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Ecomott, Inc. (3987) AI Stock Analysis

2 Followers
JP:3987

Ecomott, Inc.

(TSE/TYO:3987)

Select Model
Rating:44Neutral
Price Target:JPY 531.00â–¼(-2.93% Downside)
Action:reiterated
Date:10/16/26

The score is primarily held down by weak financial performance: contracting revenue, widening losses, higher leverage with a shrinking equity cushion, and persistent negative free cash flow. Technicals are mixed but not supportive enough to offset the fundamental deterioration, and valuation is constrained by negative earnings (negative P/E) with no dividend yield data.

Positive Factors
Stable Asset BaseA relatively stable asset base provides Ecomott with tangible operating resources despite recent financial pressure. This may support business continuity and give management a foundation for restructuring or restoring growth, although the benefit is reduced by the company’s shrinking equity cushion and rising debt.
Negative Factors
Contracting RevenueThe sharp revenue contraction indicates weakening commercial performance and reduces the scale available to absorb operating costs. If sustained over the next several quarters, lower sales could further pressure margins, limit reinvestment capacity, and make a return to profitability more difficult.

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

-20%0%20%40%60%80%JP:3987+22.37%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 2.83B
Dividend Yield
―
Average Volume (3M)
14.84K
Price to Earnings (P/E)
-16.2
Beta (1Y)
0.87
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

Fundamentals are weak: revenue is contracting (~19.5% in 2026), profitability has deteriorated into sustained losses (2026 EBIT -232M; net loss -175M), leverage has risen materially (debt up to ~1.19B while equity fell to ~661M), and cash flow remains negative with ongoing free cash flow burn across 2023–2026.

Income Statement

34Negative

Balance Sheet

46Neutral

Cash Flow

28Negative
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 SentimentNegative
Last Price547.00

Price Trends

50DMA617.28Negative
100DMA611.14Negative
200DMA569.50Negative

Market Momentum

MACD-20.28Positive
RSI29.01Positive
STOCH12.70Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3987, the sentiment is Negative. The current price of 547.00 is below the 20-day moving average (MA) of 582.75, below the 50-day MA of 617.28, and below the 200-day MA of 569.50, indicating a bearish trend. The MACD of -20.28 indicates Positive momentum. The RSI at 29.01 is Positive, neither overbought nor oversold. The STOCH value of 12.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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:3915JP:391586OutperformJPY 28.02B13.44―0.74%19.19%93.45%
JP:3694JP:369478OutperformJPY 24.37B21.12――21.05%-2.47%
JP:3040JP:304077OutperformJPY 54.60B17.1423.79%1.96%12.25%84.46%
JP:4434JP:443471OutperformJPY 24.25B19.86―1.31%23.79%―
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:9417JP:941746NeutralJPY 2.82B-3.10―3.70%34.44%-199.42%
JP:3987JP:398744NeutralJPY 2.88B-16.18――-26.20%-413.59%

* Technology Sector Average

Performance Comparison

0%50%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.547.00107.0024.32%
JP:3040Soliton Systems KK2963.001137.1962.28%
JP:3694OPTiM Corp.446.00-100.00-18.32%
JP:3915TerraSky Co., Ltd.2170.00137.016.74%
JP:4434Serverworks Co., Ltd.3060.001305.0174.36%
JP:9417Smartvalue Co.Ltd.270.00-171.34-38.82%
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