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

0 Followers

ES Networks Co., Ltd.

(TSE/TYO:5867)

Select Model

Rating:81Outperform

Price Target:JPY 1,518.00▲(14.57% Upside)

Action:reiterated

Date:09/19/26

The overall score of 81 is driven primarily by a highly attractive valuation and strong bullish technical momentum. The company offers a compelling 3.8% dividend yield and trades at a modest P/E ratio, supported by a fortress balance sheet with low leverage. While robust top-line growth is a significant strength, investors should monitor the recent dips in net income and operating cash flow, which slightly temper the overall financial performance.

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)

Market Cap: JPY 4.27B
Dividend Yield: 3.77%
Average Volume (3M): 1,910
Price to Earnings (P/E): 10.4
Beta (1Y): 0.40
Revenue Growth: 30.98%
EPS Growth: 33.45%
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

The company demonstrates a robust balance sheet with minimal debt (D/E ratio of 0.23) and solid double-digit revenue growth. However, recent contractions in net income and operating cash flow present near-term profitability headwinds that limit the overall financial score.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.27B	3.42B	2.95B	2.71B	2.65B	2.33B
Gross Profit	2.00B	1.52B	1.34B	1.26B	1.24B	989.71M
EBITDA	735.45M	316.82M	317.67M	297.67M	210.25M	149.21M
Net Income	397.21M	217.54M	301.66M	136.80M	143.15M	122.65M
Balance Sheet
Total Assets	3.29B	2.69B	2.29B	2.24B	2.38B	2.40B
Cash, Cash Equivalents and Short-Term Investments	1.85B	1.47B	1.39B	1.21B	1.38B	1.67B
Total Debt	473.00M	395.04M	277.06M	538.21M	770.18M	866.03M
Total Liabilities	1.02B	861.01M	717.99M	841.52M	1.13B	1.21B
Stockholders Equity	1.97B	1.75B	1.50B	1.33B	1.21B	1.16B
Cash Flow
Free Cash Flow	0	157.10M	384.27M	12.21M	130.80M	196.64M
Operating Cash Flow	0	164.47M	389.70M	184.45M	132.04M	218.64M
Investing Cash Flow	0	-71.63M	218.44M	-66.10M	-315.24M	149.18M
Financing Cash Flow	0	-16.70M	-442.60M	-315.48M	-178.74M	-195.38M

ES Networks Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1325.00

Price Trends

50DMA1349.34Negative

100DMA1272.78Positive

200DMA1237.51Positive

Market Momentum

MACD-1.75Positive

RSI41.32Neutral

STOCH28.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5867, the sentiment is Neutral. The current price of 1325.00 is below the 20-day moving average (MA) of 1378.50, below the 50-day MA of 1349.34, and above the 200-day MA of 1237.51, indicating a neutral trend. The MACD of -1.75 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 28.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5867.

ES Networks Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5867 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5867	81Outperform	JPY 4.12B	10.45	―	3.77%	30.98%	33.45%
JP:7033	75Outperform	JPY 27.65B	12.17	―	1.94%	―	―
JP:9168	68Neutral	JPY 9.22B	10.26	―	5.69%	-1.03%	-43.38%
JP:9644	68Neutral	JPY 22.44B	20.04	―	4.21%	8.61%	1.36%
JP:4792	65Neutral	JPY 31.03B	11.64	―	4.72%	13.80%	12.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:9556	48Neutral	JPY 16.92B	32.70	―	―	20.41%	-62.53%

* General Sector Average

Performance Comparison

JP:5867 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5867	ES Networks Co., Ltd.	1325.00	128.04	10.70%
JP:4792	YAMADA Consulting Group Co., Ltd.	1632.00	-24.51	-1.48%
JP:7033	Management Solutions Co., Ltd.	1647.00	301.93	22.45%
JP:9168	Rise Consulting Group,Inc.	369.00	-445.31	-54.69%
JP:9556	INTLOOP, Inc.	1797.00	-2348.00	-56.65%
JP:9644	TANABE CONSULTING GROUP CO. LTD	665.00	-7.86	-1.17%

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

ES Networks Co., Ltd. AI Stock Analysis