ENIGMO, Inc. (3665) AI Stock Analysis

• Market Cap: ¥11.87B
• Dividend Yield: 3.51%
• Average Volume (3M): 172.00K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.80
• Revenue Growth: -4.43%
• EPS Growth: -48.23%
• Country: JP
• Employees: 149
• Sector: Technology
• Sector Strength: 67
• Industry: Software - Infrastructure
• EPS (TTM): 10.93
• Shares Outstanding: 42,642,000
• 10 Day Avg. Volume: 130,200
• 30 Day Avg. Volume: 171,996
• PEG Ratio: 0.53
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

ENIGMO, Inc. demonstrates strong financial margins and a solid balance sheet, but faces challenges in revenue growth and cash flow generation. The technical analysis indicates a bearish trend, with some indicators suggesting potential overbought conditions. The valuation shows a relatively high P/E ratio, but the dividend yield provides a degree of appeal. Overall, while the company has strengths, these are tempered by risks, leading to a cautious outlook.

ENIGMO, Inc. Business Overview & Revenue Model

Company Description

ENIGMO, Inc. (3665) is a Japanese company that operates in the e-commerce sector, primarily known for its flagship platform BUYMA. BUYMA is an online marketplace that connects Japanese consumers with international sellers offering a wide range of fashion items, including clothing, accessories, and beauty products. The company is recognized for facilitating cross-border shopping experiences and providing unique fashion products that are not easily available in 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

ENIGMO, Inc. shows strong margins and a solid capital structure but faces challenges with revenue growth and cash flow generation. While profitability metrics remain positive, declining trends in revenue and cash generation pose potential risks that need addressing.

Income Statement

ENIGMO, Inc. has demonstrated fluctuating revenue growth with a declining trend in the last reported year. The gross profit margin remains robust but has slightly decreased over time. EBIT and EBITDA margins show strong profitability, albeit on a declining trend. While the net profit margin remains healthy, the decrease in net income indicates potential challenges.

Balance Sheet

The company's balance sheet is strong with a very low debt-to-equity ratio, indicating low financial leverage. The equity ratio is high, reflecting a solid capital structure with a significant portion of assets financed by equity. Return on equity has weakened, highlighting a decline in profitability relative to shareholders' equity.

Cash Flow

Operating cash flow has turned negative in the most recent period, which is concerning. The trend in free cash flow growth is inconsistent, with a concerning drop recently. The operating cash flow to net income ratio has deteriorated, suggesting less cash generation from operations relative to reported earnings.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.20B	6.87B	7.62B	7.08B	6.10B
	Gross Profit
4.86B	5.45B	6.14B	5.75B	4.99B
	EBIT
999.51M	1.14B	2.97B	3.03B	2.69B
	EBITDA
1.02B	1.16B	3.00B	3.06B	2.71B
	Net Income Common Stockholders
838.37M	712.57M	2.06B	2.10B	1.86B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.73B	10.32B	12.84B	11.81B	8.19B
	Total Assets
13.23B	12.68B	13.68B	12.74B	8.84B
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-10.53B	-10.32B	-12.84B	-11.81B	-8.19B
	Total Liabilities
2.70B	2.54B	2.82B	3.52B	1.46B
	Stockholders Equity
10.53B	10.15B	10.86B	9.22B	7.37B
Cash Flow		Free Cash Flow
1.68B	-352.62M	1.47B	4.11B	1.74B
	Operating Cash Flow
1.71B	-322.76M	1.51B	4.13B	1.75B
	Investing Cash Flow
-1.01B	-785.26M	-56.42M	-222.82M	-24.65M
	Financing Cash Flow
-480.57M	-1.42B	-416.42M	-291.16M	-49.00K

ENIGMO, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 283.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 283 is above the 20-day moving average (MA) of 282.15, below the 50-day MA of 295.72, and below the 200-day MA of 307.20, indicating a neutral trend. The MACD of -1.65 indicates Negative momentum. The RSI at 46.36 is Neutral, neither overbought nor oversold. The STOCH value of 14.72 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
3092	73 Outperform	$1.34T	29.31	48.74%	2.23%	8.18%	36.67%
4751	65 Neutral	¥632.03B	29.01	14.49%	1.23%	9.13%	120.85%
3099	64 Neutral	$675.19B	9.77	11.80%	2.45%	5.77%	64.67%
3665	61 Neutral	¥11.87B	26.07		3.51%	-4.43%	-48.23%
Sector *	60 Neutral	$10.94B	10.37	-6.73%	2.98%	7.75%	-12.61%
4755	56 Neutral	$1.79T	―	-18.23%	―	10.04%	57.36%
2120	46 Neutral	¥19.92B	―	-27.12%	0.52%	-6.40%	-10479.26%

ENIGMO, Inc. Corporate Events

Enigmo Inc. Progresses Towards Tokyo Stock Exchange Compliance

Enigmo Inc. has announced its progress in meeting the listing maintenance criteria for the Tokyo Stock Exchange Prime Market as of January 31, 2025. The company is currently non-compliant with the market capitalization requirement but plans to implement measures to address this by January 31, 2027, indicating a strategic focus on enhancing its financial standing and market positioning.

Enigmo Inc. Announces Stable Year-End Dividend

Enigmo Inc. has announced a resolution to pay a year-end dividend of 10 yen per share, maintaining the same dividend as the previous fiscal year. This decision, based on the company’s current fiscal performance and future business environment considerations, reflects stability in its financial strategy and offers consistent returns to its shareholders.