Ebara Jitsugyo Co., Ltd. (6328) AI Stock Analysis

• Market Cap: ¥50.86B
• Dividend Yield: 2.28%
• Average Volume (3M): 19.51K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.01
• Revenue Growth: 12.37%
• EPS Growth: 26.48%
• Country: JP
• Employees: 543
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 46.87
• Shares Outstanding: 12,930,000
• 10 Day Avg. Volume: 18,090
• 30 Day Avg. Volume: 19,506
• PEG Ratio: 38.23
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 25.92
• 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): 43,194.62
• Revenue Forecast (FY): ¥6.26T

• Rating: 74 Outperform
• Price Target: ¥4,866.00 ▲(13.43% Upside)

Ebara Jitsugyo Co., Ltd. is well-positioned with strong financial performance and a reasonable valuation. The company's low leverage and efficient operations are significant strengths. However, mixed technical indicators suggest limited immediate momentum, and recent declines in free cash flow growth indicate areas for potential improvement.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's ability to expand its market presence and adapt to industry demands, supporting long-term sustainability.

Balance Sheet Health

Low leverage enhances financial stability, providing flexibility for strategic investments and resilience against economic fluctuations.

Profitability

Strong profitability margins reflect effective cost control and operational efficiency, which contribute to sustained earnings growth and shareholder value.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to reinvest in growth opportunities and manage debt, potentially affecting long-term financial health.

Cash Conversion

While cash conversion is adequate, recent declines in free cash flow suggest potential challenges in maintaining liquidity for future investments and operations.

Operating Cash Flow

Although cash generation is currently sufficient, the decreasing trend in operating cash flow could hinder the company's ability to fund growth and manage financial obligations effectively.

Ebara Jitsugyo Co., Ltd. Business Overview & Revenue Model

Company Description

Ebara Jitsugyo Co., Ltd. (6328) is a Japanese company specializing in the manufacturing and sale of various industrial equipment and systems, primarily focused on fluid machinery and environmental systems. The company operates in several sectors, including water and wastewater treatment, air conditioning, and industrial machinery. Ebara Jitsugyo is known for its advanced technologies in pump systems, compressors, and other related products, catering to a wide range of industries including construction, energy, and manufacturing.

How the Company Makes Money

Ebara Jitsugyo Co., Ltd. generates revenue through the sale of its industrial equipment, which includes pumps, compressors, and environmental systems. The company has a diverse revenue model that includes direct sales, long-term contracts, and service agreements for maintenance and support of its products. Key revenue streams come from both domestic and international markets, with a significant focus on infrastructure projects driven by government spending on water management and environmental sustainability. Additionally, Ebara Jitsugyo has established partnerships with various industries, enabling it to secure large contracts and projects that contribute to its earnings. The company's emphasis on innovation and technological advancements also helps it to remain competitive and expand its market share.

Ebara Jitsugyo Co., Ltd. Financial Statement Overview

Summary

Ebara Jitsugyo Co., Ltd. demonstrates strong financial performance with consistent revenue and profit growth, efficient operations, and a solid balance sheet. The company maintains low leverage and generates sufficient cash relative to earnings, although recent free cash flow trends suggest potential areas for improvement.

Income Statement

Ebara Jitsugyo Co., Ltd. exhibits strong revenue growth, with a 3.37% increase in 2024, following a significant jump from 2022 to 2023. The gross profit margin stands at 31.26%, and the net profit margin is 8.42%, indicating efficient cost management and profitability. EBIT and EBITDA margins are healthy at 11.34% and 11.91%, respectively, highlighting operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a debt-to-equity ratio of 0.04, indicating low leverage. The return on equity is 13.46%, reflecting strong profitability relative to shareholders' investment. The equity ratio is 54.57%, suggesting a solid equity base supporting the company's assets. Overall, the balance sheet reflects stability and financial health.

