ECOMIC CO., LTD. (3802) AI Stock Analysis

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ECOMIC CO., LTD.

(TSE/TYO:3802)

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Rating:81Outperform

Price Target:JPY 573.00▲(19.62% Upside)

Action:reiterated

Date:08/17/26

The stock scores 81, reflecting strong financials with robust revenue growth, a debt-free balance sheet, and excellent cash flow. Positive technical indicators, including price above moving averages and bullish momentum, support the outlook. Valuation is somewhat high but partially justified by the company's financial strength and dividend yield.

Positive Factors

Revenue and profit recoveryThe return to revenue growth alongside a sharp profitability rebound indicates renewed business momentum and improved operating execution. If sustained, this recovery can strengthen earnings capacity over the next several quarters after the prior period of weakness.

Negative Factors

Historical earnings volatilityThe sharp variation in profitability across the historical period makes the recovery less predictable and raises execution risk. Continued volatility could complicate planning, reduce confidence in earnings durability and limit the consistency of future cash generation.

ECOMIC CO., LTD. (3802) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 1.67B
Dividend Yield: 2.71%
Average Volume (3M): 2,291
Price to Earnings (P/E): -798.3
Beta (1Y): 0.31
Revenue Growth: 7.68%
EPS Growth: -86.22%
Country: Japan
Employees: 152
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

ECOMIC CO., LTD. Business Overview & Revenue Model

Company Description

Ecomic Co., Ltd. primarily offers outsourced payroll solutions to clients across Japan. The company's operations are divided into two main areas: Business Process Outsourcing (BPO) and Software/Hardware Development. Beyond its core payroll functions,...

How the Company Makes Money

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ECOMIC CO., LTD. Financial Statement Overview

Summary

Revenue growth and margins are healthy, balance sheet is debt-free with high equity, and cash flow generation is robust, leading to a strong financial profile.

Income Statement

75Positive

Balance Sheet

90Very Positive

Cash Flow

95Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.35B	2.35B	2.12B	2.16B	2.22B	1.76B
Gross Profit	737.63M	763.14M	588.94M	650.95M	714.25M	542.00M
EBITDA	258.89M	283.56M	194.66M	307.72M	338.70M	273.69M
Net Income	59.10M	109.25M	43.22M	127.39M	170.29M	113.28M
Balance Sheet
Total Assets	1.31B	1.63B	1.97B	2.11B	1.72B	1.35B
Cash, Cash Equivalents and Short-Term Investments	678.90M	1.07B	1.35B	1.49B	1.05B	824.99M
Total Debt	15.95M	0	0	114.43M	166.15M	0
Total Liabilities	171.51M	264.28M	168.60M	291.04M	418.10M	203.46M
Stockholders Equity	1.14B	1.36B	1.80B	1.82B	1.30B	1.14B
Cash Flow
Free Cash Flow	0	350.86M	102.47M	140.34M	179.71M	123.95M
Operating Cash Flow	0	374.33M	149.60M	205.76M	264.79M	277.67M
Investing Cash Flow	0	-67.94M	-116.71M	-75.90M	28.73M	-143.80M
Financing Cash Flow	0	-634.44M	-170.66M	299.69M	-72.60M	-21.33M

ECOMIC CO., LTD. Technical Analysis

Technical Analysis SentimentNeutral

Last Price479.00

Price Trends

50DMA488.54Negative

100DMA488.13Negative

200DMA478.47Positive

Market Momentum

MACD-2.48Negative

RSI47.15Neutral

STOCH43.33Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3802, the sentiment is Neutral. The current price of 479.00 is below the 20-day moving average (MA) of 479.85, below the 50-day MA of 488.54, and above the 200-day MA of 478.47, indicating a neutral trend. The MACD of -2.48 indicates Negative momentum. The RSI at 47.15 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3802.

ECOMIC CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:3802 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3802	81Outperform	JPY 1.66B	-798.33	―	2.71%	7.68%	-86.22%
JP:7914	68Neutral	JPY 42.32B	8.34	―	4.86%	-0.61%	48.02%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:7916	57Neutral	JPY 5.62B	31.11	―	2.74%	-3.93%	11.47%
JP:3958	55Neutral	JPY 3.15B	15.52	―	3.66%	-2.64%	-19.41%
JP:7919	55Neutral	JPY 3.52B	5.24	―	3.81%	-1.46%	43.56%
JP:7805	54Neutral	JPY 3.05B	9.12	―	2.11%	-1.49%	-24.51%

* Industrials Sector Average

Performance Comparison

JP:3802 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3802	ECOMIC CO., LTD.	479.00	9.92	2.11%
JP:3958	Sasatoku Printing Co.,Ltd.	547.00	9.99	1.86%
JP:7805	PRINTNET INC.	617.00	-29.30	-4.53%
JP:7914	Kyodo Printing Co., Ltd.	1645.00	266.04	19.29%
JP:7916	Mitsumura Printing Co., Ltd.	1823.00	215.89	13.43%
JP:7919	Nozaki Insatsu Shigyo Co., Ltd.	202.00	17.73	9.62%

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

ECOMIC CO., LTD. AI Stock Analysis