ESLEAD CORPORATION (8877) AI Stock Analysis

• Market Cap: ¥105.39B
• Dividend Yield: 3.08%
• Average Volume (3M): 19.79K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.78
• Revenue Growth: -6.27%
• EPS Growth: -11.07%
• Country: JP
• Employees: 404
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 206.08
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥6,492.00 ▼(-3.25% Downside)

ESLEAD CORPORATION demonstrates strong financial performance with robust revenue growth and profitability, although it faces challenges in cash flow management and high leverage. The technical analysis indicates strong bullish momentum, supported by positive market indicators. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield, making it an appealing investment in the real estate services sector.

Positive Factors

Business Model Strength

The company's focus on software development and IT consulting provides a steady income stream, highlighting a strong and sustainable business model.

Profitability

Consistent improvement in EBIT margin and healthy profit margins indicate strong operational efficiency and effective cost management.

Strategic Partnerships

Collaborations with technology providers expand service offerings and create revenue-sharing opportunities, strengthening market position.

Negative Factors

High Leverage

High leverage can increase financial risk, especially during downturns, potentially impacting long-term financial stability.

Cash Flow Challenges

Negative free cash flow indicates inefficiencies in managing expenses or capital expenditures, which could constrain growth and operational flexibility.

Revenue Growth Decline

A decline in revenue growth suggests potential market challenges or competitive pressures, which could impact future profitability and market share.

ESLEAD CORPORATION Business Overview & Revenue Model

Company Description

Eslead Corporation develops and sells family-type and urban condominiums in Japan. The company also rebuilds and sells condominiums. In addition, it is involved in building and condominium management, real estate brokerage, detached house sales, power supply, hotel, and condominium and building cleaning businesses. The company was formerly known as Nihon Eslead Corporation and changed its name to Eslead Corporation in October 2019. The company was founded in 1992 and is headquartered in Osaka, Japan. Eslead Corporation is a subsidiary of Mori Trust Co., Ltd.

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

ESLEAD CORPORATION shows strong revenue and profit growth, with solid profitability metrics in the income statement. The balance sheet is stable but exhibits high leverage, which requires careful management. The cash flow statement reveals ongoing challenges in generating positive operating cash flow, indicating a need for strategic improvements in cash management. Overall, the company is on a growth trajectory but must address cash flow inefficiencies and manage leverage prudently.

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: 6710.00
• 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:8877, the sentiment is Positive. The current price of 6710 is above the 20-day moving average (MA) of 6636.00, above the 50-day MA of 6299.20, and above the 200-day MA of 5086.46, indicating a bullish trend. The MACD of 144.89 indicates Positive momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, 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	79 Outperform	¥105.39B	11.56	―	3.08%	-6.27%	-11.07%
3465	77 Outperform	¥105.24B	8.91	―	2.93%	20.83%	57.13%
8818	71 Outperform	¥90.74B	19.16	―	2.19%	4.72%	47.55%
2986	69 Neutral	¥69.13B	12.05	―	5.71%	8.07%	12.06%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	64 Neutral	¥80.95B	52.11	1.46%	1.18%	6.40%	230.12%
3252	62 Neutral	¥70.21B	16.78	―	2.89%	-3.09%	-35.66%

ESLEAD CORPORATION Corporate Events

ESLEAD Secures ¥30 Billion Syndicated Loan to Support Shift to Income-Focused Property Strategy

ESLEAD CORPORATION has signed a ¥30 billion committed syndicated loan agreement with several major Japanese banks, including Sumitomo Mitsui Banking Corporation as arranger, to secure long-term funding for its transition toward a business model focused on generating rental income and maximizing capital gains from held properties. The loan, collateralized by real estate and maturing in 2030, includes financial covenants requiring the company to maintain a minimum level of consolidated net assets and to avoid recording ordinary losses for two consecutive fiscal years, underscoring lenders’ emphasis on balance-sheet strength and earnings stability while the company executes its strategic shift, though ESLEAD currently sees no need to revise its earnings forecast for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:8877) stock is a Buy with a Yen6492.00 price target. To see the full list of analyst forecasts on ESLEAD CORPORATION stock, see the JP:8877 Stock Forecast page.

ESLEAD CORPORATION Announces Increased Dividends and Revised Forecast

ESLEAD CORPORATION announced an increase in its interim dividends and revised its year-end dividend forecast for the fiscal year ending March 2026. The company raised the forecast year-end dividend per share from ¥105 to ¥135, reflecting a significant year-on-year increase in profit and successful business land acquisitions. This decision aligns with its policy to increase shareholder returns in line with corporate value growth.

The most recent analyst rating on (JP:8877) stock is a Buy with a Yen6492.00 price target. To see the full list of analyst forecasts on ESLEAD CORPORATION stock, see the JP:8877 Stock Forecast page.

ESLEAD CORPORATION Reports Mixed Financial Results for First Half of 2025

ESLEAD CORPORATION reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 0.5% to ¥57,675 million compared to the previous year. Despite the increase in sales, the company experienced a decrease in ordinary profit and profit attributable to owners, indicating challenges in maintaining profitability. The company has revised its dividend forecast upwards, reflecting a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales and operating profit.

The most recent analyst rating on (JP:8877) stock is a Buy with a Yen6492.00 price target. To see the full list of analyst forecasts on ESLEAD CORPORATION stock, see the JP:8877 Stock Forecast page.