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Eidai Co., Ltd. (JP:7822)
:7822
Japanese Market

Eidai Co., Ltd. (7822) AI Stock Analysis

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JP

Eidai Co., Ltd.

(7822)

Rating:52Neutral
Price Target:
¥220.00
▼(-0.90%Downside)
Eidai Co., Ltd. faces significant financial challenges, with particular issues in profitability and cash flow, which are the most impactful factors in the score. Technical analysis presents a mixed picture, with some signs of potential bullish momentum. The valuation is concerning due to negative earnings, despite a high dividend yield.

Eidai Co., Ltd. (7822) vs. iShares MSCI Japan ETF (EWJ)

Eidai Co., Ltd. Business Overview & Revenue Model

Company DescriptionEidai Co., Ltd. (7822) is a Japan-based company primarily engaged in the manufacturing and sale of housing materials. The company operates in the building materials sector, offering a wide range of products including flooring, doors, stairs, and other interior components. Eidai is known for its extensive product line that caters to both residential and commercial construction markets, focusing on quality and innovation to meet the diverse needs of its customers.
How the Company Makes MoneyEidai Co., Ltd. generates revenue through the production and sale of its building materials and interior products. The company's core revenue streams are derived from its extensive catalog of flooring, doors, and staircases, which are sold both domestically and internationally. Additionally, Eidai may engage in partnerships with construction firms and distributors to expand its market reach and enhance sales channels. The company's focus on innovation and quality helps it maintain competitive pricing and capture a significant market share in the housing materials industry.

Eidai Co., Ltd. Financial Statement Overview

Summary
Eidai Co., Ltd. faces challenges in multiple areas, particularly with declining profitability and negative cash flows. While the equity ratio is reasonable, increasing debt levels and a negative return on equity indicate difficulty in managing financial leverage.
Income Statement
55
Neutral
Eidai Co., Ltd. has shown inconsistent revenue growth over the years, with a recent decline in revenues from 71.7 billion to 71.2 billion yen. Gross profit margins are moderately strong at around 20%, but the company experienced a significant downturn in profitability, moving from a net income of 3.2 billion yen to a net loss of 29 million yen. The EBIT margin has also turned negative, indicating operational challenges.
Balance Sheet
65
Positive
The company maintains a healthy equity base, with an equity ratio of approximately 49.9% for the most recent year, reflecting moderate financial leverage. However, the debt-to-equity ratio has increased, indicating rising debt levels relative to equity. Despite these concerns, the return on equity has turned negative, highlighting challenges in generating returns for shareholders.
Cash Flow
40
Negative
Eidai Co., Ltd. faced significant cash flow issues, with the operating cash flow turning negative in the most recent year. Free cash flow has also deteriorated, indicating difficulty in generating cash after capital expenditures. The ratios of operating and free cash flow to net income have become unfavorable, showcasing liquidity challenges.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
70.60B71.20B71.67B69.79B59.44B55.81B
Gross Profit
14.49B14.76B15.04B14.43B14.73B14.00B
EBIT
-510.00M-293.00M368.00M-1.14B-40.00M-383.00M
EBITDA
3.77B3.38B5.73B1.38B2.28B2.81B
Net Income Common Stockholders
2.55B-29.00M3.22B-1.10B389.00M951.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.44B8.74B13.42B6.95B6.60B9.32B
Total Assets
89.74B88.71B96.12B92.98B88.85B80.67B
Total Debt
24.49B24.52B25.33B26.60B24.28B16.68B
Net Debt
18.04B16.78B12.53B19.65B17.68B8.37B
Total Liabilities
48.09B46.92B53.31B53.46B47.05B38.46B
Stockholders Equity
43.96B44.25B44.52B40.61B42.18B42.30B
Cash FlowFree Cash Flow
0.00-4.21B8.15B-1.92B-10.12B-8.93B
Operating Cash Flow
0.00-2.31B9.95B263.00M1.21B4.12B
Investing Cash Flow
0.00-2.15B-1.77B-662.00M-9.56B-10.59B
Financing Cash Flow
0.00-1.23B-1.70B915.00M6.80B9.59B

Eidai Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price222.00
Price Trends
50DMA
215.60
Positive
100DMA
211.39
Positive
200DMA
210.56
Positive
Market Momentum
MACD
0.61
Positive
RSI
49.02
Neutral
STOCH
37.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7822, the sentiment is Neutral. The current price of 222 is above the 20-day moving average (MA) of 219.15, above the 50-day MA of 215.60, and above the 200-day MA of 210.56, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 49.02 is Neutral, neither overbought nor oversold. The STOCH value of 37.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7822.

Eidai Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥24.72B14.06
5.37%1.57%20.22%
72
Outperform
¥5.86B57.71
2.48%4.82%-89.34%
65
Neutral
¥8.32B8.02
5.07%8.65%84.06%
65
Neutral
¥7.69B4.31
2.92%0.58%
62
Neutral
$6.90B11.052.80%4.27%2.67%-24.92%
55
Neutral
¥7.70B117.73
5.75%2.17%-101.54%
52
Neutral
¥9.68B3.86
4.57%-0.65%-100.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7822
Eidai Co., Ltd.
218.00
-12.30
-5.34%
JP:7887
Nankai Plywood Co., Ltd.
6,030.00
-153.07
-2.48%
JP:7898
Wood One Co., Ltd.
820.00
-66.82
-7.53%
JP:7955
Cleanup Corporation
665.00
-19.06
-2.79%
JP:8119
Sanyei Corporation
827.00
236.30
40.00%
JP:9827
Lilycolor Co., Ltd.
610.00
-12.12
-1.95%
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.