Besterra Co., Ltd (1433) AI Stock Analysis

• Market Cap: ¥10.91B
• Dividend Yield: 1.86%
• Average Volume (3M): 88.92K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.59
• Revenue Growth: 15.99%
• EPS Growth: 77.31%
• Country: JP
• Employees: 228
• Sector: Industrials
• Sector Strength: 82
• Industry: Engineering & Construction
• EPS (TTM): 46.25
• Shares Outstanding: 10,282,699
• 10 Day Avg. Volume: 47,400
• 30 Day Avg. Volume: 88,916
• PEG Ratio: 0.30
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Besterra Co., Ltd receives a score of 70, reflecting strong revenue growth and moderate financial stability, but facing profitability and cash flow challenges. The stock's technical indicators suggest a potential bearish trend in the short term, while its valuation is moderate. The lack of earnings call and corporate events data limits the depth of the analysis.

Besterra Co., Ltd Business Overview & Revenue Model

Company Description

Besterra Co., Ltd (1433) is a Japanese company primarily engaged in the demolition and dismantling industry. The company specializes in providing services related to the planning, execution, and management of demolition projects. Besterra Co., Ltd employs advanced technologies and methodologies to safely and efficiently dismantle various structures, including industrial facilities and commercial buildings.

How the Company Makes Money

Besterra Co., Ltd generates revenue primarily through its demolition and dismantling services. The company earns money by undertaking contracts for the demolition of industrial facilities, power plants, and other large structures. These contracts involve various phases, including the initial planning, execution of dismantling activities, and waste management, which Besterra manages end-to-end. The company leverages its expertise in utilizing specialized equipment and technology to complete projects efficiently and safely, thus attracting more business. Key revenue streams include fees for contracted demolition services, project management, and potential partnerships with industrial players seeking to decommission obsolete facilities. Besterra's strategic positioning in a niche market such as industrial demolition allows it to capitalize on the demand for safe and compliant dismantling of aging infrastructure.

Besterra Co., Ltd Financial Statement Overview

Summary

Besterra Co., Ltd shows strong revenue growth and moderate financial stability. However, challenges include maintaining profitability, generating positive cash flow, and a rising debt burden. The company's manageable leverage and stable financial structure are positive aspects, but focus on operational efficiency and cash management is crucial.

Income Statement

Besterra Co., Ltd has demonstrated substantial revenue growth, increasing from 3,436 million to 10,897 million over five years. The gross profit margin improved to 17.35%, and net profit margin reached 3.75%. However, EBIT margin is relatively low at 3.42%, indicating potential cost management issues. Despite strong revenue growth, maintaining profitability remains a challenge.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.77, indicating manageable leverage. The equity ratio stands at 43.92%, showcasing a stable financial structure. However, the decline in cash equivalents and an increasing debt burden over time pose potential financial risks.

Cash Flow

Besterra Co., Ltd has struggled with negative free cash flow in recent years, demonstrating challenges in generating cash. Operating cash flow to net income ratio is negative, and free cash flow to net income ratio indicates cash flow inefficiencies. These trends suggest potential liquidity issues.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
10.90B	9.39B	5.46B	5.97B	3.68B
	Gross Profit
1.89B	1.52B	889.65M	1.36B	732.78M
	EBIT
373.63M	246.91M	-215.66M	607.91M	124.50M
	EBITDA
484.00M	492.62M	-9.31M	2.16B	247.15M
	Net Income Common Stockholders
409.81M	231.12M	-64.36M	1.39B	142.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.60B	1.44B	1.34B	2.12B	1.37B
	Total Assets
11.05B	10.88B	8.43B	9.02B	6.03B
	Total Debt
3.75B	4.29B	2.43B	2.39B	2.53B
	Net Debt
2.15B	2.85B	1.09B	272.60M	1.16B
	Total Liabilities
6.19B	6.78B	4.05B	4.67B	3.44B
	Stockholders Equity
4.85B	4.10B	4.38B	4.35B	2.59B
Cash Flow		Free Cash Flow
-638.46M	-1.44B	-371.33M	488.41M	-159.46M
	Operating Cash Flow
-607.47M	-1.42B	-354.78M	537.85M	-108.65M
	Investing Cash Flow
1.48B	24.83M	-515.15M	-32.78M	-101.06M
	Financing Cash Flow
-719.14M	1.50B	85.31M	250.05M	638.16M

