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

• Market Cap: ¥2.30B
• Dividend Yield: 2.96%
• Average Volume (3M): 1.25K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.18
• Revenue Growth: -2.99%
• EPS Growth: 42.90%
• Country: JP
• Employees: 493
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 55.28
• Shares Outstanding: 1,460,000
• 10 Day Avg. Volume: 880
• 30 Day Avg. Volume: 1,246
• 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: ¥1,784.00
• Price Target Upside: 5.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,784.00 ▲(5.69% Upside)

Eidai Kako Co., Ltd. achieves a strong overall stock score driven by robust financial performance and attractive valuation. The company's solid cash flow management and low leverage enhance its financial flexibility. Technical indicators support a positive trend, although revenue growth remains a challenge.

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 plastic products. The company operates within the industrial sector and is known for its diverse range of products, including automotive parts, construction materials, and industrial components. Eidai Kako focuses on innovation and quality, catering to a wide array of industries by providing custom solutions and advanced plastic technologies.

How the Company Makes Money

Eidai Kako Co., Ltd. generates revenue primarily through the sale of its plastic products. The company's key revenue streams include manufacturing automotive parts, which are supplied to major car manufacturers, and producing construction materials used in various building projects. Additionally, the company provides industrial components to different sectors, enhancing its market presence. Eidai Kako may also engage in strategic partnerships with other firms to expand its product offerings and access new markets, contributing to its overall earnings. The company's focus on quality and innovation ensures a strong competitive position, allowing it to maintain steady revenue growth.

Eidai Kako Co., Ltd. Financial Statement Overview

Summary

Eidai Kako Co., Ltd. demonstrates a solid financial performance with strengths in profitability recovery and cash flow management. The balance sheet remains robust, supported by low leverage and high equity levels. However, the company faces challenges in achieving revenue growth, which may 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	8.86B	8.86B	9.09B	8.30B	8.29B	7.70B
Gross Profit	1.92B	1.92B	1.80B	1.42B	1.78B	1.77B
EBITDA	607.17M	607.17M	561.74M	35.16M	539.91M	515.00M
Net Income	184.92M	185.23M	179.66M	-238.25M	160.53M	161.71M
Balance Sheet
Total Assets	9.85B	9.85B	9.58B	9.67B	9.76B	9.59B
Cash, Cash Equivalents and Short-Term Investments	2.38B	2.38B	1.70B	1.70B	1.63B	2.33B
Total Debt	1.12B	1.12B	1.11B	1.33B	669.45M	826.10M
Total Liabilities	2.65B	2.65B	2.58B	2.94B	2.76B	2.69B
Stockholders Equity	7.20B	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: 1688.00
• 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 1688 is above the 20-day moving average (MA) of 1674.30, above the 50-day MA of 1611.06, and above the 200-day MA of 1512.07, indicating a bullish trend. The MACD of 27.77 indicates Positive momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.40 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
4361	76 Outperform	¥1.84B	6.59		3.31%	3.87%	-15.14%
7877	75 Outperform	¥2.30B	10.55		2.96%	-2.99%	42.90%
4243	75 Outperform	¥1.92B	9.85		2.42%	-1.69%	44.67%
4247	74 Outperform	¥3.27B	26.31		3.04%	-1.03%	-30.75%
4120	71 Outperform	¥2.97B	9.95		3.23%	-0.88%	-40.19%
4616	65 Neutral	¥2.04B	20.36		1.46%	-5.28%	-45.77%
Sector *	62 Neutral	$10.27B	6.37	0.76%	2.91%	3.10%	-36.03%

Eidai Kako Co., Ltd. Corporate Events

Eidai Kako Co., Ltd. Reports Increased Operating Profit Amidst Decline in Net Sales

Eidai Kako Co., Ltd. reported a slight decline in net sales by 2.5% to 8,857 million yen for the fiscal year ending March 2025. However, the company saw a significant increase in operating profit by 95.3% to 290 million yen, indicating improved operational efficiency. The company’s financial position remains strong with a capital adequacy ratio of 73.1% and increased net assets. Cash flows from operating activities also improved significantly, suggesting better cash management.