Econach Holdings Co., Ltd. (3521) AI Stock Analysis

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Econach Holdings Co., Ltd.

(TSE/TYO:3521)

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Rating:74Outperform

Price Target:JPY 175.00▲(15.13% Upside)

Action:reiterated

Date:08/18/26

The company's financial foundation is its greatest strength, characterized by rapid revenue growth, a debt-light balance sheet, and healthy cash generation. Technicals show positive momentum but warn of an overbought condition, while the valuation is fair but not a standout. The primary risk is the recent compression in profit margins, which tempers an otherwise positive outlook.

Positive Factors

Sharp Revenue Growth and Sustained ProfitabilityThe sharp revenue acceleration and continued profitability indicate stronger business activity and improved operating execution. If sustained, this recovery can strengthen the company’s earnings base and support reinvestment over the next several quarters.

Negative Factors

Meaningful Margin CompressionLower gross and net margins indicate that recent growth has not fully translated into stronger profitability per unit of revenue. Persistent compression could limit earnings expansion and weaken the quality of the company’s ongoing turnaround.

Econach Holdings Co., Ltd. (3521) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.07B
Dividend Yield: 3.29%
Average Volume (3M): 15.65K
Price to Earnings (P/E): 23.3
Beta (1Y): 0.23
Revenue Growth: 46.98%
EPS Growth: -11.10%
Country: Japan
Employees: 32
Sector: Real Estate
Sector Strength: 65
Industry: Personal Products & Services

Econach Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Thermae-yu Holdings Co. Ltd. primarily engages in Japan's spa and real estate industries. The company's real estate division handles property sales and rentals, alongside managing shareholdings. Furthermore, it is involved in the manufacturing and di...

Econach Holdings Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and a robust balance sheet with very low leverage underpin financial health. Cash flows are solid, though recent margin compression and a slight dip in free cash flow prevent a higher score.

Income Statement

75Positive

Balance Sheet

90Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.96B	2.70B	1.98B	1.89B	1.41B	751.44M
Gross Profit	636.41M	590.28M	509.25M	338.06M	196.24M	54.04M
EBITDA	544.70M	631.49M	647.50M	495.23M	209.13M	63.43M
Net Income	174.18M	161.88M	191.56M	96.19M	51.05M	-22.00M
Balance Sheet
Total Assets	5.86B	6.00B	6.09B	6.01B	6.11B	6.10B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.30B	1.50B	1.23B	1.01B	1.93B
Total Debt	355.59M	405.27M	600.67M	794.29M	939.80M	1.06B
Total Liabilities	980.95M	1.03B	1.17B	1.28B	1.48B	1.52B
Stockholders Equity	4.88B	4.97B	4.92B	4.73B	4.63B	4.58B
Cash Flow
Free Cash Flow	0	356.25M	470.43M	369.57M	-1.21B	-46.89M
Operating Cash Flow	0	449.56M	562.90M	505.49M	-25.13M	134.41M
Investing Cash Flow	0	-291.54M	-95.09M	-140.85M	-778.09M	-184.39M
Financing Cash Flow	0	-367.03M	-194.62M	-146.02M	-118.40M	774.35M

Econach Holdings Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price152.00

Price Trends

50DMA156.36Negative

100DMA153.99Negative

200DMA157.98Negative

Market Momentum

MACD-1.14Positive

RSI34.51Neutral

STOCH16.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3521, the sentiment is Negative. The current price of 152.00 is below the 20-day moving average (MA) of 155.55, below the 50-day MA of 156.36, and below the 200-day MA of 157.98, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 34.51 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3521.

Econach Holdings Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

JP:3521 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3521	74Outperform	JPY 4.05B	23.25	―	3.29%	46.98%	-11.10%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
JP:2305	60Neutral	JPY 31.00B	19.92	―	2.75%	-4.42%	-1.75%
JP:2438	59Neutral	JPY 4.57B	16.15	―	2.62%	-0.25%	―
JP:7127	49Neutral	JPY 5.01B	224.03	―	―	13.36%	―
JP:7502	47Neutral	JPY 1.51B	-34.79	―	3.16%	-7.84%	-129.39%
JP:3041	38Underperform	JPY 1.44B	-8.37	―	1.18%	-3.95%	-510.13%

* Real Estate Sector Average

Performance Comparison

JP:3521 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3521	Econach Holdings Co., Ltd.	152.00	-3.35	-2.16%
JP:2305	Studio Alice Co., Ltd.	1819.00	-155.83	-7.89%
JP:2438	Asukanet Company, Limited	267.00	-70.22	-20.82%
JP:3041	Beauty Kadan Holdings Co. Ltd.	355.00	-101.00	-22.15%
JP:7127	Ikka Holdings Co.,Ltd.	685.00	1.00	0.15%
JP:7502	PLAZA HOLDINGS CO.,LTD.	1580.00	-231.32	-12.77%

Econach Holdings Co., Ltd. Corporate Events

Thermae-Yu Holdings Posts Strong Q1 Growth and Confirms FY2027 Outlook

Aug 12, 2026

Thermae-Yu Holdings reported strong year-on-year growth for the quarter ended June 30, 2026, with net sales rising 53.6% to ¥754 million and profit attributable to owners of parent climbing 51.4% to ¥36 million. Earnings per share increased to ¥1.37,...

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: Aug 18, 2026

Econach Holdings Co., Ltd. AI Stock Analysis