ESCRIT Inc. (2196) AI Stock Analysis

• Market Cap: ¥2.17B
• Dividend Yield: N/A
• Average Volume (3M): 67.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: -4.35%
• EPS Growth: -132.57%
• Country: JP
• Employees: 794
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -39.36
• Shares Outstanding: 13,786,500
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥184.00 ▲(14.29% Upside)

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

Gross Profit Margins

Strong gross profit margins indicate efficient cost management and production processes, which can sustain profitability over the long term.

Stable Asset Base

A stable asset base provides a solid foundation for future growth and investment opportunities, enhancing long-term financial stability.

Partnerships with Major Tech Firms

Partnerships with major tech firms can drive innovation, expand market reach, and provide access to new technologies, supporting long-term growth.

Negative Factors

Declining Revenue

Declining revenue may indicate challenges in market demand or competitive pressures, potentially impacting long-term growth and profitability.

High Leverage

High leverage can limit financial flexibility and increase risk during economic downturns, affecting long-term financial health.

Cash Flow Management Challenges

Challenges in cash flow management can hinder the ability to reinvest in growth and meet financial obligations, impacting long-term sustainability.

ESCRIT Inc. Business Overview & Revenue Model

Company Description

ESCRIT Inc. (2196) is a technology company specializing in software development and digital solutions for various industries, including finance, healthcare, and logistics. The company focuses on delivering innovative applications and platforms that enhance operational efficiency and data management for its clients. With a strong emphasis on artificial intelligence and machine learning, ESCRIT Inc. aims to empower businesses by providing them with tools that drive automation and decision-making processes.

How the Company Makes Money

ESCRIT Inc. generates revenue primarily through the sale of software licenses and subscription services for its proprietary applications. The company also earns income from consulting services, helping clients integrate and customize its solutions to fit their specific needs. Key revenue streams include recurring subscriptions from cloud-based services, one-time fees from software installations, and ongoing maintenance contracts. Additionally, ESCRIT Inc. has established partnerships with major technology firms, allowing for co-development projects and access to broader markets, which further contributes to its earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.55B	26.18B	26.64B	24.13B	22.24B	12.94B
Gross Profit	13.85B	14.39B	15.04B	13.91B	11.65B	5.23B
EBITDA	1.24B	1.54B	1.93B	1.65B	985.05M	-6.40B
Net Income	125.84M	314.02M	619.81M	168.09M	477.68M	-5.42B
Balance Sheet
Total Assets	20.06B	21.33B	23.20B	22.99B	24.58B	26.14B
Cash, Cash Equivalents and Short-Term Investments	3.36B	4.57B	5.16B	5.41B	6.12B	6.72B
Total Debt	8.13B	8.17B	9.17B	9.73B	10.74B	11.04B
Total Liabilities	14.12B	15.06B	16.96B	17.12B	18.66B	20.58B
Stockholders Equity	5.94B	6.27B	6.24B	5.87B	5.93B	5.57B
Cash Flow
Free Cash Flow	0.00	385.33M	692.34M	729.38M	-509.50M	-4.92B
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: 161.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 161 is below the 20-day moving average (MA) of 164.60, below the 50-day MA of 183.94, and below the 200-day MA of 208.25, indicating a bearish trend. The MACD of -6.96 indicates Negative momentum. The RSI at 33.56 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 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
9160	72 Outperform	¥8.30B	8.29	―	―	12.19%	28.25%
2198	71 Outperform	¥23.18B	11.61	―	3.05%	-3.47%	14.42%
4331	69 Neutral	¥11.26B	4.34	―	5.15%	0.36%	81.58%
2424	69 Neutral	¥3.65B	15.83	―	1.24%	6.77%	40.10%
2418	64 Neutral	¥26.76B	3.92	21.87%	2.14%	15.35%	45.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2196	54 Neutral	¥2.17B	-14.49	―	―	-4.35%	-132.57%

ESCRIT Inc. Corporate Events

ESCRIT Inc. Reports Financial Decline Amid Market Challenges

ESCRIT Inc. reported a decline in its financial performance for the six months ended September 30, 2025, with net sales dropping by 9.1% compared to the previous year. The company experienced a significant operating loss, reflecting challenges in its market environment. Despite the downturn, ESCRIT has revised its financial forecast for the fiscal year ending March 31, 2026, indicating expectations of a slight recovery in net sales and operating profit, albeit still projecting a net loss.