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

• Market Cap: ¥10.92B
• Dividend Yield: 4.41%
• Average Volume (3M): 52.33K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.61
• 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): 6.48
• Shares Outstanding: 46,783,800
• 10 Day Avg. Volume: 48,050
• 30 Day Avg. Volume: 52,330
• 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: ¥251.00 ▲(8.66% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Moderate equity base

An equity ratio near 50% provides a durable capital buffer versus cyclical construction demand, supporting access to finance and absorbing shocks. This balance-sheet solidity underpins the company’s ability to pursue strategic investments and weather medium-term industry volatility.

Healthy gross margin

A roughly 20% gross margin suggests structural pricing power or production efficiency in wood-based and interior materials. Sustained gross margins create room to recover operating profitability, fund product quality improvements, and support long-term competitiveness despite cyclical top-line pressure.

Stable revenue base

A revenue base around ¥71B with modest growth indicates relatively stable demand for core building and interior products. This predictable top line supports medium-term planning, helps maintain supplier and distributor relationships, and provides a foundation for margin-focused recovery initiatives.

Negative Factors

Negative operating cash flow

Negative operating cash flow and worsening free cash flow show the business is not converting results into cash, constraining working-capital funding, capex, and debt servicing. Over months this liquidity weakness raises refinancing risk and limits ability to execute strategic initiatives.

Rising leverage & negative ROE

Increasing leverage while ROE is negative indicates the company is taking on more debt without generating shareholder returns. This combination can elevate interest burden, reduce financial flexibility, and pressure credit terms, undermining the capacity for sustained investment and growth.

Earnings deterioration

The swing from profit to loss and a negative EBIT margin reflects lasting operational or cost-structure issues. Continued earnings erosion depletes reserves, constrains reinvestment and dividends, and may force restructuring that could impair medium-term product and sales initiatives.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	3.30B	3.15B	3.52B	1.42B	1.79B	1.44B
Net Income	28.00M	-29.00M	3.22B	-1.10B	388.00M	950.00M
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	24.30B	24.52B	25.33B	26.60B	24.28B	16.68B
Total Liabilities	46.93B	46.92B	53.30B	53.45B	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	8.43B	-1.67B	-9.95B	-8.79B
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: Positive
• 200DMA: Positive
• MACD: Positive
• 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 below the 20-day moving average (MA) of 253.25, below the 50-day MA of 247.06, and below the 200-day MA of 236.96, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 63.17 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
7887	76 Outperform	¥10.63B	3.04	―	1.66%	8.56%	2690.35%
8130	76 Outperform	¥181.90B	11.81	―	4.91%	6.35%	14.05%
7955	75 Outperform	¥34.53B	3.81	―	3.56%	3.03%	160.39%
7981	72 Outperform	¥176.24B	8.20	―	3.41%	6.17%	61.39%
7898	66 Neutral	¥9.51B	3.19	―	2.65%	1.11%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7822	46 Neutral	¥10.92B	8.82	―	4.41%	2.78%	-88.37%