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Ebara Jitsugyo Co., Ltd. (JP:6328)
:6328

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

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JP:6328

Ebara Jitsugyo Co., Ltd.

(6328)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥3,265.00
▼(-23.89% Downside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by strong financial performance (improving profitability and a low-leverage balance sheet), supported by favorable valuation (low-to-moderate P/E and a solid dividend). Technicals are positive due to strong trend and MACD momentum, but elevated RSI indicates overbought risk and slightly reduces the overall score.
Positive Factors
Conservative balance sheet
Very low leverage and ample equity provide durable financial flexibility. This supports the company's ability to fund capex, absorb project timing shocks, maintain dividends and pursue selective M&A without stressing liquidity, strengthening resilience across cycles.
Improving profitability and margins
Sustained margin expansion and rising net income indicate improving pricing power and operational control. Durable margin improvement enhances free-cash potential and return on capital, allowing reinvestment and shareholder returns even if revenue growth moderates.
Stable infrastructure-focused business model
Focus on municipal and industrial infrastructure, equipment sales and long-term service contracts creates recurring revenue and defensible demand. Critical water and wastewater systems generate steady project pipelines and maintenance needs, reducing cyclicality over the medium term.
Negative Factors
Weak operating-cash conversion
Low operating cash flow relative to reported earnings signals earnings are not fully converted to cash. This constrains internal financing for capex or working capital, increases reliance on external funding for growth, and weakens robustness of reported profitability.
Choppy cash generation history
Wide year-to-year swings in cash generation reduce predictability of free cash flow for dividends, investment and debt servicing. Volatility complicates planning, raises financing risk during downturns and limits confidence in sustainably funding growth from operations.
Uneven revenue growth / project timing risk
Irregular top-line performance and past declines reflect project timing and cyclical exposure in engineering and construction. This undermines revenue predictability and can dilute operating leverage, making consistent long-term scaling and margin retention more challenging.

Ebara Jitsugyo Co., Ltd. (6328) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionEbara 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 MoneyEbara 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
Strong profitability with improving margins and net income growth, backed by a very conservative balance sheet and healthy ROE. The main offset is inconsistent cash conversion, with volatile operating cash flow and weak OCF relative to earnings in 2025.
Income Statement
78
Positive
Profitability is solid and improving: 2025 revenue rose to ~¥41.2B (up ~4% YoY), while margins expanded versus 2024 (gross margin ~33.8% vs ~31.3%; net margin ~10.6% vs ~8.4%), driving net income up to ~¥4.38B from ~¥3.16B. Over the multi-year view, margins have generally trended upward since 2022, although growth has been uneven (including a revenue decline in 2022), which is the main offset to an otherwise strong earnings profile.
Balance Sheet
90
Very Positive
The balance sheet is very conservative with low leverage: 2025 debt-to-equity is ~0.05 with total debt of ~¥1.52B against equity of ~¥27.94B, indicating ample balance-sheet flexibility. Returns on equity are healthy (~15.7% in 2025) and have been consistently strong across years, supporting quality of earnings and efficient capital use. The key watch item is that debt ticked up in 2025 versus 2024, though it remains low in absolute and relative terms.
Cash Flow
58
Neutral
Cash generation is positive but choppy. 2025 operating cash flow (~¥1.41B) and free cash flow (~¥1.04B) covered net income reasonably on a free-cash basis (free cash flow about ~73% of net income), but operating cash flow was light versus earnings (operating cash flow about ~8% of net income), pointing to working-capital or timing impacts. Prior years show volatility (very strong in 2023/2020, weaker in 2022/2024/2025), which lowers confidence in near-term cash conversion consistency.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue39.62B41.21B37.50B36.28B30.23B32.48B
Gross Profit12.69B13.93B11.73B11.14B9.28B10.49B
EBITDA5.53B6.41B4.81B4.62B3.28B4.61B
Net Income3.79B4.38B3.16B3.14B2.17B3.16B
Balance Sheet
Total Assets43.55B48.38B43.00B41.92B33.53B35.72B
Cash, Cash Equivalents and Short-Term Investments18.51B15.17B14.86B14.50B11.30B11.10B
Total Debt990.00M1.52B1.01B1.09B1.18B1.35B
Total Liabilities18.36B20.44B19.54B20.89B15.13B16.57B
Stockholders Equity25.20B27.94B23.46B21.03B18.40B19.15B
Cash Flow
Free Cash Flow0.001.04B1.80B4.54B1.37B2.67B
Operating Cash Flow0.001.41B1.97B4.71B1.61B3.15B
Investing Cash Flow0.00-205.00M-187.00M169.00M9.00M108.00M
Financing Cash Flow0.00-752.00M-1.57B-1.68B-1.61B-1.68B

Ebara Jitsugyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4290.00
Price Trends
50DMA
2371.08
Positive
100DMA
2249.17
Positive
200DMA
2076.70
Positive
Market Momentum
MACD
176.24
Negative
RSI
75.97
Negative
STOCH
76.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6328, the sentiment is Positive. The current price of 4290 is above the 20-day moving average (MA) of 2613.05, above the 50-day MA of 2371.08, and above the 200-day MA of 2076.70, indicating a bullish trend. The MACD of 176.24 indicates Negative momentum. The RSI at 75.97 is Negative, neither overbought nor oversold. The STOCH value of 76.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6328.

