth: 1369.18%
• Country: JP
• Employees: 305
• Sector: Industrials
• Sector Strength: 89
• Industry: Waste Management
• EPS (TTM): 36.00
• Shares Outstanding: 4,789,041
• 10 Day Avg. Volume: 4,200
• 30 Day Avg. Volume: 6,186
• PEG Ratio: 0.06
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥443.00
• Price Target Upside: 7.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥437.00 ▲(5.81%Upside)

The overall stock score of 64 reflects solid valuation metrics and stable financial performance, tempered by concerning cash flow issues. Technical analysis shows mild bearish signals, but the stock remains reasonably valued with a decent dividend yield. Improvements in cash flow management could enhance the company's financial position further.

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

Company Description

Environmental Control Center Co., Ltd. (4657) operates within the environmental management sector, providing comprehensive environmental consulting services. The company specializes in environmental measurement and analysis, offering solutions that include air and water quality analysis, soil contamination surveys, and noise and vibration measurements. It serves a range of industries, assisting businesses in complying with environmental regulations and promoting sustainable practices.

How the Company Makes Money

Environmental Control Center Co., Ltd. generates revenue primarily through its consulting services that offer environmental measurement and analysis. Key revenue streams include fees charged for conducting environmental assessments, issuing compliance reports, and providing ongoing monitoring services. The company may also earn income from partnerships with industrial firms and governmental bodies, who require regular environmental audits and assessments to ensure compliance with regulatory standards. Additionally, the company could have contracts with businesses seeking to improve their sustainability credentials, although specific partnership details are not available.

Environmental Control Center Co., Ltd. Financial Statement Overview

Summary

Environmental Control Center Co., Ltd. shows solid revenue growth and profitability metrics. The balance sheet remains stable with manageable debt levels, though an increase in liabilities is noticeable. Cash flow metrics are concerning, with zero operating and free cash flow in TTM, suggesting a need for improved 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.59B	5.34B	4.75B	4.39B	4.26B
Gross Profit	1.46B	1.20B	1.04B	1.14B	1.06B
EBITDA	586.26M	334.00M	368.04M	513.92M	469.95M
Net Income	218.41M	-41.60M	222.99M	231.25M	152.67M
Balance Sheet
Total Assets	5.60B	5.24B	5.73B	4.74B	4.53B
Cash, Cash Equivalents and Short-Term Investments	675.55M	651.23M	542.77M	476.63M	360.13M
Total Debt	1.48B	1.74B	1.89B	1.19B	1.61B
Total Liabilities	3.17B	3.01B	3.45B	2.67B	2.67B
Stockholders Equity	2.36B	2.16B	2.23B	2.01B	1.80B
Cash Flow
Free Cash Flow	349.32M	340.90M	-223.69M	576.36M	160.61M
Operating Cash Flow	479.61M	570.55M	54.94M	730.02M	380.64M
Investing Cash Flow	-139.88M	-272.84M	-307.38M	-160.91M	-235.56M
Financing Cash Flow	-314.45M	-188.47M	320.59M	-452.32M	-108.35M

Environmental Control Center Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 413.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 413 is above the 20-day moving average (MA) of 409.43, above the 50-day MA of 403.25, and below the 200-day MA of 420.94, indicating a neutral trend. The MACD of 2.41 indicates Negative momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, 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	¥4.80B	7.14		1.75%	3.62%	48.23%
4245	71 Outperform	¥9.04B	16.41		3.53%	8.60%	55.62%
6403	69 Neutral	¥9.07B	21.20		2.66%	20.02%	17.30%
4657	64 Neutral	¥1.98B	11.12		1.94%	30.90%	1369.18%
4125	64 Neutral	¥6.09B	10.29		3.05%	2.61%	-43.23%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%