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Endo Manufacturing Co., Ltd. (7841) AI Stock Analysis

JP:7841

Endo Manufacturing Co., Ltd.

(TSE/TYO:7841)

Select Model
Rating:58Neutral
Price Target:JPY 1,152.00â–²(10.45% Upside)
Action:reiterated
Date:08/06/26

The stock presents a mixed picture. Its robust balance sheet and recent technical strength are positives, but declining profitability and cash flow generation pose risks. Valuation appears fair given the current outlook.

Positive Factors
Very low leverage / strong balance sheetExtremely low leverage and rising equity give Endo durable financial flexibility. This reduces refinancing and solvency risk through cycles, supports investment or payout capacity, and allows the company to absorb OEM order volatility or fund product/tooling needs without relying on external debt.
Negative Factors
Margin compression and net income decline (2025)Material margin erosion and a sharp net income drop signal structural cost pressure—likely from materials, energy, or mix shifts—that undermines the benefits of revenue growth. If margins remain compressed, cash generation and returns will be constrained, limiting reinvestment and shareholder returns.

Endo Manufacturing Co., Ltd. (7841) vs. iShares MSCI Japan ETF (EWJ)

-15%-10%-5%0%5%10%15%20%25%JP:7841-11.44%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 9.19B
Dividend Yield
3.84%
Average Volume (3M)
10.94K
Price to Earnings (P/E)
21.5
Beta (1Y)
0.54
Revenue Growth
5.93%
EPS Growth
-54.98%
Country
Japan
Employees
1,290
Sector
General
Sector Strength
55
Industry
Manufacturing - Metal Fabrication

Endo Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Endo Manufacturing Co., Ltd. is an international manufacturer and distributor, operating through its subsidiaries, that specializes in a diverse range of products. The company's portfolio primarily includes golf club heads, marketed under its esteeme...

How the Company Makes Money

Endo Manufacturing makes money primarily by manufacturing and selling aluminum wheels. Its core revenue stream is the sale of wheels supplied to automobile manufacturers (OEM business), where revenue is generated through contracted production and del...

Endo Manufacturing Co., Ltd. Financial Statement Overview

Summary

The company has an exceptionally strong balance sheet with minimal debt, providing financial flexibility. However, revenue growth has slowed, profitability is declining, and free cash flow has turned negative, indicating operational challenges.

Income Statement

45Neutral

Balance Sheet

90Very Positive

Cash Flow

30Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.11B18.24B17.42B15.71B14.58B12.59B
Gross Profit2.88B3.00B3.47B2.76B3.73B3.55B
EBITDA2.06B2.17B2.72B2.21B2.84B2.76B
Net Income426.38M600.99M1.12B762.90M796.80M1.60B
Balance Sheet
Total Assets28.50B27.98B26.48B24.02B21.87B20.48B
Cash, Cash Equivalents and Short-Term Investments9.40B8.39B9.86B9.04B7.26B6.83B
Total Debt43.35M95.55M243.84M317.79M404.11M1.12B
Total Liabilities5.28B4.68B4.28B4.05B3.50B3.74B
Stockholders Equity23.22B23.30B22.20B19.97B18.37B16.73B
Cash Flow
Free Cash Flow0-159.45M596.51M1.62B915.46M753.24M
Operating Cash Flow01.46B1.97B2.40B1.93B1.58B
Investing Cash Flow0-2.30B-1.52B-606.68M-1.03B-1.41B
Financing Cash Flow0-904.99M-287.29M-298.36M-868.55M231.35M

Endo Manufacturing Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1043.00

Price Trends

50DMA1080.38Negative
100DMA1084.73Negative
200DMA1129.84Negative

Market Momentum

MACD-9.62Positive
RSI39.70Neutral
STOCH9.21Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7841, the sentiment is Negative. The current price of 1043.00 is below the 20-day moving average (MA) of 1062.65, below the 50-day MA of 1080.38, and below the 200-day MA of 1129.84, indicating a bearish trend. The MACD of -9.62 indicates Positive momentum. The RSI at 39.70 is Neutral, neither overbought nor oversold. The STOCH value of 9.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7841.

Endo Manufacturing Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7841 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7839JP:783986OutperformJPY 117.68B16.94―2.67%1.66%9.39%
JP:7309JP:730977OutperformJPY 1.77T30.596.71%1.71%5.00%17.30%
JP:7906JP:790668NeutralJPY 205.92B15.0917.01%1.14%15.09%12.17%
JP:7990JP:799065NeutralJPY 53.69B11.26―3.74%3.84%4.87%
JP:7847JP:784764NeutralJPY 4.29B10.22―4.52%20.87%116.29%
JP:7841JP:784158NeutralJPY 9.12B21.52―3.84%5.93%-54.98%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-40%-20%0%20%40%JP:7841JP:7309JP:7906JP:7839JP:7847JP:7990Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7841 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7841Endo Manufacturing Co., Ltd.1043.00-134.67-11.44%
JP:7309Shimano 20570.004693.9629.57%
JP:7906Yonex Co 2372.00-1558.35-39.65%
JP:7839Shoei Co. Ltd. (7839)2251.00657.6841.28%
JP:7847Graphite Design Inc.663.0076.7513.09%
JP:7990GLOBERIDE, Inc.2537.00297.8413.30%
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: Aug 06, 2026