Envipro Holdings, Inc. (5698) AI Stock Analysis

• Market Cap: ¥25.77B
• Dividend Yield: 2.62%
• Average Volume (3M): 72.17K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.04
• Revenue Growth: -9.37%
• EPS Growth: 590.66%
• Country: JP
• Employees: 640
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 10.64
• 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: ¥931.00 ▲(49.20% Upside)

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 indicates a solid capital structure that enhances long-term financial resilience. This durable strength reduces refinancing and solvency risk, supports strategic investment or M&A optionality, and provides a stable cushion through cyclical downturns.

Moderate Leverage

A debt-to-equity ratio around 0.45 reflects conservative, balanced leverage that preserves financial flexibility. This lowers interest burden and default risk, enabling the company to fund capex or working capital needs without materially increasing financial stress over the medium term.

Improved Free Cash Flow

A marked improvement in free cash flow and healthy operating-cash-to-net-income conversion signals durable cash-generation capacity. Reliable FCF supports reinvestment, modest dividends, debt paydown, and operational resilience even if revenue growth is uneven.

Negative Factors

Revenue Decline

A year-over-year revenue decline (-4.13%) points to weakening top-line momentum that can constrain scale economics. Persistently falling sales make it harder to cover fixed costs, invest in growth or pricing initiatives, and may pressure long-term market positioning if not reversed.

Operating Margin Pressure

Weakening EBIT/EBITDA margins suggest structural cost pressures or operational inefficiencies. If persistent, margin compression reduces reinvestment capacity, slows deleveraging, and limits returns on incremental revenue, undermining long-term profitability improvements.

Thin Net Profitability

A modest net margin of 2.39% leaves limited buffer against adverse shocks and constrains free cash available for growth or shareholder returns. Even with improvement from prior year, such thin profitability can hamper long-term investment capacity and resiliency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.09B	49.09B	52.21B	49.19B	57.32B	40.93B
Gross Profit	8.43B	8.45B	8.48B	8.50B	10.63B	8.36B
EBITDA	2.88B	2.94B	2.12B	2.73B	4.91B	2.88B
Net Income	1.18B	1.18B	537.48M	1.24B	3.11B	1.49B
Balance Sheet
Total Assets	31.30B	31.30B	33.79B	33.69B	28.96B	26.55B
Cash, Cash Equivalents and Short-Term Investments	7.01B	7.01B	6.92B	7.39B	9.06B	7.26B
Total Debt	7.74B	7.74B	8.94B	10.33B	8.23B	8.26B
Total Liabilities	13.99B	13.99B	16.75B	16.86B	12.74B	13.22B
Stockholders Equity	17.22B	17.22B	17.04B	16.71B	16.14B	13.29B
Cash Flow
Free Cash Flow	0.00	1.93B	1.30B	-335.40M	2.47B	-869.25M
Operating Cash Flow	0.00	3.47B	2.94B	2.33B	3.87B	-252.27M
Investing Cash Flow	0.00	-1.23B	-1.56B	-3.84B	-1.40B	-15.52M
Financing Cash Flow	0.00	-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: Positive

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 827.60, below the 50-day MA of 675.28, and above the 200-day MA of 536.98, indicating a bullish trend. The MACD of 64.99 indicates Positive momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 8.04 is Positive, 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
5699	83 Outperform	¥5.13B	9.15	―	1.80%	-0.27%	0.09%
9221	77 Outperform	¥16.76B	17.38	―	2.40%	8.36%	327.58%
5698	73 Outperform	¥25.77B	17.68	―	2.62%	-9.37%	590.66%
9336	73 Outperform	¥407.06B	29.07	―	1.30%	8.33%	1.73%
2195	71 Outperform	¥6.85B	20.66	―	1.36%	3.68%	-24.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%