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Berg Earth Co., Ltd. (1383) AI Stock Analysis

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JP:1383

Berg Earth Co., Ltd.

(TSE/TYO:1383)

Select Model
Rating:50Neutral
Price Target:JPY 3,050.00▼(-0.81% Downside)
Action:reiterated
Date:11/05/26

The score is primarily held back by financial fundamentals—very low margins, a return to slightly negative EBIT, and persistently negative free cash flow despite strong recent revenue growth. Technicals are broadly neutral with limited trend strength, while valuation looks relatively expensive (P/E ~31) with only a modest dividend yield (~0.33%).

Positive Factors
Strong Revenue GrowthThe sharp increase in 2025 revenue indicates stronger demand or customer activity and gives the company a larger operating base. If this growth persists, it could improve scale, support investment in the business, and create a foundation for better profitability over the next several quarters.
Negative Factors
Very Thin ProfitabilityVery low margins leave little room for higher costs, weaker demand, or execution issues to be absorbed without affecting earnings. The return to negative EBIT after positive results in 2023–2024 also suggests that recent revenue growth has not yet translated into durable operating profitability.

Berg Earth Co., Ltd. (1383) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%JP:1383+3.29%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 4.92B
Dividend Yield
0.33%
Average Volume (3M)
1,441
Price to Earnings (P/E)
31.5
Beta (1Y)
0.05
Revenue Growth
7.05%
EPS Growth
1345.69%
Country
Japan
Employees
313
Sector
Consumer Defensive
Sector Strength
62
Industry
Agricultural Farm Products

Berg Earth Co., Ltd. Business Overview & Revenue Model

Company Description

Operating within the agricultural sector, Berg Earth Co.,Ltd. specializes in the cultivation and distribution of vegetable seedlings across Japan. A primary focus for the company is providing grafted saplings for a diverse range of fruit and vegetabl...

Berg Earth Co., Ltd. Financial Statement Overview

Summary

Strong 2025 revenue growth (~54% YoY) is offset by thin profitability (net margin ~0.6%) and weaker operating performance with EBIT turning slightly negative. Leverage has improved (debt-to-equity ~1.14x) but remains meaningful, and cash quality is a key concern as free cash flow is negative in most years (including 2024–2025) despite better operating cash flow in 2025.

Income Statement

54Neutral

Balance Sheet

58Neutral

Cash Flow

41Neutral
Financial statement breakdown
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue7.78B7.30B7.09B7.06B6.39B5.37B
Gross Profit2.02B1.72B1.74B1.75B1.51B1.33B
EBITDA537.83M259.65M281.49M351.81M213.57M189.19M
Net Income156.34M48.33M39.94M78.03M202.34M122.20M
Balance Sheet
Total Assets6.63B6.12B5.73B5.72B6.13B5.10B
Cash, Cash Equivalents and Short-Term Investments1.15B878.21M924.36M1.00B1.10B964.41M
Total Debt2.69B2.41B2.17B2.10B2.61B2.30B
Total Liabilities4.43B3.94B3.61B3.64B4.46B3.85B
Stockholders Equity2.15B2.12B2.07B2.03B1.62B1.02B
Cash Flow
Free Cash Flow-235.62M-235.62M-118.66M110.00M-105.01M-21.23M
Operating Cash Flow329.89M329.89M111.46M177.47M344.56M481.54M
Investing Cash Flow-573.57M-573.57M-241.49M-83.26M-467.48M-523.05M
Financing Cash Flow196.53M196.53M54.65M-185.26M49.33M278.79M

Berg Earth Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price3075.00

Price Trends

50DMA3027.71Positive
100DMA2984.22Positive
200DMA3052.56Positive

Market Momentum

MACD4.29Positive
RSI57.48Neutral
STOCH48.81Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1383, the sentiment is Positive. The current price of 3075.00 is above the 20-day moving average (MA) of 3055.45, above the 50-day MA of 3027.71, and above the 200-day MA of 3052.56, indicating a bullish trend. The MACD of 4.29 indicates Positive momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1383.

Berg Earth Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (62)

Financial Indicators

JP:1383 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1384JP:138483OutperformJPY 17.21B4.67―6.44%10.71%25.59%
JP:1377JP:137769NeutralJPY 178.29B16.73―2.03%11.60%-9.93%
Sector *62Neutral$20.33B14.63-3.31%3.23%1.93%-12.26%
JP:2938JP:293856NeutralJPY 59.89B21.32―0.68%20.88%34.54%
JP:7555JP:755556NeutralJPY 3.63B62.37―1.40%0.95%-68.78%
JP:1383JP:138350NeutralJPY 4.92B31.48―0.33%7.05%1345.69%
JP:1380JP:138046NeutralJPY 4.14B159.29―1.01%2.21%-58.16%

* Consumer Defensive Sector Average

Performance Comparison

-20%0%20%JP:1383JP:1377JP:1380JP:1384JP:2938JP:7555Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:1383 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1383Berg Earth Co., Ltd.3075.00102.793.46%
JP:1377Sakata Seed Corporation4195.00276.457.05%
JP:1380Akikawa Foods & Farms Co., Ltd.994.00-6.73-0.67%
JP:1384Hokuryo Co., Ltd.2019.00-844.51-29.49%
JP:2938Okamura Foods Co. Ltd.1184.00-3.14-0.26%
JP:7555Ota Floriculture Auction Co., Ltd.710.00-34.09-4.58%
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: Nov 05, 2026