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ES Networks Co., Ltd. (5867) AI Stock Analysis

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JP:5867

ES Networks Co., Ltd.

(TSE/TYO:5867)

Select Model
Rating:76Outperform
Price Target:JPY 1,485.00â–²(5.77% Upside)
Action:reiterated
Date:09/19/26

The score is driven primarily by solid financial fundamentals (strengthening balance sheet and sustained revenue growth), supported by positive technical trend/momentum. Valuation further helps with a moderate P/E and an attractive dividend yield. The main risk tempering the score is recent profitability and operating cash flow volatility, particularly the earnings/margin reset and weaker operating cash flow in 2025.

Positive Factors
Sustained Revenue GrowthConsistent revenue expansion through 2025 indicates ongoing business growth and customer demand rather than reliance on a single reporting period. Continued top-line momentum can support operating investment, broaden the company’s earnings base, and reinforce its ability to build scale over the next several quarters.
Negative Factors
Net Margin CompressionThe sharp reduction in net margin shows that incremental revenue did not translate proportionately into bottom-line earnings. If this normalization persists, it could constrain internal reinvestment, weaken earnings compounding, and indicate that cost or operating pressures are offsetting the benefits of growth.

ES Networks Co., Ltd. (5867) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:5867+5.14%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 4.44B
Dividend Yield
3.56%
Average Volume (3M)
2,011
Price to Earnings (P/E)
12.2
Beta (1Y)
0.45
Revenue Growth
37.23%
EPS Growth
10.16%
Country
Japan
Employees
279
Sector
General
Sector Strength
55
Industry
Asset Management

ES Networks Co., Ltd. Business Overview & Revenue Model

Company Description

Based in Tokyo, Japan, es Networks Co., Ltd. offers a broad spectrum of consulting services throughout Asia. The firm primarily supports Japanese companies looking to expand into Asian markets, providing expertise in business advancement and accounti...

ES Networks Co., Ltd. Financial Statement Overview

Summary

Steady multi-year revenue growth and a materially stronger balance sheet (debt-to-equity down to 0.226 in 2025) support the score. The main offset is profitability volatility, with a notable net margin step-down in 2025 versus 2024, and inconsistent operating cash flow (sharp decline in 2025), which raises near-term quality/visibility concerns.

Income Statement

74Positive

Balance Sheet

82Very Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.18B3.42B2.95B2.71B2.65B2.33B
Gross Profit1.94B1.52B1.34B1.26B1.24B989.71M
EBITDA633.78M316.82M317.67M297.67M210.25M149.21M
Net Income358.80M217.54M301.66M136.80M143.15M122.65M
Balance Sheet
Total Assets3.41B2.69B2.29B2.24B2.38B2.40B
Cash, Cash Equivalents and Short-Term Investments1.87B1.47B1.39B1.21B1.38B1.67B
Total Debt509.23M395.04M277.06M538.21M770.18M866.03M
Total Liabilities1.18B861.01M717.99M841.52M1.13B1.21B
Stockholders Equity1.93B1.75B1.50B1.33B1.21B1.16B
Cash Flow
Free Cash Flow0157.10M384.27M12.21M130.80M196.64M
Operating Cash Flow0164.47M389.70M184.45M132.04M218.64M
Investing Cash Flow0-71.63M218.44M-66.10M-315.24M149.18M
Financing Cash Flow0-16.70M-442.60M-315.48M-178.74M-195.38M

ES Networks Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1404.00

Price Trends

50DMA1326.04Positive
100DMA1250.03Positive
200DMA1233.35Positive

Market Momentum

MACD20.63Positive
RSI60.75Neutral
STOCH95.51Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5867, the sentiment is Positive. The current price of 1404.00 is above the 20-day moving average (MA) of 1378.30, above the 50-day MA of 1326.04, and above the 200-day MA of 1233.35, indicating a bullish trend. The MACD of 20.63 indicates Positive momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 95.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5867.

ES Networks Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5867 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7033JP:703389OutperformJPY 27.52B12.11―1.95%――
JP:9644JP:964482OutperformJPY 22.51B19.04―4.20%13.97%21.04%
JP:5867JP:586776OutperformJPY 4.37B12.21―3.56%37.23%10.16%
JP:9168JP:916868NeutralJPY 8.95B9.96―5.87%-1.03%-43.38%
JP:4792JP:479267NeutralJPY 32.68B11.75―4.48%20.39%40.37%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:9556JP:955648NeutralJPY 18.57B35.89――20.41%-62.53%

* General Sector Average

Performance Comparison

-60%-40%-20%0%20%JP:5867JP:4792JP:7033JP:9168JP:9556JP:9644Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5867 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5867ES Networks Co., Ltd.1404.0068.645.14%
JP:4792YAMADA Consulting Group Co., Ltd.1719.0036.682.18%
JP:7033Management Solutions Co., Ltd.1639.00338.8626.06%
JP:9168Rise Consulting Group,Inc.358.00-489.88-57.78%
JP:9556INTLOOP, Inc.1972.00-2093.00-51.49%
JP:9644TANABE CONSULTING GROUP CO. LTD667.00-3.93-0.59%
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: Sep 19, 2026