Besterra Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1089.00
• 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:1433, the sentiment is Positive. The current price of 1089 is above the 20-day moving average (MA) of 1054.55, above the 50-day MA of 1005.96, and above the 200-day MA of 960.52, indicating a bullish trend. The MACD of 21.32 indicates Positive momentum. The RSI at 54.96 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1433.

Besterra Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1812	72 Outperform	¥1.74T	15.07	9.52%	2.67%	2.43%	7.98%
1860	72 Outperform	¥276.67B	11.61		3.21%	6.09%	160.27%
1433	70 Outperform	¥10.91B	23.22		1.86%	15.99%	77.31%
1861	64 Neutral	€187.61B	62.85	1.68%	3.24%	9.51%	-69.64%
1802	64 Neutral	$1.64T	13.35	10.95%	3.36%	11.60%	79.43%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%
1820	57 Neutral	¥211.37B	16.11		4.11%	-4.62%	17.56%

Besterra Co., Ltd Corporate Events

Besterra Co., Ltd Strives to Meet TSE Prime Market Criteria Amidst Decarbonization Efforts

Besterra Co., Ltd has reported its progress in meeting the Tokyo Stock Exchange Prime Market’s continued listing criteria. While the company has met most criteria, it still falls short in market capitalization of tradable shares. To address this, Besterra is implementing an ‘Action Plan for Decarbonization 2025’ to enhance corporate value and share price, aiming for sales of 13 billion yen and an operating income of 1.2 billion yen. Despite efforts, the share price remains below the required level, prompting continued strategic initiatives to improve market positioning.

Besterra Co., Ltd Executes Large-Scale Stock Acquisition Rights Exercise

Besterra Co., Ltd announced the large-scale exercise of its 10th Stock Acquisition Rights, initially issued in 2021. This exercise, which took place from April 1 to April 23, 2025, involved the issuance of 55,500 shares and the exercise of 555 rights, representing 10.88% of the total issued rights. The announcement reflects the company’s strategic financial maneuvers to potentially enhance its capital structure and market positioning.

Besterra Co., Ltd Announces Restricted Stock-Based Compensation Plan

Besterra Co., Ltd announced the disposal of 13,837 treasury shares as part of a restricted stock-based compensation plan aimed at aligning the interests of its directors and executive officers with those of shareholders. This initiative is designed to motivate key personnel to drive up the company’s share price and enhance corporate value, with a minor dilution effect on existing shares.

Besterra Co., Ltd. Announces Merger with Subsidiary TERRA-ESHINO

Besterra Co., Ltd. announced a merger with its wholly-owned subsidiary, TERRA-ESHINO Co., Ltd., effective June 1, 2025. This strategic move aims to streamline operations by absorbing TERRA-ESHINO, which holds a significant number of Besterra’s shares, thus optimizing the company’s shareholding structure and potentially enhancing its market positioning.

Besterra Co., Ltd. Announces Treasury Share Purchase Post Share Exchange

Besterra Co., Ltd. announced a resolution by its Board of Directors to purchase treasury shares to address fractions of less than one share resulting from a partial share exchange with TERRA-ESHINO Co., Ltd. This move is part of their compliance with the Companies Act, ensuring smooth operations following the share exchange and maintaining shareholder value.

Besterra Co., Ltd. Acquires Terra Eshino as Wholly-Owned Subsidiary

Besterra Co., Ltd. has announced that it has completed a partial share exchange, making Terra Eshino Co., Ltd. a wholly-owned subsidiary. This strategic move not only shifts the largest shareholder status from Terra Eshino to Akitatsu Yoshino but also strengthens Besterra’s market position by consolidating its control over Terra Eshino’s operations.