Eiwa Corporation (9857) AI Stock Analysis

• Market Cap: ¥17.47B
• Dividend Yield: 2.77%
• Average Volume (3M): 1.95K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.78
• Revenue Growth: 8.72%
• EPS Growth: 1.48%
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 75.57
• Shares Outstanding: 6,470,000
• 10 Day Avg. Volume: 1,800
• 30 Day Avg. Volume: 1,946
• PEG Ratio: 0.42
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 21.67
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,626.00 ▼(-2.70% Downside)

Eiwa Corporation's strong financial performance and attractive valuation are the primary drivers of its overall stock score. The company's robust financials and low P/E ratio indicate stability and potential for growth. However, the neutral technical indicators suggest a lack of immediate momentum, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Eiwa's products and successful market penetration, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and low risk, allowing Eiwa to invest in growth opportunities without significant financial strain.

Cash Generation

Strong cash generation supports operational needs and future investments, enhancing Eiwa's ability to sustain growth and navigate economic uncertainties.

Negative Factors

Profit Margins

While operationally efficient, the relatively modest net profit margin may limit reinvestment capacity and shareholder returns compared to industry peers.

Market Sentiment

The lack of strong momentum in the stock price could reflect investor caution, potentially impacting future capital raising or stock-based compensation strategies.

Earnings Volatility

A decline in stock price post-earnings suggests potential volatility in earnings perception, which may affect investor confidence and valuation stability.

Eiwa Corporation Business Overview & Revenue Model

Company Description

Eiwa Corporation operates as a trading company primarily in Japan. It offers industrial measuring instrumentation, such as pressure and level sensors, flow meters, thermometers, water analyzers, and other sensors; and electronic measuring instruments comprising data logging systems, signal converters, PLCs, touch panels, indicators, and recorders. The company also provides inspection and analytical equipment that include scales, gauges, testers, detectors, and test machines; and information communication systems, which comprise telemetering, wireless communication, network communication, and image processing systems. In addition, it offers industrial equipment, including hydraulic/pneumatic units, pumps, valves, and video scopes; and environment monitors, such as atmospheric air monitors, water analyzers, gas detectors, soil monitors, noise monitors, and vibration monitors. Further, the company provides industrial machinery comprising road maintenance machines, environment measuring units, waste treatment equipment, and power supply products; and fuel cells, including DMFC standard cells, PEFC test benches, and methanol concentration meters. It serves chemical and material, food and beverage, energy, machinery, and research and development companies, as well as government offices. The company was formerly known as Eiwa Seiko Co., Ltd. and changed its name to Eiwa Corporation in 1987. Eiwa Corporation was founded in 1947 and is headquartered in Osaka, Japan.

How the Company Makes Money

Eiwa Corporation generates revenue through the sale of its electronic components and devices, which are utilized in various applications across multiple sectors. Key revenue streams include direct sales to manufacturers in the automotive and electronic industries, as well as long-term contracts with large enterprises that require custom solutions. The company also benefits from strategic partnerships with technology firms that enhance its product offerings and expand its market reach. Additionally, Eiwa invests in research and development to innovate new products, which helps maintain its competitive edge and attract new customers, further contributing to its earnings.

Eiwa Corporation Financial Statement Overview

Summary

Eiwa Corporation presents a robust financial profile with consistent revenue and profit growth, strong margins, and a solid balance sheet with low leverage. The company's cash flow is stable, supporting its operational and investment activities. Overall, Eiwa demonstrates financial stability and profitability.

Income Statement

Eiwa Corporation shows a strong income statement performance with consistent revenue growth over the years, highlighted by a healthy gross profit margin of 17.22% and a net profit margin of 4.15% for the latest fiscal year. The EBIT and EBITDA margins also reflect solid operational efficiency. The company has demonstrated robust profitability trends, supported by steady revenue and profit growth.

Balance Sheet

The balance sheet reveals a solid equity base with an equity ratio of 51.2%, indicating financial stability. The debt-to-equity ratio is low at 0.01, suggesting minimal leverage, which lowers financial risk. Return on equity stands at 11.53%, reflecting efficient use of shareholders' equity to generate profits. Overall, the balance sheet indicates a strong financial position with low risk from debt obligations.

Cash Flow

Cash flow analysis shows positive trends, with a free cash flow of 649 million yen and a free cash flow to net income ratio of 0.33, indicating strong cash generation relative to net income. The operating cash flow to net income ratio is 0.37, reflecting consistent cash flow from operations. Eiwa Corporation maintains healthy cash flow metrics, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.43B	47.14B	43.29B	41.28B	37.38B	39.16B
Gross Profit	8.17B	8.12B	7.49B	6.83B	6.11B	6.37B
EBITDA	2.90B	2.98B	2.51B	2.07B	1.69B	1.85B
Net Income	1.90B	1.95B	1.67B	1.32B	1.07B	1.16B
Balance Sheet
Total Assets	30.45B	33.12B	31.94B	31.61B	28.40B	27.77B
Cash, Cash Equivalents and Short-Term Investments	6.81B	6.11B	6.55B	6.49B	6.62B	6.57B
Total Debt	236.45M	169.87M	518.79M	747.70M	809.95M	597.14M
Total Liabilities	13.44B	16.17B	16.18B	17.64B	15.62B	15.90B
Stockholders Equity	17.01B	16.96B	15.76B	13.97B	12.78B	11.88B
Cash Flow
Free Cash Flow	0.00	649.58M	664.76M	400.38M	307.38M	2.25B
Operating Cash Flow	0.00	725.23M	683.92M	524.36M	575.08M	2.41B
Investing Cash Flow	0.00	-290.07M	-25.11M	-354.69M	-356.49M	-112.34M
Financing Cash Flow	0.00	-887.39M	-595.88M	-309.10M	-64.81M	-334.41M

Eiwa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2699.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9857, the sentiment is Positive. The current price of 2699 is above the 20-day moving average (MA) of 2533.05, above the 50-day MA of 2418.28, and above the 200-day MA of 2282.55, indicating a bullish trend. The MACD of 94.76 indicates Negative momentum. The RSI at 77.54 is Negative, neither overbought nor oversold. The STOCH value of 92.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9857.

Eiwa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6643	78 Outperform	¥20.33B	9.07	―	3.12%	6.60%	0.27%
6994	77 Outperform	¥29.96B	12.63	―	2.35%	5.15%	480.70%
9857	76 Outperform	¥17.47B	9.20	―	2.77%	8.72%	1.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.74B	34.77	―	4.42%	-11.74%	-84.61%
7711	61 Neutral	¥34.25B	41.58	―	0.67%	10.13%	24.53%