Ebara Jitsugyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥364.52B9.1211.34%3.38%3.44%6.97%
77
Outperform
¥73.53B16.0716.91%2.28%12.37%26.48%
74
Outperform
¥10.06T19.4315.34%2.29%9.62%25.71%
73
Outperform
¥413.24B12.683.13%1.50%9.82%
69
Neutral
¥480.17B12.203.37%4.50%-9.36%
65
Neutral
$1.35T12.9111.17%3.24%2.12%18.93%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6328
Ebara Jitsugyo Co., Ltd.
2,960.00
1,037.25
53.95%
JP:8002
Marubeni
6,008.00
3,672.88
157.29%
JP:2768
Sojitz
7,080.00
3,894.58
122.26%
JP:8078
Hanwa Co., Ltd.
8,970.00
4,207.61
88.35%
JP:8020
Kanematsu Corporation
2,459.50
1,239.09
101.53%
JP:8088
Iwatani Corporation
2,059.00
571.37
38.41%

Ebara Jitsugyo Co., Ltd. Corporate Events

Ebara Jitsugyo Plans Higher Year-End Dividend Ahead of Shareholders’ Meeting
Feb 17, 2026

Ebara Jitsugyo has proposed a year-end cash dividend of ¥60 per share for the fiscal year ended December 31, 2025, to be approved at the shareholders’ meeting scheduled for March 24, 2026. This payout, sourced from retained earnings and totaling ¥721 million, represents a significant increase from the previous year’s ¥47.50 per share year-end dividend.

On a full-year basis, the company plans total annual dividends of ¥120 per share, up from ¥95 in the prior fiscal year, signaling a continued emphasis on returning profits to shareholders. The figures are presented on a pre-stock-split basis following a two-for-one split effective January 1, 2026, and underscore management’s confidence in earnings strength and cash-generation capacity.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen3017.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Reshapes Environmental Systems Leadership With Key Promotions
Feb 17, 2026

Ebara Jitsugyo Co., Ltd. has announced a series of senior personnel changes effective March 24, 2026, mainly within its Environmental Systems Greater Tokyo & West Japan and East Japan operations. Managing Executive Officer Kazuyuki Harakawa will assume the role of General Manager of the Environmental Systems Greater Tokyo & West Japan Head Office, while former head Hiroshi Yamaguchi will move to an advisory position at the Shizuoka Branch.

Among division managers, Keiji Kikuchi will add the role of Deputy General Manager of the Environmental Systems Greater Tokyo & West Japan Head Office while continuing as General Manager of the Kanagawa Branch. In addition, Tetsuo Sekiguchi will become General Manager of the Shizuoka Branch and Yusuke Okamoto will serve as General Manager of the East Kanto Branch, indicating a reorganization aimed at strengthening regional management and operational oversight in the company’s environmental systems business.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen3017.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Sets 2026 Director Slate, Tweaks Governance Structure
Feb 17, 2026

Ebara Jitsugyo has nominated a slate of directors for approval at its March 24, 2026 annual general meeting, including the reelection of Chairman and CEO Hisashi Suzuki, President and COO Takashi Ishii, and other key executives, thereby signaling continuity in its top management and strategic oversight. The company is also reshuffling its governance structure by shifting current outside audit and supervisory committee member Atsuko Sakamoto to an outside director role, maintaining the existing audit committee lineup, and designating a substitute outside director, moves that underscore an emphasis on stable oversight and the inclusion of external expertise in its board composition.

These changes are expected to enhance board independence while preserving institutional knowledge, which may support consistent execution of the company’s long-term strategy in its industrial markets. For shareholders and other stakeholders, the proposed nominations indicate a measured approach to corporate governance reform, balancing renewal with continuity as the company navigates its competitive environment and regulatory expectations.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen3017.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Board Rejects Activist’s Pay and Governance Proposals
Feb 17, 2026

Ebara Jitsugyo’s board has formally opposed a set of shareholder proposals submitted by Nippon Active Value Fund for the March 24, 2026 annual general meeting. The proposals seek to revise the restricted share-based remuneration framework, mandate additional share buybacks, and amend the articles to change the number of outside directors.

