ENIGMO, Inc. (3665) AI Stock Analysis

• Market Cap: ¥16.78B
• Dividend Yield: 2.31%
• Average Volume (3M): 459.21K
• Price to Earnings (P/E): 84.5
• Beta (1Y): 0.88
• Revenue Growth: 9.71%
• EPS Growth: -70.49%
• Country: JP
• Employees: 149
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 0.05
• Shares Outstanding: 42,642,000
• 10 Day Avg. Volume: 380,790
• 30 Day Avg. Volume: 459,210
• PEG Ratio: -0.61
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 56.75
• 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: 61 Neutral
• Price Target: ¥456.00 ▲(2.24% Upside)

The score is mainly supported by a very strong, low-leverage balance sheet, but is held back by pressured/less stable profitability and volatile recent cash flow. Technicals are mixed with near-term weakness signals, and valuation is a meaningful headwind due to the very high P/E despite a moderate dividend yield.

Positive Factors

Conservative Balance Sheet

Very low leverage and a sizeable equity base provide durable financial flexibility, enabling the company to fund product investment, weather downturns, or pursue opportunistic M&A without relying on external debt. This structural strength supports long-term resilience and optionality.

High Gross Margins

Sustained mid-to-high 70% gross margins indicate strong unit economics and scalable software infrastructure economics. High gross margins create room to absorb SG&A while funding R&D and marketing, supporting durable profitability if operating leverage is restored.

Revenue Rebound

A meaningful revenue rebound demonstrates customer demand recovery and execution capacity. If sustained, this trend can drive operating leverage over time and validate product-market fit, supporting durable top-line growth rather than one-off volatility.

Negative Factors

Compressed Net Margins

A sharp decline in net margins reduces free cash generation and weakens returns on capital. Persistently compressed margins constrain reinvestment and shareholder returns, and suggest structural pressures on pricing, costs, or mix that could weigh on long-term profitability.

Volatile Cash Generation

Material swings in operating and free cash flow undermine the company’s ability to consistently fund capex, dividends, or growth initiatives internally. Even with low leverage, cash volatility raises financing and planning risk and limits strategic flexibility over time.

Declining Return on Equity

A marked fall in ROE signals the company is converting its sizeable equity base into far less earnings than historically achieved. Low, persistent ROE can indicate capital inefficiency and pressure long-term shareholder value unless margins or asset turnover improve materially.

ENIGMO, Inc. Business Overview & Revenue Model

Company Description

Enigmo Inc. engages in planning, developing, and operating internet business in Japan. It operates BUYMA, a marketplace for buying fashion items from personal shoppers; BUYMA TRAVEL, a website that provides private local tours to Japanese travelers living abroad; STYLE HAUS, a platform that offers fashion, lifestyle, and cosmetics recommendations. The company was founded in 2004 and is based in Tokyo, Japan.

How the Company Makes Money

ENIGMO, Inc. primarily generates revenue through its e-commerce platform BUYMA, which operates on a commission-based model. The company earns a percentage of each transaction made on the platform, acting as an intermediary between buyers and sellers. ENIGMO also benefits from listing fees charged to sellers for showcasing their products on BUYMA. Additionally, the company may receive revenue from premium membership services and advertising fees from brands seeking to promote their products to BUYMA's user base. Strategic partnerships with international logistics and payment processing companies also play a role in streamlining operations and enhancing customer satisfaction, indirectly supporting revenue growth.

ENIGMO, Inc. Financial Statement Overview

Summary

Financial strength is anchored by an excellent balance sheet (very low leverage, sizeable equity), but operating performance is less consistent: profitability has weakened versus prior peaks (net margin down to ~7% in FY2025) and cash generation has been volatile with a sharp FY2025 free-cash-flow step-down.

Income Statement

Profitability remains solid with consistently strong gross margins (roughly mid-to-high 70%+), but the earnings profile has weakened meaningfully since FY2022. Revenue has declined in FY2023 and FY2024 and then rebounded sharply in FY2025, yet margins and net income did not follow—net margin fell to ~7% in FY2025 from ~14% in FY2024 and ~27–30% in FY2021–FY2022. Overall, the business shows strong unit economics but a less stable and currently pressured profitability trend.

Balance Sheet

The balance sheet is conservatively positioned with minimal leverage: debt was zero for multiple years and remains very low in FY2025 (debt-to-equity ~0.02). Equity is sizeable and has generally grown versus earlier years, supporting financial flexibility. The main watch-out is lower recent returns on equity (down to ~3.8% in FY2025 from high-teens/20%+ in FY2020–FY2022), indicating reduced efficiency in converting the capital base into earnings.

