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Ebara Jitsugyo Co., Ltd. (6328) AI Stock Analysis

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JP:6328

Ebara Jitsugyo Co., Ltd.

(TSE/TYO:6328)

Select Model
Rating:70.75Outperform
Price Target:JPY 2,433.00▲(5.92% Upside)
Action:reiterated
Date:11/07/26

The company's excellent financial health, characterized by strong profitability and a nearly debt-free balance sheet, forms a solid foundation. An attractive valuation with a low P/E and high dividend yield further supports the investment case. However, these strengths are tempered by a bearish technical picture, with the stock trading below key moving averages, and a notable deterioration in cash flow quality that requires monitoring.

Positive Factors
Improving profitabilityHigher revenue combined with expanding gross and net margins indicates improving operating performance, not merely volume growth. If margins remain resilient, the company can generate more profit from its infrastructure and equipment activities, strengthening reinvestment capacity over the next several quarters.
Negative Factors
Inconsistent cash conversionOperating cash flow has not consistently tracked reported earnings, with 2025 conversion particularly weak and prior-year results variable. Working-capital or project-timing effects may continue to make cash generation less predictable, limiting confidence in near-term funding capacity and earnings quality.

Ebara Jitsugyo Co., Ltd. (6328) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:6328+9.99%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 56.86B
Dividend Yield
2.94%
Average Volume (3M)
84.36K
Price to Earnings (P/E)
12.3
Beta (1Y)
1.10
Revenue Growth
0.51%
EPS Growth
10.15%
Country
Japan
Employees
548
Sector
Industrials
Sector Strength
63
Industry
Conglomerates

Ebara Jitsugyo Co., Ltd. Business Overview & Revenue Model

Company Description

Ebara Jitsugyo Co.,Ltd. is a Japanese company that manufactures and distributes a range of environmental and related products. The firm also undertakes engineering projects for water supply and sewage infrastructure. Additionally, it sells various in...

How the Company Makes Money

The company primarily makes money through (1) plant/infrastructure project revenue and (2) recurring and semi-recurring revenue tied to the installed base of facilities it has delivered. 1) Engineering and construction/project revenue: A core revenue...

Ebara Jitsugyo Co., Ltd. Financial Statement Overview

Summary

Strong profitability and a rock-solid balance sheet with minimal debt are offset by volatile cash flow generation. The income statement shows consistent growth and margin improvement, while the balance sheet's low leverage provides significant financial flexibility. However, the recent decline in operating cash flow to only 32% of net income is a concern for earnings quality.

Income Statement

80Positive

Balance Sheet

90Very Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue39.62B41.21B37.50B36.28B30.23B32.48B
Gross Profit12.69B13.93B11.73B11.14B9.28B10.49B
EBITDA5.66B6.41B4.81B4.62B3.28B4.61B
Net Income3.79B4.38B3.16B3.14B2.17B3.16B
Balance Sheet
Total Assets43.55B48.38B43.00B41.92B33.53B35.73B
Cash, Cash Equivalents and Short-Term Investments18.51B15.17B14.86B14.50B11.30B11.10B
Total Debt990.00M1.52B1.01B1.09B1.18B1.35B
Total Liabilities18.36B20.44B19.53B20.89B15.13B16.57B
Stockholders Equity25.20B27.94B23.46B21.03B18.40B19.15B
Cash Flow
Free Cash Flow01.04B1.80B4.59B1.37B2.70B
Operating Cash Flow01.41B1.97B4.71B1.61B3.15B
Investing Cash Flow0-352.00M-38.00M169.00M195.00M244.00M
Financing Cash Flow0-752.00M-1.57B-1.68B-1.61B-1.68B

Ebara Jitsugyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2297.00

Price Trends

50DMA2409.16Negative
100DMA2404.11Negative
200DMA2419.79Negative

Market Momentum

MACD-41.59Positive
RSI41.42Neutral
STOCH48.20Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6328, the sentiment is Negative. The current price of 2297.00 is below the 20-day moving average (MA) of 2405.90, below the 50-day MA of 2409.16, and below the 200-day MA of 2419.79, indicating a bearish trend. The MACD of -41.59 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 48.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6328.

Ebara Jitsugyo Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:6328 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8020JP:802080OutperformJPY 408.53B10.02―2.96%7.67%43.40%
JP:8088JP:808874OutperformJPY 474.69B6.24―2.41%9.50%65.74%
JP:8078JP:807873OutperformJPY 378.57B8.0110.41%3.60%11.09%9.57%
JP:6328JP:632871OutperformJPY 56.86B12.3314.66%2.94%0.51%10.15%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:8002JP:800263NeutralJPY 8.65T14.8313.27%2.20%14.07%2.31%
JP:2768JP:276856NeutralJPY 1.00T9.0610.96%3.26%26.81%11.09%

* Industrials Sector Average

Performance Comparison

0%20%40%JP:6328JP:8002JP:2768JP:8078JP:8020JP:8088Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6328 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6328Ebara Jitsugyo Co., Ltd.2297.00181.848.60%
JP:8002Marubeni Corporation5232.001282.8532.48%
JP:2768Sojitz Corp5287.00932.8321.42%
JP:8078Hanwa Co., Ltd.1831.00541.6842.01%
JP:8020Kanematsu Corporation2457.50868.8554.69%
JP:8088Iwatani Corporation2053.00427.7226.32%

Ebara Jitsugyo Co., Ltd. Corporate Events

Ebara Jitsugyo Reports Lower Sales Despite Stronger Orders and Backlog

Nov 5, 2026

Ebara Jitsugyo serves demand for water infrastructure renewal, disaster prevention, domestic plant upgrades, and semiconductor facilities. Its engineering activities position the company across public infrastructure and private-sector industrial mark...

Ebara Jitsugyo Reports Stable Nine-Month Earnings

Nov 5, 2026

Ebara Jitsugyo reported largely stable earnings for the nine months ended September 30, 2026, despite a decline in revenue. Net sales fell 2.9% year on year to ¥28.407 billion, while operating profit decreased 0.5% to ¥4.287 billion and ordinary prof...

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