E.J Holdings Inc. (2153) AI Stock Analysis

E.J Holdings Inc.

(TSE/TYO:2153)

Select Model

Rating:81Outperform

Price Target:JPY 2,140.00▲(18.76% Upside)

Action:reiterated

Date:10/15/26

The overall score of 81 reflects E.J Holdings' highly attractive valuation and robust financial fundamentals. The most significant strengths are its compelling value proposition, underscored by a low P/E ratio and solid dividend yield, combined with consistent top-line growth and low financial leverage. Stable, positive long-term technical indicators further support the score. Minor headwinds include slight cash flow volatility and mild profit margin contraction, though the stock's fundamental stability and strong income potential largely outweigh these risks.

Positive Factors

Accelerating revenue growthRevenue growth accelerated sharply across the latest two fiscal years, indicating stronger demand and effective execution. Sustained top-line expansion can broaden the company’s operating base, support investment in capabilities, and provide a durable foundation for earnings growth over the coming quarters.

Negative Factors

Weak operating cash conversionOperating cash flow remains materially below net income, pointing to working-capital drag or timing effects that reduce the reliability of accounting earnings as recurring cash. If this pattern persists, it could constrain self-funded growth and weaken financial flexibility.

E.J Holdings Inc. (2153) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 32.39B
Dividend Yield: 3.83%
Average Volume (3M): 61.51K
Price to Earnings (P/E): 7.5
Beta (1Y): 0.54
Revenue Growth: 7.89%
EPS Growth: 22.26%
Country: Japan
Employees: 2,144
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

E.J Holdings Inc. Business Overview & Revenue Model

Company Description

E.J. Holdings Inc., operating through its various subsidiaries, delivers specialized construction consulting services to clients in Japan and across the globe. Their comprehensive offerings span environmental management, disaster mitigation and infra...

E.J Holdings Inc. Financial Statement Overview

Summary

Strong financial health driven by steady revenue and earnings growth, alongside a robust balance sheet with exceptionally low leverage. This is slightly offset by historical cash flow volatility and a minor moderation in return on equity.

Income Statement

82Very Positive

Balance Sheet

88Very Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	47.37B	46.59B	42.70B	37.21B	37.51B	36.67B
Gross Profit	15.81B	15.03B	13.68B	12.10B	12.24B	11.95B
EBITDA	6.33B	5.99B	5.63B	5.09B	5.11B	5.08B
Net Income	4.26B	3.37B	3.20B	3.03B	3.05B	3.12B
Balance Sheet
Total Assets	53.95B	56.75B	52.01B	41.42B	39.19B	39.24B
Cash, Cash Equivalents and Short-Term Investments	20.28B	24.86B	21.46B	19.19B	17.19B	18.09B
Total Debt	6.67B	6.92B	7.48B	193.00M	409.00M	605.00M
Total Liabilities	14.56B	16.47B	17.95B	8.83B	9.32B	11.69B
Stockholders Equity	39.38B	40.27B	34.05B	32.58B	29.86B	27.54B
Cash Flow
Free Cash Flow	2.23B	2.23B	3.14B	3.43B	765.00M	572.00M
Operating Cash Flow	3.05B	3.05B	4.13B	3.94B	1.38B	956.00M
Investing Cash Flow	-705.00M	-705.00M	-7.91B	-941.00M	-1.49B	-505.00M
Financing Cash Flow	1.32B	1.32B	5.94B	-1.06B	-924.00M	-1.31B

E.J Holdings Inc. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1802.00

Price Trends

50DMA1846.06Negative

100DMA1761.74Positive

200DMA1740.23Positive

Market Momentum

MACD-9.00Positive

RSI42.64Neutral

STOCH43.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2153, the sentiment is Neutral. The current price of 1802.00 is below the 20-day moving average (MA) of 1836.70, below the 50-day MA of 1846.06, and above the 200-day MA of 1740.23, indicating a neutral trend. The MACD of -9.00 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 43.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2153.

E.J Holdings Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:2153 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2153	81Outperform	JPY 32.45B	7.51	―	3.83%	7.89%	22.26%
JP:1827	78Outperform	JPY 45.37B	8.96	―	2.88%	35.61%	99.85%
JP:9768	78Outperform	JPY 26.13B	10.49	―	3.22%	3.65%	19.76%
JP:1828	77Outperform	JPY 24.69B	6.66	―	4.33%	6.41%	38.90%
JP:1780	66Neutral	JPY 26.10B	8.56	―	2.39%	9.13%	4.68%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:1866	62Neutral	JPY 26.94B	6.48	―	2.75%	-3.56%	25.50%

* Industrials Sector Average

Performance Comparison

JP:2153 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2153	E.J Holdings Inc.	1802.00	203.76	12.75%
JP:1780	Yamaura Corporation	1424.00	25.08	1.79%
JP:1827	Nakano Corporation	1320.00	385.09	41.19%
JP:1828	Tanabe Engineering Corporation	2307.00	21.40	0.94%
JP:1866	Kitano Construction Corp.	1090.00	-202.08	-15.64%
JP:9768	Idea Consultants,inc.	3660.00	170.62	4.89%

E.J Holdings Inc. Corporate Events

E.J Holdings Posts First-Quarter Loss but Confirms Full-Year Outlook and Higher Dividends

Oct 14, 2026

E.J Holdings Inc. reported consolidated net sales of ¥5,072 million for the three months ended August 31, 2026, an 18.3% year-on-year increase, while still posting an operating loss of ¥1,192 million and a net loss attributable to owners of...

E.J Holdings Books ¥1.53 Billion Extraordinary Gain on Affiliate Share Sale

Aug 31, 2026

E.J Holdings Inc. said it will book extraordinary income in the first quarter of the fiscal year ending May 31, 2027 after completing the sale of shares in equity-method affiliate ENZAN KOBO Co., Ltd. on August 31, 2026. The transaction will generate...

E.J Holdings Details Ties to Affiliated Yakumo Inc. and Affirms Governance Independence

Aug 27, 2026

E.J Holdings Inc. has disclosed the status and influence of its controlling shareholder relationships, focusing on Yakumo Inc., which holds 19.21 percent of the company’s voting rights as of May 31, 2026. Yakumo Inc. is wholly owned by Presiden...

E.J Holdings to Exit ENZAN KOBO Stake as Kajima Moves to Take Control

Aug 19, 2026

E.J Holdings has agreed to transfer its entire 33.63% stake in ENZAN KOBO Co., Ltd. to major general contractor Kajima Corporation, ending ENZAN KOBO’s status as an equity-method affiliate. ENZAN KOBO, a niche leader in measurement and construc...

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 15, 2026

E.J Holdings Inc. AI Stock Analysis