Eco's Co., Ltd. (7520) AI Stock Analysis

• Market Cap: ¥34.62B
• Dividend Yield: 1.93%
• Average Volume (3M): 13.19K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.49
• Revenue Growth: 6.11%
• EPS Growth: 15.68%
• Country: JP
• Employees: 1,485
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 132.23
• Shares Outstanding: 11,648,917
• 10 Day Avg. Volume: 16,410
• 30 Day Avg. Volume: 13,193
• PEG Ratio: 0.35
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 14.02
• 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: 77 Outperform
• Price Target: ¥3,301.00 ▲(14.70% Upside)

Eco's Co., Ltd. has a strong financial foundation with consistent growth and profitability, supported by a solid balance sheet. The stock's technical indicators show a positive trend, and its valuation is attractive with a low P/E ratio and decent dividend yield. These factors contribute to a favorable overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for Eco's products and effective market penetration, supporting long-term business sustainability.

Profitability Margins

Improving margins suggest efficient cost management and operational effectiveness, enhancing the company's competitive position and financial health.

Cash Generation

Strong cash generation capability ensures the company can fund operations, invest in growth opportunities, and manage debt effectively.

Negative Factors

Operating Efficiency Volatility

Volatility in operating efficiency may impact profitability and indicates potential challenges in maintaining consistent cost control.

Debt Management

Net debt presence requires careful management to avoid financial strain and ensure long-term financial stability and flexibility.

Cash Flow Volatility

Volatile cash flow can impact the company's ability to fund operations and growth initiatives, potentially affecting financial planning.

Eco's Co., Ltd. Business Overview & Revenue Model

Company Description

Eco's Co., Ltd. (7520) is a leading company in the environmental solutions sector, specializing in the development and provision of eco-friendly products and services. The company operates primarily in waste management, renewable energy, and sustainable materials, offering innovative solutions that cater to both industrial and consumer markets. Eco's Co., Ltd. is committed to promoting sustainability through its range of products, including biodegradable packaging, waste reduction technologies, and energy-efficient systems.

How the Company Makes Money

Eco's Co., Ltd. generates revenue through multiple streams, primarily from the sale of its eco-friendly products and services. The company earns money by supplying biodegradable packaging solutions to various industries, which is a significant part of its revenue model. Additionally, Eco's Co., Ltd. provides consulting services on waste management and sustainability practices, generating income from advisory fees. The company also engages in partnerships with government agencies and private enterprises to implement large-scale waste management and renewable energy projects, receiving funding and grants that contribute to its financial growth. Overall, the combination of product sales, consulting fees, and strategic partnerships plays a crucial role in Eco's Co., Ltd.'s earnings.

Eco's Co., Ltd. Financial Statement Overview

Summary

Eco's Co., Ltd. demonstrates strong financial performance with consistent revenue growth, improving profitability margins, and a solid balance sheet. The company shows efficient cost management and robust operational performance, though there is some volatility in operating efficiency and cash flow management.

Income Statement

Eco's Co., Ltd. demonstrates a strong income statement with consistent revenue growth and improving profitability margins. The gross profit margin has been stable, and the net profit margin has shown improvement over the years, indicating efficient cost management. The company has also maintained a robust EBITDA margin, reflecting healthy operational performance. However, fluctuations in EBIT margin suggest some volatility in operating efficiency.

Balance Sheet

The balance sheet of Eco's Co., Ltd. reflects a solid financial position with a favorable debt-to-equity ratio, indicating prudent financial leverage. Return on equity has improved, demonstrating effective use of shareholders' funds. The equity ratio suggests a strong capital base, providing stability. However, the presence of net debt highlights the need for continuous management of debt levels.

Cash Flow

Eco's Co., Ltd. has shown resilience in cash flow generation, with positive free cash flow in recent years. The operating cash flow to net income ratio indicates strong cash generation capabilities relative to profits. The free cash flow to net income ratio further supports the company's ability to convert earnings into cash. Nonetheless, fluctuations in free cash flow growth rates suggest volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	139.28B	137.18B	130.04B	122.75B	137.65B	136.01B
Gross Profit	40.66B	37.91B	37.20B	35.16B	36.77B	35.87B
EBITDA	8.05B	7.98B	6.99B	4.17B	7.49B	5.00B
Net Income	4.16B	4.13B	3.58B	1.61B	3.90B	1.55B
Balance Sheet
Total Assets	59.92B	57.70B	52.18B	47.34B	48.69B	47.21B
Cash, Cash Equivalents and Short-Term Investments	15.61B	13.46B	12.69B	9.04B	11.58B	10.62B
Total Debt	14.56B	12.75B	11.80B	11.64B	12.19B	13.42B
Total Liabilities	32.69B	30.84B	28.91B	27.28B	29.14B	30.95B
Stockholders Equity	27.23B	26.86B	23.27B	20.06B	19.54B	16.26B
Cash Flow
Free Cash Flow	0.00	1.55B	3.63B	-557.00M	2.86B	4.75B
Operating Cash Flow	0.00	5.27B	7.36B	3.33B	6.13B	6.80B
Investing Cash Flow	0.00	-3.05B	-3.29B	-4.20B	-3.27B	-1.19B
Financing Cash Flow	0.00	-1.45B	-423.00M	-1.68B	-1.90B	-702.00M

Eco's Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2878.00
• 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:7520, the sentiment is Positive. The current price of 2878 is below the 20-day moving average (MA) of 3045.65, below the 50-day MA of 2969.10, and above the 200-day MA of 2648.57, indicating a bullish trend. The MACD of 18.29 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 30.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7520.

Eco's Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7481	78 Outperform	¥22.52B	7.62	―	4.11%	8.87%	-17.91%
8006	78 Outperform	¥30.62B	12.09	―	1.94%	3.15%	27.71%
7520	77 Outperform	¥34.62B	7.69	―	1.93%	6.11%	15.68%
8142	72 Outperform	¥42.49B	9.01	―	3.82%	3.39%	29.30%
9996	68 Neutral	¥20.53B	14.60	―	2.06%	2.66%	1.00%
2294	65 Neutral	¥28.09B	36.71	―	3.23%	-0.31%	-37.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%