Conservative Balance SheetVery low leverage gives eSOL durable financial flexibility to fund R&D, support long embedded program cycles, and absorb contract timing variability without interest burdens. That balance-sheet strength reduces default risk and enables strategic investment or opportunistic M&A over the medium term.

Steady Revenue GrowthConsistent top-line expansion amid long product lifecycles signals ongoing demand and successful design-win execution. For an embedded-software vendor, steady revenue growth supports recurring maintenance/royalty streams, improves predictability of multi-year contracts, and underpins capacity to reinvest in product development.

Integrated Embedded SW + ServicesOwning both core software platforms and integration services creates sticky customer relationships and higher switching costs. Design wins in long-lifecycle embedded programs typically yield multi-year licensing and support revenue, aligning eSOL with structural trends of rising software content in automotive and industrial systems.

Bears Say

Weak Cash ConversionA sharp decline in cash conversion in 2025 and prior years of negative operating/free cash flow constrain the firm's ability to fund certifications, long integration projects, and steady R&D from internal cash. Persistent volatility raises financing and execution risk for multi-year embedded programs.

Margin And Profitability VolatilityRecurring margin compression and periods of loss indicate inconsistent pricing power or cost control, which undermines sustainable profitability. For a software-services business dependent on multi-year programs, volatile margins complicate reinvestment planning and make returns less predictable over the medium term.

Earnings Decline & ROE SwingsSignificant EPS contraction and variable ROE reflect inconsistent execution and demand sensitivity in project work. This earnings volatility reduces the reliability of profits as a base for dividends or reinvestment, and increases the difficulty of forecasting free cash flow for strategic initiatives.

4420 FAQ

What was eSOL Co., Ltd.’s price range in the past 12 months?

eSOL Co., Ltd. lowest stock price was ¥421.00 and its highest was ¥660.00 in the past 12 months.

What is eSOL Co., Ltd.’s market cap?

eSOL Co., Ltd.’s market cap is ¥11.06B.

When is eSOL Co., Ltd.’s upcoming earnings report date?

eSOL Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 77 days.

How were eSOL Co., Ltd.’s earnings last quarter?

eSOL Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥17.21 earnings per share for the quarter, beating the consensus estimate of N/A by ¥17.21.

Is eSOL Co., Ltd. overvalued?

According to Wall Street analysts eSOL Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does eSOL Co., Ltd. pay dividends?

eSOL Co., Ltd. pays a Semiannually dividend of ¥4 which represents an annual dividend yield of 1.1%. See more information on eSOL Co., Ltd. dividends here

What is eSOL Co., Ltd.’s EPS estimate?

eSOL Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does eSOL Co., Ltd. have?

eSOL Co., Ltd. has 20,000,000 shares outstanding.

What happened to eSOL Co., Ltd.’s price movement after its last earnings report?

eSOL Co., Ltd. reported an EPS of ¥17.21 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -8.419%.

Which hedge fund is a major shareholder of eSOL Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4420

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

eSOL Co., Ltd.

eSOL Co.,Ltd. designs, plans, operates, and maintains embedded software solutions and logistics systems in Japan. The company offers real-time operating systems(RTOS) that include Extended T-Kernel, RTOS for embedded systems; POSIX, a compliant RTOS that provides support for pthread, signal, and inter process communication on the system level; process model-based RTOS with memory protection; compact RTOS with small footprint; and RTOS for multi-core processors, as well as software development kit for many-core processors. It also provides eBinder, a development suite for embedded software; FAT12/16/32, VFAT, and exFAT-compatible file systems for embedded systems; software platforms; and evaluation kits. In addition, the company offers application middleware, including graphical user interface (GUI), computer vision, and embedded database solutions; automotive software, such as AUBIST classic and adaptive platforms, and ECU diagnostics and reprogramming. Further, it develops and sells devices primarily focused on portable terminals, automotive printers, and sensor device products; and software systems to solve diversifying issues on the ground. The company was formerly known as ERG Co., Ltd. and changed its name to eSOL Co.,Ltd. in May 2001. eSOL Co.,Ltd. was founded in 1975 and is headquartered in Tokyo, Japan.