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ES-CON JAPAN Ltd. (JP:8892)
:8892
Japanese Market
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ES-CON JAPAN Ltd. (8892) AI Stock Analysis

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JP:8892

ES-CON JAPAN Ltd.

(8892)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
¥1,089.00
▼(-8.33% Downside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by elevated and rising leverage and historically uneven cash conversion, despite strong operating profitability. Technical indicators also point to weak momentum (negative MACD and price below key moving averages). Valuation helps offset these risks with a low P/E and an attractive dividend yield.
Positive Factors
Operating Profitability
Sustained high operating margins (EBIT ~22%) indicate the core development business earns above-sector returns on projects. Durable margins support internal funding of developments, resilience to cyclical revenue swings, and underpin long-term cash available for reinvestment and dividends.
Negative Factors
High and Rising Leverage
Materially higher leverage reduces financial flexibility and increases vulnerability to rate or demand shocks. With debt-to-equity near 4.6x, interest burden and covenant risk constrain capacity to finance new developments and amplify downside in a housing slowdown over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Profitability
Sustained high operating margins (EBIT ~22%) indicate the core development business earns above-sector returns on projects. Durable margins support internal funding of developments, resilience to cyclical revenue swings, and underpin long-term cash available for reinvestment and dividends.
Read all positive factors

ES-CON JAPAN Ltd. (8892) vs. iShares MSCI Japan ETF (EWJ)

ES-CON JAPAN Ltd. Business Overview & Revenue Model

Company Description
ES-CON JAPAN Ltd. engages in the condominium business in Japan. It operates through Condominium Business, Real Estate Development Business, Real Estate Leasing Business, Asset Management Business, and Other Business segments. The company plans, de...
How the Company Makes Money
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ES-CON JAPAN Ltd. Financial Statement Overview

Summary
Profitability is solid (2025 EBIT margin ~22%, net margin ~9%), but the balance sheet is a major constraint with materially rising leverage (debt-to-equity ~4.59x in 2025). Cash flow improved in 2025 (positive operating cash flow and free cash flow), yet remains historically volatile with multiple prior years of negative OCF/FCF, increasing risk given high debt.
Income Statement
71
Positive
Balance Sheet
34
Negative
Cash Flow
42
Neutral
BreakdownTTMMar 2026Mar 2025Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue129.47B137.03B113.60B95.09B99.43B79.02B
Gross Profit36.90B38.06B36.46B27.95B26.61B20.59B
EBITDA24.00B26.09B24.02B19.18B13.96B11.51B
Net Income10.52B12.19B11.19B9.83B5.64B5.96B
Balance Sheet
Total Assets506.71B509.77B459.85B370.27B263.73B252.77B
Cash, Cash Equivalents and Short-Term Investments39.07B42.25B46.80B48.91B35.72B33.67B
Total Debt383.78B369.77B336.39B293.79B169.06B163.04B
Total Liabilities424.96B423.65B381.16B299.80B199.58B190.14B
Stockholders Equity82.38B86.73B79.14B72.50B65.91B62.78B
Cash Flow
Free Cash Flow0.008.98B-29.57B-49.24B-532.00M-10.17B
Operating Cash Flow0.0010.36B-24.77B-49.24B1.50B-10.81B
Investing Cash Flow0.00-12.15B-15.83B-32.21B-1.62B-29.72B
Financing Cash Flow0.0017.74B38.01B83.19B2.14B50.29B

ES-CON JAPAN Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1188.00
Price Trends
50DMA
1089.70
Negative
100DMA
1105.75
Negative
200DMA
1080.29
Negative
Market Momentum
MACD
-6.59
Positive
RSI
41.19
Neutral
STOCH
32.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8892, the sentiment is Negative. The current price of 1188 is above the 20-day moving average (MA) of 1099.15, above the 50-day MA of 1089.70, and above the 200-day MA of 1080.29, indicating a bearish trend. The MACD of -6.59 indicates Positive momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 32.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8892.

ES-CON JAPAN Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥2.24T8.7912.68%3.96%0.89%28.16%
69
Neutral
¥16.05B10.583.75%0.19%-41.33%
63
Neutral
¥735.76B13.5810.23%2.92%8.14%64.67%
61
Neutral
¥831.73B7.9910.76%3.21%8.35%-9.58%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
¥102.15B9.774.20%15.51%1.53%
53
Neutral
¥89.09B72.664.17%-1.53%-17.93%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8892
ES-CON JAPAN Ltd.
1,075.00
117.18
12.23%
JP:1808
Haseko
2,759.00
434.50
18.69%
JP:1928
Sekisui House
3,427.00
241.04
7.57%
JP:1911
Sumitomo Forestry Co
1,347.00
-129.12
-8.75%
JP:1419
Tama Home Co., Ltd.
2,923.00
-655.12
-18.31%
JP:8917
First Juken Co., Ltd.
1,158.00
144.46
14.25%

ES-CON JAPAN Ltd. Corporate Events

ES-CON JAPAN Outlines Q1 2026 Results and Progress Toward 2030 Vision
Jul 28, 2026
ES-CON JAPAN released its financial results for the three months ended June 30, 2026, outlining performance, segment breakdowns, and progress under its 5th Medium-Term Management Plan. The report also highlights steps toward its Long-term Vision 2...
ES-CON JAPAN Swings to Quarterly Loss but Holds Profit and Dividend Outlook
Jul 28, 2026
ES-CON JAPAN reported a sharp downturn in its first-quarter results for the three months to June 30, 2026, with net sales falling 43% year on year to ¥10.0 billion and operating profit sliding 73% to ¥588 million. The company swung to an...
ES-CON JAPAN to Issue ¥15 Billion Unsecured Bond for Growth Strategy
Jul 10, 2026
ES-CON JAPAN Ltd. has set the terms for its 3rd series of unsecured corporate bonds, with a total issue amount of 15 billion yen and an annual coupon rate of 2.796%. The five-year bonds, maturing on July 16, 2031, include an early redemption optio...
ES-CON JAPAN outlines role under Chubu Electric control and safeguards for minority shareholders
Jun 25, 2026
ES-CON JAPAN has clarified its status as a consolidated subsidiary of Chubu Electric Power, which holds 51 percent of its voting rights, and emphasized that its autonomy as a listed company is maintained despite this controlling stake. The company...
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: Aug 04, 2026