ENIGMO, Inc. (3665) AI Stock Analysis

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ENIGMO, Inc.

(TSE/TYO:3665)

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Rating:55Neutral

Price Target:JPY 402.00▼(-1.95% Downside)

Action:reiterated

Date:11/07/26

Overall score reflects (1) mixed financial performance—strong balance sheet and 2026 revenue rebound, but sharply compressed margins and weaker cash conversion; (2) weak technical momentum with the stock below major moving averages and negative MACD; and (3) valuation tension between a very high dividend yield and a high P/E multiple.

Positive Factors

Conservative Balance SheetVery low leverage and a steadily growing equity base reduce solvency risk and preserve financial flexibility. This gives ENIGMO greater capacity to withstand operating volatility, fund business needs internally, and pursue opportunities without substantial interest or refinancing pressure.

Negative Factors

Severe Operating Margin CompressionThe sharp decline in operating profitability shows that recent revenue growth is not translating efficiently into operating earnings. Unless the cost structure improves, persistently thin EBIT margins could limit reinvestment, reduce resilience, and weaken the earnings benefit from future sales growth.

ENIGMO, Inc. (3665) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 16.23B
Dividend Yield: 7.32%
Average Volume (3M): 161.74K
Price to Earnings (P/E): 70.4
Beta (1Y): 0.69
Revenue Growth: -1.71%
EPS Growth: -7.98%
Country: Japan
Employees: 157
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Software - Application

ENIGMO, Inc. Business Overview & Revenue Model

Company Description

Enigmo Inc. plans, develops, and operates internet business in Japan. It operates BUYMA, a marketplace for buying fashion items from personal shoppers; BUYMA TRAVEL, a website that provides private local tours to Japanese travelers living abroad; and...

ENIGMO, Inc. Financial Statement Overview

Summary

Financials are mixed: a strong 2026 revenue rebound (+57% YoY) is offset by sharply weaker profitability (EBIT margin ~0.7%, net margin ~5% vs much higher historically) and inconsistent cash generation. The balance sheet is a key strength with minimal leverage and solid equity base, but reduced ROE and weaker cash conversion in 2026 temper the score.

Income Statement

54Neutral

Balance Sheet

83Very Positive

Cash Flow

47Neutral

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	6.15B	6.30B	5.93B	6.20B	6.87B	7.62B
Gross Profit	4.37B	4.53B	4.52B	4.86B	5.45B	6.14B
EBITDA	-134.94M	212.63M	731.15M	1.02B	1.16B	3.00B
Net Income	232.10M	326.64M	433.00M	838.37M	712.57M	2.06B
Balance Sheet
Total Assets	12.29B	15.29B	14.44B	13.24B	12.69B	13.68B
Cash, Cash Equivalents and Short-Term Investments	6.49B	8.79B	9.29B	10.73B	10.32B	12.84B
Total Debt	62.14M	68.89M	209.71M	0	0	0
Total Liabilities	2.51B	3.52B	3.00B	2.71B	2.55B	2.82B
Stockholders Equity	9.77B	11.76B	11.43B	10.53B	10.15B	10.86B
Cash Flow
Free Cash Flow	0	53.74M	226.51M	1.68B	-352.62M	1.47B
Operating Cash Flow	0	210.00M	269.89M	1.71B	-322.76M	1.51B
Investing Cash Flow	0	-1.26B	-1.41B	-1.01B	-785.26M	-56.42M
Financing Cash Flow	0	-557.13M	-298.05M	-480.57M	-1.42B	-416.42M

ENIGMO, Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price410.00

Price Trends

50DMA412.80Negative

100DMA406.26Positive

200DMA400.09Positive

Market Momentum

MACD-1.98Positive

RSI51.44Neutral

STOCH57.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3665, the sentiment is Positive. The current price of 410.00 is above the 20-day moving average (MA) of 409.00, below the 50-day MA of 412.80, and above the 200-day MA of 400.09, indicating a neutral trend. The MACD of -1.98 indicates Positive momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 57.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3665.

ENIGMO, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3665 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4431	83Outperform	JPY 69.65B	26.02	―	0.67%	20.70%	56.44%
JP:4686	77Outperform	JPY 308.60B	19.36	―	0.64%	5.45%	11.35%
JP:3769	69Neutral	JPY 657.63B	25.74	21.67%	1.98%	13.19%	25.73%
JP:3633	67Neutral	JPY 12.31B	7.77	―	2.88%	-3.72%	138.33%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:3665	55Neutral	JPY 17.07B	70.38	―	7.32%	-1.71%	-7.98%
JP:3778	47Neutral	JPY 121.74B	45.26	―	0.16%	25.84%	71.45%

* Consumer Cyclical Sector Average

Performance Comparison

JP:3665 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3665	ENIGMO, Inc.	410.00	21.30	5.48%
JP:3769	GMO Payment Gateway	8600.00	239.87	2.87%
JP:3633	GMO Pepabo, Inc.	2406.00	306.04	14.57%
JP:3778	SAKURA Internet Inc.	3160.00	-18.93	-0.60%
JP:4431	Smaregi, Inc.	3590.00	746.50	26.25%
JP:4686	Justsystems Corporation	4670.00	-500.02	-9.67%

ENIGMO, Inc. Corporate Events

Enigmo Swings to Deeper First-Half Loss but Maintains Dividend and Eyes Full-Year Profit Rebound

Sep 14, 2026

Enigmo reported a 4.9% year-on-year decline in net sales to ¥2,755 million for the six months ended July 31, 2026, and fell into a deeper loss, posting an operating loss of ¥437 million and a net loss attributable to owners of the parent of ¥144 mill...

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: Nov 07, 2026

ENIGMO, Inc. AI Stock Analysis