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Akatsuki Eazima Co., Ltd. (JP:1997)
:1997
Japanese Market
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Akatsuki Eazima Co., Ltd. (1997) AI Stock Analysis

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JP:1997

Akatsuki Eazima Co., Ltd.

(1997)

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Outperform 73 (OpenAI - Gpt-5.6Sol)
Rating:73Outperform
Price Target:
¥4,572.00
▲(19.53% Upside)
Action:Reiterated
Date:10/04/26
The score is driven by attractive valuation (low P/E and solid dividend yield) and supportive price momentum (trading above key moving averages with positive MACD). These positives are tempered by financial-quality risk from the sharp swing to negative TTM operating and free cash flow, despite improving margins and a very low-debt balance sheet.
Positive Factors
Improved Profitability
The substantial improvement in gross, net, and EBIT margins indicates stronger operating performance and better profit conversion. If sustained, this margin base can support internal reinvestment, improve resilience against project variability, and strengthen earnings quality over the next several quarters.
Negative Factors
Negative Cash Conversion
Negative operating and free cash flow is a material earnings-quality concern because reported profitability is not currently translating into cash. The reversal from strong prior-year free cash flow can pressure liquidity, constrain self-funded investment, and increase sensitivity to project timing or working-capital swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
The substantial improvement in gross, net, and EBIT margins indicates stronger operating performance and better profit conversion. If sustained, this margin base can support internal reinvestment, improve resilience against project variability, and strengthen earnings quality over the next several quarters.
Read all positive factors

Akatsuki Eazima Co., Ltd. (1997) vs. iShares MSCI Japan ETF (EWJ)

Akatsuki Eazima Co., Ltd. Business Overview & Revenue Model

Company Description
Akatsuki Eazima Co., Ltd. is a Japanese firm dedicated to energy efficiency and building renewal. Their services encompass the assessment, planning, and execution of renovation projects, alongside comprehensive building diagnostics. The company al...

Akatsuki Eazima Co., Ltd. Financial Statement Overview

Summary
Profitability has improved materially (TTM gross margin ~22.9%, net margin ~10.7%, EBIT margin ~15.1%) and leverage is very low (TTM debt-to-equity ~0.06; ROE ~13.1%). However, the latest TTM cash conversion is a major risk with negative operating cash flow (-108M) and negative free cash flow (-112M), alongside a ~8.8% TTM revenue decline.
Income Statement
76
Positive
Balance Sheet
88
Very Positive
Cash Flow
38
Negative
BreakdownTTMAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue9.38B9.14B8.83B6.64B7.33B7.41B
Gross Profit2.03B1.84B1.40B1.04B1.27B1.54B
EBITDA1.39B1.28B923.66M562.54M779.32M1.08B
Net Income914.14M796.70M559.33M313.55M491.16M669.07M
Balance Sheet
Total Assets11.22B11.03B10.32B9.55B9.49B8.79B
Cash, Cash Equivalents and Short-Term Investments5.55B5.71B5.14B4.15B4.71B4.30B
Total Debt431.17M587.39M620.71M888.18M974.04M795.77M
Total Liabilities2.98B3.48B3.51B3.21B3.46B3.09B
Stockholders Equity8.24B7.55B6.81B6.34B6.02B5.70B
Cash Flow
Free Cash Flow-111.67M1.17B1.55B-401.73M364.04M287.68M
Operating Cash Flow-108.10M1.20B1.56B-23.43M372.93M301.52M
Investing Cash Flow-211.19M-446.04M-270.02M-338.81M290.96M-306.78M
Financing Cash Flow-444.92M-185.85M-396.93M-195.05M48.67M-396.71M

Akatsuki Eazima Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3825.00
Price Trends
50DMA
3909.46
Positive
100DMA
3803.64
Positive
200DMA
3857.86
Positive
Market Momentum
MACD
38.20
Negative
RSI
61.58
Neutral
STOCH
65.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1997, the sentiment is Positive. The current price of 3825 is below the 20-day moving average (MA) of 3993.50, below the 50-day MA of 3909.46, and below the 200-day MA of 3857.86, indicating a bullish trend. The MACD of 38.20 indicates Negative momentum. The RSI at 61.58 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1997.

Akatsuki Eazima Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥8.14B9.07―3.29%5.88%19.36%
72
Outperform
¥5.31B10.73―3.22%8.08%38.63%
71
Outperform
¥7.60B13.71―2.51%23.05%8.64%
70
Outperform
¥7.06B17.85―4.55%2.96%-15.14%
66
Neutral
¥9.22B14.28―4.50%-9.05%-34.62%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
41
Neutral
¥11.72B-16.56――-9.88%-12.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1997
Akatsuki Eazima Co., Ltd.
4,100.00
724.80
21.47%
JP:1905
Tenox Corporation
1,454.00
160.28
12.39%
JP:2311
EPCO Co.,Ltd.
792.00
4.73
0.60%
JP:4642
Original Engineering Consultants Co., Ltd.
1,396.00
-407.36
-22.59%
JP:6085
Architects Studio Japan, Inc.
102.00
75.90
290.80%
JP:6171
C.E.Management Integrated Laboratory Co., Ltd.
373.00
-81.19
-17.88%
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: Oct 04, 2026