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Environmental Control Center Co., Ltd. (4657) AI Stock Analysis

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JP:4657

Environmental Control Center Co., Ltd.

(TSE/TYO:4657)

Select Model
Rating:57Neutral
Price Target:JPY 442.00▲(3.51% Upside)
Action:reiterated
Date:08/17/26

The score is driven mainly by improving (but still volatile) financial performance and a moderately positive technical setup. These positives are significantly offset by very stretched valuation (P/E ~93.6), which limits the overall score despite the recovery in 2026 profitability and cash flow.

Positive Factors
Revenue recoveryThe return to revenue growth indicates renewed demand for the company’s environmental measurement and analysis services. Continued top-line expansion can improve operating leverage, support investment in service capacity, and strengthen the business’s ability to compound earnings over coming quarters.
Negative Factors
Unstable profitabilityProfitability has recovered but remains inconsistent across recent years, making the earnings base less dependable. Low and volatile margins leave less protection against cost or revenue pressure and make it harder for management to plan investment and deliver predictable shareholder returns.

Environmental Control Center Co., Ltd. (4657) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:4657+2.78%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.08B
Dividend Yield
1.87%
Average Volume (3M)
8,910
Price to Earnings (P/E)
16.7
Beta (1Y)
0.62
Revenue Growth
-8.39%
EPS Growth
1657.23%
Country
Japan
Employees
283
Sector
General
Sector Strength
55
Industry
Waste Management

Environmental Control Center Co., Ltd. Business Overview & Revenue Model

Company Description

Environmental Control Center Co.,Ltd. is a Japanese firm specializing in environmental consultancy. It offers comprehensive monitoring and advisory services concerning air, water, and soil quality, applicable to both general ecological systems and in...

Environmental Control Center Co., Ltd. Financial Statement Overview

Summary

Fundamentals are improving but still inconsistent: revenue grew in 2026 (+8.7% vs. 2025) and profitability rebounded (net margin ~2.2%, EBIT margin ~4.8%), yet margins remain below prior peaks and earnings have been volatile across recent years. Balance sheet leverage is moderate and improving (debt/equity ~0.65), but cash flow reliability is a concern despite better 2026 free cash flow (~¥214M) given multi-year variability.

Income Statement

62Positive

Balance Sheet

68Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue5.59B5.59B6.10B5.59B5.34B4.75B
Gross Profit1.53B1.49B1.30B1.43B1.16B1.01B
EBITDA540.84M540.84M365.03M594.11M326.77M356.64M
Net Income122.97M122.97M7.90M218.41M-41.60M222.99M
Balance Sheet
Total Assets5.44B5.44B5.44B5.62B5.26B5.75B
Cash, Cash Equivalents and Short-Term Investments683.45M683.45M828.18M675.55M651.23M542.77M
Total Debt1.57B1.57B1.75B1.48B1.74B1.89B
Total Liabilities2.88B2.88B2.99B3.18B3.02B3.46B
Stockholders Equity2.43B2.43B2.34B2.36B2.16B2.23B
Cash Flow
Free Cash Flow0214.15M41.20M378.03M371.80M-219.60M
Operating Cash Flow0386.19M189.28M479.61M570.55M54.94M
Investing Cash Flow0-258.80M-189.06M-139.88M-272.84M-307.38M
Financing Cash Flow0-273.84M156.63M-314.45M-188.47M320.59M

Environmental Control Center Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price427.00

Price Trends

50DMA449.36Negative
100DMA455.94Negative
200DMA455.41Negative

Market Momentum

MACD-6.84Negative
RSI35.53Neutral
STOCH64.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4657, the sentiment is Negative. The current price of 427.00 is below the 20-day moving average (MA) of 432.40, below the 50-day MA of 449.36, and below the 200-day MA of 455.41, indicating a bearish trend. The MACD of -6.84 indicates Negative momentum. The RSI at 35.53 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4657.

Environmental Control Center Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:4657 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5698JP:569873OutperformJPY 19.76B7.70―3.81%-9.49%118.07%
JP:9793JP:979372OutperformJPY 164.83B16.2212.40%2.37%3.67%13.39%
JP:9336JP:933667NeutralJPY 431.54B24.25―1.42%18.14%21.27%
JP:2195JP:219566NeutralJPY 6.00B19.68―1.59%0.03%-16.01%
JP:4657JP:465757NeutralJPY 2.04B16.66―1.87%-8.39%1657.23%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:4657JP:9793JP:2195JP:5698JP:9336Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:4657 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4657Environmental Control Center Co., Ltd.427.003.700.87%
JP:9793Daiseki Co 3500.00221.956.77%
JP:2195Amita Holdings Co., Ltd.314.000.430.14%
JP:5698Envipro Holdings, Inc.657.00131.3024.98%
JP:9336Daiei Kankyo Co., Ltd.3945.00411.9711.66%
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 17, 2026