Cash Flow

Cash generation is mixed and less predictable. Free cash flow was strong in FY2024 (~¥1.68B) but dropped sharply in FY2025 (~¥0.23B), and operating cash flow has also been volatile (including a negative year in FY2023). Cash conversion weakened recently: operating cash flow covered only about ~10% of net income in FY2025 versus ~63% in FY2024, although free cash flow still tracked a high proportion of net income in FY2025 (~84%). Overall, cash flow volatility and the FY2025 step-down are the key concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.26B	5.93B	6.20B	6.87B	7.62B	7.08B
Gross Profit	4.61B	4.52B	4.86B	5.45B	6.14B	5.75B
EBITDA	585.82M	731.15M	1.02B	1.16B	3.00B	3.06B
Net Income	253.00M	433.00M	838.37M	712.57M	2.06B	2.10B
Balance Sheet
Total Assets	14.45B	14.44B	13.23B	12.68B	13.68B	12.74B
Cash, Cash Equivalents and Short-Term Investments	8.71B	9.29B	10.73B	10.32B	12.84B	11.81B
Total Debt	207.00M	209.71M	0.00	0.00	0.00	0.00
Total Liabilities	2.89B	3.00B	2.70B	2.54B	2.82B	3.52B
Stockholders Equity	11.54B	11.43B	10.53B	10.15B	10.86B	9.22B
Cash Flow
Free Cash Flow	0.00	226.51M	1.68B	-352.62M	1.47B	4.11B
Operating Cash Flow	0.00	269.89M	1.71B	-322.76M	1.51B	4.13B
Investing Cash Flow	0.00	-1.41B	-1.01B	-785.26M	-56.42M	-222.82M
Financing Cash Flow	0.00	-298.05M	-480.57M	-1.42B	-416.42M	-291.16M

ENIGMO, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 446.00
• 50DMA: Negative
• 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:3665, the sentiment is Negative. The current price of 446 is below the 20-day moving average (MA) of 464.67, above the 50-day MA of 423.57, and above the 200-day MA of 337.76, indicating a neutral trend. The MACD of 6.95 indicates Positive momentum. The RSI at 31.40 is Neutral, neither overbought nor oversold. The STOCH value of -4.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3665.

ENIGMO, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5582	74 Outperform	¥11.61B	32.81	―	―	18.26%	-36.33%
2428	69 Neutral	¥12.42B	12.14	―	4.33%	0.54%	9.99%
4811	68 Neutral	¥14.03B	17.32	―	1.01%	15.34%	67.96%
3695	65 Neutral	¥8.79B	27.66	―	5.22%	26.41%	-20.60%
3665	61 Neutral	¥16.78B	84.51	―	2.31%	9.71%	-70.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4488	52 Neutral	¥9.93B	-25.51	―	―	7.00%	-244.58%

ENIGMO, Inc. Corporate Events

ENIGMO, Inc. Announces Q3 Financial Performance and Dividend Commitment

ENIGMO, Inc. announced its financial performance for the third quarter of the fiscal year ending January 2026, highlighting a commitment to a 30 yen per share dividend. Despite challenges such as foreign exchange rates and unusual weather affecting demand, the company is focused on structural reforms and AI implementation to strengthen future profitability. The company remains on track to achieve its full-year plan, with a significant portion of its budget weighted towards the fourth quarter, and maintains its commitment to stable dividends during the reform period.

Enigmo Inc. Reports Increased Sales but Faces Financial Challenges

Enigmo Inc. reported its consolidated financial results for the nine months ending October 31, 2025, showing a 10.6% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a net loss, with operating and ordinary profits turning negative. The company has also revised its dividend forecast, indicating a significant increase in year-end dividends, which may impact shareholder returns positively.

Enigmo Inc. Records Extraordinary Income from Securities Sale

Enigmo Inc. has completed the sale of certain investment securities, resulting in an extraordinary income gain of 514 million yen. This move aligns with the company’s strategy to improve its financial position and asset efficiency, as part of its adherence to the Corporate Governance Code. The gain has already been accounted for in the company’s earnings forecast for the fiscal year ending January 2026.

Enigmo Inc. Expands Travel Business with Acquisition of Krystal Enterprise Limousine

Enigmo Inc. has announced its decision to acquire Krystal Enterprise Limousine, Inc. through its subsidiary, BUYMA TRAVEL Inc., as part of its strategy to bolster its travel business. This acquisition is expected to enhance Enigmo’s transportation services in Hawaii, improve service quality, and drive revenue growth by minimizing lost opportunities and meeting diverse customer needs.