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

• Market Cap: ¥10.08B
• Dividend Yield: 4.35%
• Average Volume (3M): 43.89K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.56
• Revenue Growth: 2.78%
• EPS Growth: -88.37%
• Country: JP
• Employees: 1,432
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.06
• Shares Outstanding: 46,783,800
• 10 Day Avg. Volume: 39,300
• 30 Day Avg. Volume: 43,890
• PEG Ratio: 3.16
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -2.19
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ¥228.00 ▼(-1.30% Downside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. The financial health is under pressure due to declining profitability and negative cash flows, while technical indicators suggest a bearish trend. The high P/E ratio indicates potential overvaluation, although the dividend yield provides some appeal. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Sustainability Commitment

Eidai's focus on sustainability aligns with growing industry trends towards eco-friendly products, potentially enhancing its market position and appeal to environmentally-conscious consumers.

Established Market Relationships

Strong relationships with key industry players ensure steady demand for Eidai's products, providing a durable competitive advantage and stable revenue base.

Moderate Financial Leverage

A healthy equity ratio indicates moderate financial leverage, which can provide stability and reduce risk in times of financial uncertainty.

Negative Factors

Declining Profitability

A downturn in profitability can hinder the company's ability to reinvest in growth initiatives and may affect its long-term competitive position.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, potentially limiting the company's ability to fund operations and growth without additional financing.

Rising Debt Levels

Increasing debt levels can strain financial resources and limit flexibility, impacting long-term financial health and operational capacity.

Eidai Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Eidai Co., Ltd. generates revenue primarily through the sale of its video games and related content. The company earns money via direct sales through digital platforms, physical copies, and in-game purchases, which are common in the gaming industry. Additionally, Eidai may also engage in partnerships with larger game distribution platforms and participate in licensing agreements, further enhancing its revenue streams. The company might benefit from collaborations with other developers and publishers, allowing for co-marketing opportunities and shared resources that can lead to increased game sales and broader market reach.

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 company maintains a reasonable equity ratio, the increasing debt levels and negative return on equity suggest difficulty in managing financial leverage. The overall financial health is under pressure, requiring strategic improvements to stabilize operations and enhance profitability.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.70B	71.20B	71.67B	69.79B	59.44B	55.81B
Gross Profit	14.97B	14.76B	15.04B	14.43B	14.73B	14.00B
EBITDA	3.48B	3.38B	5.73B	1.38B	2.28B	2.81B
Net Income	29.00M	-29.00M	3.22B	-1.10B	389.00M	951.00M
Balance Sheet
Total Assets	88.43B	88.71B	96.12B	92.98B	88.85B	80.67B
Cash, Cash Equivalents and Short-Term Investments	7.12B	8.74B	13.42B	6.95B	6.60B	9.32B
Total Debt	24.66B	24.52B	25.33B	26.60B	24.28B	16.68B
Total Liabilities	46.93B	46.92B	53.31B	53.46B	47.05B	38.46B
Stockholders Equity	44.15B	44.25B	44.52B	40.61B	42.18B	42.30B
Cash Flow
Free Cash Flow	0.00	-4.21B	8.15B	-1.92B	-10.12B	-8.93B
Operating Cash Flow	0.00	-2.31B	9.95B	263.00M	1.21B	4.12B
Investing Cash Flow	0.00	-2.15B	-1.77B	-662.00M	-9.56B	-10.59B
Financing Cash Flow	0.00	-1.23B	-1.70B	915.00M	6.80B	9.59B

Eidai Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 231.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7822, the sentiment is Negative. The current price of 231 is above the 20-day moving average (MA) of 229.15, below the 50-day MA of 232.83, and above the 200-day MA of 224.35, indicating a neutral trend. The MACD of -1.20 indicates Negative momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 65.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7822.

Eidai Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7955	80 Outperform	¥29.70B	11.76	―	3.98%	3.03%	160.39%
7887	80 Outperform	¥7.28B	13.60	―	1.94%	8.56%	2690.35%
8119	75 Outperform	¥7.92B	18.15	―	4.59%	-9.68%	-61.01%
7898	66 Neutral	¥8.38B	3.51	―	2.79%	1.11%	―
9827	66 Neutral	¥7.92B	66,391.75	―	5.06%	-4.68%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥10.08B	31.89	―	4.35%	2.78%	-88.37%