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

• Market Cap: ¥33.11B
• Dividend Yield: 2.06%
• Average Volume (3M): 21.75K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.53
• Revenue Growth: 5.58%
• EPS Growth: 10.61%
• Country: JP
• Employees: 1,485
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 95.81
• Shares Outstanding: 11,648,917
• 10 Day Avg. Volume: 12,250
• 30 Day Avg. Volume: 21,753
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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. operates a chain of food supermarkets in Japan. As of February 29, 2020, it operated 74 stores. The company was founded in 1965 and is headquartered in Akishima, Japan.

How the Company Makes Money

Eco's Co., Ltd. generates revenue through its chain of retail stores that sell a diverse array of home improvement and gardening products. The company's key revenue streams include direct sales of hardware, furniture, and gardening supplies. It also earns income by offering services such as product installation and home improvement consultations. Additionally, Eco's Co., Ltd. may engage in partnerships with suppliers and manufacturers to enhance its product offerings and ensure a steady supply of goods, which can contribute to its profitability. The company's success is driven by its ability to meet consumer demand for quality home and garden products, as well as its strategic location of retail outlets to maximize customer reach.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.18B	137.18B	130.04B	122.75B	137.65B	136.01B
Gross Profit	39.72B	37.91B	37.20B	35.16B	36.77B	35.87B
EBITDA	7.88B	7.98B	6.99B	4.17B	7.49B	5.00B
Net Income	4.13B	4.13B	3.58B	1.61B	3.90B	1.55B
Balance Sheet
Total Assets	57.70B	57.70B	52.18B	47.34B	48.69B	47.21B
Cash, Cash Equivalents and Short-Term Investments	13.46B	13.46B	12.69B	9.04B	11.58B	10.62B
Total Debt	12.75B	12.75B	11.80B	11.64B	12.19B	13.42B
Total Liabilities	30.84B	30.84B	28.91B	27.28B	29.14B	30.95B
Stockholders Equity	26.86B	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: 2917.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2917 is above the 20-day moving average (MA) of 2790.15, above the 50-day MA of 2674.60, and above the 200-day MA of 2312.17, indicating a bullish trend. The MACD of 56.08 indicates Negative momentum. The RSI at 73.55 is Negative, neither overbought nor oversold. The STOCH value of 87.19 is Negative, 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	¥33.11B	7.87	―	2.06%	5.58%	10.61%
7481	82 Outperform	20.83B	7.10	19.43%	3.91%	8.07%	-13.57%
8006	75 Outperform	29.12B	13.02	5.27%	1.85%	3.32%	-22.52%
8142	71 Outperform	37.54B	9.38	14.59%	4.15%	0.51%	-2.58%
9996	71 Outperform	18.31B	12.97	5.01%	2.20%	3.00%	6.93%
2294	61 Neutral	28.67B	37.21	―	3.10%	-1.50%	-42.51%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%