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Akatsuki Eazima Co., Ltd. (1997) AI Stock Analysis

JP:1997

Akatsuki Eazima Co., Ltd.

(TSE/TYO:1997)

Select Model
Rating:85Outperform
Price Target:JPY 5,041.00â–²(22.06% Upside)
Action:reiterated
Date:10/10/26

Strong financial performance and attractive valuation are the primary drivers, supported by positive technical indicators.

Positive Factors
Improving profitabilityThe latest-year rebound in revenue and margins indicates stronger operating performance and improved earnings capacity. If maintained, higher profitability can support internal reinvestment, strengthen resilience, and provide a more durable base for results over the next several quarters.
Negative Factors
Volatile cash flowThe sharp swings in operating and free cash flow indicate that cash conversion is not consistently predictable across the cycle. Even with a strong recent rebound, uneven cash generation can complicate investment planning, shareholder distributions, and the timing of internally funded growth.

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

-10%-5%0%5%10%15%20%25%30%JP:1997+15.57%EWJ+16.64%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 8.35B
Dividend Yield
3.75%
Average Volume (3M)
1,973
Price to Earnings (P/E)
7.8
Beta (1Y)
0.25
Revenue Growth
10.88%
EPS Growth
34.41%
Country
Japan
Employees
144
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

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 also...

Akatsuki Eazima Co., Ltd. Financial Statement Overview

Summary

Steady revenue growth to 10.13 billion, expanding margins, low debt-to-equity of 0.066, and positive free cash flow of 1.04 billion reflect strong financial health.

Income Statement

86Very Positive

Balance Sheet

92Very Positive

Cash Flow

79Positive
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue10.13B10.13B9.14B8.83B6.64B7.33B
Gross Profit2.25B2.25B1.84B1.40B1.04B1.27B
EBITDA1.59B1.55B1.28B923.66M562.54M779.32M
Net Income1.07B1.07B796.70M559.33M313.55M491.16M
Balance Sheet
Total Assets12.47B12.47B11.03B10.32B9.55B9.49B
Cash, Cash Equivalents and Short-Term Investments6.44B6.44B5.71B5.14B4.15B4.71B
Total Debt565.48M565.48M587.39M620.71M888.18M974.04M
Total Liabilities3.85B3.85B3.48B3.51B3.21B3.46B
Stockholders Equity8.62B8.62B7.55B6.81B6.34B6.02B
Cash Flow
Free Cash Flow1.04B1.04B1.17B1.55B-401.73M364.04M
Operating Cash Flow1.04B1.04B1.20B1.56B-23.43M372.93M
Investing Cash Flow-65.07M-65.07M-446.04M-270.02M-338.81M290.96M
Financing Cash Flow-245.31M-245.31M-185.85M-396.93M-195.05M48.67M

Akatsuki Eazima Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price4130.00

Price Trends

50DMA4093.44Positive
100DMA3950.20Positive
200DMA3920.73Positive

Market Momentum

MACD16.54Positive
RSI47.69Neutral
STOCH20.43Neutral

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 4130.00 is below the 20-day moving average (MA) of 4224.00, above the 50-day MA of 4093.44, and above the 200-day MA of 3920.73, indicating a neutral trend. The MACD of 16.54 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 20.43 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

JP:1997 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1997JP:199785OutperformJPY 8.20B7.80―3.75%10.88%34.41%
JP:6171JP:617172OutperformJPY 5.07B10.27―3.36%8.08%38.63%
JP:4642JP:464271OutperformJPY 7.72B13.74―2.47%23.05%8.64%
JP:2311JP:231170OutperformJPY 6.93B17.53―4.63%2.96%-15.14%
JP:1905JP:190566NeutralJPY 9.19B14.16―4.54%-9.05%-34.62%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:6085JP:608543NeutralJPY 7.93B-10.68――-9.88%-12.16%

* Industrials Sector Average

Performance Comparison

0%500%1000%1500%2000%JP:1997JP:1905JP:2311JP:4642JP:6085JP:6171Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:1997 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:1997Akatsuki Eazima Co., Ltd.4130.00556.2615.57%
JP:1905Tenox Corporation1442.00132.0110.08%
JP:2311EPCO Co.,Ltd.778.001.250.16%
JP:4642Original Engineering Consultants Co., Ltd.1400.00-190.28-11.97%
JP:6085Architects Studio Japan, Inc.68.0040.20144.60%
JP:6171C.E.Management Integrated Laboratory Co., Ltd.357.00-71.96-16.77%
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 10, 2026