Envipro Holdings, Inc. (5698) AI Stock Analysis

• Market Cap: ¥17.21B
• Dividend Yield: 2.62%
• Average Volume (3M): 72.17K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.84
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥643.00 ▲(12.61% Upside)

Envipro Holdings scores well due to strong technical indicators and a solid financial foundation. The stock's valuation is attractive, supported by a reasonable P/E ratio and a healthy dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Cash Flow Management

Effective cash flow management ensures the company can fund operations and investments, supporting long-term financial health and strategic growth.

Equity Base

A strong equity base enhances financial stability, providing a cushion against economic fluctuations and supporting sustainable growth.

Profitability Metrics

Improving profitability metrics indicate better cost management and operational efficiency, contributing to long-term financial performance.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests potential challenges in maintaining sales momentum, which could impact future earnings and market position.

Operational Inefficiencies

Decreasing margins may indicate rising costs or inefficiencies, which could strain profitability and require strategic adjustments.

Revenue Challenges

Ongoing revenue challenges could hinder growth prospects and necessitate strategic shifts to sustain competitive advantage.

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

Envipro Holdings demonstrates a stable financial position with a strong equity base and improving profitability metrics. Despite recent revenue challenges, the company maintains solid cash flow generation and a balanced leverage profile.

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: 571.00
• 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 571 is above the 20-day moving average (MA) of 569.80, above the 50-day MA of 532.46, and above the 200-day MA of 492.44, indicating a bullish trend. The MACD of 9.19 indicates Positive momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 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
5699	81 Outperform	¥4.71B	8.41	―	1.80%	-0.27%	0.09%
5698	77 Outperform	¥17.21B	11.80	―	2.62%	-9.37%	590.66%
1712	77 Outperform	¥30.99B	21.70	―	0.81%	15.80%	11.11%
9221	77 Outperform	¥14.24B	14.77	―	2.40%	8.36%	327.58%
9336	73 Outperform	¥381.59B	27.25	―	1.30%	8.33%	1.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2195	59 Neutral	¥5.18B	15.63	―	1.36%	3.68%	-24.83%

Envipro Holdings, Inc. Corporate Events

Envipro Holdings Shifts to Standard Market to Strengthen Business Foundation

Envipro Holdings Inc. has received approval from the Tokyo Stock Exchange to change its market segment listing to the Standard Market, effective September 18, 2025. This strategic move is part of the company’s efforts to rebuild its business foundation and focus on key strategic areas, with the aim of enhancing corporate value and potentially re-entering the Prime Market in the future.