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Eco's Co., Ltd. (JP:7520)
:7520
Japanese Market

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

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JP

Eco's Co., Ltd.

(7520)

Rating:82Outperform
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. (7520) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionEco'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 MoneyEco'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
82
Very Positive
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
78
Positive
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
75
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue134.72B137.18B130.04B122.75B137.65B136.01B
Gross Profit38.59B37.91B37.20B35.16B36.77B35.87B
EBITDA6.31B7.98B7.42B6.05B7.49B7.33B
Net Income3.63B4.13B3.58B1.61B3.90B1.55B
Balance Sheet
Total Assets58.55B57.70B52.18B47.34B48.69B47.21B
Cash, Cash Equivalents and Short-Term Investments15.22B13.46B12.69B9.04B11.58B10.62B
Total Debt13.67B12.75B11.80B11.64B12.19B13.42B
Total Liabilities32.93B30.84B28.91B27.28B29.14B30.95B
Stockholders Equity25.62B26.86B23.27B20.06B19.54B16.26B
Cash Flow
Free Cash Flow0.001.60B3.63B-557.00M2.86B4.75B
Operating Cash Flow0.005.32B7.36B3.33B6.13B6.80B
Investing Cash Flow0.00-3.05B-3.29B-4.20B-3.27B-1.19B
Financing Cash Flow0.00-1.45B-423.00M-1.68B-1.90B-702.00M

Eco's Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2535.00
Price Trends
50DMA
2438.24
Positive
100DMA
2253.32
Positive
200DMA
2125.35
Positive
Market Momentum
MACD
47.10
Negative
RSI
62.35
Neutral
STOCH
67.31
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 2535 is above the 20-day moving average (MA) of 2470.95, above the 50-day MA of 2438.24, and above the 200-day MA of 2125.35, indicating a bullish trend. The MACD of 47.10 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 67.31 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

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥28.77B6.88
2.37%5.49%14.96%
80
Outperform
¥19.09B6.22
4.26%7.08%-1.44%
75
Outperform
¥16.97B12.04
2.42%3.22%7.14%
70
Outperform
¥33.45B7.42
4.49%-0.64%17.19%
61
Neutral
¥27.35B36.54
467.10%-9.02%-39.11%
53
Neutral
C$4.46B3.86-22.83%4.40%8.13%2.00%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7520
Eco's Co., Ltd.
2,531.00
241.13
10.53%
JP:2294
Kakiyasu Honten Co., Ltd.
2,613.00
119.48
4.79%
JP:7481
OIE SANGYO Co., Ltd.
2,116.00
17.76
0.85%
JP:8142
Toho Co., Ltd.
3,135.00
-435.52
-12.20%
JP:9996
Satoh & Co., Ltd.
1,906.00
64.80
3.52%
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: May 01, 2025