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

• Market Cap: ¥2.27B
• Dividend Yield: 1.93%
• Average Volume (3M): 7.82K
• Price to Earnings (P/E): 53.4
• Beta (1Y): 0.69
• Revenue Growth: -1.19%
• EPS Growth: -89.91%
• Country: JP
• Employees: 305
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): N/A
• 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: ¥487.00 ▲(16.79% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Balance Sheet Strength

A stable balance sheet with moderate leverage and a healthy equity ratio provides financial flexibility for capital expenditures and contract-backed investments common in waste management. Positive ROE, even if declining, supports ability to absorb cyclical pressures and fund strategic investments over months.

Stable Gross Margins

Consistent gross margins suggest durable underlying unit economics and pricing power in core waste management services. That stability supports longer-term EBITDA resilience even if revenues fluctuate, helping sustain operational cash generation and fund maintenance capex.

Operating Cash Generation

Reliable operating cash flow relative to net income indicates the business converts earnings into cash, supporting working capital, routine capex and dividend capacity. This core cash conversion is a durable foundation for funding operations and modest growth without excessive new borrowing.

Negative Factors

Revenue Decline

Near 8% revenue contraction points to reduced volumes or pricing pressure in core operations. For a services business with fixed costs, sustained top-line declines erode scale benefits, strain margins and weaken the company’s ability to invest in new service lines or geographic expansion over the medium term.

Volatile Free Cash Flow

Inconsistent free cash flow undermines planning for capex, debt service and dividends, increasing reliance on working capital management or financing. In capital-intensive waste management, FCF volatility raises execution risk for maintenance and growth projects and compresses strategic optionality over coming months.

Earnings and Profitability Pressure

A steep EPS decline and fluctuating net margins signal earnings instability and weaker internal capital generation. Persistently volatile profitability reduces retained earnings, limits reinvestment capacity and may force cost controls that could hamper service quality or growth initiatives over a 2–6 month horizon.

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

Company Description

Environmental Control Center Co.,Ltd. operates as an environmental consulting company in Japan. The company provides monitoring and consulting services for air, water, and soil in the general environment and workplaces. It also provides strange odor surveys, qualification tests on deodorizing equipment/deodorants, odor control in factories/workplaces, odor quality control of products, and odor assessment for product development. In addition, the company offers soil contamination surveys and analysis services; and consulting services for soil contamination control projects, regulatory affairs, information disclosure, and others. Further, it provides environmental impact assessment services, which include preliminary discussions with regulatory authorities, environmental surveys, preparation of environmental assessment statements, post hoc surveys, and discussions with the regulatory authorities for follow-up. The company was incorporated in 1971 and is headquartered in Hachioji, Japan.

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

Environmental Control Center Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 417.00
• 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:4657, the sentiment is Positive. The current price of 417 is below the 20-day moving average (MA) of 467.30, below the 50-day MA of 446.74, and below the 200-day MA of 429.32, indicating a bullish trend. The MACD of 8.04 indicates Positive momentum. The RSI at 54.77 is Neutral, neither overbought nor oversold. The STOCH value of 60.64 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
6403	75 Outperform	¥17.35B	21.56	―	1.79%	23.19%	-37.04%
9793	73 Outperform	¥179.33B	19.77	10.88%	2.20%	6.63%	-3.05%
5698	73 Outperform	¥27.90B	15.20	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥379.59B	27.40	―	1.30%	8.33%	1.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4657	56 Neutral	¥2.27B	53.38	―	1.93%	-1.19%	-89.91%
2195	56 Neutral	¥6.06B	19.47	―	1.36%	3.68%	-24.83%