Enomoto Co., Ltd. (6928) AI Stock Analysis

• Market Cap: ¥11.35B
• Dividend Yield: 4.32%
• Average Volume (3M): 34.63K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.74
• Revenue Growth: 8.68%
• EPS Growth: 859.21%
• Country: JP
• Employees: 1,264
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 41.27
• Shares Outstanding: 6,865,360
• 10 Day Avg. Volume: 43,520
• 30 Day Avg. Volume: 34,633
• PEG Ratio: 0.07
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -10.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥1,443.00
• Price Target Upside: -12.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥1,443.00 ▼(-12.17% Downside)

The overall score is influenced primarily by stable financial performance, highlighted by a strong balance sheet but challenged by cash flow issues. Valuation is boosted by a high dividend yield, although the P/E ratio suggests moderate growth expectations. Technical analysis reveals potential bearish sentiment, with the stock trading below key moving averages, adding caution to the outlook.

Enomoto Co., Ltd. Business Overview & Revenue Model

Company Description

Enomoto Co.,Ltd. develops, manufactures, and sells LED lead frames for semiconductors in Japan and internationally. The company provides lead frames for IC, transistor, LED, electronic parts, etc. It also provides pressed parts for connectors, lead frame molded products, and insert molded products and mold parts, as well as connectors and relays. In addition, the company engages in the design, development, and manufacture of various precision automobiles and automatic machinery. Enomoto Co.,Ltd. was founded in 1962 and is headquartered in Uenohara, Japan.

How the Company Makes Money

Enomoto Co., Ltd. generates revenue through the sale of its precision metal components. The company's key revenue streams include supplying lead frames and connectors to major electronics manufacturers, automotive companies, and industrial machinery producers. These components are crucial for the assembly and functionality of electronic devices, vehicles, and machinery. Enomoto's earnings are significantly impacted by its ability to maintain high standards of precision and quality in its products, as well as its capacity to innovate and adapt to new technologies. The company may also benefit from strategic partnerships with major players in its end-user industries, enhancing its market reach and customer base.

Enomoto Co., Ltd. Financial Statement Overview

Summary

Enomoto Co., Ltd. demonstrates solid balance sheet stability with minimal debt and a strong equity position. Profitability margins show room for improvement, as operational efficiencies appear to be a concern. Cash flow challenges, especially in free cash flow, need addressing to enhance financial health. Overall, the company's financial position is stable but with areas needing strategic focus.

Income Statement

The company exhibits moderate revenue growth with a 6.49% increase in revenue for the latest year. Gross profit margin is 11.69%, which shows some room for improvement in cost management. Net profit margin improved to 1.67%, indicating better profitability control compared to previous years. However, EBIT and EBITDA margins are relatively low at 2.26% and 10.34%, respectively, suggesting potential inefficiencies in operations.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.18, reflecting minimal reliance on debt financing. The equity ratio stands at 66.71%, indicating a solid equity base. Return on Equity (ROE) is relatively low at 2.04%, which may point to underutilization of shareholder funds or conservative financial strategies.

Cash Flow

Cash flow analysis reveals challenges, with free cash flow turning negative in the most recent year at -904.97 million yen, a decline from positive free cash flow in the previous year. Operating cash flow to net income ratio is favorable at 1.63, suggesting operational efficiency in cash generation, but the negative free cash flow growth rate indicates potential issues with capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.52B	26.88B	25.24B	29.27B	27.25B	23.00B
Gross Profit	3.33B	3.14B	2.65B	4.10B	4.46B	3.82B
EBITDA	2.94B	2.78B	2.11B	3.41B	3.76B	3.05B
Net Income	663.53M	447.93M	121.28M	1.27B	1.55B	1.49B
Balance Sheet
Total Assets	32.41B	32.83B	32.37B	34.04B	30.17B	25.58B
Cash, Cash Equivalents and Short-Term Investments	4.24B	4.45B	5.03B	4.04B	4.37B	3.32B
Total Debt	4.40B	4.04B	3.11B	3.13B	2.15B	1.20B
Total Liabilities	11.18B	10.93B	11.39B	13.44B	11.55B	8.84B
Stockholders Equity	21.22B	21.90B	20.98B	20.59B	18.63B	16.74B
Cash Flow
Free Cash Flow	0.00	-904.97M	1.08B	-1.10B	280.27M	-11.64M
Operating Cash Flow	0.00	732.03M	3.10B	1.81B	3.33B	2.51B
Investing Cash Flow	0.00	-1.65B	-1.76B	-3.00B	-2.97B	-2.40B
Financing Cash Flow	0.00	-98.63M	-511.55M	535.79M	386.59M	-113.92M

Enomoto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1643.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6928, the sentiment is Neutral. The current price of 1643 is below the 20-day moving average (MA) of 1671.11, above the 50-day MA of 1615.19, and above the 200-day MA of 1410.40, indicating a neutral trend. The MACD of 18.74 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 64.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6928.

Enomoto Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6899	77 Outperform	¥6.42B	19.20	―	5.43%	3.76%	-84.33%
6658	73 Outperform	¥10.32B	5.01	―	4.61%	2.22%	28.89%
6772	65 Neutral	¥11.75B	19.78	―	1.88%	1.49%	-26.82%
6919	65 Neutral	¥10.01B	54.26	―	5.81%	-2.65%	-74.99%
6928	64 Neutral	¥11.35B	16.48	―	4.32%	8.68%	859.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6926	46 Neutral	¥4.58B	―	―	2.01%	-21.49%	-155.24%