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Eidai Kako Co., Ltd. (JP:7877)
:7877
Japanese Market

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

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JP:7877

Eidai Kako Co., Ltd.

(7877)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥2,160.00
▲(20.00% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid financial performance (strong cash flow and low leverage) and attractive valuation (low P/E with a dividend). These positives are tempered by technical overbought conditions (very high RSI and elevated Stoch), which raise near-term downside risk, and by declining revenue growth.
Positive Factors
Strong cash generation
A 334% FCF growth and an OCF-to-net-income ratio of 4.79 indicate durable cash conversion. Strong, recurring cash generation enhances financial flexibility for capex, dividends, or debt reduction, and provides a buffer through industry cycles, supporting long-term stability.
Negative Factors
Declining revenue trend
A 2.5% year-on-year revenue decline signals demand or market-share pressure in its specialty plastics markets. Persistent top-line contraction constrains operating leverage, limits reinvestment capacity, and makes sustaining margin gains and cash flow growth harder over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
A 334% FCF growth and an OCF-to-net-income ratio of 4.79 indicate durable cash conversion. Strong, recurring cash generation enhances financial flexibility for capex, dividends, or debt reduction, and provides a buffer through industry cycles, supporting long-term stability.
Read all positive factors

Eidai Kako Co., Ltd. (7877) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Eidai Kako Co.,Ltd. manufactures and sells synthetic resin sheets and molded products. The company offers synthetic resin deformed molded products, including interior/exterior parts for home appliances, building materials for homes, and office fur...
How the Company Makes Money
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Eidai Kako Co., Ltd. Financial Statement Overview

Summary
Financials are solid overall: strong cash flow (free cash flow growth of 334% and high cash conversion vs. net income) and a conservative balance sheet (debt-to-equity 0.16, equity ratio 73.1%). Offsetting factors include modest profitability (net margin 2.1%, EBIT margin 3.3%) and a 2.5% revenue decline from 2024 to 2025.
Income Statement
70
Positive
Balance Sheet
75
Positive
Cash Flow
85
Very Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue8.91B8.86B9.09B8.30B8.29B7.70B
Gross Profit2.06B1.92B1.80B1.42B1.78B1.77B
EBITDA705.17M607.17M561.74M35.16M539.91M515.00M
Net Income209.35M185.23M179.66M-238.25M160.53M161.71M
Balance Sheet
Total Assets9.59B9.85B9.58B9.67B9.76B9.59B
Cash, Cash Equivalents and Short-Term Investments2.06B2.38B1.70B1.70B1.63B2.33B
Total Debt1.06B1.12B1.11B1.33B669.45M826.10M
Total Liabilities2.45B2.65B2.58B2.94B2.76B2.69B
Stockholders Equity7.14B7.20B7.00B6.72B7.00B6.89B
Cash Flow
Free Cash Flow0.00731.40M168.44M-504.27M-342.43M430.50M
Operating Cash Flow0.00888.54M402.77M-69.69M-57.81M598.94M
Investing Cash Flow0.00-152.16M-160.83M-425.93M-398.97M-197.57M
Financing Cash Flow0.00-84.88M-280.95M519.03M-287.10M-217.56M

Eidai Kako Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1800.00
Price Trends
50DMA
1999.36
Negative
100DMA
1857.08
Positive
200DMA
1726.40
Positive
Market Momentum
MACD
-16.90
Negative
RSI
50.80
Neutral
STOCH
40.86
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 1800 is below the 20-day moving average (MA) of 1951.95, below the 50-day MA of 1999.36, and above the 200-day MA of 1726.40, indicating a neutral trend. The MACD of -16.90 indicates Negative momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 40.86 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥8.97B8.042.51%2.26%51.04%
73
Outperform
¥2.70B4.272.85%-1.81%144.79%
66
Neutral
¥5.72B6.391.39%2.67%37.55%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
¥6.56B7.933.50%-8.27%-3.23%
51
Neutral
¥1.90B29.112.34%-2.27%-12.76%
44
Neutral
¥4.36B-15.178.66%-239.07%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7877
Eidai Kako Co., Ltd.
1,937.00
480.44
32.98%
JP:4615
Shinto Paint Co., Ltd.
128.00
7.00
5.79%
JP:4616
Kawakami Paint Manufacturing Co., Ltd.
1,901.00
341.51
21.90%
JP:4623
Asahipen Corporation
1,732.00
41.66
2.46%
JP:4624
Isamu Paint Co., Ltd.
3,800.00
746.91
24.46%
JP:4629
Daishin Chemical Co., Ltd.
2,109.00
803.77
61.58%

Eidai Kako Co., Ltd. Corporate Events

Eidai Kako Posts Strong Profit Growth on Modest Sales Rise, Maintains Solid Balance Sheet
Feb 12, 2026
Eidai Kako Co., Ltd. reported consolidated net sales of ¥6,949 million for the third quarter ended December 2025, a 3.4% year-on-year increase, with operating profit surging 85.6% to ¥398 million and profit attributable to owners of pare...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026