Eidai Kako Co., Ltd. (7877) AI Stock Analysis

• Market Cap: ¥2.34B
• Dividend Yield: 2.9%
• Average Volume (3M): 776.00
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.16
• Revenue Growth: -1.81%
• EPS Growth: 144.79%
• Country: JP
• Employees: 493
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 56.61
• Shares Outstanding: 1,460,000
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 776
• PEG Ratio: 2.38
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 2.70
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,902.00 ▲(9.12% Upside)

Eidai Kako Co., Ltd. scores well due to its strong financial performance, particularly in cash flow management and profitability recovery. The valuation is attractive with a fair P/E ratio and a good dividend yield. However, technical indicators suggest some short-term weakness, which slightly tempers the overall score.

Positive Factors

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Operational Efficiency

Improved operational efficiency boosts profitability, enabling better resource allocation and competitiveness in the market.

Balance Sheet Strength

A strong balance sheet with low leverage provides stability and the capacity to invest in strategic initiatives without excessive risk.

Negative Factors

Revenue Decline

Declining revenue can hinder long-term growth prospects, impacting the company's ability to expand and maintain market share.

Modest Return on Equity

A modest ROE indicates limited efficiency in generating profits from shareholders' equity, potentially affecting investor confidence and capital attraction.

Challenging Revenue Growth

Challenges in revenue growth can limit the company's ability to scale operations and enhance profitability, affecting long-term strategic goals.

Eidai Kako Co., Ltd. Business Overview & Revenue Model

Company Description

Eidai Kako Co., Ltd. (7877) is a Japanese company specializing in the manufacturing and sale of advanced industrial materials and products. Primarily focused on sectors such as the automotive, electronics, and construction industries, the company offers a diverse range of products including precision mechanical components, synthetic resins, and other specialized materials. With a strong emphasis on innovation and quality, Eidai Kako positions itself as a key player in driving technological advancements across these sectors.

How the Company Makes Money

Eidai Kako generates revenue through the production and sale of its industrial materials and components to various industries. The company's revenue model is primarily based on direct sales to manufacturers in sectors such as automotive and electronics, as well as through long-term contracts with major clients. Key revenue streams include the sale of precision parts, customized solutions tailored to client specifications, and recurring orders from established partnerships. Additionally, strategic collaborations with technology firms and investments in research and development contribute to the company's growth and profitability by enabling the introduction of new products that meet evolving market demands.

Eidai Kako Co., Ltd. Financial Statement Overview

Summary

Eidai Kako Co., Ltd. demonstrates solid financial performance with strong cash flow management and profitability recovery. The balance sheet is robust with low leverage and high equity levels. However, challenges in revenue growth could impact future profitability.

Income Statement

Eidai Kako Co., Ltd. shows a solid gross profit margin of approximately 21.7% in 2025, indicating efficient cost management. The net profit margin improved to 2.1% from previous periods, reflecting a return to profitability. However, revenue has shown a declining trend by 2.5% from 2024 to 2025, and the EBIT margin, though positive, remains modest at 3.3%. Overall, the company demonstrates profitability recovery but faces challenges in revenue growth.

Balance Sheet

The company's balance sheet appears strong with a low debt-to-equity ratio of 0.16, indicating conservative leverage usage. The equity ratio is high at 73.1%, suggesting a solid asset base funded by equity. Return on equity stands at 2.6%, which is an improvement but still modest. The company maintains a healthy financial position with significant equity, though ROE could be improved further.

Cash Flow

Eidai Kako Co., Ltd. exhibits robust cash flow management with a significant free cash flow growth rate of 334% from 2024 to 2025, driven by increased operating cash flow. The operating cash flow to net income ratio is 4.79, reflecting strong cash generation relative to earnings. The free cash flow to net income ratio of 3.95 further supports efficient cash utilization. Overall, the cash flow position is strong, significantly enhancing financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.91B	8.86B	9.09B	8.30B	8.29B	7.70B
Gross Profit	2.06B	1.92B	1.80B	1.42B	1.78B	1.77B
EBITDA	705.17M	607.17M	561.74M	35.16M	539.91M	515.00M
Net Income	209.35M	185.23M	179.66M	-238.25M	160.53M	161.71M
Balance Sheet
Total Assets	9.59B	9.85B	9.58B	9.67B	9.76B	9.59B
Cash, Cash Equivalents and Short-Term Investments	2.06B	2.38B	1.70B	1.70B	1.63B	2.33B
Total Debt	1.06B	1.12B	1.11B	1.33B	669.45M	826.10M
Total Liabilities	2.45B	2.65B	2.58B	2.94B	2.76B	2.69B
Stockholders Equity	7.14B	7.20B	7.00B	6.72B	7.00B	6.89B
Cash Flow
Free Cash Flow	0.00	731.40M	168.44M	-504.27M	-342.43M	430.50M
Operating Cash Flow	0.00	888.54M	402.77M	-69.69M	-57.81M	598.94M
Investing Cash Flow	0.00	-152.16M	-160.83M	-425.93M	-398.97M	-197.57M
Financing Cash Flow	0.00	-84.88M	-280.95M	519.03M	-287.10M	-217.56M

Eidai Kako Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1743.00
• 50DMA: Positive
• 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:7877, the sentiment is Positive. The current price of 1743 is above the 20-day moving average (MA) of 1725.40, above the 50-day MA of 1717.88, and above the 200-day MA of 1594.22, indicating a bullish trend. The MACD of 4.24 indicates Positive momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 57.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7877.

Eidai Kako Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4243	80 Outperform	¥1.86B	9.60	―	2.54%	0.37%	6.53%
4361	79 Outperform	¥1.95B	8.11	―	4.15%	-0.77%	-29.54%
4247	75 Outperform	¥3.28B	26.10	―	3.05%	7.64%	37.45%
7877	74 Outperform	¥2.34B	10.74	―	2.90%	-1.81%	144.79%
4120	71 Outperform	¥3.13B	10.52	―	3.06%	1.14%	50.47%
4616	71 Outperform	¥2.11B	17.56	―	2.08%	-2.27%	-12.76%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%