ENIGMO, Inc. (3665) AI Stock Analysis

• Market Cap: ¥12.58B
• Dividend Yield: 3.34%
• Average Volume (3M): 190.92K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.73
• Revenue Growth: 2.71%
• EPS Growth: -47.60%
• Country: JP
• Employees: 149
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): 1.94
• Shares Outstanding: 42,642,000
• 10 Day Avg. Volume: 101,250
• 30 Day Avg. Volume: 190,916
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 61 Neutral
• Price Target: ―

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.

Positive Factors

Strong Financial Margins

Strong financial margins and a solid capital structure indicate the company's ability to maintain profitability and financial stability over time.

Low Financial Leverage

Low financial leverage reduces risk and enhances financial flexibility, allowing the company to better navigate economic fluctuations and invest in growth opportunities.

Stable Dividend Policy

A stable dividend policy reflects financial health and provides consistent returns to shareholders, enhancing investor confidence and supporting long-term investment appeal.

Negative Factors

Declining Revenue Growth

Declining revenue growth can indicate challenges in market expansion and product adoption, potentially impacting long-term business sustainability and competitive positioning.

Negative Operating Cash Flow

Negative operating cash flow suggests difficulties in generating cash from core operations, which could hinder the company's ability to fund growth initiatives and meet financial obligations.

Non-compliance with TSE Requirements

Non-compliance with stock exchange requirements may limit market access and investor confidence, necessitating strategic measures to enhance financial standing and market positioning.

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.36B	5.93B	6.20B	6.87B	7.62B	7.08B
Gross Profit	2.51B	4.52B	4.86B	5.45B	6.14B	5.75B
EBITDA	465.75M	731.15M	1.02B	1.16B	3.00B	3.06B
Net Income	302.00M	433.00M	838.37M	712.57M	2.06B	2.10B
Balance Sheet
Total Assets	14.44B	14.44B	13.23B	12.68B	13.68B	12.74B
Cash, Cash Equivalents and Short-Term Investments	9.29B	9.29B	10.73B	10.32B	12.84B	11.81B
Total Debt	208.00M	209.71M	0.00	0.00	0.00	0.00
Total Liabilities	3.01B	3.00B	2.70B	2.54B	2.82B	3.52B
Stockholders Equity	11.43B	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: Neutral
• Last Price: 298.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3665, the sentiment is Neutral. The current price of 298 is below the 20-day moving average (MA) of 299.20, above the 50-day MA of 294.52, and below the 200-day MA of 298.38, indicating a neutral trend. The MACD of 2.35 indicates Positive momentum. The RSI at 51.32 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3665.

ENIGMO, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2428	78 Outperform	¥13.93B	12.86		3.78%	7.76%	29.95%
4811	77 Outperform	¥15.68B	21.10		0.94%	16.64%	87.19%
5582	67 Neutral	¥11.70B	38.91		―	24.90%	-26.71%
Sector *	61 Neutral	$36.58B	11.16	-10.39%	1.86%	8.71%	-7.09%
3665	61 Neutral	¥12.58B	29.09		3.34%	2.71%	-47.60%
3695	61 Neutral	¥9.68B	55.72		5.06%	14.59%	-71.29%
4488	57 Neutral	¥12.15B	77.06		―	6.29%	-180.52%

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.