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Environment Friendly Holdings Corp. (3777) AI Stock Analysis

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JP:3777

Environment Friendly Holdings Corp.

(TSE/TYO:3777)

Select Model
Rating:49Neutral
Price Target:JPY 39.00â–¼(-2.50% Downside)
Action:reiterated
Date:11/07/26

The overall score of 49 is significantly dragged down by a steep technical downtrend and an exorbitant valuation premium. However, the company's ongoing structural turnaround—highlighted by vastly improved profit margins, a return to positive cash flow, and a stable balance sheet—provides crucial underlying support and a high-risk, high-reward narrative for investors.

Positive Factors
Improved cash generationPositive operating and free cash flow in 2025 marks a meaningful improvement from repeated 2021–2024 cash burn. If maintained, this can strengthen internal funding, reduce reliance on external capital, and support resilience while the company works to stabilize revenue.
Negative Factors
Severe revenue contractionAn approximately 83% revenue contraction is a major challenge to the company’s operating scale and earnings visibility. Such an unstable top line makes it difficult to underwrite recurring demand, sustain fixed-cost absorption, or determine whether recent margin improvement can persist.

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

-40%-20%0%20%40%60%JP:3777-16.67%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 14.48B
Dividend Yield
―
Average Volume (3M)
1.29M
Price to Earnings (P/E)
171.5
Beta (1Y)
1.25
Revenue Growth
-77.91%
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

The company is undergoing a drastic but promising structural shift. Despite an 83% revenue collapse, gross profit margins soared to 57.1%, EBIT turned positive, and operating cash flow reached 687M. The balance sheet remains stable with a manageable debt-to-equity ratio of 0.44, providing a safety net during this transition.

Income Statement

42Neutral

Balance Sheet

75Positive

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.40B1.37B17.24B17.00B754.09M263.72M
Gross Profit778.37M783.20M520.71M1.05B182.18M62.13M
EBITDA487.86M270.18M-17.75M231.20M-89.89M-152.79M
Net Income70.94M-3.65M-154.89M153.18M-171.31M260.93M
Balance Sheet
Total Assets9.00B6.39B3.51B3.38B1.83B1.64B
Cash, Cash Equivalents and Short-Term Investments1.40B1.25B1.04B1.13B934.58M897.34M
Total Debt2.11B1.64B32.79M18.70M24.60M33.28M
Total Liabilities3.15B2.66B309.45M250.26M159.61M120.88M
Stockholders Equity5.58B3.73B3.20B3.12B1.67B1.52B
Cash Flow
Free Cash Flow0304.34M-121.29M-72.96M-277.22M-566.34M
Operating Cash Flow0687.60M-93.06M-66.42M-275.82M-566.34M
Investing Cash Flow0-727.68M-31.04M65.90M-2.45M186.55M
Financing Cash Flow0-2.45M23.19M196.47M315.51M1.16B

Environment Friendly Holdings Corp. Technical Analysis

Technical Analysis SentimentNegative
Last Price40.00

Price Trends

50DMA44.66Negative
100DMA46.58Negative
200DMA52.70Negative

Market Momentum

MACD-2.12Positive
RSI43.41Neutral
STOCH38.10Neutral

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 40.00 is below the 20-day moving average (MA) of 41.90, below the 50-day MA of 44.66, and below the 200-day MA of 52.70, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 43.41 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, 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
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3913JP:391374OutperformJPY 1.76B8.04――40.37%18.10%
JP:4169JP:416970OutperformJPY 12.15B22.16――11.40%-40.75%
JP:2334JP:233464NeutralJPY 19.30B-33.16――398.87%12.91%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:9651JP:965160NeutralJPY 17.82B15.39―3.64%14.03%-22.34%
JP:3777JP:377749NeutralJPY 14.48B171.45――-77.91%―
JP:157AJP:157A47NeutralJPY 2.26B-5.68―1.49%-4.26%-1168.97%

* Technology Sector Average

Performance Comparison

0%50%100%JP:3777JP:157AJP:2334JP:3913JP:4169JP:9651Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3777 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3777Environment Friendly Holdings Corp.40.00-8.00-16.67%
JP:157AGreen Monster Inc.670.00-82.50-10.96%
JP:2334Eole, Inc.448.00-7.00-1.54%
JP:3913GreenBee. Inc.826.00-416.00-33.49%
JP:4169Enechange Ltd.287.00-4.00-1.37%
JP:9651Japan Process Development Co., Ltd.1870.00188.8411.23%
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: Nov 07, 2026