E-SUPPORTLINK, Ltd. (2493) AI Stock Analysis

• Market Cap: ¥4.14B
• Dividend Yield: 0.53%
• Average Volume (3M): 4.57K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.15
• Revenue Growth: 18.43%
• EPS Growth: 22.38%
• Country: JP
• Employees: 152
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -1.20
• Shares Outstanding: 4,424,800
• 10 Day Avg. Volume: 4,160
• 30 Day Avg. Volume: 4,566
• PEG Ratio: 0.16
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.76
• P/FCF Ratio: -6.42
• 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: ¥987.00
• Price Target Upside: 5.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥987.00 ▲(5.45% Upside)

The overall stock score of 61 reflects moderate financial performance with strong revenue growth and financial stability, but significant cash flow challenges. Technical analysis indicates a neutral trend with some bullish momentum. The high P/E ratio suggests potential overvaluation, and the low dividend yield offers limited income potential. Addressing cash flow issues is crucial for future growth.

E-SUPPORTLINK, Ltd. Business Overview & Revenue Model

Company Description

E-SUPPORTLINK, Ltd. provides fresh fruit and vegetable distribution solutions. The company's products include e Support link system for managing distribution information between different companies and departments that make up the supply chain online; Fresh MD system, a cloud service for ordering and payment of perishable products; farm story that provides IT solution for creating valuable agriculture; pesticide search system, which develop pest and weed control guidelines; business outsourcing services for distribution of perishable products; support for the construction of fruit and vegetable sales floors; local vegetable procurement support service; and inventory management system that responds to the customs of the fruit and vegetable industry. The company provides its services to producers/agricultural cooperatives, government, fresh food distribution industries, and retail/mass retailers. E-SUPPORTLINK, Ltd. was incorporated in 1998 and is headquartered in Tokyo, Japan.

How the Company Makes Money

E-SUPPORTLINK, Ltd. generates revenue through a multi-faceted business model that includes fees from software development projects, IT consulting engagements, and ongoing support contracts. The company charges clients for custom software solutions and implementation services, which are tailored to enhance business processes and operational efficiencies. Additionally, E-SUPPORTLINK, Ltd. earns income through long-term consulting agreements, where it provides strategic IT guidance and expertise. Support services, including maintenance and technical assistance, are provided under subscription models or time-based contracts, further contributing to the company's earnings. Partnerships with technology vendors and alliances with other consulting firms also play a role in expanding the company's market reach and revenue potential.

E-SUPPORTLINK, Ltd. Financial Statement Overview

Summary

E-SUPPORTLINK, Ltd. shows steady revenue growth with efficient cost management, yet profitability remains a challenge with low net margins. The company maintains strong financial stability with low leverage and substantial equity. However, cash flow issues pose significant concerns, impacting liquidity and operational efficiency. Addressing these cash flow challenges will be crucial for sustaining long-term growth and profitability.

Income Statement

The company has shown a moderate revenue growth rate of 18.46% from the previous year. Gross profit margin stands at 35.20%, indicating efficient cost management. However, the net profit margin is relatively low at 2.50%, suggesting limited profitability after accounting for expenses. EBIT and EBITDA margins are 3.03% and 5.10% respectively, reflecting modest operating efficiency.

Balance Sheet

The balance sheet reveals a strong equity position with an equity ratio of 64.81%, denoting substantial financial stability. The debt-to-equity ratio is low at 0.14, indicating conservative leverage. Return on Equity (ROE) is 3.83%, which is moderate and suggests room for improved profitability.

Cash Flow

The cash flow statement highlights a concerning reduction in free cash flow, declining by 1777.30%. Operating cash flow to net income ratio is negative, implying inefficiencies in translating income into cash. Free cash flow to net income is also negative, highlighting potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.87B	5.41B	4.56B	4.85B	5.19B	5.65B
Gross Profit	2.00B	1.90B	1.71B	1.82B	1.96B	2.27B
EBITDA	344.54M	275.55M	188.99M	254.58M	-382.39M	573.03M
Net Income	114.79M	135.27M	46.96M	155.41M	-942.05M	116.94M
Balance Sheet
Total Assets	5.76B	5.44B	5.57B	5.49B	6.12B	5.54B
Cash, Cash Equivalents and Short-Term Investments	1.97B	1.95B	3.00B	3.39B	4.34B	3.01B
Total Debt	682.59M	496.38M	849.58M	1.18B	1.44B	180.58M
Total Liabilities	2.22B	1.92B	2.16B	2.12B	2.91B	1.39B
Stockholders Equity	3.55B	3.53B	3.40B	3.37B	3.21B	4.15B
Cash Flow
Free Cash Flow	0.00	-637.07M	-33.91M	-667.71M	132.00M	483.45M
Operating Cash Flow	0.00	-219.94M	246.69M	-504.58M	288.62M	567.62M
Investing Cash Flow	0.00	-455.65M	-290.64M	-171.11M	-184.83M	-93.74M
Financing Cash Flow	0.00	-375.32M	-348.49M	-270.07M	1.23B	-167.84M

E-SUPPORTLINK, Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 936.00
• 50DMA: Positive
• 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:2493, the sentiment is Negative. The current price of 936 is below the 20-day moving average (MA) of 937.45, above the 50-day MA of 924.32, and below the 200-day MA of 960.96, indicating a neutral trend. The MACD of 3.80 indicates Positive momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2493.

E-SUPPORTLINK, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3839	77 Outperform	¥5.01B	21.01	4.18%	1.63%	7.78%	1.78%
3996	77 Outperform	¥4.43B	21.50	14.26%	―	-1.23%	2.92%
4386	75 Outperform	¥4.44B	9.84	19.60%	3.50%	27.51%	68.04%
7060	66 Neutral	¥6.29B	60.88	1.75%	3.27%	8.86%	―
2493	61 Neutral	¥4.14B	36.17	―	0.53%	18.43%	22.38%
4260	44 Neutral	¥4.19B	-56.96	-3.25%	―	-4.94%	-135.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%