Eco's Co., Ltd. (7520) AI Stock Analysis

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Eco's Co., Ltd.

(TSE/TYO:7520)

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Rating:67Neutral

Price Target:JPY 2,462.00▲(4.01% Upside)

Action:downgraded

Date:11/05/26

Eco's Co., Ltd. achieves a moderate overall score, anchored by a highly resilient balance sheet and an attractive valuation profile featuring a 14.2x P/E ratio and a 3.07% dividend yield. Consistent top-line revenue growth further supports its fundamental standing. However, the score is heavily weighed down by strong bearish technical momentum—with the stock trading below all key moving averages—alongside recent pressures on net income profitability and sharply reduced free cash flow.

Positive Factors

Improving Balance SheetLower leverage and steadily growing equity improve the company’s financial resilience and provide greater capacity to absorb operating volatility. This stronger capital base can also support ongoing investment and preserve strategic flexibility over the next several quarters.

Negative Factors

Stagnant RevenueRevenue has shown little net expansion over the period and the latest reported growth rate was sharply negative. Persistent stagnation can limit operating leverage, reduce opportunities to spread fixed costs, and make sustained profit growth more difficult.

Eco's Co., Ltd. (7520) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 26.11B
Dividend Yield: 3.09%
Average Volume (3M): 21.61K
Price to Earnings (P/E): 13.9
Beta (1Y): 0.38
Revenue Growth: -2.81%
EPS Growth: -57.90%
Country: Japan
Employees: 1,574
Sector: General
Sector Strength: 55
Industry: Grocery Stores

Eco's Co., Ltd. Business Overview & Revenue Model

Company Description

Eco's Co.,Ltd. operates a chain of food supermarkets in Japan. Eco's Co.,Ltd. was founded in 1965 and is headquartered in Akishima, Japan.

Eco's Co., Ltd. Financial Statement Overview

Summary

The company maintains a solid fundamental profile with steady revenue growth to 138.0 billion and a highly resilient balance sheet featuring significant debt reduction. However, a recent contraction in net income and sharply deteriorated free cash flow due to heavy capital expenditures limit the score.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	136.99B	137.98B	137.18B	130.04B	122.75B	137.65B
Gross Profit	40.56B	38.64B	37.86B	35.58B	33.58B	35.27B
EBITDA	5.50B	6.25B	7.98B	6.99B	4.17B	7.47B
Net Income	1.86B	2.65B	4.13B	3.58B	1.61B	3.90B
Balance Sheet
Total Assets	58.21B	56.48B	57.70B	52.18B	47.34B	48.69B
Cash, Cash Equivalents and Short-Term Investments	11.26B	10.15B	13.46B	12.69B	9.04B	11.58B
Total Debt	10.60B	9.93B	12.75B	11.80B	11.64B	12.19B
Total Liabilities	28.37B	27.25B	30.84B	28.90B	27.27B	29.14B
Stockholders Equity	29.84B	29.23B	26.86B	23.27B	20.07B	19.54B
Cash Flow
Free Cash Flow	0	353.00M	1.55B	3.63B	-661.00M	2.86B
Operating Cash Flow	0	5.27B	5.27B	7.36B	3.33B	6.13B
Investing Cash Flow	0	-5.00B	-3.05B	-3.29B	-4.20B	-3.27B
Financing Cash Flow	0	-3.55B	-1.45B	-423.00M	-1.68B	-1.90B

Eco's Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price2367.00

Price Trends

50DMA2468.68Negative

100DMA2426.73Negative

200DMA2533.82Negative

Market Momentum

MACD-49.10Negative

RSI50.51Neutral

STOCH56.90Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7520, the sentiment is Neutral. The current price of 2367.00 is above the 20-day moving average (MA) of 2322.70, below the 50-day MA of 2468.68, and below the 200-day MA of 2533.82, indicating a neutral trend. The MACD of -49.10 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 56.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7520.

Eco's Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7520 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8006	78Outperform	JPY 25.75B	10.38	―	3.34%	3.35%	9.70%
JP:7520	67Neutral	JPY 25.75B	13.89	―	3.09%	-2.81%	-57.90%
JP:3182	66Neutral	JPY 57.99B	11.53	―	1.15%	-5.22%	27.32%
JP:2281	61Neutral	JPY 115.78B	25.82	―	3.40%	4.85%	-24.44%
JP:2294	61Neutral	JPY 25.57B	34.73	―	3.46%	-0.78%	-3.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7520 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7520	Eco's Co., Ltd.	2367.00	-467.10	-16.48%
JP:2281	Prima Meat Packers,Ltd.	2355.00	49.12	2.13%
JP:2294	Kakiyasu Honten Co., Ltd.	2460.00	-98.65	-3.86%
JP:3182	Oisix ra daichi, Inc.	1745.00	49.70	2.93%
JP:8006	Yuasa Funashoku Co., Ltd.	1437.00	-112.88	-7.28%

Eco's Co., Ltd. Corporate Events

Eco’s Co. Posts Lower First-Half Profit but Affirms Dividend and Full-Year Outlook

Oct 13, 2026

Eco’s Co., Ltd. reported consolidated gross revenue of ¥69.8 billion for the six months ended August 31, 2026, down 1.4% year-on-year. Operating profit declined 5.3% to ¥2.85 billion and profit attributable to owners of parent fell 30...

Eco’s Co. Completes Treasury Share Buyback Under Board Mandate

Oct 8, 2026

Eco’s Co., Ltd. has completed a board-approved share buyback program conducted under the Companies Act, acquiring 15,000 of its own common shares on the Tokyo Stock Exchange between October 1 and October 7, 2026, at a total cost of ¥37,698...

Eco’s Co. Nears Completion of Board-Approved Share Buyback Program

Oct 1, 2026

Eco’s Co., Ltd. reported progress on its ongoing share buyback program, disclosing that it repurchased 56,400 common shares on the Tokyo Stock Exchange in September 2026 at a total cost of ¥144,627,900. The purchases were conducted under p...

Eco’s Co., Ltd. Advances Share Buyback, Completing Majority of Authorized Program

Sep 1, 2026

Eco’s Co., Ltd., listed on the Tokyo Stock Exchange Prime Market under securities code 7520, operates in Japan and issues common shares that are actively traded on the exchange. The company’s corporate governance framework allows it to re...

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 05, 2026

Eco's Co., Ltd. AI Stock Analysis