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ESLEAD CORPORATION (JP:8877)
:8877
Japanese Market
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ESLEAD CORPORATION (8877) AI Stock Analysis

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JP:8877

ESLEAD CORPORATION

(8877)

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Outperform 82 (OpenAI - 4o)
Rating:82Outperform
Price Target:
¥5,551.00
▼(-1.23% Downside)
The stock's valuation is the most significant strength, with a low P/E ratio and high dividend yield. Technical analysis indicates strong upward momentum, though caution is warranted due to overbought signals. Financial performance is solid, but the company should focus on reducing leverage and improving cash flow management.

ESLEAD CORPORATION (8877) vs. iShares MSCI Japan ETF (EWJ)

ESLEAD CORPORATION Business Overview & Revenue Model

Company DescriptionESLEAD CORPORATION (8877) is a prominent player in the technology and investment sectors, focusing on providing innovative digital solutions and strategic investments in various markets. The company specializes in software development, IT consulting, and system integration services, catering to a diverse range of industries. With a commitment to enhancing operational efficiency and driving digital transformation, ESLEAD aims to empower businesses through its cutting-edge products and solutions.
How the Company Makes MoneyESLEAD CORPORATION generates revenue primarily through its software development and IT consulting services. The company charges clients for bespoke software solutions and ongoing support, creating a steady stream of income. Additionally, ESLEAD engages in system integration projects, which involve the implementation of complex IT systems for businesses, further contributing to its revenue. Partnerships with technology providers and enterprises enhance their service offerings, allowing for revenue sharing and collaborative projects. Furthermore, the company may also invest in promising startups or technology firms, providing potential returns through equity stakes or profit-sharing agreements.

ESLEAD CORPORATION Financial Statement Overview

Summary
The company exhibits robust revenue and profit growth with solid profitability metrics in the income statement. However, high leverage on the balance sheet and cash flow inefficiencies highlight areas for improvement.
Income Statement
82
Very Positive
The company demonstrates strong revenue growth, with a CAGR in revenue over the past five years. Gross profit and net income margins have remained healthy, with the EBIT margin showing consistent improvement. However, the net profit margin has experienced modest fluctuations, indicating potential cost management issues.
Balance Sheet
75
Positive
The balance sheet reflects a stable equity base, with a moderate increase in stockholders' equity over the years. The debt-to-equity ratio is relatively high, signifying increased leverage, which could pose a risk in downturn periods. However, the equity ratio remains satisfactory, indicating a balanced asset structure.
Cash Flow
68
Positive
The company has faced challenges in generating positive operating cash flow, with consistent negative free cash flow over the years. This highlights potential inefficiencies in managing operating expenses or capital expenditures. However, financing activities have been robust, supporting liquidity needs despite operational cash shortfalls.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue84.49B94.77B80.29B79.91B74.60B69.00B
Gross Profit20.94B23.81B20.35B18.13B17.05B14.58B
EBITDA12.15B15.10B12.18B9.90B9.00B7.28B
Net Income7.25B9.33B7.52B6.15B5.43B4.51B
Balance Sheet
Total Assets232.96B227.03B168.95B135.87B114.32B104.88B
Cash, Cash Equivalents and Short-Term Investments30.94B31.24B16.24B26.55B27.72B31.85B
Total Debt147.57B140.88B86.63B62.35B44.63B37.45B
Total Liabilities158.03B153.57B102.08B74.90B58.62B53.74B
Stockholders Equity74.94B73.46B66.87B60.97B55.70B51.14B
Cash Flow
Free Cash Flow0.00-36.30B-32.80B-17.87B-10.36B-798.48M
Operating Cash Flow0.00-35.44B-32.21B-12.86B-9.37B-9.06M
Investing Cash Flow0.00-1.05B-603.22M-4.82B-1.06B-799.88M
Financing Cash Flow0.0051.34B22.51B16.71B6.41B12.99B

ESLEAD CORPORATION Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5620.00
Price Trends
50DMA
5236.00
Positive
100DMA
4855.08
Positive
200DMA
4540.19
Positive
Market Momentum
MACD
67.64
Negative
RSI
65.04
Neutral
STOCH
94.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8877, the sentiment is Positive. The current price of 5620 is above the 20-day moving average (MA) of 5395.75, above the 50-day MA of 5236.00, and above the 200-day MA of 4540.19, indicating a bullish trend. The MACD of 67.64 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 94.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8877.

