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

• Market Cap: ¥92.35B
• Dividend Yield: 4.95%
• Average Volume (3M): 178.93K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.63
• Revenue Growth: 19.47%
• EPS Growth: 38.97%
• Country: JP
• Employees: 442
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Residential Construction
• EPS (TTM): 59.49
• Shares Outstanding: 98,580,890
• 10 Day Avg. Volume: 195,040
• 30 Day Avg. Volume: 178,930
• PEG Ratio: -1.07
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -140.17
• 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

• Rating: 63 Neutral
• Price Target: ¥1,059.00 ▲(9.18%Upside)

ES-CON JAPAN Ltd. has a solid financial foundation with strong revenue growth and operational efficiency. However, high leverage and negative cash flow are significant concerns. The bearish technical indicators suggest caution in the short term, although the stock is attractively valued with a low P/E ratio and high dividend yield.

ES-CON JAPAN Ltd. Business Overview & Revenue Model

Company Description

ES-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 Money

ES-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. demonstrates strong revenue growth and operational efficiency with impressive EBIT and EBITDA margins. However, high leverage and negative cash flow present financial risks that need addressing, despite the company's strong return on equity.

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	Mar 2025	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
	EBIT
17.10B	21.31B	16.84B	15.49B	10.38B	12.20B
	EBITDA
17.65B	24.02B	19.18B	13.96B	11.51B	12.71B
	Net Income Common Stockholders
8.04B	11.19B	9.83B	5.64B	5.96B	7.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.91B	46.80B	37.60B	35.72B	33.67B	23.87B
	Total Assets
399.70B	459.85B	370.27B	263.73B	252.77B	149.42B
	Total Debt
293.79B	336.39B	262.86B	169.06B	163.04B	98.50B
	Net Debt
244.96B	289.59B	225.26B	133.34B	129.37B	74.63B
	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: Negative
• Last Price: 970.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 970 is below the 20-day moving average (MA) of 983.05, below the 50-day MA of 1010.26, and below the 200-day MA of 975.53, indicating a bearish trend. The MACD of -12.61 indicates Positive momentum. The RSI at 34.24 is Neutral, neither overbought nor oversold. The STOCH value of 28.97 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8917	77 Outperform	¥13.90B	5.38		4.20%	1.31%	89.16%
1420	72 Outperform	¥7.57B	11.36		3.65%	-0.75%	3.29%
3284	71 Outperform	¥43.13B	7.93		5.41%	6.64%	13.63%
1419	64 Neutral	¥97.58B	24.04		5.86%	-6.65%	-8.54%
8892	63 Neutral	¥92.35B	8.28		4.95%	19.47%	38.97%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%

ES-CON JAPAN Ltd. Corporate Events

ES-CON JAPAN Ltd. Announces Trade Name Change for 30th Anniversary

ES-CON JAPAN Ltd. announced a proposed amendment to its Articles of Association to change its Japanese trade name from ‘Nihon ES-CON’ to ‘ES CON’ as part of its 30th anniversary celebrations. This change, effective July 1, 2025, reflects the company’s evolving brand identity and aims to strengthen its market presence.

ES-CON JAPAN Ltd. Announces Trade Name Change to ‘ES CON’

ES-CON JAPAN Ltd. is changing its Japanese trade name to ‘ES CON’ to mark its 30th anniversary and symbolize its commitment to strengthening its corporate brand and trust within the real estate industry. This change reflects the company’s growth and its increasing recognition, particularly through its large-scale development projects and naming rights for the ES CON Field Hokkaido stadium.

ES-CON JAPAN Ltd. Proposes Director Elections to Enhance Governance

ES-CON JAPAN Ltd. announced a proposal for the election of directors, including reappointments and new candidates, to be decided at the upcoming shareholders’ meeting. This move is part of the company’s ongoing efforts to strengthen its governance structure and ensure compliance with Tokyo Stock Exchange requirements for independent officers, potentially impacting its market positioning and stakeholder relations.

ES-CON JAPAN Announces Stable Dividend Payout for Fiscal Year 2025

ES-CON JAPAN Ltd. has announced a decision to pay a dividend of 48 yen per share for the fiscal year ended March 2025, aligning with its commitment to stable shareholder returns. This decision reflects the company’s ongoing strategy under its medium-term management plan to maintain or increase dividends, emphasizing its dedication to shareholder value and growth.

ES-CON JAPAN Ltd. Revises Financial Targets Upward Amid Strong Growth

ES-CON JAPAN Ltd. has announced an upward revision to its financial targets and investment plans for its Fifth Medium-Term Management Plan, covering fiscal years 2025 to 2027. The revisions are driven by strong performance in condominium sales and real estate development, leading to higher-than-expected operating income. The company anticipates continued stable growth and increased property sales, although cumulative gross investment figures remain unchanged.

ES-CON JAPAN Ltd. Reports Fiscal Year 2025 Financial Results and Positive Outlook

ES-CON JAPAN Ltd. reported its consolidated financial results for the fiscal year ending March 2025, showing a decrease in net sales but an increase in operating and ordinary income compared to the previous year. The company anticipates growth in the upcoming fiscal year, with projected increases in net sales and operating income, indicating a positive outlook for its financial performance.

ES-CON JAPAN Ltd. Acquires Shiba Real Estate Inc. to Expand Portfolio

ES-CON JAPAN Ltd. has acquired Shiba Real Estate Inc., a newly established company by Mitsubishi Chemical, to expand its real estate portfolio. This acquisition aligns with ES-CON JAPAN’s 5th Mid-Term Management Plan and is expected to enhance its rental income and sales revenue, although the immediate financial impact is negligible.