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

• Market Cap: ¥95.20B
• Dividend Yield: 4.72%
• Average Volume (3M): 165.48K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.56
• Revenue Growth: 27.02%
• EPS Growth: 45.62%
• 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: 0.21
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -3.15
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,079.00 ▲(5.99% Upside)

ES-CON JAPAN Ltd. has a solid valuation with a low P/E ratio and high dividend yield, which are significant strengths. However, financial performance is hindered by high leverage and negative cash flow, posing risks. Technical indicators suggest weak momentum, contributing to a moderate overall score.

Positive Factors

Revenue Growth

The company has demonstrated a robust revenue growth rate of 19.5% from 2023 to 2025, reflecting strong market demand and effective sales strategies, which are essential for long-term business expansion.

Operational Efficiency

High EBIT and EBITDA margins indicate efficient operations, which suggest the company can maintain profitability even as it scales, supporting sustainable growth.

Return on Equity

A strong return on equity demonstrates the company's ability to effectively utilize shareholder investments to generate earnings, which is crucial for investor confidence and long-term financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise or cash flows decrease, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative free cash flow indicates potential liquidity challenges and may limit the company's ability to fund operations and growth without additional financing, posing a risk to financial stability.

Moderate Net Profit Margin

A moderate net profit margin indicates that while the company is generating revenue, it may not be optimizing its cost structure or pricing strategy, which could affect long-term profitability.

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 generates revenue primarily through the sale of residential properties, including condominiums and houses, which account for a significant portion of its income. The company also earns money through property management services, which involve overseeing and maintaining properties for clients. In addition to these core activities, ES-CON JAPAN engages in real estate investment, acquiring properties to lease or sell at a profit. Key revenue streams include the sale of developed properties, management fees from property services, and income generated from investment properties. The company may also benefit from strategic partnerships with construction firms, financial institutions, and local governments, which can enhance its project capabilities and provide additional funding sources.

ES-CON JAPAN Ltd. Financial Statement Overview

Summary

ES-CON JAPAN Ltd. shows strong revenue growth and operational efficiency, with robust EBIT and EBITDA margins. However, high leverage and negative cash flow indicate financial vulnerabilities. The company needs to focus on margin improvement and cash flow stabilization 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	17.66B	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: 1018.00
• 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:8892, the sentiment is Positive. The current price of 1018 is below the 20-day moving average (MA) of 1022.25, below the 50-day MA of 1020.44, and above the 200-day MA of 1011.85, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8917	74 Outperform	¥15.45B	5.87	―	3.71%	5.76%	99.51%
3284	67 Neutral	¥51.11B	8.64	―	5.54%	21.56%	12.28%
8892	66 Neutral	¥95.20B	8.25	―	4.72%	27.02%	45.62%
1420	64 Neutral	¥7.83B	7.07	―	3.59%	10.75%	117.39%
1873	62 Neutral	¥12.60B	35.79	―	3.51%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1419	56 Neutral	¥107.84B	90.25	―	5.52%	-16.48%	-77.63%

ES-CON JAPAN Ltd. Corporate Events

ES-CON JAPAN Reports Strong Sales Growth Amidst Decrease in Ordinary Income

ES-CON JAPAN Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 31, 2026, showing a 13.4% increase in net sales compared to the previous year, despite a 9.6% decrease in ordinary income. The company anticipates continued growth with a forecasted 17.1% increase in net sales for the full fiscal year, indicating a positive outlook for stakeholders.

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.