Consistent Revenue GrowthSustained top-line growth from 2022–2025 implies stable end-market demand and successful commercial execution. Over a multi-quarter horizon this supports recurring service contracts, scale benefits, and capacity to fund incremental investments without relying on one-time gains, bolstering long-term earnings resilience.

Conservative LeverageA materially lower debt-to-equity ratio reduces financial risk and increases strategic optionality. With a conservative capital structure the company can better absorb cyclical weakness, finance selective infrastructure or cloud investments, and pursue partnership or M&A opportunities without immediate balance-sheet strain.

Stable Gross Margins And FCF RecoveryMid-40% gross margins indicate persistent pricing or mix advantage in core network services, while FCF recovery to positive ¥157M shows improving cash generation. Together they support sustainable reinvestment in infrastructure and service delivery and underpin the quality of reported earnings over the medium term.

Bears Say

Profitability Erosion In 2025A sharp year-over-year net margin decline signals rising cost pressure, adverse mix, or increased SG&A/headcount investment that compresses durable profitability. If margins remain depressed, returns on capital and internal funding capacity will weaken, constraining strategic initiatives and shareholder distributions.

Weak Cash ConversionOperating cash flow materially below net income suggests earnings quality issues driven by working-capital swings or delayed collections. Persistent weak cash conversion limits the firm's ability to self-fund capex or absorb margin shocks, increasing reliance on external financing during investment cycles.

Step-up In Total Debt In 2025Although leverage remains low overall, a recent increase in absolute debt raises medium-term refinancing and interest-cost risk if profitability is pressured. If margins and cash conversion do not recover, the debt step-up could constrain strategic flexibility and elevate downside in stressed scenarios.

5867 FAQ

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

ES Networks Co., Ltd. lowest stock price was ¥880.00 and its highest was ¥1431.00 in the past 12 months.

What is ES Networks Co., Ltd.’s market cap?

ES Networks Co., Ltd.’s market cap is ¥3.96B.

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

ES Networks Co., Ltd.’s upcoming earnings report date is May 08, 2026 which is in 78 days.

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

ES Networks Co., Ltd. released its earnings results on Feb 09, 2026. The company reported ¥18.29 earnings per share for the quarter, beating the consensus estimate of N/A by ¥18.29.

Is ES Networks Co., Ltd. overvalued?

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

Does ES Networks Co., Ltd. pay dividends?

ES Networks Co., Ltd. pays a Annually dividend of ¥58 which represents an annual dividend yield of 3.54%. See more information on ES Networks Co., Ltd. dividends here

What is ES Networks Co., Ltd.’s EPS estimate?

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

How many shares outstanding does ES Networks Co., Ltd. have?

ES Networks Co., Ltd. has 3,148,100 shares outstanding.

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

ES Networks Co., Ltd. reported an EPS of ¥18.29 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.738%.

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

Currently, no hedge funds are holding shares in JP:5867

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

ES Networks Co., Ltd.

ES Networks Co., Ltd. (5867) is a leading company in the telecommunications and IT services sector, specializing in providing advanced network solutions and infrastructure development. The company focuses on delivering high-quality services in areas such as network design, installation, and maintenance, as well as offering cloud services and data management solutions to a diverse range of clients, including businesses and government entities.