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eSOL Co., Ltd.
(4420)
Select Model
Select Model
Rating:64Neutral
Price Target:
¥840.00
▲(60.00% Upside)
Action:Reiterated
Date:08/29/26
The score is mainly supported by a strong, low-leverage balance sheet and continued revenue growth, which bolster overall financial resilience. It is held back by uneven profitability and notably weak/volatile cash-flow conversion, alongside soft technical momentum (negative MACD and sub-50 RSI). Valuation is reasonable but the low dividend yield provides limited additional support.
Positive Factors
Conservative balance sheet
Near-zero leverage reduces interest and refinancing risk while preserving capacity to fund product development, customer support and strategic investments. A growing equity base also provides resilience if embedded-market demand or project timing becomes uneven.
Negative Factors
Weak cash-flow conversion
Large variation between accounting profit and cash generation can constrain internally funded growth and create working-capital risk. The history of negative operating cash flow suggests cash conversion is not yet dependable across project and billing cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Near-zero leverage reduces interest and refinancing risk while preserving capacity to fund product development, customer support and strategic investments. A growing equity base also provides resilience if embedded-market demand or project timing becomes uneven.
Read all positive factors
eSOL Co., Ltd. (4420) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.71B
Dividend Yield0.66%
Average Volume (3M)299.98K
Price to Earnings (P/E)21.8
Beta (1Y)1.32
Revenue Growth11.42%
EPS Growth56.48%
CountryJP
Employees549
SectorGeneral
Sector StrengthN/A
IndustryTechnology Distributors
Share Statistics
EPS (TTM)38.04
Shares Outstanding20,000,000
10 Day Avg. Volume672,180
30 Day Avg. Volume299,976
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)1.65
Price to Sales (P/S)0.80
P/FCF Ratio51.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
eSOL Co., Ltd. Business Overview & Revenue Model
Company Description
Based in Tokyo, Japan, eSOL Co.,Ltd. has been a specialist in embedded software solutions and logistics systems since its founding in 1975. The company handles the entire lifecycle of these systems, from design and planning to operation and mainte...
How the Company Makes Money
eSOL generates revenue primarily by licensing its embedded software products (including real-time/embedded operating system technology and related middleware/platform components) to device and system manufacturers and to suppliers that build embed...
eSOL Co., Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.84B | 12.13B | 11.91B | 9.63B | 8.87B | 8.94B |
| Gross Profit | 4.00B | 3.70B | 4.41B | 3.30B | 2.93B | 2.80B |
| EBITDA | 1.11B | 973.54M | 1.25B | 135.19M | -170.36M | 388.76M |
| Net Income | 738.27M | 598.07M | 892.39M | 136.72M | -357.83M | 200.70M |
Balance Sheet | ||||||
| Total Assets | 8.35B | 8.19B | 6.99B | 7.64B | 7.21B | 7.37B |
| Cash, Cash Equivalents and Short-Term Investments | 3.37B | 3.19B | 3.27B | 3.50B | 3.98B | 4.22B |
| Total Debt | 82.50M | 97.50M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 2.20B | 2.29B | 2.00B | 1.97B | 1.80B | 1.60B |
| Stockholders Equity | 6.15B | 5.91B | 4.99B | 5.66B | 5.41B | 5.78B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 188.65M | 1.06B | -157.96M | 76.17M | -329.86M |
| Operating Cash Flow | 0.00 | 229.13M | 1.10B | -140.97M | 161.40M | -199.71M |
| Investing Cash Flow | 0.00 | -108.59M | -29.04M | -232.60M | -89.59M | -137.39M |
| Financing Cash Flow | 0.00 | -111.63M | -1.29B | -112.40M | -111.61M | -111.47M |
eSOL Co., Ltd. Technical Analysis
Positive
525.00
Price Trends
771.00
Positive
728.04
Positive
628.52
Positive
Market Momentum
26.63
Negative
56.93
Neutral
49.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4420, the sentiment is Positive. The current price of 525 is below the 20-day moving average (MA) of 750.05, below the 50-day MA of 771.00, and below the 200-day MA of 628.52, indicating a bullish trend. The MACD of 26.63 indicates Negative momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 49.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4420.
eSOL Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥245.62B | 7.11 | 18.73% | 2.85% | 24.06% | 105.61% | |
80 Outperform | ¥14.42B | 8.82 | ― | 3.41% | 1.45% | 13.08% | |
76 Outperform | ¥120.44B | 14.46 | ― | 2.10% | 12.53% | 24.26% | |
69 Neutral | ¥66.70B | 16.58 | ― | 2.89% | 12.94% | 85.20% | |
64 Neutral | ¥15.71B | 21.85 | ― | 0.66% | 11.42% | 56.48% | |
64 Neutral | ¥47.12B | 14.86 | ― | 2.77% | 2.80% | -33.11% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:4420
eSOL Co., Ltd.
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51.71%
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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.