Envipro Holdings, Inc. (5698) AI Stock Analysis

• Market Cap: ¥27.90B
• Dividend Yield: 2.62%
• Average Volume (3M): 72.17K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.16
• Revenue Growth: -9.37%
• EPS Growth: 590.66%
• Country: JP
• Employees: 640
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): N/A
• Shares Outstanding: 30,317,389
• 10 Day Avg. Volume: 81,120
• 30 Day Avg. Volume: 72,170
• PEG Ratio: 0.10
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 7.50
• 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: 73 Outperform
• Price Target: ¥986.00 ▲(58.01% Upside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is driven primarily by solid financial stability and cash flow strength (strong equity base, balanced leverage, improving profitability), supported by strong technical momentum with some overheating risk (RSI above 80). Valuation is reasonable with a modest dividend, but not compelling enough to materially lift the overall score.

Positive Factors

Strong equity base

A 55% equity ratio provides a durable capital buffer that reduces refinancing and solvency risk. This balance-sheet strength supports multi-month resilience, underwriting investments in recycling infrastructure and giving management flexibility to pursue strategic spending without stressing liquidity.

Balanced leverage

A debt-to-equity ratio of 0.45 signals conservative, manageable leverage. That balance preserves borrowing capacity and keeps interest burden moderate, enabling the company to fund capex, working capital or selective M&A while maintaining financial flexibility over the medium term.

Strong cash flow conversion

Marked improvement in free cash flow and healthy operating cash conversion provide internal funding for capital expenditures, debt reduction and shareholder returns. Reliable cash generation enhances resilience to revenue volatility and supports continued investment in asset-heavy recycling operations.

Negative Factors

Revenue decline

A recent decline in revenue indicates underlying demand or volume pressure in core recycling services. Persistent top-line contraction erodes scale economies, limits pricing power, and constrains the company’s ability to expand margins or fund growth organically without strategic adjustments.

Weakened operating margins

Compression in EBIT and EBITDA margins points to cost pressures, adverse mix or operational inefficiencies. Sustained margin weakness reduces free cash generated per revenue unit and limits the firm’s ability to reinvest in operations or withstand prolonged cost inflation.

Low net margin level

Although improved, a net margin of 2.39% remains thin for capital-intensive recycling activities. Low absolute profitability limits the company’s internal funding capacity for growth, reduces buffers against cyclical shocks, and pressures returns on invested capital over the medium term.

Envipro Holdings, Inc. Business Overview & Revenue Model

Company Description

Envipro Holdings Inc., through its subsidiaries, engages in the resource circulation, global trading, and lithium-ion batteries recycling businesses in Japan and internationally. Its Resource Circulation Business segment primarily collects, handles, and transports metal scrap and industrial waste that are discharged from factories and demolished properties, etc. to intermediate processing factories; and produces and sells ferrous scrap, nonferrous metals, plastic, and rubber products. The company's Global Trading Business segment collects, purchases, sells, imports, and trades in recycled resources, wood biomass fuel, and used cars, etc.; provides logistics services for importers and exporters; and sells metal scrap, etc. Its Lithium-ion Batteries Recycling Business segment handles and sells process waste and used batteries discharged from battery factories, etc. that it dries, shreds, and sorts to produce minor metal concentrated sand containing cobalt and nickel. The company is also involved in the environment management consulting business; and welfare service business for people with disabilities. Envipro Holdings Inc. was founded in 1950 and is headquartered in Fujinomiya, Japan.

How the Company Makes Money

Envipro Holdings generates revenue through multiple streams, primarily from its waste management services, which include the collection, treatment, and disposal of waste materials. The company also earns income from its recycling operations, where it processes recyclable materials and sells them to manufacturers. Additionally, Envipro Holdings has ventured into renewable energy projects, generating revenue through the sale of energy produced from waste-to-energy facilities. Strategic partnerships with local governments and private enterprises enhance its operational capabilities and expand its market reach, contributing significantly to its overall earnings.

Envipro Holdings, Inc. Financial Statement Overview

Summary

Overall fundamentals are solid, supported by a strong equity base (equity ratio 55.0%), balanced leverage (debt-to-equity 0.45), and strong cash flow conversion with significantly improved free cash flow. Offsetting this, revenue declined (-4.13%) and EBIT/EBITDA margins weakened, signaling operating pressure despite an improved net margin (2.39%).

Income Statement

Envipro Holdings has experienced a decline in revenue growth with a -4.13% rate in the most recent year, indicating potential challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin and has improved its net profit margin to 2.39% from 1.03% the previous year. The EBIT and EBITDA margins have decreased, reflecting potential cost pressures or operational inefficiencies.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.45, indicating a balanced approach to leveraging. Return on equity has improved to 6.83%, suggesting better utilization of equity capital. The equity ratio stands at 55.00%, reflecting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Envipro Holdings shows strong cash flow management with a significant increase in free cash flow, although the growth rate is labeled as 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is healthy, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is robust, supporting the company's ability to fund operations and investments.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	49.09B	52.21B	49.19B	57.32B	40.93B
Gross Profit	8.45B	8.48B	8.50B	10.63B	8.36B
EBITDA	2.94B	2.12B	2.73B	4.91B	2.88B
Net Income	1.18B	537.48M	1.24B	3.11B	1.49B
Balance Sheet
Total Assets	31.30B	33.79B	33.69B	28.96B	26.55B
Cash, Cash Equivalents and Short-Term Investments	7.01B	6.92B	7.39B	9.06B	7.26B
Total Debt	7.74B	8.94B	10.33B	8.23B	8.26B
Total Liabilities	13.99B	16.75B	16.86B	12.74B	13.22B
Stockholders Equity	17.22B	17.04B	16.71B	16.14B	13.29B
Cash Flow
Free Cash Flow	1.93B	1.30B	-335.40M	2.47B	-869.25M
Operating Cash Flow	3.47B	2.94B	2.33B	3.87B	-252.27M
Investing Cash Flow	-1.23B	-1.56B	-3.84B	-1.40B	-15.52M
Financing Cash Flow	-2.18B	-1.93B	-92.16M	-765.31M	-2.87B

Envipro Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 624.00
• 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:5698, the sentiment is Positive. The current price of 624 is below the 20-day moving average (MA) of 931.00, below the 50-day MA of 815.90, and above the 200-day MA of 581.83, indicating a bullish trend. The MACD of 40.28 indicates Positive momentum. The RSI at 54.81 is Neutral, neither overbought nor oversold. The STOCH value of 33.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5698.

Envipro Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9221	77 Outperform	¥15.01B	15.78	―	2.40%	8.36%	327.58%
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%
5699	62 Neutral	¥5.05B	8.18	―	1.80%	-0.27%	0.09%
2195	56 Neutral	¥6.06B	19.47	―	1.36%	3.68%	-24.83%