ESCRIT Inc. (2196) AI Stock Analysis

• Market Cap: ¥3.71B
• Dividend Yield: N/A
• Average Volume (3M): 67.48K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.82
• Revenue Growth: -4.35%
• EPS Growth: -132.57%
• Country: JP
• Employees: 794
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 28.99
• Shares Outstanding: 23,756,351
• 10 Day Avg. Volume: 52,420
• 30 Day Avg. Volume: 67,476
• PEG Ratio: -0.09
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 6.84
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥161.00 ▼(-1.83% Downside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

ESCRIT Inc.'s overall stock score is primarily impacted by its financial performance, which shows strengths in gross profit margins but faces significant challenges with declining revenue and high leverage. The technical analysis indicates a bearish trend, and the valuation is unattractive due to negative earnings. These factors collectively suggest caution for potential investors.

Positive Factors

Strong gross profit margin

Sustained strong gross margins indicate durable production efficiency and pricing power in the personal products segment. This margin cushion supports operating profitability and investment capacity even during top-line pressure, improving resilience over the next 2-6 months.

Reasonable equity ratio and stable asset base

A reasonable equity ratio and a stable asset base provide financial cushioning and collateral for lenders, supporting operational continuity and access to financing. This structural stability helps the company withstand cyclical shocks and fund targeted initiatives.

Moderate balance-sheet stability (Score 70)

A balance-sheet score of 70 reflects moderate financial stability, indicating the company has enough structural solidity to operate and execute near-term plans. This foundation helps preserve strategic optionality for investments or restructuring over coming months.

Negative Factors

Declining revenue

Consistent revenue decline reduces scale advantages and pressures margins, cash generation, and reinvestment capacity. Over a multi-month horizon, shrinking top-line undermines competitive position and limits ability to fund marketing, R&D, or pricing flexibility.

High leverage / elevated debt-to-equity

Elevated leverage increases interest and refinancing risk, reducing financial flexibility. In an economic downturn or with constrained cash flows, high debt burdens can force cost cuts, asset sales, or limit strategic investments, pressuring medium-term stability.

Weakened cash generation / falling free cash flow

Declining free cash flow and weaker conversion of income to cash reduce the company's ability to internally fund growth, service debt, or return capital. Structurally weaker cash generation raises reliance on external financing and constrains strategic options.

ESCRIT Inc. Business Overview & Revenue Model

Company Description

Escrit Inc. engages in the bridal business in Japan. The company plans, performs, and manages wedding ceremonies and receptions. It is also involved in the construction and real estate business. Escrit Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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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.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.55B	26.18B	26.64B	24.13B	22.24B	12.94B
Gross Profit	13.85B	13.49B	14.09B	12.80B	10.49B	4.02B
EBITDA	1.50B	1.84B	2.03B	1.48B	-57.35M	-5.04B
Net Income	126.61M	314.02M	619.81M	168.09M	477.68M	-5.42B
Balance Sheet
Total Assets	20.06B	21.58B	23.48B	23.30B	24.95B	26.60B
Cash, Cash Equivalents and Short-Term Investments	3.36B	4.57B	5.16B	5.41B	6.12B	6.72B
Total Debt	8.13B	8.24B	9.25B	9.82B	10.83B	11.13B
Total Liabilities	14.12B	15.31B	17.24B	17.43B	19.03B	21.03B
Stockholders Equity	5.94B	6.27B	6.24B	5.87B	5.93B	5.57B
Cash Flow
Free Cash Flow	0.00	385.33M	885.21M	765.47M	-471.66M	-4.87B
Operating Cash Flow	0.00	926.34M	1.22B	1.10B	-247.82M	-4.49B
Investing Cash Flow	0.00	-198.47M	-591.36M	-502.14M	132.52M	-400.64M
Financing Cash Flow	0.00	-1.31B	-915.08M	-1.32B	-486.78M	7.49B

ESCRIT Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 164.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 164 is above the 20-day moving average (MA) of 162.10, below the 50-day MA of 164.34, and below the 200-day MA of 196.65, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2196.

ESCRIT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4331	69 Neutral	¥10.17B	5.24	―	5.06%	0.36%	81.58%
7502	64 Neutral	¥1.71B	12.62	―	2.62%	11.55%	28.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2305	58 Neutral	¥32.76B	5.66	―	2.48%	-4.39%	31.40%
7372	57 Neutral	¥1.88B	1.82	―	―	8.17%	37.03%
2196	54 Neutral	¥3.71B	3.91	―	―	-4.35%	-132.57%
4679	47 Neutral	¥2.59B	11.92	―	―	-6.45%	99.39%

ESCRIT Inc. Corporate Events

ESCRIT Swings to Nine-Month Loss as Sales Decline and Margins Squeeze

ESCRIT Inc. reported a sharp deterioration in results for the nine months ended 31 December 2025, with net sales down 8.7% year-on-year to ¥17.57 billion and a swing to an operating loss of ¥316 million, resulting in a net loss attributable to shareholders of ¥539 million and a basic loss per share of ¥40.35. Total assets fell to ¥19.3 billion and the equity ratio slipped to 28.1%, while the company maintained its no-dividend stance and forecast full-year sales of ¥25.04 billion and only marginal profit, underscoring continued earnings pressure and a weaker financial position for stakeholders to monitor.

The company kept its full-year outlook unchanged, projecting a steep 80.1% drop in operating profit and a net loss despite modest positive ordinary profit, reflecting management’s cautious view on recovery amid soft demand and higher costs. With no significant changes in consolidation scope or accounting policies, the results highlight structural profitability challenges, potential constraints on shareholder returns and the need for operational improvement to restore margins and balance-sheet strength.

The most recent analyst rating on (JP:2196) stock is a Sell with a Yen171.00 price target. To see the full list of analyst forecasts on ESCRIT Inc. stock, see the JP:2196 Stock Forecast page.