Universal Engeisha Co., Ltd. (6061) AI Stock Analysis

Universal Engeisha Co., Ltd.

(TSE/TYO:6061)

Select Model

Rating:74Outperform

Price Target:JPY 2,893.00▼(-12.33% Downside)

Action:reiterated

Date:03/24/26

The score is supported primarily by strong financial performance (rapid growth, high margins, low leverage, and solid cash generation) and a reasonable earnings valuation (P/E ~12.5). These positives are partially offset by weak technical momentum, with the stock trading below key moving averages and negative MACD.

Positive Factors

Revenue Growth / ScaleA pronounced revenue step-up in 2025 plus several years of consistent growth materially increases scale, improving fixed-cost absorption and giving management room to invest in distribution and product expansion. That structural top-line lift supports sustainable earnings power and market position over the medium term.

Negative Factors

Net Margin CompressionA multi-year decline in net margin despite revenue scale signals rising cost pressure or lower operating leverage. If persistent, margin erosion can reduce free cash flow conversion and constrain the company's ability to fund investment or returns, making future profitability more sensitive to cost volatility.

Universal Engeisha Co., Ltd. (6061) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 30.39B
Dividend Yield: 0.39%
Average Volume (3M): 6,826
Price to Earnings (P/E): 20.5
Beta (1Y): 0.61
Revenue Growth: 9.75%
EPS Growth: -16.95%
Country: Japan
Employees: 997
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Industrial - Distribution

Universal Engeisha Co., Ltd. Business Overview & Revenue Model

Company Description

UNIVERSAL ENGEISHA Co., Ltd., founded in 1968 and headquartered in Ibaraki, Japan, primarily specializes in the rental of plants and flowers across the country. The company offers comprehensive rental services for a diverse range of venues, including...

How the Company Makes Money

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Universal Engeisha Co., Ltd. Financial Statement Overview

Summary

Strong financial quality driven by consistently rising revenue (including a major 2025 step-up), steady ~60% gross margin, and healthy operating profitability. Balance sheet leverage is very low (debt-to-equity ~0.06) with solid mid-teens ROE, while cash generation is strong; offsets are a 2025 net margin dip and free cash flow running below net income, suggesting higher reinvestment/working-capital needs.

Income Statement

86Very Positive

Balance Sheet

90Very Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	22.51B	22.51B	20.51B	16.86B	13.82B	11.60B
Gross Profit	14.03B	14.26B	12.52B	10.40B	8.30B	7.10B
EBITDA	4.11B	4.04B	3.29B	3.07B	2.41B	2.28B
Net Income	1.48B	1.48B	1.81B	1.64B	1.49B	1.38B
Balance Sheet
Total Assets	19.09B	19.09B	17.04B	15.32B	13.16B	11.38B
Cash, Cash Equivalents and Short-Term Investments	6.83B	6.83B	4.96B	4.54B	5.28B	5.07B
Total Debt	979.00M	979.00M	756.69M	483.90M	338.18M	43.70M
Total Liabilities	4.13B	4.13B	3.59B	3.26B	2.59B	2.09B
Stockholders Equity	14.93B	14.93B	13.41B	12.03B	10.56B	9.29B
Cash Flow
Free Cash Flow	0	0	2.10B	1.87B	1.33B	1.10B
Operating Cash Flow	0	0	2.59B	2.14B	1.58B	1.49B
Investing Cash Flow	0	0	-1.73B	-1.76B	-990.57M	-470.19M
Financing Cash Flow	0	0	-534.54M	-1.42B	-304.21M	-229.73M

Universal Engeisha Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price3300.00

Price Trends

50DMA3185.60Positive

100DMA2982.36Positive

200DMA2980.01Positive

Market Momentum

MACD43.73Negative

RSI58.97Neutral

STOCH61.21Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6061, the sentiment is Positive. The current price of 3300.00 is above the 20-day moving average (MA) of 3206.00, above the 50-day MA of 3185.60, and above the 200-day MA of 2980.01, indicating a bullish trend. The MACD of 43.73 indicates Negative momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 61.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6061.

Universal Engeisha Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6061 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9278	76Outperform	JPY 41.83B	13.65	―	1.51%	10.64%	96.47%
JP:6061	74Outperform	JPY 32.44B	20.47	―	0.39%	9.75%	-16.95%
JP:3093	72Outperform	JPY 43.20B	12.32	―	2.50%	15.52%	22.34%
JP:2674	71Outperform	JPY 34.60B	10.10	―	3.41%	23.51%	56.52%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JP:9270	61Neutral	JPY 22.90B	7.15	―	2.70%	25.71%	349.09%
JP:2652	58Neutral	JPY 13.98B	8.19	―	0.25%	11.20%	51.35%

* Consumer Cyclical Sector Average

Performance Comparison

JP:6061 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6061	Universal Engeisha Co., Ltd.	3300.00	374.59	12.80%
JP:2652	Mandarake Inc.	393.00	18.90	5.05%
JP:2674	Hard Off Corporation Co., Ltd.	2493.00	755.57	43.49%
JP:3093	Treasure Factory Co., Ltd.	1803.00	166.84	10.20%
JP:9270	Valuence Holdings, Inc.	1667.00	708.75	73.96%
JP:9278	BOOKOFF GROUP HOLDINGS LIMITED	2384.00	1078.64	82.63%

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: Mar 24, 2026

Universal Engeisha Co., Ltd. AI Stock Analysis