Established Building-materials BusinessEidai's role as a manufacturer of wood-based building and interior materials anchors it to structural housing and renovation demand. Serving builders, contractors and distributors produces recurring order flows and durable revenue exposure to long-term construction and renovation cycles.

Healthy Equity Base / Moderate LeverageAn equity ratio near 50% provides a meaningful capital buffer that supports financial resilience through cycles. This moderate leverage profile helps preserve access to financing, reduces immediate solvency risk, and gives management room to fund capex or restructuring without acute balance-sheet stress.

Moderate Gross Margins (~20%)Sustaining gross margins near 20% offers a structural profitability base that can absorb input cost swings and support recovery. If volumes stabilize and SG&A is managed, these margins enable operating leverage to restore EBIT and generate cash for reinvestment or deleveraging over the medium term.

Bears Say

Negative Operating And Free Cash FlowNegative operating cash flow and deteriorated free cash flow indicate the core business is not currently producing sufficient cash after capex. Persistent cash deficits limit the company's ability to fund operations, repay debt, sustain dividends, or invest in product and efficiency improvements without external financing.

Rising Debt And Negative Return On EquityAn increasing debt burden combined with negative ROE erodes capital efficiency and raises financial vulnerability. Higher leverage increases interest costs and covenant risk, reducing strategic flexibility; restoring positive ROE is necessary to rebuild shareholder value and improve funding options.

Swing To Net Loss And Negative EBIT MarginThe recent transition from profit to a small net loss and negative EBIT reflects operational pressures—weak demand, pricing, or cost control issues. Continued losses undermine reinvestment capacity, weaken creditor confidence, and require sustained operational fixes to return to consistent profitability.

7822 FAQ

What was Eidai Co., Ltd.’s price range in the past 12 months?

Eidai Co., Ltd. lowest stock price was ¥195.00 and its highest was ¥305.00 in the past 12 months.

What is Eidai Co., Ltd.’s market cap?

Eidai Co., Ltd.’s market cap is ¥11.31B.

When is Eidai Co., Ltd.’s upcoming earnings report date?

Eidai Co., Ltd.’s upcoming earnings report date is May 07, 2026 which is in 58 days.

How were Eidai Co., Ltd.’s earnings last quarter?

Eidai Co., Ltd. released its earnings results on Feb 09, 2026. The company reported ¥6.48 earnings per share for the quarter, beating the consensus estimate of N/A by ¥6.48.

Is Eidai Co., Ltd. overvalued?

According to Wall Street analysts Eidai Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Eidai Co., Ltd. pay dividends?

Eidai Co., Ltd. pays a Semiannually dividend of ¥5 which represents an annual dividend yield of 4.41%. See more information on Eidai Co., Ltd. dividends here

What is Eidai Co., Ltd.’s EPS estimate?

Eidai Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Eidai Co., Ltd. have?

Eidai Co., Ltd. has 46,783,800 shares outstanding.

What happened to Eidai Co., Ltd.’s price movement after its last earnings report?

Eidai Co., Ltd. reported an EPS of ¥6.48 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.82%.

Which hedge fund is a major shareholder of Eidai Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7822

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Eidai Co., Ltd.

Eidai Co., Ltd. (7822) is a Japanese company primarily engaged in the manufacturing and sale of gaming and entertainment software. The company operates in the interactive entertainment sector, focusing on the development of video games for various platforms, including consoles, PCs, and mobile devices. Eidai is known for its innovative game design and engaging gameplay experiences, catering to a diverse audience of gamers worldwide.