ESLEAD CORPORATION Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥86.72B11.683.29%-18.65%-30.68%
76
Outperform
¥87.99B8.453.36%24.18%67.31%
70
Outperform
¥81.11B19.222.37%3.73%23.40%
66
Neutral
¥57.23B7.515.98%66.79%175.17%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
64
Neutral
€76.65B41.521.87%1.23%2.97%-62.10%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8877
ESLEAD CORPORATION
5,670.00
1,187.60
26.49%
JP:8841
TOC Co., Ltd.
815.00
216.07
36.08%
JP:2986
LA Holdings Co.,Ltd
7,640.00
3,258.04
74.35%
JP:3252
JINUSHI Co.,Ltd.
2,942.00
883.51
42.92%
JP:3465
KI-Star Real Estate Co., Ltd.
5,540.00
1,817.90
48.84%
JP:8818
Keihanshin Building Co., Ltd.
1,750.00
137.30
8.51%

ESLEAD CORPORATION Corporate Events

ESLEAD CORPORATION Reports Decline in Q1 2025 but Projects Recovery
Jul 31, 2025

ESLEAD CORPORATION reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales and profits showing a notable year-on-year decrease. Despite this downturn, the company has forecasted a positive outlook for the fiscal year ending March 31, 2026, expecting growth in net sales and profits, which could indicate a strategic recovery plan in place.

ESLEAD CORPORATION Approves Key Resolutions at Annual Meeting
Jun 27, 2025

ESLEAD CORPORATION held its 33rd Annual General Meeting of Shareholders, where all proposed resolutions were approved. Key decisions included amendments to the Articles of Incorporation to address business diversification, the election of eleven directors, and a revision of remuneration for directors, increasing the total amount to ¥500 million per year.

ESLEAD CORPORATION Announces Corrections to Financial Results and Director Changes
May 19, 2025

ESLEAD CORPORATION has issued corrections to its previously announced Consolidated Financial Results for the fiscal year ended March 31, 2025. The corrections pertain to numerical data errors in the summary information and changes in the schedule for director appointments. These adjustments may impact stakeholders’ understanding of the company’s financial performance and governance structure.

ESLEAD CORPORATION Releases FY2025 Financial Results
May 15, 2025

ESLEAD CORPORATION has released its financial results for the fiscal year ending March 2025, highlighting its consolidated financial statements and shareholder status. This announcement provides insights into the company’s financial health and its strategic positioning within the industry, impacting stakeholders’ understanding of its market performance.

ESLEAD CORPORATION Affirms Independence Amid Parent Company Ownership
May 9, 2025

ESLEAD CORPORATION announced its relationship with its parent company, Mori Trust Co., Ltd., which holds 53.9% of its voting rights. Despite this ownership, ESLEAD maintains operational independence, ensuring decisions are made in the interest of both the company and its minority shareholders. The company has implemented measures to protect minority shareholders, including the establishment of a special committee to review significant transactions that may affect shareholder interests.

ESLEAD CORPORATION Announces Increased Dividends Amid Strong Financial Outlook
May 9, 2025

ESLEAD CORPORATION announced an increase in its dividend per share to 100 yen, up from 95 yen, as part of its commitment to returning profits to shareholders. This decision reflects the company’s strong financial performance and its strategy to enhance shareholder value, with expectations of further growth in the fiscal year ending March 2026.

ESLEAD CORPORATION Reports Strong Financial Growth for FY 2025
May 9, 2025

ESLEAD CORPORATION reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 18% and operating profit by 25.1% compared to the previous year. The company’s robust performance reflects its strategic positioning in the real estate market, with an increased dividend payout signaling confidence in sustained growth, benefiting shareholders and enhancing its market presence.

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: Jul 15, 2025