Enjin Co.,Ltd. (7370) AI Stock Analysis

• Market Cap: ¥6.23B
• Dividend Yield: 4.45%
• Average Volume (3M): 13.14K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.61
• Revenue Growth: -10.63%
• EPS Growth: -27.06%
• Country: JP
• Employees: 168
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 34.05
• Shares Outstanding: 7,297,000
• 10 Day Avg. Volume: 15,750
• 30 Day Avg. Volume: 13,143
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Enjin Co.,Ltd. demonstrates a robust financial setup with strong profitability and a solid balance sheet, although recent revenue and cash flow declines are concerning. Technical analysis indicates potential negative trends, but the valuation is compelling with low P/E and high dividend yield, suggesting undervaluation.

Enjin Co.,Ltd. Business Overview & Revenue Model

Company Description

Enjin Co., Ltd. (7370) is a Japanese company primarily engaged in providing human resources and recruitment services. The company specializes in matching skilled professionals with businesses in need of their expertise, focusing on sectors such as engineering, IT, and various other technical fields. Enjin Co., Ltd. aims to support both job seekers and employers by facilitating efficient and effective placements that satisfy the needs of both parties.

How the Company Makes Money

Enjin Co., Ltd. generates revenue primarily through its recruitment and human resources services. The company earns fees from businesses seeking to recruit skilled professionals, which may be based on successful placements or through subscription-based access to Enjin's talent database. Additionally, they may offer consultancy services to help companies optimize their hiring processes, further contributing to their revenue. Key partnerships with industry leaders and the reputation for connecting top talent with desirable employers underpin Enjin's business model, driving consistent revenue growth.

Enjin Co.,Ltd. Financial Statement Overview

Summary

Enjin Co.,Ltd. presents a strong financial position overall with a stable balance sheet and high profitability margins. The recent decline in revenue growth and cash flow constraints are areas that need to be addressed to maintain long-term financial health.

Income Statement

Enjin Co.,Ltd. has shown a strong track record of revenue growth with a CAGR of approximately 20% over the past five years. However, the latest year saw a decline in revenue by 6.1%. The company's gross profit margin remains robust at 81.2%, and the net profit margin is healthy at 22.9%. EBIT and EBITDA margins are strong, indicating efficient operations.

Balance Sheet

The company maintains a solid balance sheet with zero total debt, resulting in a debt-to-equity ratio of 0.0. Stockholders' equity has been consistently increasing, and the equity ratio stands at an impressive 86.2%, indicating financial stability and low leverage risk.

Cash Flow

Cash flow generation is positive with healthy free cash flow, although it saw a considerable drop in the latest fiscal year. The operating cash flow to net income ratio is relatively low at 0.31, suggesting room for improvement in cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.90B	2.92B	3.27B	3.48B	3.07B	2.16B
Gross Profit	2.31B	2.34B	2.65B	2.89B	2.52B	1.70B
EBITDA	899.62M	901.49M	1.14B	1.35B	1.26B	630.72M
Net Income	536.97M	539.21M	749.01M	879.40M	828.64M	423.28M
Balance Sheet
Total Assets	5.16B	5.30B	5.05B	5.48B	4.88B	2.00B
Cash, Cash Equivalents and Short-Term Investments	3.64B	4.13B	3.54B	4.08B	4.01B	1.49B
Total Debt	0.00	0.00	0.00	28.33M	0.00	0.00
Total Liabilities	757.37M	659.29M	697.45M	1.31B	1.06B	763.21M
Stockholders Equity	4.40B	4.64B	4.36B	4.16B	3.82B	1.23B
Cash Flow
Free Cash Flow	0.00	642.00M	144.23M	648.71M	866.84M	485.51M
Operating Cash Flow	0.00	694.04M	230.00M	689.61M	967.37M	509.64M
Investing Cash Flow	0.00	163.89M	-191.09M	-577.95M	-199.55M	-24.57M
Financing Cash Flow	0.00	-257.34M	-585.79M	-529.60M	1.75B	0.00

Enjin Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 862.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7370, the sentiment is Positive. The current price of 862 is above the 20-day moving average (MA) of 843.20, above the 50-day MA of 835.50, and above the 200-day MA of 752.49, indicating a bullish trend. The MACD of 7.34 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 72.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7370.

Enjin Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7370	73 Outperform	¥6.23B	11.13		4.45%	-10.63%	-27.06%
3626	67 Neutral	1.16T	22.61	14.57%	1.40%	4.39%	7.80%
4307	66 Neutral	3.33T	34.58	21.60%	1.07%	3.28%	16.48%
4751	64 Neutral	885.50B	35.07	10.09%	0.91%	6.80%	58.78%
9602	62 Neutral	1.53T	41.54	7.97%	0.97%	5.73%	-19.25%
4819	56 Neutral	176.85B	-16.25	-9.53%	1.42%	25.30%	-326.99%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%