eMnet Japan Co., Ltd. (7036) AI Stock Analysis

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eMnet Japan Co., Ltd.

(TSE/TYO:7036)

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Rating:40Underperform

Price Target:JPY 610.00▲(3.39% Upside)

Action:downgraded

Date:11/07/26

The overall score is very low, driven primarily by weak financial performance and bearish technicals. The company's recent net loss and negative operating cash flow are significant risks, while the stock's price trend and momentum are strongly negative. The high dividend yield is the only positive signal but is likely unsustainable.

Positive Factors

Revenue growthRevenue growth shows that eMnet Japan continued expanding its digital advertising business despite weaker profitability. Sustained client demand and campaign activity can provide a foundation for recovery if the company converts this top-line expansion into more consistent margins and cash generation.

Negative Factors

Large net lossThe sharp swing from profit to a substantial net loss weakens earnings quality and reduces the reliability of recent financial performance. Even with positive operating earnings, the loss can constrain retained capital and makes a durable recovery dependent on resolving the factors below operating profit.

eMnet Japan Co., Ltd. (7036) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.28B
Dividend Yield: 5.42%
Average Volume (3M): 2,050
Price to Earnings (P/E): -4.7
Beta (1Y): 0.16
Revenue Growth: -1.64%
EPS Growth: -1194.44%
Country: Japan
Employees: 130
Sector: General
Sector Strength: 55
Industry: Advertising Agencies

eMnet Japan Co., Ltd. Business Overview & Revenue Model

Company Description

eMnet Japan.co.ltd., established in 2007 and headquartered in Tokyo, Japan, specializes in the digital advertising sector. Their comprehensive suite of online promotional services includes search-linked advertising, managed display campaigns, social...

How the Company Makes Money

eMnet Japan primarily makes money by providing digital advertising services to corporate clients and earning fees tied to the planning, purchase, and operation of online ad campaigns. A core revenue stream is agency-type income generated from managin...

eMnet Japan Co., Ltd. Financial Statement Overview

Summary

Financial health is weak. While the company is debt-free and has stabilized revenue, a significant net loss eroded equity and operating cash flow turned negative, indicating liquidity pressure.

Income Statement

38Negative

Balance Sheet

52Neutral

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58B	1.59B	1.33B	1.37B	1.47B	10.67B
Gross Profit	0	1.59B	0	0	1.45B	1.57B
EBITDA	159.95M	160.99M	100.49M	122.48M	243.60M	510.16M
Net Income	-429.72M	-449.59M	69.75M	73.19M	175.95M	311.01M
Balance Sheet
Total Assets	2.28B	2.33B	2.71B	3.01B	2.98B	3.31B
Cash, Cash Equivalents and Short-Term Investments	638.09M	567.50M	962.36M	1.42B	1.21B	1.57B
Total Debt	0	0	403.00K	1.08M	1.75M	2.41M
Total Liabilities	1.44B	1.56B	1.30B	1.56B	1.48B	1.85B
Stockholders Equity	840.80M	776.50M	1.41B	1.45B	1.50B	1.47B
Cash Flow
Free Cash Flow	-223.12M	-191.95M	-119.87M	343.53M	-131.59M	374.65M
Operating Cash Flow	-218.13M	-190.57M	-115.89M	344.37M	-118.91M	385.59M
Investing Cash Flow	-240.78M	-16.23M	-228.28M	-17.62M	-33.31M	-23.35M
Financing Cash Flow	-203.49M	-123.11M	-109.49M	-116.93M	-212.34M	-54.90M

eMnet Japan Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price590.00

Price Trends

50DMA657.18Negative

100DMA647.92Negative

200DMA731.02Negative

Market Momentum

MACD-11.75Positive

RSI9.60Positive

STOCH1.01Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7036, the sentiment is Negative. The current price of 590.00 is below the 20-day moving average (MA) of 647.50, below the 50-day MA of 657.18, and below the 200-day MA of 731.02, indicating a bearish trend. The MACD of -11.75 indicates Positive momentum. The RSI at 9.60 is Positive, neither overbought nor oversold. The STOCH value of 1.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7036.

eMnet Japan Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7036 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7069	68Neutral	JPY 3.75B	6.50	―	―	20.55%	26.39%
JP:7095	66Neutral	JPY 14.48B	5.89	―	5.54%	-5.30%	-13.86%
JP:9466	65Neutral	JPY 2.97B	13.81	―	4.41%	-7.42%	-54.89%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4196	44Neutral	JPY 3.17B	-44.80	―	―	14.60%	-194.97%
JP:7036	40Underperform	JPY 2.38B	-4.67	―	5.42%	-1.64%	-1194.44%
JP:6573	37Underperform	JPY 1.27B	-1.83	―	―	39.73%	4.39%

* General Sector Average

Performance Comparison

JP:7036 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7036	eMnet Japan Co., Ltd.	590.00	-298.17	-33.57%
JP:4196	NEO MARKETING Inc.	1271.00	132.00	11.59%
JP:6573	Agile Media Network, Inc.	16.00	-71.00	-81.61%
JP:7069	CyberBuzz, Inc.	394.00	31.00	8.54%
JP:7095	Macbee Planet Inc	992.00	-742.58	-42.81%
JP:9466	Aidma Marketing Communication Corp.	227.00	1.59	0.71%

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: Nov 07, 2026

eMnet Japan Co., Ltd. AI Stock Analysis