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E-SUPPORTLINK, Ltd. (JP:2493)
:2493
Japanese Market

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

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JP

E-SUPPORTLINK, Ltd.

(2493)

Rating:52Neutral
Price Target:
¥956.00
▲(5.52%Upside)
The overall stock score is primarily influenced by financial performance and technical analysis. The company's moderate revenue growth and strong financial stability are overshadowed by cash flow concerns and weak technical indicators. Additionally, the high P/E ratio suggests overvaluation, while the low dividend yield offers minimal income.

E-SUPPORTLINK, Ltd. (2493) vs. iShares MSCI Japan ETF (EWJ)

E-SUPPORTLINK, Ltd. Business Overview & Revenue Model

Company DescriptionE-SUPPORTLINK, Ltd. (2493) is a Japan-based company that provides services primarily in the information technology sector. The company specializes in offering IT consulting solutions, system development, and operational support services. Its core offerings include software development, IT infrastructure solutions, and business process outsourcing, aimed at enhancing operational efficiency for its clients.
How the Company Makes MoneyE-SUPPORTLINK, Ltd. generates revenue through a diversified business model focused on providing IT consulting and system development services. The company earns money by offering customized software solutions and IT infrastructure services to businesses across various industries. Revenue streams include fees from consulting services, project-based system development contracts, and ongoing support and maintenance services. Key partnerships with technology vendors and enterprise clients contribute to its earnings by enabling the company to expand its service offerings and access new markets. Additionally, the company may engage in outsourcing arrangements, providing business process services to clients which further enhances its revenue potential.

E-SUPPORTLINK, Ltd. Financial Statement Overview

Summary
E-SUPPORTLINK, Ltd. shows steady revenue growth and efficient cost management, but low net profit margins indicate limited profitability. The company has strong financial stability with low leverage and substantial equity, but significant cash flow issues pose liquidity challenges.
Income Statement
65
Positive
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
75
Positive
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.24B5.41B4.56B4.85B5.19B5.65B
Gross Profit1.92B1.90B1.71B1.82B1.96B2.27B
EBITDA263.62M275.55M188.99M254.58M-382.39M573.03M
Net Income134.88M135.27M46.96M155.41M-942.05M116.94M
Balance Sheet
Total Assets5.46B5.44B5.57B5.49B6.12B5.54B
Cash, Cash Equivalents and Short-Term Investments2.29B1.95B3.00B3.39B4.34B3.01B
Total Debt557.00M496.38M849.58M1.18B1.44B180.58M
Total Liabilities2.00B1.92B2.16B2.12B2.91B1.39B
Stockholders Equity3.46B3.53B3.40B3.37B3.21B4.15B
Cash Flow
Free Cash Flow0.00-637.07M-33.91M-667.71M132.00M483.45M
Operating Cash Flow0.00-219.94M246.69M-504.58M288.62M567.62M
Investing Cash Flow0.00-455.65M-290.64M-171.11M-184.83M-93.74M
Financing Cash Flow0.00-375.32M-348.49M-270.07M1.23B-167.84M

E-SUPPORTLINK, Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price906.00
Price Trends
50DMA
974.84
Negative
100DMA
985.30
Negative
200DMA
961.96
Negative
Market Momentum
MACD
-11.48
Negative
RSI
25.56
Positive
STOCH
41.36
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 906 is below the 20-day moving average (MA) of 934.60, below the 50-day MA of 974.84, and below the 200-day MA of 961.96, indicating a bearish trend. The MACD of -11.48 indicates Negative momentum. The RSI at 25.56 is Positive, neither overbought nor oversold. The STOCH value of 41.36 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥4.25B8.72
3.52%26.96%100.21%
77
Outperform
¥4.79B18.08
1.71%10.32%-2.85%
66
Neutral
¥5.07B102.23
2.03%5.99%
65
Neutral
¥4.04B15.71
3.20%99.69%
56
Neutral
¥4.56B108.15
-1.88%-137.84%
56
Neutral
HK$13.54B4.87-5.76%5.64%8.06%-42.52%
52
Neutral
¥4.01B34.86
0.55%18.43%22.38%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2493
E-SUPPORTLINK, Ltd.
906.00
-5.08
-0.56%
JP:3839
ODK Solutions Company, Ltd.
584.00
-1.93
-0.33%
JP:3996
Signpost Corporation
316.00
-317.00
-50.08%
JP:4260
Hybrid Technologies Co.,Ltd.
399.00
-123.00
-23.56%
JP:4386
SIG Group Co., Ltd.
739.00
188.29
34.19%
JP:7060
geechs inc.
493.00
43.85
9.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 30, 2025