ESLEAD CORPORATION (8877) AI Stock Analysis

• Market Cap: ¥86.72B
• Dividend Yield: 3.26%
• Average Volume (3M): 19.79K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.80
• Revenue Growth: -18.65%
• EPS Growth: -30.68%
• Country: JP
• Employees: 404
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 195.02
• Shares Outstanding: 15,465,600
• 10 Day Avg. Volume: 19,110
• 30 Day Avg. Volume: 19,793
• PEG Ratio: 0.28
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -1.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥6,492.00 ▲(20.45% Upside)

ESLEAD CORPORATION demonstrates strong financial performance with robust revenue growth and profitability, although it faces challenges in cash flow management and high leverage. The technical analysis indicates strong bullish momentum, supported by positive market indicators. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield, making it an appealing investment in the real estate services sector.

ESLEAD CORPORATION Business Overview & Revenue Model

Company Description

ESLEAD CORPORATION (8877) is a prominent player in the technology and investment sectors, focusing on providing innovative digital solutions and strategic investments in various markets. The company specializes in software development, IT consulting, and system integration services, catering to a diverse range of industries. With a commitment to enhancing operational efficiency and driving digital transformation, ESLEAD aims to empower businesses through its cutting-edge products and solutions.

How the Company Makes Money

ESLEAD CORPORATION generates revenue primarily through its software development and IT consulting services. The company charges clients for bespoke software solutions and ongoing support, creating a steady stream of income. Additionally, ESLEAD engages in system integration projects, which involve the implementation of complex IT systems for businesses, further contributing to its revenue. Partnerships with technology providers and enterprises enhance their service offerings, allowing for revenue sharing and collaborative projects. Furthermore, the company may also invest in promising startups or technology firms, providing potential returns through equity stakes or profit-sharing agreements.

ESLEAD CORPORATION Financial Statement Overview

Summary

The company exhibits robust revenue and profit growth with solid profitability metrics in the income statement. However, high leverage on the balance sheet and cash flow inefficiencies highlight areas for improvement.

Income Statement

The company demonstrates strong revenue growth, with a CAGR in revenue over the past five years. Gross profit and net income margins have remained healthy, with the EBIT margin showing consistent improvement. However, the net profit margin has experienced modest fluctuations, indicating potential cost management issues.

Balance Sheet

The balance sheet reflects a stable equity base, with a moderate increase in stockholders' equity over the years. The debt-to-equity ratio is relatively high, signifying increased leverage, which could pose a risk in downturn periods. However, the equity ratio remains satisfactory, indicating a balanced asset structure.

Cash Flow

The company has faced challenges in generating positive operating cash flow, with consistent negative free cash flow over the years. This highlights potential inefficiencies in managing operating expenses or capital expenditures. However, financing activities have been robust, supporting liquidity needs despite operational cash shortfalls.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.49B	94.77B	80.29B	79.91B	74.60B	69.00B
Gross Profit	20.94B	23.81B	20.35B	18.13B	17.05B	14.58B
EBITDA	12.15B	15.10B	12.18B	9.90B	9.00B	7.28B
Net Income	7.25B	9.33B	7.52B	6.15B	5.43B	4.51B
Balance Sheet
Total Assets	232.96B	227.03B	168.95B	135.87B	114.32B	104.88B
Cash, Cash Equivalents and Short-Term Investments	30.94B	31.24B	16.24B	26.55B	27.72B	31.85B
Total Debt	147.57B	140.88B	86.63B	62.35B	44.63B	37.45B
Total Liabilities	158.03B	153.57B	102.08B	74.90B	58.62B	53.74B
Stockholders Equity	74.94B	73.46B	66.87B	60.97B	55.70B	51.14B
Cash Flow
Free Cash Flow	0.00	-36.30B	-32.80B	-17.87B	-10.36B	-798.48M
Operating Cash Flow	0.00	-35.44B	-32.21B	-12.86B	-9.37B	-9.06M
Investing Cash Flow	0.00	-1.05B	-603.22M	-4.82B	-1.06B	-799.88M
Financing Cash Flow	0.00	51.34B	22.51B	16.71B	6.41B	12.99B

ESLEAD CORPORATION Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5390.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8877, the sentiment is Neutral. The current price of 5390 is below the 20-day moving average (MA) of 5506.00, above the 50-day MA of 5344.86, and above the 200-day MA of 4594.05, indicating a neutral trend. The MACD of 82.98 indicates Positive momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8877.

ESLEAD CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8877	―	¥86.72B	11.68	―	3.26%	-18.65%	-30.68%
3465	―	¥87.99B	8.45	―	3.56%	24.18%	67.31%
8818	―	¥81.11B	19.22	―	2.38%	3.73%	23.40%
2986	―	¥57.23B	7.51	―	6.17%	66.79%	175.17%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8841	―	€76.65B	41.52	1.87%	1.25%	2.97%	-62.10%

ESLEAD CORPORATION Corporate Events

ESLEAD CORPORATION Reports Decline in Q1 2025 but Projects Recovery

ESLEAD CORPORATION reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales and profits showing a notable year-on-year decrease. Despite this downturn, the company has forecasted a positive outlook for the fiscal year ending March 31, 2026, expecting growth in net sales and profits, which could indicate a strategic recovery plan in place.