Eiwa Corporation (9857) AI Stock Analysis

• Market Cap: ¥17.01B
• Dividend Yield: 2.77%
• Average Volume (3M): 1.95K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.73
• Revenue Growth: 8.72%
• EPS Growth: 1.48%
• Country: JP
• Employees: 366
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 106.42
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,037.00 ▲(10.40% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

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

Balance sheet strength

A high equity ratio (51.2%) and near-zero debt-to-equity (0.01) provide lasting financial flexibility. Low leverage reduces refinancing and solvency risk, enabling the firm to fund operations, withstand cyclical pressure and pursue strategic investments without heavy interest burdens over the medium term.

Consistent cash generation

Sustained positive free cash flow and healthy operating cash conversion signal durable internal funding for capex, dividends, and buybacks. Reliable cash generation supports long-term reinvestment and reduces dependence on external financing, strengthening strategic optionality across business cycles.

Stable revenue and margin profile

Ongoing revenue growth paired with double-digit gross margin indicates product or distribution efficiency. While net margin is lower, steady top-line and healthy gross margins reflect operational control and scalable cost structure that can sustain profitability as the business grows over months.

Negative Factors

EPS growth lagging revenue

Earnings-per-share growth materially trails revenue expansion, suggesting margin compression, higher share count, or non-operating drags. If sustained, slower EPS growth can limit shareholder return improvement and indicate structural inefficiencies in converting sales into per-share earnings.

Modest net profitability

A sub-5% net margin leaves limited buffer against input cost inflation or pricing pressure. This constrains the company's ability to absorb adverse shocks, invest aggressively, or rapidly scale net returns, making long-term margin expansion a key structural challenge to monitor.

Limited scale and liquidity

A small workforce and low trading volume imply limited operational scale and lower public market liquidity. Scale constraints can slow geographic or product expansion, raise per-unit costs, and reduce institutional investor interest, which may temper durable growth prospects and strategic reach.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.43B	47.14B	43.29B	41.28B	37.38B	39.16B
Gross Profit	8.17B	8.12B	7.41B	6.76B	6.05B	6.32B
EBITDA	2.79B	2.86B	2.41B	1.98B	1.64B	1.80B
Net Income	1.90B	1.95B	1.67B	1.32B	1.07B	1.16B
Balance Sheet
Total Assets	30.45B	33.40B	32.31B	31.77B	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	16.44B	16.55B	17.80B	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	670.60M	430.73M	332.80M	2.38B
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: 2751.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2751 is above the 20-day moving average (MA) of 2677.95, above the 50-day MA of 2680.40, and above the 200-day MA of 2446.23, indicating a bullish trend. The MACD of -11.26 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 63.14 is Neutral, 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	85 Outperform	¥28.05B	6.42	―	3.12%	6.60%	0.27%
9857	76 Outperform	¥17.01B	6.46	―	2.77%	8.72%	1.48%
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.04B	7.18	―	1.79%	-10.43%	-368.47%