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Ecomott, Inc. (JP:3987)
:3987
Japanese Market
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Ecomott, Inc. (3987) AI Stock Analysis

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JP:3987

Ecomott, Inc.

(3987)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
¥582.00
▲(31.97% Upside)
Action:Reiterated
Date:04/23/26
The score is held back primarily by weak financial quality—especially sharply negative operating/free cash flow and higher leverage—despite improving revenue and a small recovery in operating profitability. Technicals are supportive with price above major moving averages and positive MACD, while valuation (P/E ~25.3) is moderate and does not offset the cash-flow and balance-sheet risks.
Positive Factors
Diversified revenue streams
Ecomott earns from hardware sales, software subscriptions/licenses, system integration, and maintenance contracts. This multi-channel revenue model smooths income volatility, supports recurring cash inflows from software/services, and enables cross-selling to existing clients across implementations, strengthening revenue resilience over the medium term.
Negative Factors
Deeply negative operating and free cash flow
The company’s operating and free cash flows are deeply negative in 2025, indicating earnings are not converting to cash and that working-capital or cash-cost pressures are material. Persistent negative FCF forces reliance on external financing, elevating liquidity and refinancing risk and limiting the firm's ability to self-fund growth or absorb shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
Ecomott earns from hardware sales, software subscriptions/licenses, system integration, and maintenance contracts. This multi-channel revenue model smooths income volatility, supports recurring cash inflows from software/services, and enables cross-selling to existing clients across implementations, strengthening revenue resilience over the medium term.
Read all positive factors

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

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; "Gembar...
How the Company Makes Money
Ecomott, Inc. generates revenue primarily by selling its IoT systems and solutions to corporate clients across multiple industries. The company earns income from hardware sales, such as sensors and IoT devices, as well as through subscriptions and...

Ecomott, Inc. Financial Statement Overview

Summary
Revenue has returned to growth (~13.8% in 2025), and operating profitability is slightly positive (~1.7% EBIT margin), but net income remains negative (~-1.2% net margin). Balance sheet risk has risen with materially higher leverage (debt-to-equity ~1.38) and negative ROE (~-4.5%). Cash flow is the largest weakness, with deeply negative operating cash flow (-295.6M) and free cash flow (-296.5M), increasing financing and liquidity pressure if sustained.
Income Statement
46
Neutral
Balance Sheet
40
Negative
Cash Flow
28
Negative
BreakdownAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue3.00B2.69B2.72B2.22B2.16B
Gross Profit1.07B1.00B956.25M1.01B972.68M
EBITDA159.83M88.73M43.32M132.82M181.49M
Net Income-35.04M-69.15M-174.86M27.77M13.71M
Balance Sheet
Total Assets2.56B2.58B2.24B1.87B1.96B
Cash, Cash Equivalents and Short-Term Investments333.37M582.79M586.20M546.12M742.01M
Total Debt1.08B946.60M707.62M427.25M492.23M
Total Liabilities1.77B1.72B1.30B768.64M887.66M
Stockholders Equity784.21M863.98M932.91M1.10B1.08B
Cash Flow
Free Cash Flow-296.46M-54.51M-191.02M55.25M302.30M
Operating Cash Flow-295.64M11.43M-179.96M84.06M304.00M
Investing Cash Flow-247.71M-163.37M-104.87M-213.42M-12.46M
Financing Cash Flow293.93M148.53M324.91M-64.93M-161.75M

Ecomott, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥39.91B15.4819.71%3.09%9.27%48.93%
75
Outperform
¥36.69B23.3213.54%54.38%
73
Outperform
¥24.47B22.1410.88%-5.32%
68
Neutral
¥16.12B-25.3012.01%-191.13%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
¥3.04B7.602.04%45.95%
50
Neutral
¥2.79B-48.092.31%-140.24%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3987
Ecomott, Inc.
529.00
42.00
8.62%
JP:3040
Soliton Systems KK
2,156.00
902.85
72.05%
JP:3694
OPTiM Corp.
449.00
-100.00
-18.21%
JP:3915
TerraSky Co., Ltd.
2,841.00
-246.64
-7.99%
JP:4434
Serverworks Co., Ltd.
2,031.00
-285.25
-12.32%
JP:9417
Smartvalue Co.Ltd.
291.00
-140.79
-32.61%
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: Apr 23, 2026