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Ecomott, Inc. (3987) AI Stock Analysis

2 Followers
JP:3987

Ecomott, Inc.

(TSE/TYO:3987)

Select Model
Rating:40Underperform
Price Target:JPY 520.00â–¼(-7.80% Downside)
Action:downgraded
Date:10/16/26

The extremely low overall score of 40 is overwhelmingly driven by Ecomott's distressed financial fundamentals, particularly its contracting revenues, expanding net losses, and mounting debt burden. A weak valuation profile tied to persistent unprofitability and bearish short-term technical indicators further cement the stock's highly elevated risk profile.

Positive Factors
Meaningful asset baseA relatively stable asset base provides the company with an established operating foundation and resources that may support recovery efforts. While assets do not eliminate financial risk, retaining approximately 2.5B in total assets offers more substance than a business experiencing simultaneous asset erosion.
Negative Factors
Contracting revenueThe recent revenue contraction weakens the company’s operating scale and reduces its ability to absorb fixed costs. A decline of this magnitude can make recovery more difficult because weaker sales constrain investment, limit margin leverage, and increase dependence on successful stabilization initiatives.

Ecomott, Inc. (3987) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%JP:3987+28.18%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.91B
Dividend Yield
―
Average Volume (3M)
14.25K
Price to Earnings (P/E)
-16.7
Beta (1Y)
0.85
Revenue Growth
-26.20%
EPS Growth
-413.59%
Country
Japan
Employees
134
Sector
Technology
Sector Strength
61
Industry
Software - Infrastructure

Ecomott, Inc. Business Overview & Revenue Model

Company Description

Established in Sapporo, Japan, in 2007, Ecomott Inc. delivers Internet of Things (IoT) and Machine-to-Machine (M2M) solutions across Japan. Their product lineup features "Yurimott," a system for remote oversight of snow-melting operations; "Gembaroid...

Ecomott, Inc. Financial Statement Overview

Summary

Ecomott presents a highly distressed financial profile with a 19.5% revenue drop in 2026, four consecutive years of net losses, and persistent negative free cash flow. A nearly tripled debt load since 2022 severely elevates solvency risk, resulting in the lowest possible score.

Income Statement

15Very Negative

Balance Sheet

25Negative

Cash Flow

20Very Negative
Financial statement breakdown
BreakdownTTMAug 2026Aug 2025Aug 2024Aug 2023Aug 2022
Income Statement
Total Revenue2.56B2.22B3.00B2.69B2.72B2.22B
Gross Profit928.42M810.96M1.07B1.00B956.25M1.01B
EBITDA69.80M-83.58M119.64M38.60M-20.69M148.84M
Net Income-6.46M-174.99M-35.04M-69.15M-174.86M27.77M
Balance Sheet
Total Assets2.42B2.51B2.56B2.58B2.24B1.87B
Cash, Cash Equivalents and Short-Term Investments541.16M588.63M333.37M582.79M586.20M546.12M
Total Debt1.01B1.19B1.08B946.60M707.62M427.25M
Total Liabilities1.60B1.83B1.77B1.72B1.30B768.64M
Stockholders Equity804.70M661.44M784.21M863.98M932.91M1.10B
Cash Flow
Free Cash Flow0-55.80M-296.46M-54.51M-191.02M55.25M
Operating Cash Flow0-51.71M-295.64M11.43M-179.96M84.06M
Investing Cash Flow0178.39M-247.71M-163.37M-104.87M-213.42M
Financing Cash Flow0104.90M293.93M148.53M324.91M-64.93M

Ecomott, Inc. Technical Analysis

Technical Analysis SentimentNeutral
Last Price564.00

Price Trends

50DMA611.22Negative
100DMA611.63Negative
200DMA569.88Negative

Market Momentum

MACD-18.45Positive
RSI40.83Neutral
STOCH30.12Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3987, the sentiment is Neutral. The current price of 564.00 is below the 20-day moving average (MA) of 575.85, below the 50-day MA of 611.22, and below the 200-day MA of 569.88, indicating a bearish trend. The MACD of -18.45 indicates Positive momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 30.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3987.

Ecomott, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:3987 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3040JP:304079OutperformJPY 48.12B15.5123.79%2.23%13.07%28.70%
JP:3694JP:369478OutperformJPY 23.49B20.41――21.05%-2.47%
JP:3915JP:391573OutperformJPY 26.94B13.16―0.77%19.19%93.45%
JP:4434JP:443471OutperformJPY 24.29B20.67―1.31%23.79%―
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:9417JP:941748NeutralJPY 2.86B-3.11―3.65%28.96%-205.14%
JP:3987JP:398740UnderperformJPY 2.97B-16.66――-26.20%-413.59%

* Technology Sector Average

Performance Comparison

0%50%100%JP:3987JP:3040JP:3694JP:3915JP:4434JP:9417Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:3987 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3987Ecomott, Inc.564.00120.0027.03%
JP:3040Soliton Systems KK2600.00845.0948.16%
JP:3694OPTiM Corp.431.00-127.00-22.76%
JP:3915TerraSky Co., Ltd.2086.006.420.31%
JP:4434Serverworks Co., Ltd.3050.001276.3871.96%
JP:9417Smartvalue Co.Ltd.274.00-171.22-38.46%
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: Oct 16, 2026