Japan Ecosystem Co.,Ltd. (9249) AI Stock Analysis

2 Followers

Japan Ecosystem Co.,Ltd.

(TSE/TYO:9249)

Select Model

Rating:46Neutral

Price Target:JPY 1,590.00▼(-1.79% Downside)

Action:reiterated

Date:08/05/26

The overall score of 46 reflects significant financial challenges, including declining margins, increased leverage, and negative free cash flow, which outweigh neutral technical indicators and an expensive valuation. The company's heavy capital expenditures have eroded cash flow, raising concerns about future financial flexibility. While the stock remains in a longer-term uptrend, the high P/E ratio suggests limited upside potential.

Positive Factors

Sustained Revenue GrowthConsistent top-line expansion indicates ongoing demand for the company’s offerings and supports operating scale. If maintained, revenue growth can help absorb fixed costs and provide a foundation for future earnings recovery.

Negative Factors

Rising LeverageHigher leverage increases financial risk and can restrict flexibility when project costs, interest expense, or working-capital needs rise. It may also limit investment capacity and make future earnings more sensitive to operating setbacks.

Japan Ecosystem Co.,Ltd. (9249) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 14.11B
Dividend Yield: 1.11%
Average Volume (3M): 5,548
Price to Earnings (P/E): 21.9
Beta (1Y): 0.40
Revenue Growth: 25.89%
EPS Growth: -12.88%
Country: Japan
Employees: 429
Sector: Communication Services
Sector Strength: 60
Industry: Industrial - Infrastructure Operations

Japan Ecosystem Co.,Ltd. Business Overview & Revenue Model

Company Description

Japan Ecosystem Co Ltd is primarily engaged in public service, environmental, and transportation infrastructure businesses. The company's Public Service segment designs, manufactures, and maintains totalizer systems for public stadiums. Its Environme...

How the Company Makes Money

null

Japan Ecosystem Co.,Ltd. Financial Statement Overview

Summary

Revenue grew 2.5% annually, but profitability declined sharply: gross margin fell to 26.4% from 27.5%, net margin dropped to 2.7% from 6.7%, EBIT margin decreased to 3.8% from 9.1%. Leverage increased substantially (debt/equity 1.03 vs 0.36) and free cash flow worsened to -¥2.7B, a 104% deterioration. While operating cash flow remains solid, the combination indicates significant financial strain.

Income Statement

35Negative

Balance Sheet

30Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	11.26B	11.26B	9.30B	7.58B	7.22B	6.99B
Gross Profit	2.98B	2.98B	2.56B	2.20B	2.06B	1.93B
EBITDA	1.32B	1.34B	1.18B	1.61B	1.03B	1.19B
Net Income	301.98M	301.98M	622.95M	874.61M	408.04M	571.91M
Balance Sheet
Total Assets	13.92B	13.92B	9.26B	8.38B	6.49B	6.02B
Cash, Cash Equivalents and Short-Term Investments	596.70M	596.70M	966.18M	2.07B	1.22B	804.89M
Total Debt	5.73B	5.73B	1.91B	2.06B	1.65B	2.57B
Total Liabilities	8.25B	8.25B	3.79B	3.84B	2.69B	3.91B
Stockholders Equity	5.58B	5.58B	5.39B	4.46B	3.74B	2.06B
Cash Flow
Free Cash Flow	-2.71B	-2.71B	-1.33B	291.48M	363.78M	1.28B
Operating Cash Flow	640.40M	640.40M	509.83M	766.02M	884.13M	1.48B
Investing Cash Flow	-4.49B	-4.49B	-1.66B	419.70M	-743.19M	-170.81M
Financing Cash Flow	3.47B	3.47B	101.08M	-426.69M	263.01M	-1.17B

Japan Ecosystem Co.,Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1619.00

Price Trends

50DMA1618.22Positive

100DMA1620.20Negative

200DMA1594.94Positive

Market Momentum

MACD-4.19Negative

RSI54.44Neutral

STOCH61.11Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9249, the sentiment is Positive. The current price of 1619.00 is above the 20-day moving average (MA) of 1605.80, above the 50-day MA of 1618.22, and above the 200-day MA of 1594.94, indicating a bullish trend. The MACD of -4.19 indicates Negative momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9249.

Japan Ecosystem Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

JP:9249 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4712	76Outperform	JPY 20.46B	18.63	―	0.93%	7.82%	-52.34%
JP:7860	74Outperform	JPY 60.92B	13.24	8.43%	3.75%	11.80%	1055.20%
JP:4308	69Neutral	JPY 8.58B	16.50	―	4.06%	5.15%	3.20%
JP:4347	69Neutral	JPY 17.86B	20.06	―	2.41%	0.02%	55.98%
JP:4772	68Neutral	JPY 6.95B	11.91	―	3.33%	18.74%	-37.96%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JP:9249	46Neutral	JPY 14.26B	21.92	―	1.11%	25.89%	-12.88%

* Communication Services Sector Average

Performance Comparison

JP:9249 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9249	Japan Ecosystem Co.,Ltd.	1619.00	121.48	8.11%
JP:7860	Avex Inc.	1334.00	181.86	15.78%
JP:4308	J-Stream Inc.	345.00	18.56	5.68%
JP:4347	Broadmedia Corporation	2492.00	839.91	50.84%
JP:4712	KeyHolder, Inc.	1080.00	382.94	54.94%
JP:4772	Stream Media Corporation	60.00	-45.98	-43.39%

Japan Ecosystem Co.,Ltd. Corporate Events

Japan Ecosystem Posts Strong Nine‑Month Earnings and Confirms Dividend Outlook

Aug 7, 2026

Japan Ecosystem Co., Ltd. reported strong consolidated results for the nine months ended June 30, 2026, with net sales climbing 31.3% year on year to ¥10.8 billion. Operating profit surged 240.8% to ¥1.07 billion, driving profit attributable to owner...

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 04, 2026

Japan Ecosystem Co.,Ltd. AI Stock Analysis