ESCRIT Inc. (2196) AI Stock Analysis

• Market Cap: ¥3.19B
• Dividend Yield: N/A
• Average Volume (3M): 141.36K
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.68
• Revenue Growth: -3.96%
• EPS Growth: -73.55%
• Country: JP
• Employees: 794
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Personal Products & Services
• EPS (TTM): -29.98
• Shares Outstanding: 13,786,500
• 10 Day Avg. Volume: 141,870
• 30 Day Avg. Volume: 141,360
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥255.00
• Price Target Upside: 9.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥255.00 ▲(9.91% Upside)

ESCRIT Inc.'s overall stock score is driven primarily by its financial performance and technical analysis. The company shows potential with strong gross profit margins and a positive technical trend, but faces challenges with high leverage and cash flow management. The valuation suggests the stock may be overvalued, which could limit upside potential. Improvements in operational efficiency and cash flow are necessary for a more favorable outlook.

ESCRIT Inc. Business Overview & Revenue Model

Company Description

ESCRIT 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 Money

ESCRIT 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.18B	26.64B	24.13B	22.24B	12.94B
Gross Profit	14.39B	15.04B	13.91B	11.65B	5.23B
EBITDA	1.54B	1.93B	1.65B	1.06B	-6.32B
Net Income	314.02M	619.81M	168.09M	477.68M	-5.42B
Balance Sheet
Total Assets	21.33B	23.20B	22.99B	24.58B	26.14B
Cash, Cash Equivalents and Short-Term Investments	4.57B	5.74B	5.41B	6.12B	6.72B
Total Debt	8.17B	9.17B	9.73B	10.74B	11.04B
Total Liabilities	15.06B	16.96B	17.12B	18.66B	20.58B
Stockholders Equity	6.27B	6.24B	5.87B	5.93B	5.57B
Cash Flow
Free Cash Flow	385.33M	692.34M	729.38M	-509.50M	-4.92B
Operating Cash Flow	926.34M	1.22B	1.10B	-247.82M	-4.49B
Investing Cash Flow	-198.47M	-591.36M	-502.14M	132.52M	-400.64M
Financing Cash Flow	-1.31B	-915.08M	-1.32B	-486.78M	7.49B

ESCRIT Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 232.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 232 is below the 20-day moving average (MA) of 234.25, above the 50-day MA of 230.64, and above the 200-day MA of 206.32, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.13 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2196	65 Neutral	¥3.19B	25.18		―	-3.96%	-73.55%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
TVJ	―	€194.99M	4.67	20.87%	―	―	―
2198	76 Outperform	¥23.62B	18.10		2.99%	-1.20%	-30.27%
4331	75 Outperform	¥12.54B	4.40		4.65%	0.81%	61.06%
9160	74 Outperform	¥8.30B	9.19		―	11.07%	5.85%
2424	72 Outperform	¥3.94B	9.28		1.16%	1.35%	17.94%

ESCRIT Inc. Corporate Events

ESCRIT Inc. Reports Financial Results with Strategic Adjustments

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%.