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

• Market Cap: ¥26.62B
• Dividend Yield: 2.56%
• Average Volume (3M): 12.70K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.50
• Revenue Growth: 5.49%
• EPS Growth: 14.96%
• Country: JP
• Employees: 1,485
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Food Distribution
• EPS (TTM): 368.46
• Shares Outstanding: 11,648,917
• 10 Day Avg. Volume: 9,680
• 30 Day Avg. Volume: 12,700
• PEG Ratio: -0.21
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -36.84
• 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

• Rating: 82 Outperform
• Price Target: ―

Eco's Co., Ltd. has a strong overall stock score driven by solid financial performance and attractive valuation. The technical analysis further supports a positive outlook with upward price momentum. Key risks involve managing operating efficiency and cash flow stability.

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

Company Description

Eco's Co., Ltd. (7520) is a Japanese company primarily engaged in the wholesale and retail of construction materials and home improvement products. The company operates through various segments, including the Construction Materials segment which supplies materials to building contractors and retail customers, and the Home Improvement segment that offers a wide range of DIY products and services. Eco's Co., Ltd. is known for its commitment to sustainability, often focusing on eco-friendly products and practices within the industry.

How the Company Makes Money

Eco's Co., Ltd. generates revenue through the sale of construction materials and home improvement products both in wholesale and retail capacities. The company makes money by sourcing these products from manufacturers and selling them to construction firms, contractors, and individual consumers. Key revenue streams include the distribution of building materials, tools, and equipment, as well as the sale of DIY products to homeowners looking to undertake their own projects. Eco's Co., Ltd. may also benefit from partnerships with manufacturers and suppliers, ensuring a steady supply chain and competitive pricing. Additionally, the company's focus on sustainable products can attract environmentally conscious consumers, potentially leading to higher sales in that niche market.

Eco's Co., Ltd. Financial Statement Overview

Summary

Eco's Co., Ltd. exhibits a robust financial performance with strong income growth, efficient balance sheet management, and solid cash flow generation. However, the need for improved operating efficiency and cash flow stability is noted.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
134.72B	137.18B	130.04B	122.75B	137.65B	136.01B
	Gross Profit
38.59B	37.91B	37.20B	35.16B	36.77B	35.87B
	EBIT
5.84B	6.02B	5.71B	4.38B	5.90B	5.74B
	EBITDA
6.31B	7.98B	7.42B	6.05B	7.49B	7.33B
	Net Income Common Stockholders
3.63B	4.13B	3.58B	1.61B	3.90B	1.55B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.22B	13.46B	12.69B	9.04B	11.58B	10.62B
	Total Assets
58.55B	57.70B	52.18B	47.34B	48.69B	47.21B
	Total Debt
13.67B	12.75B	11.80B	11.64B	12.19B	13.42B
	Net Debt
-1.55B	-709.00M	-894.00M	2.60B	603.00M	2.80B
	Total Liabilities
32.93B	30.84B	28.91B	27.28B	29.14B	30.95B
	Stockholders Equity
25.62B	26.86B	23.27B	20.06B	19.54B	16.26B
Cash Flow		Free Cash Flow
0.00	1.60B	3.63B	-557.00M	2.86B	4.75B
	Operating Cash Flow
0.00	5.32B	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: 2345.00
• 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 2345 is below the 20-day moving average (MA) of 2379.00, below the 50-day MA of 2351.72, and above the 200-day MA of 2090.47, indicating a bullish trend. The MACD of 2.72 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.35 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
7520	82 Outperform	¥26.62B	6.36		2.56%	5.49%	14.96%
7481	80 Outperform	¥18.67B	6.08		4.36%	7.08%	-1.44%
8142	77 Outperform	¥34.64B	7.72		4.35%	0.63%	24.41%
9996	74 Outperform	¥16.95B	12.02		2.43%	3.22%	7.14%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
2294	61 Neutral	¥28.25B	37.75		3.15%	-9.02%	-39.11%