Eidai Kako Co., Ltd. (7877) AI Stock Analysis

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Eidai Kako Co., Ltd.

(TSE/TYO:7877)

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Rating:85Outperform

Price Target:JPY 2,510.00▲(6.90% Upside)

Action:reiterated

Date:08/17/26

Eidai Kako earns a strong overall score of 85, primarily driven by its highly attractive valuation and robust financial turnaround. The stock trades at a deep-value P/E of 7.25 with a solid 3.28% dividend yield, backed by a pristine balance sheet and accelerating free cash flow. A steady long-term technical uptrend further supports the positive profile, easily outweighing the minor risks associated with currently thin net profit margins.

Positive Factors

Profitability recovery and margin expansionThe return to profitability and sustained gross-margin expansion indicate improved pricing, product mix, or cost control. These gains provide a stronger earnings base, although continued execution is needed to convert them into durable bottom-line growth.

Negative Factors

Uneven revenue growthThe inconsistent top-line trajectory limits visibility into demand and suggests that profitability recovery has not yet been matched by a strong, durable expansion of the revenue base. Exposure to construction and renovation activity may keep growth cyclical.

Eidai Kako Co., Ltd. (7877) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.89B
Dividend Yield: 2.98%
Average Volume (3M): 796
Price to Earnings (P/E): 6.9
Beta (1Y): 0.46
Revenue Growth: 7.28%
EPS Growth: 50.08%
Country: Japan
Employees: 465
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Eidai Kako Co., Ltd. Business Overview & Revenue Model

Company Description

Eidai Kako Co.,Ltd. specializes in the production and distribution of synthetic resin materials, offering both sheet forms and custom-molded items. Its extensive product portfolio features a variety of custom-shaped resin components, such as internal...

How the Company Makes Money

Eidai Kako generates revenue primarily by manufacturing and selling building and interior materials to customers involved in homebuilding, renovation, and construction supply chains. Key revenue streams come from product sales (i.e., shipment/wholesa...

Eidai Kako Co., Ltd. Financial Statement Overview

Summary

Eidai Kako presents a sound financial profile driven by a pristine balance sheet, very low leverage (D/E of 0.14), and robust free cash flow generation. While capital efficiency (ROE) and net margins remain on the lower end, the positive recovery trajectory and reduced financial risk underscore overall stability.

Income Statement

76Positive

Balance Sheet

84Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	9.96B	9.22B	8.86B	9.09B	8.30B	8.29B
Gross Profit	2.19B	2.19B	1.92B	1.80B	1.42B	1.78B
EBITDA	763.13M	763.19M	607.17M	561.74M	35.16M	539.91M
Net Income	363.64M	334.01M	185.23M	179.66M	-238.25M	160.53M
Balance Sheet
Total Assets	10.18B	10.12B	9.85B	9.58B	9.67B	9.76B
Cash, Cash Equivalents and Short-Term Investments	2.72B	2.85B	2.38B	1.70B	1.70B	1.63B
Total Debt	888.84M	1.02B	1.12B	1.11B	1.33B	669.45M
Total Liabilities	2.73B	2.71B	2.65B	2.58B	2.94B	2.76B
Stockholders Equity	7.45B	7.41B	7.20B	7.00B	6.72B	7.00B
Cash Flow
Free Cash Flow	0	783.90M	731.40M	168.44M	-504.27M	-342.43M
Operating Cash Flow	0	937.99M	888.54M	402.77M	-69.69M	-57.81M
Investing Cash Flow	0	-169.09M	-152.16M	-160.83M	-425.93M	-398.97M
Financing Cash Flow	0	-312.19M	-84.88M	-280.95M	519.03M	-287.10M

Eidai Kako Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2348.00

Price Trends

50DMA2151.16Positive

100DMA2136.13Positive

200DMA2058.32Positive

Market Momentum

MACD4.89Negative

RSI72.98Negative

STOCH72.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7877, the sentiment is Positive. The current price of 2348.00 is above the 20-day moving average (MA) of 2092.45, above the 50-day MA of 2151.16, and above the 200-day MA of 2058.32, indicating a bullish trend. The MACD of 4.89 indicates Negative momentum. The RSI at 72.98 is Negative, neither overbought nor oversold. The STOCH value of 72.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7877.

Eidai Kako Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7877 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7877	85Outperform	JPY 3.20B	6.89	―	2.98%	7.28%	50.08%
JP:4629	76Outperform	JPY 10.30B	6.14	―	2.00%	15.70%	112.65%
JP:4623	74Outperform	JPY 5.81B	8.80	―	3.41%	30.70%	20.84%
JP:4624	67Neutral	JPY 6.00B	8.05	―	1.25%	6.21%	51.54%
JP:4616	60Neutral	JPY 4.33B	8.79	―	1.01%	12.28%	310.34%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4615	37Underperform	JPY 4.83B	-13.40	―	―	1.61%	-84.56%

* General Sector Average

Performance Comparison

JP:7877 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7877	Eidai Kako Co., Ltd.	2348.00	680.88	40.84%
JP:4615	Shinto Paint Co., Ltd.	142.00	16.00	12.70%
JP:4616	Kawakami Paint Manufacturing Co., Ltd.	4345.00	2004.30	85.63%
JP:4623	Asahipen Corporation	1758.00	101.20	6.11%
JP:4624	Isamu Paint Co., Ltd.	3985.00	446.61	12.62%
JP:4629	Daishin Chemical Co., Ltd.	2252.00	676.72	42.96%

Eidai Kako Co., Ltd. Corporate Events

Eidai Kako Delivers Strong Q1 Sales and Profit Gains Amid Margin Pressure

Aug 7, 2026

Eidai Kako Co., Ltd. reported a strong increase in net sales for the first quarter of the fiscal year ending March 2027, with revenue rising 31.9% year-on-year to ¥3,068 million. Despite this topline growth, operating profit fell 9.0% to ¥131 million...

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

Eidai Kako Co., Ltd. AI Stock Analysis