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Eidai Co., Ltd. (7822) AI Stock Analysis

JP:7822

Eidai Co., Ltd.

(TSE/TYO:7822)

Select Model
Rating:60Neutral
Price Target:JPY 270.00â–²(13.45% Upside)
Action:reiterated
Date:08/17/26

Eidai Co. scores moderately overall, supported primarily by strong technical momentum and an attractive dividend yield. However, significant fundamental risks limit the score, notably its recent net losses, negative free cash flow, and negative P/E ratio, which require management focus on cost rationalization to improve sustainable earnings.

Positive Factors
Stable Revenue BaseRevenue stability, with a return to modest growth, indicates an established product base and recurring demand across housing and renovation channels. This provides a foundation for recovery if product mix, pricing, and cost execution improve.
Negative Factors
FY2026 Net LossThe shift to a meaningful net loss demonstrates that earnings are not yet dependable despite relatively stable revenue. Continued losses could weaken retained equity, restrict investment capacity, and make shareholder returns more difficult to sustain.

Eidai Co., Ltd. (7822) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:7822+9.18%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 10.52B
Dividend Yield
4.20%
Average Volume (3M)
39.82K
Price to Earnings (P/E)
-4.1
Beta (1Y)
0.60
Revenue Growth
4.67%
EPS Growth
-9195.72%
Country
Japan
Employees
1,454
Sector
General
Sector Strength
55
Industry
Furnishings, Fixtures & Appliances

Eidai Co., Ltd. Business Overview & Revenue Model

Company Description

Eidai Co.,Ltd. operates within Japan, focusing on the production and distribution of construction materials for residential properties, as well as a variety of timber-based panels. The company's extensive product portfolio features a wide selection o...

How the Company Makes Money

Eidai primarily makes money by manufacturing and selling interior building materials to the construction and housing value chain. Key revenue streams generally include (1) product sales of interior materials (e.g., flooring and other interior compone...

Eidai Co., Ltd. Financial Statement Overview

Summary

The company maintains a stable balance sheet with moderate leverage (0.56x debt-to-equity). However, this is offset by severe profitability challenges, including negative net margins (-3.86%) and persistently negative free cash flow.

Income Statement

35Negative

Balance Sheet

65Positive

Cash Flow

40Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue75.05B73.77B71.20B71.67B69.79B59.44B
Gross Profit16.52B16.01B14.76B15.04B14.43B14.73B
EBITDA4.44B4.21B3.15B3.52B1.42B1.79B
Net Income-2.55B-2.85B-29.00M3.22B-1.10B388.00M
Balance Sheet
Total Assets82.78B81.55B88.71B96.12B92.98B88.85B
Cash, Cash Equivalents and Short-Term Investments4.30B5.62B8.74B13.42B6.95B6.60B
Total Debt24.24B23.47B24.52B25.33B26.60B24.28B
Total Liabilities45.32B44.43B46.92B53.30B53.45B47.05B
Stockholders Equity42.26B41.85B44.25B44.52B40.61B42.18B
Cash Flow
Free Cash Flow0-1.10B-4.21B8.43B-1.67B-9.95B
Operating Cash Flow01.23B-2.31B9.95B263.00M1.21B
Investing Cash Flow0-1.99B-2.15B-1.77B-662.00M-9.56B
Financing Cash Flow0-1.50B-1.23B-1.70B915.00M6.80B

Eidai Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price238.00

Price Trends

50DMA248.73Negative
100DMA243.43Negative
200DMA237.98Positive

Market Momentum

MACD-2.38Positive
RSI34.90Neutral
STOCH34.17Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7822, the sentiment is Negative. The current price of 238.00 is below the 20-day moving average (MA) of 243.65, below the 50-day MA of 248.73, and above the 200-day MA of 237.98, indicating a neutral trend. The MACD of -2.38 indicates Positive momentum. The RSI at 34.90 is Neutral, neither overbought nor oversold. The STOCH value of 34.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7822.

Eidai Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7822 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8130JP:813082OutperformJPY 185.10B11.14―4.92%3.91%28.69%
JP:7981JP:798172OutperformJPY 188.94B13.28―4.20%1.75%7.95%
JP:7955JP:795568NeutralJPY 31.48B8.35―3.75%4.93%90.43%
JP:7887JP:788765NeutralJPY 7.10B4.03―2.82%27.96%217.85%
JP:7822JP:782260NeutralJPY 10.70B-4.13―4.20%4.67%-9195.72%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7898JP:789851NeutralJPY 8.36B-4.31―2.69%2.16%-194.33%

* General Sector Average

Performance Comparison

0%20%40%60%JP:7822JP:7887JP:7898JP:7955JP:7981JP:8130Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7822 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7822Eidai Co., Ltd.238.0019.068.71%
JP:7887Nankai Plywood Co., Ltd.1418.00-60.52-4.09%
JP:7898Wood One Co., Ltd.893.0054.186.46%
JP:7955Cleanup Corporation880.00133.1817.83%
JP:7981Takara Standard Co., Ltd3045.00659.6327.65%
JP:8130Sangetsu Corporation3150.00270.449.39%
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