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

• Market Cap: ¥6.36B
• Dividend Yield: 4.52%
• Average Volume (3M): 6.04K
• 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: 81
• Industry: Luxury Goods
• EPS (TTM): -59.36
• Shares Outstanding: 11,459,223
• 10 Day Avg. Volume: 5,630
• 30 Day Avg. Volume: 6,036
• 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: ¥594.00
• Price Target Upside: -0.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥594.00 ▼(-0.67% Downside)

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.

Positive Factors

Market Diversification

Diversification across telecommunications, consumer electronics, and automotive sectors reduces dependency on a single market, enhancing resilience against sector-specific downturns.

Technological Advancements

By focusing on technological innovation, Estelle Holdings can maintain competitive advantages and meet evolving client needs, supporting long-term growth and market relevance.

Stable Equity Position

A stable equity position provides a solid foundation for financial health, offering protection against financial volatility and enabling potential future investments.

Negative Factors

Declining Revenue

Consistent revenue decline indicates challenges in market demand or competitive positioning, potentially impacting long-term financial sustainability and growth prospects.

Negative Cash Flow

Negative cash flow growth indicates challenges in converting earnings into cash, which can hinder reinvestment opportunities and affect operational liquidity over time.

High Leverage

High leverage can strain financial resources, limit operational flexibility, and increase vulnerability to economic downturns, potentially affecting long-term stability.

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 Co., Ltd. faces significant financial challenges, reflected in declining revenues, negative net income, and inconsistent cash flows. The company has a stable equity position but is burdened by high leverage, which could pose risks if profitability does not improve.

Income Statement

The income statement shows a declining trend in revenue from 2020 to 2025, with a notable decrease in net income, resulting in a negative net profit margin in recent years. Gross profit margin remains relatively stable, but EBIT and EBITDA margins are low, indicating operational challenges. The revenue growth rate has been negative, reflecting a challenging market environment.

Balance Sheet

The balance sheet indicates a stable equity ratio, with stockholders' equity consistently representing a significant portion of total assets. However, the debt-to-equity ratio is relatively high, suggesting potential leverage risks. Return on equity has been negative in recent years due to net losses, which is a concern for profitability.

Cash Flow

Cash flow analysis reveals fluctuating free cash flow, with recent periods showing negative free cash flow growth. Operating cash flow to net income ratio is inconsistent, reflecting volatility in cash generation relative to earnings. The free cash flow to net income ratio is also negative, indicating challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.27B	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	506.00M	248.00M	538.00M	546.00M	882.00M	617.00M
Net Income	-346.00M	-345.00M	-979.00M	100.00M	73.00M	306.00M
Balance Sheet
Total Assets	29.87B	29.87B	32.03B	33.84B	34.58B	33.77B
Cash, Cash Equivalents and Short-Term Investments	5.11B	5.11B	6.41B	6.65B	8.62B	8.38B
Total Debt	9.60B	9.60B	10.38B	10.71B	10.90B	10.11B
Total Liabilities	17.63B	17.63B	19.40B	19.86B	20.59B	19.67B
Stockholders Equity	11.91B	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: 598.00
• 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 598 is above the 20-day moving average (MA) of 591.20, above the 50-day MA of 582.54, and above the 200-day MA of 578.71, indicating a bullish trend. The MACD of 4.42 indicates Negative momentum. The RSI at 72.77 is Negative, neither overbought nor oversold. The STOCH value of 84.18 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	72 Outperform	¥9.99B	20.67		5.36%	3.88%	0.84%
7638	71 Outperform	¥27.51B	13.23		0.58%	38.13%	94.39%
2736	62 Neutral	¥2.18B	11.45		1.15%	5.68%	-60.91%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
8139	59 Neutral	¥26.07B	80.25		0.59%	2.98%	-42.40%
7872	56 Neutral	¥6.36B	―		4.52%	-1.15%	47.80%
7810	54 Neutral	¥2.76B	37.41		0.22%	7.20%	34.29%