Cash Flow

Free cash flow growth is negative at -60.23%, impacted by a decrease in operating cash flow in 2024. However, the operating cash flow to net income ratio is 0.62, indicating sufficient cash generation relative to earnings. The free cash flow to net income ratio stands at 0.57, showing good cash conversion despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.62B	37.50B	36.28B	30.23B	32.48B	30.25B
Gross Profit	12.69B	11.73B	11.14B	9.28B	10.49B	9.01B
EBITDA	5.53B	4.81B	4.62B	3.28B	4.61B	3.55B
Net Income	3.79B	3.16B	3.14B	2.17B	3.16B	2.34B
Balance Sheet
Total Assets	43.55B	43.00B	41.92B	33.53B	35.72B	32.51B
Cash, Cash Equivalents and Short-Term Investments	18.51B	14.86B	14.50B	11.30B	11.10B	9.39B
Total Debt	990.00M	1.01B	1.09B	1.18B	1.35B	1.09B
Total Liabilities	18.36B	19.54B	20.89B	15.13B	16.57B	15.81B
Stockholders Equity	25.20B	23.46B	21.03B	18.40B	19.15B	16.70B
Cash Flow
Free Cash Flow	0.00	1.80B	4.54B	1.37B	2.67B	3.98B
Operating Cash Flow	0.00	1.97B	4.71B	1.61B	3.15B	4.07B
Investing Cash Flow	0.00	-187.00M	169.00M	9.00M	108.00M	1.04B
Financing Cash Flow	0.00	-1.57B	-1.68B	-1.61B	-1.68B	-957.00M

Ebara Jitsugyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4290.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6328, the sentiment is Negative. The current price of 4290 is above the 20-day moving average (MA) of 4275.75, below the 50-day MA of 4302.70, and above the 200-day MA of 3913.03, indicating a neutral trend. The MACD of -17.85 indicates Negative momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6328.

Ebara Jitsugyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8285	82 Outperform	¥34.11B	11.34	―	1.90%	12.47%	21.98%
8081	78 Outperform	¥44.65B	11.60	―	3.48%	18.42%	51.06%
6328	74 Outperform	¥50.86B	12.65	16.91%	2.28%	12.37%	26.48%
8070	74 Outperform	¥27.01B	9.04	―	3.66%	-18.88%	42.17%
5821	71 Outperform	¥44.08B	15.39	―	1.52%	5.75%	59.69%
8157	68 Neutral	¥55.97B	11.12	―	2.82%	-5.63%	52.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ebara Jitsugyo Co., Ltd. Corporate Events

Ebara Jitsugyo Announces Stock Split to Enhance Share Liquidity

Ebara Jitsugyo Co., Ltd. has announced a stock split to make its shares more accessible to investors and to increase the liquidity of its stock. This move is expected to expand the company’s investor base and involves amending the Articles of Incorporation to increase the total number of authorized shares.

Ebara Jitsugyo Introduces Employee Stock Ownership Plan with Treasury Share Disposal

Ebara Jitsugyo Co., Ltd. has announced the disposal of 123,000 treasury shares through a third-party allotment to Sumitomo Mitsui Trust Bank, Limited, as part of a Trust-Type Employee Stock Ownership Plan (ESOP). This initiative aims to enhance employee asset formation and corporate value by encouraging employee participation in corporate management. The disposal is expected to have a minimal impact on the market, with a dilution scale of 0.95% of the total shares outstanding. The plan is designed to promote long-term company development and employee motivation through capital participation.

Ebara Jitsugyo Introduces Employee Stock Ownership Plan to Boost Corporate Value

Ebara Jitsugyo Co., Ltd. has announced the introduction of a Trust-Type Employee Stock Ownership Plan, aimed at enhancing corporate value and employee benefits over the medium to long term. This plan will allow employees to participate more actively in corporate management and improve business performance by forming sustainable assets through stock ownership. The company will support the plan by guaranteeing loans taken by the Stock Ownership Association Trust to purchase company shares, ensuring that employees do not bear any financial burden.

Ebara Jitsugyo Revises 2025 Financial Forecasts Upwards

Ebara Jitsugyo Co., Ltd. has revised its financial forecasts for the year ending December 31, 2025, reflecting an expected increase in operating and ordinary profits due to favorable market conditions in its engineering business. Despite lower net sales in manufacturing and trading, the company anticipates higher profits driven by the demand for water infrastructure and disaster prevention projects.

Ebara Jitsugyo Co., Ltd. Reports Strong Q3 2025 Financial Performance

Ebara Jitsugyo Co., Ltd. reported strong financial performance for the third quarter of 2025, driven by stable demand in water infrastructure and disaster prevention sectors, as well as a partial recovery in semiconductor-related demand. The company achieved a 10% increase in net sales and a 42.1% rise in operating profit, with significant contributions from its Engineering business. Ebara Jitsugyo has revised its operating profit and profit forecasts upward for the fiscal year 2025, indicating a positive outlook for stakeholders.

Ebara Jitsugyo Reports Strong Financial Growth and Increased Dividends

Ebara Jitsugyo Co., Ltd. reported a significant increase in its financial performance for the nine months ended September 30, 2025, with net sales rising by 10% and operating profit by 42.1% year-on-year. The company also announced a forecasted increase in annual dividends, including a commemorative dividend for its 80th anniversary, reflecting strong financial health and shareholder value enhancement.