Envipro Holdings, Inc. (5698) AI Stock Analysis

Envipro Holdings, Inc.

(TSE/TYO:5698)

Select Model

Rating:79.5Outperform

Price Target:JPY 725.00▲(16.00% Upside)

Action:upgraded

Date:08/17/26

The stock scores 79.5, reflecting strong financial performance and attractive valuation, partially offset by weaker technical trends. The company's improving margins, solid balance sheet, and robust cash flows provide a solid foundation, while the low P/E and healthy dividend yield indicate undervaluation. However, the current price is below its moving averages, signaling short-term bearish sentiment.

Positive Factors

Profitability reboundThe latest profitability rebound indicates improved earnings power and operating efficiency after weaker prior periods. If maintained, stronger margins can support internal funding, improve resilience, and provide greater capacity to invest in recycling and environmental-service growth.

Negative Factors

Revenue declineA declining and uneven revenue base suggests that growth has not yet become dependable. For a company monetizing processed materials and environmental services, inconsistent top-line expansion can limit operating leverage and make future earnings less predictable over the next several quarters.

Envipro Holdings, Inc. (5698) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.02B
Dividend Yield: 4.00%
Average Volume (3M): 174.56K
Price to Earnings (P/E): 7.3
Beta (1Y): 1.15
Revenue Growth: -9.49%
EPS Growth: 118.07%
Country: Japan
Employees: 620
Sector: Industrials
Sector Strength: 63
Industry: Waste Management

Envipro Holdings, Inc. Business Overview & Revenue Model

Company Description

Founded in Fujinomiya, Japan, in 1950, Envipro Holdings Inc. is a Japanese company with international operations primarily focused on resource recycling, global trade, and lithium-ion battery recovery. Its Resource Circulation segment oversees the co...

How the Company Makes Money

Envipro Holdings generates revenue primarily by providing recycling and waste/resource processing services and by selling the resulting recycled materials/resources. Key monetization typically includes (1) service fees from customers for collection,...

Envipro Holdings, Inc. Financial Statement Overview

Summary

Strong profitability improvement with gross margin 22.4% and net margin 5.5% in FY2026, multi-year highs. Net income grew despite revenue decline, reflecting effective cost management. Balance sheet is strong with low debt-to-equity (0.35) and growing equity. Cash flow generation robust with operating cash flow ¥3.1B and free cash flow ¥2.1B. However, revenue volatility and recent decline pose a top-line risk.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	44.43B	44.43B	49.09B	52.21B	49.19B	57.32B
Gross Profit	9.94B	9.94B	8.45B	8.48B	8.50B	10.63B
EBITDA	4.61B	4.57B	2.94B	2.12B	2.73B	4.91B
Net Income	2.42B	2.42B	1.18B	537.48M	1.24B	3.11B
Balance Sheet
Total Assets	34.71B	34.71B	32.41B	34.98B	34.67B	29.36B
Cash, Cash Equivalents and Short-Term Investments	7.50B	7.50B	7.01B	6.92B	7.39B	9.06B
Total Debt	6.77B	6.77B	7.74B	8.94B	10.33B	8.23B
Total Liabilities	15.58B	15.58B	15.10B	17.94B	17.85B	13.15B
Stockholders Equity	19.08B	19.08B	17.22B	17.04B	16.71B	16.14B
Cash Flow
Free Cash Flow	0	2.12B	1.93B	1.30B	-335.40M	2.47B
Operating Cash Flow	0	3.07B	3.47B	2.94B	2.33B	3.87B
Investing Cash Flow	0	-910.20M	-1.23B	-1.56B	-3.84B	-1.40B
Financing Cash Flow	0	-1.67B	-2.18B	-1.93B	-92.16M	-765.31M

Envipro Holdings, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price625.00

Price Trends

50DMA722.50Negative

100DMA766.02Negative

200DMA835.67Negative

Market Momentum

MACD-26.31Positive

RSI27.70Positive

STOCH30.75Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5698, the sentiment is Negative. The current price of 625.00 is below the 20-day moving average (MA) of 668.30, below the 50-day MA of 722.50, and below the 200-day MA of 835.67, indicating a bearish trend. The MACD of -26.31 indicates Positive momentum. The RSI at 27.70 is Positive, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5698.

Envipro Holdings, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:5698 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5698	80Outperform	JPY 18.98B	7.34	―	4.00%	-9.49%	118.07%
JP:9336	76Outperform	JPY 399.57B	24.10	―	1.40%	13.76%	18.44%
JP:9793	72Outperform	JPY 161.97B	15.69	12.40%	2.44%	3.67%	13.39%
JP:5699	65Neutral	JPY 4.93B	6.77	―	2.20%	10.72%	73.57%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:4657	53Neutral	JPY 2.06B	16.74	―	1.86%	-8.39%	1657.23%
JP:2195	52Neutral	JPY 6.33B	19.80	―	1.54%	0.03%	-16.01%

* Industrials Sector Average

Performance Comparison

JP:5698 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5698	Envipro Holdings, Inc.	625.00	125.58	25.15%
JP:9793	Daiseki Co	3400.00	180.66	5.61%
JP:2195	Amita Holdings Co., Ltd.	318.00	5.41	1.73%
JP:4657	Environmental Control Center Co., Ltd.	430.00	9.64	2.29%
JP:5699	IBOKIN Co., Ltd.	1455.00	84.86	6.19%
JP:9336	Daiei Kankyo Co., Ltd.	3995.00	624.58	18.53%

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

Envipro Holdings, Inc. AI Stock Analysis