ESCRIT Inc. (2196) AI Stock Analysis

• Market Cap: ¥2.86B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.78
• Revenue Growth: -1.73%
• EPS Growth: -0.91%
• Country: JP
• Employees: 794
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Personal Products & Services
• EPS (TTM): 45.10
• Shares Outstanding: 13,786,500
• 10 Day Avg. Volume: 938,560
• 30 Day Avg. Volume: 1,087,623
• PEG Ratio: -0.22
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.09
• 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

• Rating: 68 Neutral
• Price Target: ¥231.00 ▲(8.96%Upside)

ESCRIT Inc.'s overall stock score reflects a balanced view of its financial performance, technical indicators, and valuation. The primary strengths are its undervaluation and potential for price recovery. However, challenges in financial performance, particularly cash flow management and high leverage, weigh down the score. Technical analysis suggests mixed signals with potential for upward movement, which adds to the overall positive outlook.

ESCRIT Inc. Business Overview & Revenue Model

Company Description

ESCRIT Inc. (2196) is a Japanese company specializing in the planning and management of wedding ceremonies and receptions. The company operates primarily in the bridal industry, offering a range of services that include venue provision, event planning, and related hospitality services. ESCRIT Inc. is known for creating personalized and memorable wedding experiences for its clients, leveraging its expertise in event coordination and its portfolio of unique venues across Japan.

How the Company Makes Money

ESCRIT Inc. generates revenue through several key streams within the wedding and events industry. The primary source of income is the planning and execution of wedding ceremonies and receptions, where the company charges fees for venue rental, event coordination, and additional services such as catering, decoration, and entertainment. ESCRIT Inc. may also earn revenue through partnerships with vendors and suppliers, where it facilitates the provision of products and services like floral arrangements, photography, and dresses. Additionally, the company might benefit from ancillary services related to hospitality, such as accommodation and transportation arrangements for event attendees. The company's earnings are significantly influenced by its ability to deliver high-quality, tailored wedding experiences and maintain strong relationships with clients and partners.

ESCRIT Inc. Financial Statement Overview

Summary

ESCRIT Inc. has a strong gross profit margin and stable asset base, but faces challenges with declining revenue, profitability, and cash flow management. High leverage could pose risks, and improvements in operational efficiency and cash flow are 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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
26.26B	26.18B	26.64B	24.13B	22.24B	12.94B
	Gross Profit
14.83B	14.39B	15.04B	13.91B	11.65B	5.23B
	EBIT
932.90M	803.52M	929.62M	210.92M	-1.38B	-6.40B
	EBITDA
2.00B	1.54B	1.93B	1.65B	1.06B	-6.32B
	Net Income Common Stockholders
484.31M	314.02M	619.81M	168.09M	477.68M	-5.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.21B	4.57B	5.74B	5.41B	6.12B	6.72B
	Total Assets
21.72B	21.33B	23.20B	22.99B	24.58B	26.14B
	Total Debt
8.50B	8.17B	9.17B	9.73B	10.74B	11.04B
	Net Debt
3.29B	3.60B	4.01B	4.32B	4.62B	4.31B
	Total Liabilities
15.40B	15.06B	16.96B	17.12B	18.66B	20.58B
	Stockholders Equity
6.32B	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: Neutral
• Last Price: 212.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2196, the sentiment is Neutral. The current price of 212 is below the 20-day moving average (MA) of 240.30, above the 50-day MA of 206.04, and above the 200-day MA of 207.39, indicating a neutral trend. The MACD of 3.65 indicates Positive momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 1.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2196.

ESCRIT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2198	74 Outperform	¥23.30B	17.65		3.03%	-1.20%	-30.27%
2424	72 Outperform	¥3.53B	8.31		1.28%	1.35%	17.94%
9160	71 Outperform	¥7.85B	9.75		―	6.07%	-20.19%
4331	71 Outperform	¥12.15B	3.44		7.18%	1.38%	114.05%
2418	70 Outperform	€27.24B	5.99	14.63%	2.10%	12.46%	-22.31%
2196	68 Neutral	¥2.86B	9.04		―	-1.73%	-0.91%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%

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%.