Should You Scoop Up Shares of E-Home Household Service Holdings?

: EJH | E-Home Household Service Holdings Ltd News, Ratings, and Charts

EJH – Operating in the People’s Republic of China, E-Home Household Service (EJH) debuted last year on NASDAQ, raising significant proceeds. But its shares have since slumped nearly 100% in price. However, the stock has been gaining momentum lately due to the company’s recent announcements regarding its digital transformation initiatives. So, will the stock be able to maintain its gains going forward? Continue reading to learn our view.

Grand Cayman, Cayman Islands-headquartered E-Home Household Service Holdings Limited (EJH - Get Rating) is an integrated household service company that does business in the People’s Republic of China, operating through three segments: Installation and Maintenance; Housekeeping; and Senior Care Services. 

EJH shares began trading on May 14, 2021 on NASDAQ Capital Market under the ticker “EJH.” The company’s initial public offering comprised 5,555,556 ordinary shares at $4.50 per ordinary share, raising $25 million total gross proceeds. However, the stock has since slumped 98.5% in price .

Furthermore, EJH shares have declined 77.6% in price over the past six months and 43.5% year-to-date. But the stock has been gaining momentum lately, fueled by some recent positive developments at the company. EJH’s stock has gained 40.5% over the past five days to close the last trading session at $0.84.

Here is what could shape EJH’s performance in the near term:

Digitalized Business Transformation Initiatives Should Drive Growth

Last month, EJH announced its plans to enter the metaverse space with digitalized business transformation initiatives. The company plans to set up artificial intelligence (AI) technology unit and form strategic collaborations with various AI technology partners to advance its metaverse strategy.

On March 3, EJH announced that it would launch a Digital Human as a Service (DHaaS) that will debut on March 18, 2022, leveraging front-end AI technologies. DHaaS features a virtual digital human customer service guide that aims to provide seamless, 24/7 assistance for household services clients in the Metaverse virtual world. This launch should improve its operational efficacy and help optimize its business operation and diversify household services for its clients.

Also, in  January, the company announced that it was establishing  a cleaning robot equipment leasing department in the cleaning service sector to promote the growth of its cleaning service business. The new business is expected to contribute approximately $15 million in revenue and $3 million in net income to the company this year.

Mixed Profitability

EJH’s 35.05% gross profit margin is 2.4% lower than the 35.91% industry average, while its levered FCF margin is 17.8% lower than the 5.03% industry average. However, its 12.19% EBIT margin is 30.9% higher than the 9.31% industry average.

EJH’s 13.20% ROE  is 23.5% lower than the 17.25% industry average. But its ROA and ROTC of 8.62% and 10.94%, respectively,  are 41% and 38.4% higher than the  industry averages.

POWR Ratings Reflect Uncertainty

EJH has an overall C rating of C, which translates to Neutral in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

The stock has a C grade for Growth. This is justified because its revenues have increased at a 17.5% CAGR over the past three years, but its EBIT and EPS have declined at 11.3% and 13.5% CAGRs, respectively,  over the same period.

EJH also has a C grade for Quality, which is consistent with its mixed profitability.

Among the 44 stocks in the Outsourcing – Business Services industry, EJH is ranked #40.

Beyond what I have stated above, one can also view EJH’s grades for Value, Sentiment, Momentum, and Stability here.

View the top-rated stocks in the Outsourcing – Business Services industry here.

Bottom Line

EJH is expanding its capabilities via investment in digital transformation, which should help the business grow. However, EJH shares have been on a wild ride since it debuted on NASDAQ. Although the stock has been gaining lately, I think it could be wise to wait for more clarity on its near-term prospects before investing in the stock.

How Does E-Home Household Service Holdings Limited (EJH) Stack Up Against its Peers?

While EJH has an overall POWR Rating of C,  one  might want to consider taking a look at its industry peers, ARC Document Solutions, Inc. (ARC - Get Rating), Civeo Corporation (CVEO - Get Rating), and TriNet Group, Inc. (TNET - Get Rating), which have an A (Strong Buy) rating.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year

Top 10 Stocks for 2022

2022 Stock Market Outlook

7 SEVERELY Undervalued Stocks


EJH shares fell $0.09 (-10.37%) in premarket trading Monday. Year-to-date, EJH has declined -47.97%, versus a -9.28% rise in the benchmark S&P 500 index during the same period.


About the Author: Subhasree Kar


Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
EJHGet RatingGet RatingGet Rating
ARCGet RatingGet RatingGet Rating
CVEOGet RatingGet RatingGet Rating
TNETGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Investor Alert: Mission Accomplished?

The S&P 500 (SPY) has broken out above the 200 day moving average. Does that mean that bear market fears are now over? And should investors be riding the bull to new heights? Read on for Steve Reitmeister’s answer...

Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Read More Stories

More E-Home Household Service Holdings Ltd (EJH) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All EJH News