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ESCRIT Inc. (JP:2196)
:2196
Japanese Market
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ESCRIT Inc. (2196) AI Stock Analysis

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JP:2196

ESCRIT Inc.

(2196)

Rating:71Outperform
Price Target:
¥273.00
▲(15.68%Upside)
ESCRIT Inc.'s stock is bolstered by strong technical indicators and a fair valuation, which offset the challenges in financial performance, including high leverage and declining profitability. The absence of earnings call information and new corporate events limits the analysis to existing data.

ESCRIT Inc. (2196) vs. iShares MSCI Japan ETF (EWJ)

ESCRIT Inc. Business Overview & Revenue Model

Company DescriptionESCRIT Inc. is a Japan-based company primarily engaged in the bridal business. The company offers comprehensive wedding-related services, including the planning and operation of wedding ceremonies and receptions. Additionally, ESCRIT Inc. provides consulting services for wedding venues, helping to enhance the quality and efficiency of wedding operations.
How the Company Makes MoneyESCRIT Inc. generates revenue primarily through its wedding planning and operation services. The company earns money by charging fees for organizing wedding ceremonies and receptions, including venue rental, catering, decoration, and other related services. Significant revenue streams also come from consulting services offered to wedding venues, where the company provides expertise to improve service offerings and operational efficiency. Additionally, partnerships with hotels and event spaces enhance their service range and revenue potential.

ESCRIT Inc. Financial Statement Overview

Summary
ESCRIT Inc. demonstrates strengths in gross profit margins and a stable asset base, but faces challenges with declining revenue, profitability, and cash flow management. The high leverage could pose risks in an economic downturn, and improvements in operational efficiency and cash flow are necessary for sustained financial health. While the company has potential for recovery and growth, careful management of debts and operational costs is essential.
Income Statement
65
Positive
ESCRIT Inc. shows a mixed income statement performance. The gross profit margin remains strong, indicating efficient production and cost management. However, revenue has declined over the past year, and net profit margin has decreased significantly from the previous year. The EBIT and EBITDA margins are lower compared to industry averages, reflecting potential challenges in operational efficiency.
Balance Sheet
70
Positive
The balance sheet of ESCRIT Inc. reveals moderate financial stability. The equity ratio is reasonable, but the debt-to-equity ratio indicates a relatively high level of leverage, which could pose risks if not managed properly. Return on equity has dropped significantly, suggesting decreased profitability. Overall, the company maintains a stable asset base, but the high leverage could limit future financial flexibility.
Cash Flow
60
Neutral
ESCRIT Inc. faces challenges in cash flow management. The free cash flow has decreased from the previous year, affecting the company's ability to reinvest in growth. The operating cash flow to net income ratio is positive but lower than optimal, indicating issues in converting income into cash. The free cash flow to net income ratio also reflects this struggle, underscoring a need for improved cash management strategies.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue26.18B26.64B24.13B22.24B12.94B
Gross Profit14.39B15.04B13.91B11.65B5.23B
EBITDA1.54B1.93B1.65B1.06B-6.32B
Net Income314.02M619.81M168.09M477.68M-5.42B
Balance Sheet
Total Assets21.33B23.20B22.99B24.58B26.14B
Cash, Cash Equivalents and Short-Term Investments4.57B5.74B5.41B6.12B6.72B
Total Debt8.17B9.17B9.73B10.74B11.04B
Total Liabilities15.06B16.96B17.12B18.66B20.58B
Stockholders Equity6.27B6.24B5.87B5.93B5.57B
Cash Flow
Free Cash Flow385.33M692.34M729.38M-509.50M-4.92B
Operating Cash Flow926.34M1.22B1.10B-247.82M-4.49B
Investing Cash Flow-198.47M-591.36M-502.14M132.52M-400.64M
Financing Cash Flow-1.31B-915.08M-1.32B-486.78M7.49B

ESCRIT Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price236.00
Price Trends
50DMA
236.34
Negative
100DMA
212.86
Positive
200DMA
204.98
Positive
Market Momentum
MACD
2.65
Positive
RSI
51.34
Neutral
STOCH
23.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2196, the sentiment is Positive. The current price of 236 is below the 20-day moving average (MA) of 238.85, below the 50-day MA of 236.34, and above the 200-day MA of 204.98, indicating a neutral trend. The MACD of 2.65 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 23.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2196.

ESCRIT Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥13.28B3.76
4.38%1.38%114.04%
76
Outperform
¥23.36B17.88
3.03%-1.20%-30.27%
74
Outperform
¥8.00B9.93
6.07%-20.19%
72
Outperform
¥3.85B9.06
1.17%1.35%17.94%
71
Outperform
¥3.19B10.06
-1.73%-0.91%
67
Neutral
¥266.96B13.516.53%2.53%5.16%-13.66%
67
Neutral
€29.43B6.6514.63%1.94%12.46%-22.31%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2196
ESCRIT Inc.
237.00
43.00
22.16%
JP:2198
IKK Holdings Co., Ltd
794.00
117.98
17.45%
JP:2424
Brass Corp.
681.00
172.80
34.00%
JP:4331
Take and Give. Needs Co., Ltd.
913.00
177.79
24.18%
JP:9160
NOVARESE,Inc.
319.00
58.00
22.22%
JP:2418
TSUKADA GLOBAL HOLDINGS Inc
611.00
286.08
88.04%

ESCRIT Inc. Corporate Events

ESCRIT Inc. Reports Financial Results with Strategic Adjustments
Feb 25, 2025

ESCRIT Inc. reported a slight decline in net sales for the nine months ending December 31, 2024, with a 1.9% decrease compared to the previous year. Despite this, operating profit saw a marginal increase of 0.4%, while profit attributable to owners of the parent dropped significantly by 27.3%. The company also announced the exclusion of ESCRIT Taiwan Inc. from its consolidated financial results, reflecting a strategic shift in its operations. Additionally, the forecast for the fiscal year ending March 31, 2025, anticipates a modest growth in net sales and operating profit, although profit attributable to owners is expected to decline by 9.6%.

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: Jul 12, 2025