ESLEAD CORPORATION (8877) AI Stock Analysis

• Market Cap: ¥86.72B
• Dividend Yield: 3.29%
• Average Volume (3M): 19.79K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.80
• Revenue Growth: -18.65%
• EPS Growth: -30.68%
• Country: JP
• Employees: 404
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 195.02
• Shares Outstanding: 15,465,600
• 10 Day Avg. Volume: 19,110
• 30 Day Avg. Volume: 19,793
• PEG Ratio: 0.28
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -1.76
• 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

• Rating: 82 Outperform
• 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 Business Overview & Revenue Model

Company Description

ESLEAD 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 Money

ESLEAD 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.49B	94.77B	80.29B	79.91B	74.60B	69.00B
Gross Profit	20.94B	23.81B	20.35B	18.13B	17.05B	14.58B
EBITDA	12.15B	15.10B	12.18B	9.90B	9.00B	7.28B
Net Income	7.25B	9.33B	7.52B	6.15B	5.43B	4.51B
Balance Sheet
Total Assets	232.96B	227.03B	168.95B	135.87B	114.32B	104.88B
Cash, Cash Equivalents and Short-Term Investments	30.94B	31.24B	16.24B	26.55B	27.72B	31.85B
Total Debt	147.57B	140.88B	86.63B	62.35B	44.63B	37.45B
Total Liabilities	158.03B	153.57B	102.08B	74.90B	58.62B	53.74B
Stockholders Equity	74.94B	73.46B	66.87B	60.97B	55.70B	51.14B
Cash Flow
Free Cash Flow	0.00	-36.30B	-32.80B	-17.87B	-10.36B	-798.48M
Operating Cash Flow	0.00	-35.44B	-32.21B	-12.86B	-9.37B	-9.06M
Investing Cash Flow	0.00	-1.05B	-603.22M	-4.82B	-1.06B	-799.88M
Financing Cash Flow	0.00	51.34B	22.51B	16.71B	6.41B	12.99B

ESLEAD CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5620.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	82 Outperform	¥86.72B	11.68	―	3.29%	-18.65%	-30.68%
3465	76 Outperform	¥87.99B	8.45	―	3.36%	24.18%	67.31%
8818	70 Outperform	¥81.11B	19.22	―	2.37%	3.73%	23.40%
2986	66 Neutral	¥57.23B	7.51	―	5.98%	66.79%	175.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	€76.65B	41.52	1.87%	1.23%	2.97%	-62.10%

ESLEAD CORPORATION Corporate Events

ESLEAD CORPORATION Reports Decline in Q1 2025 but Projects Recovery

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

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

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

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

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

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

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.