Estelle Holdings Co., Ltd. (7872) AI Stock Analysis

• Market Cap: ¥6.21B
• Dividend Yield: 4.62%
• Average Volume (3M): 5.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -1.15%
• EPS Growth: 47.80%
• Country: JP
• Employees: 2,642
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Luxury Goods
• EPS (TTM): -59.27
• Shares Outstanding: 11,459,223
• 10 Day Avg. Volume: 7,360
• 30 Day Avg. Volume: 5,753
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥594.00
• Price Target Upside: 1.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥594.00 ▲(1.54% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and high leverage. Positive technical indicators provide some support, but valuation concerns due to a negative P/E ratio weigh on the score. The high dividend yield is a mitigating factor.

Estelle Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Estelle Holdings Co., Ltd. (7872) is a Japan-based company primarily engaged in the manufacturing and sale of precision components. The company specializes in producing high-quality optical components, which are integral to various industries including telecommunications, consumer electronics, and automotive sectors. Estelle Holdings leverages advanced technology to deliver innovative products that meet the evolving needs of its clients.

How the Company Makes Money

Estelle Holdings Co., Ltd. generates revenue through the sale of its precision optical components to a diverse range of industries. The company’s key revenue streams include direct sales to manufacturers in the telecommunications, consumer electronics, and automotive sectors, who utilize these components in their products. Estelle Holdings also engages in strategic partnerships and collaborations that enhance its market reach and product offerings, contributing to its earnings. Additionally, the company may benefit from long-term contracts and agreements with major clients, providing a stable income stream. Factors such as technological advancements and the growing demand for advanced optics in various applications further drive the company's revenue growth.

Estelle Holdings Co., Ltd. Financial Statement Overview

Summary

Estelle Holdings faces significant financial challenges with declining revenues, negative profitability, and cash flow concerns. The balance sheet is relatively stable, but operational inefficiencies and cash flow issues are alarming.

Income Statement

Estelle Holdings has experienced declining revenue over the past year, with a significant drop in net income resulting in negative net profit margins. The gross profit margin is stable but low compared to industry standards. EBIT and EBITDA margins indicate operational challenges. Revenue growth rate has been negative, reflecting a concerning downward trend in sales.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating potential leverage risks, though not excessively high. The equity ratio suggests a balanced capital structure. However, negative return on equity highlights profitability challenges, raising concerns about shareholder returns.

Cash Flow

Cash flow analysis reveals a troubling picture, with negative free cash flow and declining operating cash flow. The free cash flow to net income ratio is negative, underscoring cash generation issues. The operating cash flow to net income ratio reflects inefficient cash conversion, posing liquidity risks.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.46B	31.27B	31.70B	29.63B	29.98B	27.96B
Gross Profit	17.53B	17.53B	17.59B	17.13B	17.41B	16.73B
EBITDA	408.00M	248.00M	538.00M	546.00M	882.00M	617.00M
Net Income	-714.00M	-345.00M	-979.00M	100.00M	73.00M	306.00M
Balance Sheet
Total Assets	31.31B	29.87B	32.03B	33.84B	34.58B	33.77B
Cash, Cash Equivalents and Short-Term Investments	5.86B	5.11B	6.41B	6.65B	8.62B	8.38B
Total Debt	10.69B	9.60B	10.38B	10.71B	10.90B	10.11B
Total Liabilities	19.30B	17.63B	19.40B	19.86B	20.59B	19.67B
Stockholders Equity	11.72B	11.91B	12.40B	13.76B	13.81B	13.96B
Cash Flow
Free Cash Flow	0.00	-344.00M	402.00M	-1.62B	-399.00M	-435.00M
Operating Cash Flow	0.00	118.00M	984.00M	-1.15B	34.00M	131.00M
Investing Cash Flow	0.00	-244.00M	-546.00M	-383.00M	-349.00M	-500.00M
Financing Cash Flow	0.00	-1.06B	-711.00M	-472.00M	499.00M	-190.00M

Estelle Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7872, the sentiment is Positive. The current price of 585 is above the 20-day moving average (MA) of 578.15, above the 50-day MA of 573.98, and above the 200-day MA of 577.60, indicating a bullish trend. The MACD of 3.21 indicates Negative momentum. The RSI at 74.09 is Negative, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7872.

Estelle Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	73 Outperform	¥9.71B	20.11		5.50%	3.88%	0.84%
7638	71 Outperform	¥26.38B	12.69		0.60%	31.02%	76.65%
Sector *	67 Neutral	¥277.48B	14.88	6.81%	2.50%	5.07%	-22.68%
2736	65 Neutral	¥2.46B	12.93		1.02%	5.68%	-60.91%
8139	59 Neutral	¥25.30B	77.89		0.61%	2.98%	-42.40%
7872	56 Neutral	¥6.21B	―		4.62%	-1.15%	47.80%
7810	54 Neutral	¥2.71B	37.41		0.22%	7.20%	34.29%