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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)

Rating:69Neutral
Price Target:
¥1,080.00
▲(5.16%Upside)
ES-CON JAPAN Ltd. scores a 69, driven primarily by its strong valuation metrics, including a low P/E ratio and high dividend yield, which make it attractive for value investors. However, financial performance concerns, such as high leverage and negative cash flow, temper the outlook. Technical indicators suggest cautious trading sentiment, with mixed signals pointing to potential short-term volatility.

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

ES-CON JAPAN Ltd. Business Overview & Revenue Model

Company DescriptionES-CON JAPAN Ltd. (8892) is a real estate company based in Japan, engaged primarily in the development and sale of residential and commercial properties. The company operates in various sectors of the real estate industry, including the planning, design, and sale of condominiums, as well as the development and leasing of office buildings and commercial facilities. ES-CON JAPAN is dedicated to creating value through innovative real estate solutions and urban development projects.
How the Company Makes MoneyES-CON JAPAN Ltd. generates revenue through several key streams within the real estate industry. The primary source of income is the sale of developed residential properties, particularly condominiums, which are designed and marketed to meet the demands of urban living. Additionally, the company earns revenue from leasing commercial properties, including office spaces and retail facilities, which provide a steady stream of rental income. ES-CON JAPAN may also engage in real estate investment activities, acquiring properties for the purpose of redevelopment or resale. Strategic partnerships with construction firms, architects, and urban planners are crucial in optimizing project execution, thereby enhancing profitability. The company's earnings are further influenced by market trends, property valuations, and economic conditions in the regions where it operates.

ES-CON JAPAN Ltd. Financial Statement Overview

Summary
ES-CON JAPAN Ltd. exhibits 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. While the company is effectively generating returns on equity, focusing on margin improvement and cash flow stabilization will be crucial for long-term sustainability.
Income Statement
75
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownMar 2025Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue113.60B95.09B99.43B79.02B77.31B
Gross Profit36.46B27.95B26.61B20.59B19.68B
EBITDA24.02B19.18B13.96B11.51B12.71B
Net Income11.19B9.83B5.64B5.96B7.66B
Balance Sheet
Total Assets459.85B370.27B263.73B252.77B149.42B
Cash, Cash Equivalents and Short-Term Investments46.80B37.60B35.72B33.67B23.87B
Total Debt336.39B262.86B169.06B163.04B98.50B
Total Liabilities381.16B299.80B199.59B190.15B110.80B
Stockholders Equity79.14B72.13B65.91B62.78B38.59B
Cash Flow
Free Cash Flow-29.57B-49.24B-532.00M-10.17B-2.31B
Operating Cash Flow-24.77B-49.24B1.50B-10.81B119.00M
Investing Cash Flow-15.83B-32.21B-1.62B-29.72B-9.73B
Financing Cash Flow38.01B83.19B2.14B50.29B11.01B

ES-CON JAPAN Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1027.00
Price Trends
50DMA
996.80
Positive
100DMA
1008.21
Positive
200DMA
978.66
Positive
Market Momentum
MACD
7.77
Negative
RSI
62.33
Neutral
STOCH
70.09
Neutral
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 1027 is above the 20-day moving average (MA) of 1015.90, above the 50-day MA of 996.80, and above the 200-day MA of 978.66, indicating a bullish trend. The MACD of 7.77 indicates Negative momentum. The RSI at 62.33 is Neutral, neither overbought nor oversold. The STOCH value of 70.09 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥14.28B5.46
4.18%1.31%89.16%
72
Outperform
¥46.56B8.47
4.71%6.64%13.63%
69
Neutral
¥97.77B8.73
4.65%18.25%19.09%
65
Neutral
¥7.56B11.31
3.66%-0.75%2.98%
64
Neutral
£1.74B10.516.12%256.36%0.55%-33.64%
64
Neutral
¥103.15B69.04
5.36%-6.65%-8.54%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8892
ES-CON JAPAN Ltd.
1,032.00
38.18
3.84%
JP:1419
Tama Home Co., Ltd.
3,635.00
-617.90
-14.53%
JP:1420
Sanyo Homes Corp.
683.00
-28.79
-4.04%
JP:3284
Hoosiers Holdings Co.,Ltd.
1,321.00
249.75
23.31%
JP:8917
First Juken Co., Ltd.
1,030.00
-24.85
-2.36%

ES-CON JAPAN Ltd. Corporate Events

ES-CON JAPAN Ltd. Reports Decline in Q1 Financial Performance
Jul 25, 2025

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.

ES-CON JAPAN Ltd. Issues 10 Billion Yen in Unsecured Bonds for Expansion
Jul 18, 2025

ES-CON JAPAN Ltd. has announced the issuance of its second series of unsecured corporate bonds, valued at 10 billion yen, to support its ‘Long-Term Vision 2030’ and ‘5th Medium-Term Management Plan.’ The funds will be used as working capital for expanding domestic and overseas development projects, reflecting the company’s strategic focus on growth and market expansion.

ES-CON JAPAN Ltd. Reinforces Independence and Strategic Positioning Under Chubu Electric Power
Jun 26, 2025

ES-CON JAPAN Ltd. has announced its position as a consolidated subsidiary of Chubu Electric Power Co., Inc., holding 51.1% of its voting rights. Despite this majority ownership, ES-CON JAPAN maintains its independence and decision-making authority, ensuring autonomy in its operations. The company is strategically positioned to utilize the brand power of the Chubu Electric Power Group to enhance its business performance and contribute to the group’s corporate value. The governance structure includes a majority of external directors to protect minority shareholders, and there is a commitment to avoid transactions detrimental to their interests.

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: Jun 24, 2025