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

• Market Cap: ¥4.15B
• Dividend Yield: 0.53%
• Average Volume (3M): 3.25K
• Price to Earnings (P/E): 52.1
• Beta (1Y): 0.16
• Revenue Growth: 17.13%
• EPS Growth: -41.14%
• Country: JP
• Employees: 152
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.74
• Shares Outstanding: 4,424,800
• 10 Day Avg. Volume: 2,520
• 30 Day Avg. Volume: 3,253
• 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: 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: 53 Neutral
• Price Target: ¥939.00 ▼(-1.05% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. The company's strong financial stability is overshadowed by significant cash flow issues and low profitability. Technical indicators suggest a lack of momentum, and valuation metrics indicate the stock may be overvalued. Addressing liquidity challenges and improving profitability are crucial for enhancing the stock's attractiveness.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and successful customer acquisition strategies, supporting long-term business expansion.

Financial Stability

A high equity ratio reflects financial resilience, providing a buffer against economic fluctuations and supporting sustainable growth.

Efficient Cost Management

Efficient cost management enhances profitability and competitiveness, allowing the company to reinvest in growth and innovation.

Negative Factors

Cash Flow Challenges

Severe cash flow issues can limit operational flexibility and investment capacity, posing risks to long-term financial health and growth.

Low Profit Margins

Low net profit margins can hinder the company's ability to generate sufficient returns, impacting reinvestment potential and shareholder value.

Liquidity Concerns

Negative cash flow ratios indicate potential liquidity issues, which could affect the company's ability to meet short-term obligations and sustain operations.

E-SUPPORTLINK, Ltd. Business Overview & Revenue Model

Company Description

E-SUPPORTLINK, Ltd. (2493) is a technology-driven company specializing in providing comprehensive digital support solutions across various sectors, including IT services, customer relationship management, and online platform integration. The company focuses on enhancing operational efficiency for businesses by offering a suite of services such as cloud-based support systems, technical troubleshooting, and customer engagement tools.

How the Company Makes Money

E-SUPPORTLINK, Ltd. generates revenue primarily through a subscription-based model for its software services, which allows clients to access its digital support platforms for a recurring fee. Additional revenue streams include consulting services, where the company offers expertise in implementing and optimizing their solutions for clients' specific needs. E-SUPPORTLINK also benefits from strategic partnerships with other technology firms, enabling cross-selling of services and joint marketing initiatives that enhance customer acquisition and retention.

E-SUPPORTLINK, Ltd. Financial Statement Overview

Summary

E-SUPPORTLINK, Ltd. shows steady revenue growth and efficient cost management, but faces challenges with low net profit margins and significant cash flow issues. The company maintains strong financial stability with low leverage and substantial equity, yet liquidity concerns due to negative cash flow ratios need urgent attention.

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: Positive
• Last Price: 949.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2493, the sentiment is Positive. The current price of 949 is above the 20-day moving average (MA) of 931.82, above the 50-day MA of 927.29, and below the 200-day MA of 949.90, indicating a bullish trend. The MACD of 6.08 indicates Negative momentum. The RSI at 80.96 is Negative, neither overbought nor oversold. The STOCH value of 94.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2493.

E-SUPPORTLINK, Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4386	78 Outperform	¥4.49B	9.71	―	2.94%	26.64%	30.76%
3839	76 Outperform	¥5.02B	23.36	―	1.63%	7.03%	1.01%
3996	71 Outperform	¥3.67B	24.18	―	―	-1.26%	-39.08%
7060	66 Neutral	¥6.21B	27.29	―	3.32%	7.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2493	53 Neutral	¥4.15B	52.14	―	0.53%	17.13%	-41.14%
4260	41 Neutral	¥3.31B	176.08	―	―	-3.52%	-65.26%