ES-CON JAPAN Ltd. (8892) AI Stock Analysis

• Market Cap: ¥99.01B
• Dividend Yield: 4.57%
• Average Volume (3M): 165.48K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.57
• Revenue Growth: 18.25%
• EPS Growth: 19.09%
• Country: JP
• Employees: 442
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 9.98
• Shares Outstanding: 98,580,890
• 10 Day Avg. Volume: 176,440
• 30 Day Avg. Volume: 165,476
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥1,103.00 ▲(4.95% Upside)

The overall stock score of 67 reflects a balance between strong valuation metrics and financial performance concerns. The company's low P/E ratio and high dividend yield are significant positives, suggesting potential undervaluation. However, high leverage and negative cash flow present financial risks that need addressing. Technical indicators show a neutral to slightly bearish trend, adding caution to the outlook.

ES-CON JAPAN Ltd. Business Overview & Revenue Model

Company Description

ES-CON JAPAN Ltd. engages in the real estate development business in Japan. It develops and sells condominiums and detached houses; commercial and logistics facility/large-scale/mixed-use developments; and hotels. The company also offers real estate investment advisory, real estate leasing and planning, brokerage, consulting, and renovation services. In addition, it provides commercial facility/property management and condominium management/operation/residence services. ES-CON JAPAN Ltd. was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ES-CON JAPAN Ltd. generates revenue through the development and sale of real estate properties, primarily focusing on condominiums and residential complexes. The company earns money by acquiring land, developing it into residential or commercial properties, and then selling these properties to individuals and businesses. In addition to direct sales, ES-CON JAPAN may also engage in leasing activities, providing rental income. Partnerships with construction firms, architects, and real estate agencies are significant to its operations, enabling the company to efficiently manage and market its projects, contributing to its overall earnings.

ES-CON JAPAN Ltd. Financial Statement Overview

Summary

ES-CON JAPAN Ltd. demonstrates strong revenue growth and operational efficiency with robust EBIT and EBITDA margins. However, high leverage and negative cash flow indicate financial vulnerabilities that require careful management. The company is effectively generating returns on equity, but focusing on margin improvement and cash flow stabilization will be crucial for long-term sustainability.

Income Statement

ES-CON JAPAN Ltd. shows a solid gross profit margin of 32.1% for 2025, indicating efficient cost management. The company has demonstrated a robust revenue growth rate of 19.5% from 2023 to 2025. However, the net profit margin is moderate at 9.9%, suggesting room for improvement in bottom-line profitability. The EBIT margin of 18.8% and EBITDA margin of 21.1% reflect strong operational performance. Overall, the income statement indicates healthy revenue growth and operational efficiency, though margin optimization is needed.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.25, pointing to significant leverage which could pose a risk if not managed properly. The equity ratio stands at 17.2%, suggesting that a substantial portion of the assets is financed through debt. Return on equity is strong at 14.1%, indicating effective use of equity to generate profits. While the company's returns are attractive, the high leverage remains a concern.

Cash Flow

Cash flow analysis shows negative free cash flow of -29.6 billion yen in 2025, reflecting significant capital outlay and potentially aggressive expansion strategies. The operating cash flow to net income ratio is negative, highlighting challenges in converting profits into cash. The free cash flow to net income ratio is also negative. The cash flow position suggests potential liquidity challenges that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.09B	113.60B	95.09B	99.43B	79.02B	77.31B
Gross Profit	27.41B	36.46B	27.95B	26.61B	20.59B	19.68B
EBITDA	17.65B	24.02B	19.18B	13.96B	11.51B	12.71B
Net Income	8.04B	11.19B	9.83B	5.64B	5.96B	7.66B
Balance Sheet
Total Assets	399.70B	459.85B	370.27B	263.73B	252.77B	149.42B
Cash, Cash Equivalents and Short-Term Investments	48.91B	46.80B	37.60B	35.72B	33.67B	23.87B
Total Debt	293.79B	336.39B	262.86B	169.06B	163.04B	98.50B
Total Liabilities	328.99B	381.16B	299.80B	199.59B	190.15B	110.80B
Stockholders Equity	72.50B	79.14B	72.13B	65.91B	62.78B	38.59B
Cash Flow
Free Cash Flow	-15.98B	-29.57B	-49.24B	-532.00M	-10.17B	-2.31B
Operating Cash Flow	-15.87B	-24.77B	-49.24B	1.50B	-10.81B	119.00M
Investing Cash Flow	-6.00M	-15.83B	-32.21B	-1.62B	-29.72B	-9.73B
Financing Cash Flow	31.00B	38.01B	83.19B	2.14B	50.29B	11.01B

ES-CON JAPAN Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1051.00
• 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:8892, the sentiment is Positive. The current price of 1051 is above the 20-day moving average (MA) of 1025.95, above the 50-day MA of 1023.78, and above the 200-day MA of 1001.28, indicating a bullish trend. The MACD of 3.78 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 87.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8892.

ES-CON JAPAN Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8917	74 Outperform	¥16.33B	6.13	―	3.67%	5.76%	99.51%
8892	67 Neutral	¥99.01B	9.54	―	4.57%	18.25%	19.09%
1420	67 Neutral	¥7.83B	7.14	―	3.53%	6.24%	39.37%
3284	66 Neutral	¥51.79B	8.75	―	5.28%	13.04%	44.63%
1873	62 Neutral	¥12.16B	34.54	―	3.59%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥104.18B	87.19	―	5.35%	-16.48%	-77.63%

ES-CON JAPAN Ltd. Corporate Events

ES-CON JAPAN Extends Syndicated Loan Term Amid Project Schedule Revision

ES-CON JAPAN Ltd. has announced an extension of the borrowing term for a syndicated loan from September 2025 to March 2026. This decision was made to accommodate a revised project schedule, and the company plans to refinance the loan with long-term financing before the new maturity date. The extension does not affect the company’s full-year performance forecast for the fiscal year ending March 2026.

The most recent analyst rating on (JP:8892) stock is a Hold with a Yen1094.00 price target. To see the full list of analyst forecasts on ES-CON JAPAN Ltd. stock, see the JP:8892 Stock Forecast page.

ES-CON JAPAN Announces Corrections to Q1 2026 Financial Results

ES-CON JAPAN Ltd. announced corrections to its previously disclosed financial results for the first quarter of fiscal year 2026. The corrections pertain to errors found in the business performance trends graph, specifically in figures for ordinary income and sales. This announcement may impact stakeholders’ perception of the company’s financial transparency and accuracy.

ES-CON JAPAN Ltd. Reports Decline in Q1 Financial Performance

ES-CON JAPAN Ltd. reported a decline in its financial performance for the first quarter of the fiscal year ending March 2026, with significant decreases in net sales, operating income, and profit attributable to owners of the parent compared to the previous year. The company also noted a decrease in its equity ratio and book value per share, indicating a challenging financial environment. Despite these challenges, the company has maintained its dividend forecast for the fiscal year and has included Shiba Real Estate Inc. in its scope of consolidation, which may impact its future financial results.