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

• Market Cap: ¥11.71B
• Dividend Yield: 3.77%
• Average Volume (3M): 358.89K
• Price to Earnings (P/E): 418.2
• Beta (1Y): 0.53
• Revenue Growth: 0.89%
• EPS Growth: -99.30%
• Country: JP
• Employees: 1,432
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -1.90
• Shares Outstanding: 46,783,800
• 10 Day Avg. Volume: 122,650
• 30 Day Avg. Volume: 358,893
• 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: ¥286.00
• Price Target Upside: 7.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥286.00 ▲(7.92% Upside)

Eidai Co., Ltd. is currently facing significant financial challenges, with declining profitability and negative cash flows impacting its financial health. Despite strong technical momentum, the stock appears overvalued based on its P/E ratio. The high dividend yield offers some compensation, but overall, the stock's financial and valuation concerns weigh heavily on its score.

Eidai Co., Ltd. Business Overview & Revenue Model

Company Description

Eidai Co., Ltd. is a Japan-based company primarily engaged in the manufacture and sale of housing materials and related products. The company operates in several sectors, including the production of flooring materials, wooden building components, and other interior construction materials. Eidai Co., Ltd. is recognized for its innovative approach to product development and its commitment to sustainability, offering a range of eco-friendly products designed to meet the evolving needs of the construction and housing industries.

How the Company Makes Money

Eidai Co., Ltd. generates revenue through the manufacture and sale of its housing materials and related products. Its key revenue streams include the sale of flooring materials such as hardwood, laminated, and engineered flooring products, as well as wooden building components like doors, stairs, and moldings. The company benefits significantly from its established relationships with construction companies and home builders, ensuring a steady demand for its products. In addition, Eidai Co., Ltd. may engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, further contributing to its earnings.

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	71.20B	71.20B	71.67B	69.79B	59.44B	55.81B
Gross Profit	14.76B	14.76B	15.04B	14.43B	14.73B	14.00B
EBITDA	3.38B	3.38B	5.73B	1.38B	2.28B	2.81B
Net Income	-28.00M	-29.00M	3.22B	-1.10B	389.00M	951.00M
Balance Sheet
Total Assets	88.71B	88.71B	96.12B	92.98B	88.85B	80.67B
Cash, Cash Equivalents and Short-Term Investments	8.74B	8.74B	13.42B	6.95B	6.60B	9.32B
Total Debt	24.52B	24.52B	25.33B	26.60B	24.28B	16.68B
Total Liabilities	46.92B	46.92B	53.31B	53.46B	47.05B	38.46B
Stockholders Equity	44.25B	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: Positive
• Last Price: 265.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7822, the sentiment is Positive. The current price of 265 is above the 20-day moving average (MA) of 259.20, above the 50-day MA of 240.70, and above the 200-day MA of 217.66, indicating a bullish trend. The MACD of 8.04 indicates Positive momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 17.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	75 Outperform	¥27.78B	13.62		4.12%	2.12%	56.08%
7898	74 Outperform	¥8.29B	4.05		2.70%	0.90%	―
8119	73 Outperform	¥8.28B	16.32		7.39%	-4.39%	-58.25%
7887	72 Outperform	¥6.79B	12.69		2.13%	7.48%	10.02%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
7822	56 Neutral	¥11.71B	418.24		3.77%	0.89%	-99.30%
9827	55 Neutral	¥7.87B	65,979.38		5.63%	-1.39%	-99.93%