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

• Market Cap: ¥4.02B
• Dividend Yield: 0.55%
• Average Volume (3M): 12.44K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 0.15
• Revenue Growth: 18.43%
• EPS Growth: 22.38%
• Country: JP
• Employees: 152
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): -1.20
• Shares Outstanding: 4,424,800
• 10 Day Avg. Volume: 14,790
• 30 Day Avg. Volume: 12,440
• PEG Ratio: -0.21
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.58
• 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: ¥956.00
• Price Target Upside: 5.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ¥956.00 ▲(5.29%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. Business Overview & Revenue Model

Company Description

E-SUPPORTLINK, Ltd. (2493) is a company that operates within the technology and consulting sectors, providing innovative solutions primarily focused on information technology services. The company specializes in offering software development, IT consulting, and support services tailored to meet the diverse needs of businesses across various industries.

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 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

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	5.24B	5.41B	4.56B	4.85B	5.19B	5.65B
Gross Profit	1.92B	1.90B	1.71B	1.82B	1.96B	2.27B
EBITDA	263.62M	275.55M	188.99M	254.58M	-382.39M	573.03M
Net Income	134.88M	135.27M	46.96M	155.41M	-942.05M	116.94M
Balance Sheet
Total Assets	5.46B	5.44B	5.57B	5.49B	6.12B	5.54B
Cash, Cash Equivalents and Short-Term Investments	2.29B	1.95B	3.00B	3.39B	4.34B	3.01B
Total Debt	557.00M	496.38M	849.58M	1.18B	1.44B	180.58M
Total Liabilities	2.00B	1.92B	2.16B	2.12B	2.91B	1.39B
Stockholders Equity	3.46B	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: 908.00
• 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:2493, the sentiment is Negative. The current price of 908 is below the 20-day moving average (MA) of 915.85, below the 50-day MA of 941.82, and below the 200-day MA of 960.60, indicating a bearish trend. The MACD of -11.53 indicates Negative momentum. The RSI at 38.72 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 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	¥4.91B	18.54		1.67%	10.32%	-2.85%
3996	71 Outperform	¥3.97B	19.26		―	-1.23%	2.92%
4386	71 Outperform	¥4.24B	8.70		3.39%	26.96%	100.15%
7060	66 Neutral	¥5.13B	103.48		2.00%	5.99%	―
Sector *	63 Neutral	$34.72B	5.19	-11.20%	1.67%	5.59%	-16.73%
4260	61 Neutral	¥4.99B	108.15		―	-1.88%	-137.84%
2493	52 Neutral	¥4.02B	34.94		0.55%	18.43%	22.38%