Environment Friendly Holdings Corp. (3777) AI Stock Analysis

Environment Friendly Holdings Corp.

(TSE/TYO:3777)

Select Model

Rating:46Neutral

Price Target:JPY 40.00▼(-4.76% Downside)

Action:reiterated

Date:10/31/26

The overall score is 46, reflecting a high-risk profile. The most significant factor is the company's catastrophic 92% revenue decline, which undermines its business sustainability and results in a poor financial performance score. This is compounded by weak technicals, with the stock in a clear downtrend and strong bearish momentum. The extremely high P/E ratio adds further valuation risk. A positive cash flow turnaround provides a minor offset but is insufficient to counterbalance the severe top-line contraction and negative market sentiment.

Positive Factors

Cash Flow ImprovementPositive operating and free cash flow in 2025 marks a meaningful improvement from repeated cash burn in 2021–2024. If sustained, internally generated cash can support operations and investment while reducing reliance on external funding.

Negative Factors

Revenue ContractionAn approximately 83% revenue decline represents a major contraction in the company’s operating base and makes future earnings difficult to underwrite. A smaller revenue platform can also limit reinvestment capacity and weaken the durability of recent profitability improvements.

Environment Friendly Holdings Corp. (3777) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 15.11B
Dividend Yield: ―
Average Volume (3M): 1.02M
Price to Earnings (P/E): 180.0
Beta (1Y): 1.12
Revenue Growth: -83.13%
EPS Growth: ―
Country: Japan
Employees: 36
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Environment Friendly Holdings Corp. Business Overview & Revenue Model

Company Description

Environment Friendly Holdings Corp. operates primarily within the renewable energy sector, while also engaging in IT-related ventures. The company, headquartered in Tokyo, Japan, was founded in 1995. It was previously known as FHT Holdings Corp. befo...

Environment Friendly Holdings Corp. Financial Statement Overview

Summary

Financial performance is mixed. The income statement is severely distressed with a 92% revenue collapse, resulting in a low score of 25. However, the balance sheet is stable (65) and cash flow has turned strongly positive (70). The overall financial health is weighed down by the top-line implosion, but supported by improved liquidity and a solid equity base.

Income Statement

25Negative

Balance Sheet

65Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.40B	1.37B	17.24B	17.00B	754.09M	263.72M
Gross Profit	778.37M	783.20M	520.71M	1.05B	182.18M	62.13M
EBITDA	487.86M	270.18M	-17.75M	231.20M	-89.89M	-152.79M
Net Income	70.94M	-3.65M	-154.89M	153.18M	-171.31M	260.93M
Balance Sheet
Total Assets	9.00B	6.39B	3.51B	3.38B	1.83B	1.64B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.25B	1.04B	1.13B	934.58M	897.34M
Total Debt	2.11B	1.64B	32.79M	18.70M	24.60M	33.28M
Total Liabilities	3.15B	2.66B	309.45M	250.26M	159.61M	120.88M
Stockholders Equity	5.58B	3.73B	3.20B	3.12B	1.67B	1.52B
Cash Flow
Free Cash Flow	0	304.34M	-121.29M	-72.96M	-277.22M	-566.34M
Operating Cash Flow	0	687.60M	-93.06M	-66.42M	-275.82M	-566.34M
Investing Cash Flow	0	-727.68M	-31.04M	65.90M	-2.45M	186.55M
Financing Cash Flow	0	-2.45M	23.19M	196.47M	315.51M	1.16B

Environment Friendly Holdings Corp. Technical Analysis

Technical Analysis SentimentNegative

Last Price42.00

Price Trends

50DMA46.16Negative

100DMA47.87Negative

200DMA53.56Negative

Market Momentum

MACD-0.95Positive

RSI38.43Neutral

STOCH16.67Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3777, the sentiment is Negative. The current price of 42.00 is below the 20-day moving average (MA) of 46.00, below the 50-day MA of 46.16, and below the 200-day MA of 53.56, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 38.43 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:3777.

Environment Friendly Holdings Corp. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3777 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3913	84Outperform	JPY 2.42B	9.99	―	―	43.96%	165.45%
JP:2334	73Outperform	JPY 21.15B	-35.68	―	―	398.87%	12.91%
JP:4169	66Neutral	JPY 11.42B	32.10	―	―	17.00%	52.02%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:9651	60Neutral	JPY 17.68B	14.98	―	3.67%	14.03%	-22.34%
JP:3777	46Neutral	JPY 15.22B	180.03	―	―	-83.13%	―
JP:157A	41Neutral	JPY 2.42B	-6.33	―	1.34%	-4.26%	-1168.97%

* Technology Sector Average

Performance Comparison

JP:3777 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3777	Environment Friendly Holdings Corp.	42.00	-11.00	-20.75%
JP:157A	Green Monster Inc.	747.00	229.53	44.36%
JP:2334	Eole, Inc.	482.00	102.50	27.01%
JP:3913	GreenBee. Inc.	1210.00	284.00	30.67%
JP:4169	Enechange Ltd.	261.00	-52.00	-16.61%
JP:9651	Japan Process Development Co., Ltd.	1820.00	133.09	7.89%

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 31, 2026

Environment Friendly Holdings Corp. AI Stock Analysis