The board argues that its own planned revision to the director pay mix, including an increase in restricted share-based remuneration to strengthen performance and shareholder value alignment, has already been vetted by an independent director-led remuneration committee. It says the activist’s proposed ¥280 million cap and extension of stock awards to outside and audit committee directors would distort the balance of fixed and performance-linked pay and undermine independent oversight, signaling a firm defense of its current governance and incentive structure.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen3017.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Launches ¥1 Billion Share Buyback to Boost Capital Efficiency
Feb 9, 2026

Ebara Jitsugyo has approved a share buyback program under the Companies Act, authorizing the acquisition of up to 600,000 common shares, equivalent to 2.52% of its outstanding stock, for a maximum total of ¥1 billion. The purchases, to be executed via market transactions under a discretionary trading contract between February 10 and August 31, 2026, aim to enhance shareholder returns and improve capital efficiency, signaling a disciplined capital allocation stance that may support earnings per share and underline management’s confidence in the company’s valuation, while also complementing its existing treasury share holdings, including stock reserved for an employee stock ownership plan.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen4961.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Beats FY2025 Forecasts on Strong Engineering Demand and Higher Margins
Feb 9, 2026

Ebara Jitsugyo reported that its consolidated results for the fiscal year ended December 31, 2025, outperformed the forecasts announced in November, with net sales rising to ¥41.2 billion and all profit metrics exceeding expectations. Stronger-than-expected demand in its Engineering Business, driven by active water infrastructure renewal and disaster prevention projects, together with improved profitability from reduced construction costs, lifted operating and ordinary profits by about 20% versus forecast and marked solid growth over the prior year.

The company’s profit attributable to owners of parent reached ¥4.38 billion, pushing basic earnings per share to ¥184.24 on a post–stock split basis, well above the earlier projection of ¥152.69. This performance underscores both the favorable market environment for infrastructure-related investment and Ebara Jitsugyo’s ability to enhance margins, which may strengthen its competitive positioning and support confidence among investors and other stakeholders.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen4961.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Details 2025 Results, FY2026 Plan and Shareholder Return Policy
Feb 9, 2026

Ebara Jitsugyo Co., Ltd. presented supplementary materials for its financial results for the year ended December 31, 2025, detailing segment-based performance, trends in net sales and orders, and historical results over the past decade. The company also highlighted shareholder return measures such as FY2025 dividends, a FY2026 shareholder return policy, and potential share buybacks, along with an implementation of a stock split.

The materials outlined the FY2026 business plan by segment and summarized progress in the first year of its medium-term management plan “EJ2027,” linking near-term initiatives to a long-term vision. Ebara Jitsugyo further emphasized enhanced disclosure through the issuance of an integrated report, signaling an effort to improve transparency and investor communication while aligning capital efficiency indicators like cost of equity and ROE with its strategic goals.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen4961.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Delivers Strong 2025 Earnings and Signals Steady Growth for 2026
Feb 9, 2026

Ebara Jitsugyo reported strong results for the year ended December 31, 2025, with net sales up 9.9% to ¥41.2 billion and operating profit jumping 44.0% to ¥6.1 billion, driving a 38.8% rise in profit attributable to owners of the parent. Profitability metrics improved across the board, with return on equity climbing to 17.1% and the operating margin rising to 14.9%, while total assets and equity also expanded, lifting the equity-to-asset ratio to 57.7%.

The company generated positive operating cash flow and maintained a solid cash position, supporting higher shareholder returns, including a ¥120 annual dividend for 2025 that incorporated a commemorative payout for its 80th anniversary. Management is guiding for continued, albeit more modest, growth in 2026, forecasting a 6.8% increase in net sales and a 2.6% rise in net profit, alongside a two-for-one stock split already implemented from January 1, 2026, which recalibrates per-share indicators and brings the ordinary dividend forecast to ¥75 post-split.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen4961.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Ebara Jitsugyo Transfers Turbo Blower Business to AERZEN JAPAN
Dec 16, 2025

Ebara Jitsugyo Co., Ltd. has decided to transfer its turbo blower product business to AERZEN JAPAN CO., LTD., a subsidiary of Aerzener Maschinenfabrik Gmbh. This strategic move is intended to allow the business to reach its full growth potential under new management, while Ebara Jitsugyo will continue to provide after-sales services to public sector clients. The financial impact on Ebara Jitsugyo is expected to be minimal, and the transfer is scheduled to be completed by the end of January 2026.

The most recent analyst rating on (JP:6328) stock is a Buy with a Yen4866.00 price target. To see the full list of analyst forecasts on Ebara Jitsugyo Co., Ltd. stock, see the JP:6328 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 11, 2026