ENIGMO, Inc. (3665) AI Stock Analysis

• Market Cap: ¥15.82B
• Dividend Yield: 2.31%
• Average Volume (3M): 459.21K
• Price to Earnings (P/E): 48.9
• Beta (1Y): 0.91
• Revenue Growth: 9.71%
• EPS Growth: -70.49%
• Country: JP
• Employees: 149
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 9.43
• Shares Outstanding: 42,642,000
• 10 Day Avg. Volume: 380,790
• 30 Day Avg. Volume: 459,210
• PEG Ratio: -1.99
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 2.54
• P/FCF Ratio: 297.52
• 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): 1.3
• Revenue Forecast (FY): ¥10.80B

• Rating: 56 Neutral
• Price Target: ¥400.00 ▼(-10.31% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by solid financial stability from a low-leverage balance sheet, offset by weaker and less reliable profitability/cash generation in recent periods. Technical indicators also weigh on the score due to a weak trend and negative momentum, while valuation is mixed—helped by a high dividend yield but constrained by a negative P/E.

Positive Factors

Conservative balance sheet / low leverage

Very low leverage and steadily growing equity provide durable financial resilience. This conservative capitalization supports funding flexibility for operations or strategic initiatives, reduces insolvency risk in downturns, and preserves optionality for investment or buybacks over months.

Sharp revenue rebound

A large top-line rebound indicates the company can recover market traction and regain sales momentum. Sustained revenue recovery, if maintained, underpins longer-term growth prospects and provides a platform to restore margins and scale operating leverage over the next several quarters.

Proven cash-generation in strong cycles

Historical episodes of strong operating and free cash flow demonstrate the business can convert earnings to cash in favorable conditions. That track record indicates potential to finance reinvestment, dividends or deleveraging when operating performance normalizes.

Negative Factors

Volatile and weakening cash flow

Large swings into negative free cash flow reduce durable financial flexibility and raise funding risk. Persistent cash conversion weakness can strain the ability to sustain dividends, fund capex or absorb shocks without external financing over a multi-quarter horizon.

Margin compression / weaker operating profit

Eroding operating profitability despite rising revenue indicates margin pressure from costs or mix shifts. If margins remain compressed, the company may struggle to translate top-line gains into durable earnings power and free cash flow over coming quarters.

Declining returns on equity

A marked fall in ROE signals reduced efficiency turning shareholder capital into profits. Lower capital productivity can limit internal funding for growth and weaken long-term investor returns unless operational performance or capital allocation improves.

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.

ENIGMO, Inc. Financial Statement Overview

Summary

Strong solvency and low leverage support stability (high balance sheet score), but operating results are inconsistent: revenue rebounded sharply in 2026 while operating profit weakened, and recent cash flow/FCF volatility (including weakness in 2025–2026) raises concerns about cash conversion and earnings quality.

Income Statement

Revenue has been choppy, with multiple years of contraction (2023–2025) followed by a strong rebound in 2026 (+57%). Profitability, however, has deteriorated sharply versus prior peaks: earnings were very strong in 2021–2022, then stepped down meaningfully in 2023–2025, and 2026 shows much weaker operating profit despite higher revenue—suggesting margin compression and/or higher costs. Net income remains positive, but the overall earnings trajectory is less consistent than earlier years.

Balance Sheet

The balance sheet looks conservatively positioned with very low leverage: debt was zero for several years and remains modest in 2025–2026 relative to equity. Equity has steadily grown over time, supporting a solid capitalization profile. The main drawback is that returns on equity have declined materially from the very strong 2021–2022 levels to much lower levels more recently, implying weaker efficiency in generating profits from the capital base.

Cash Flow

Cash generation has been volatile. Operating and free cash flow were exceptionally strong in 2021–2022 and recovered strongly in 2024, but turned negative in 2023 and fell sharply again in 2025–2026. Recent free cash flow is notably below net income (particularly in 2026), pointing to weaker cash conversion and less financial flexibility despite still-positive accounting earnings.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	6.26B	6.30B	5.93B	6.20B	6.87B	7.62B
Gross Profit	4.61B	4.53B	4.52B	4.86B	5.45B	6.14B
EBITDA	585.82M	212.63M	731.15M	1.02B	1.16B	3.00B
Net Income	253.00M	326.64M	433.00M	838.37M	712.57M	2.06B
Balance Sheet
Total Assets	14.45B	15.29B	14.44B	13.24B	12.69B	13.68B
Cash, Cash Equivalents and Short-Term Investments	8.72B	8.79B	9.29B	10.73B	10.32B	12.84B
Total Debt	208.10M	68.89M	209.71M	0.00	0.00	0.00
Total Liabilities	2.89B	3.52B	3.00B	2.71B	2.55B	2.82B
Stockholders Equity	11.54B	11.76B	11.43B	10.53B	10.15B	10.86B
Cash Flow
Free Cash Flow	0.00	53.74M	226.51M	1.68B	-352.62M	1.47B
Operating Cash Flow	0.00	210.00M	269.89M	1.71B	-322.76M	1.51B
Investing Cash Flow	0.00	-1.26B	-1.41B	-1.01B	-785.26M	-56.42M
Financing Cash Flow	0.00	-557.13M	-298.05M	-480.57M	-1.42B	-416.42M

ENIGMO, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 446.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 446 is above the 20-day moving average (MA) of 406.65, above the 50-day MA of 425.77, and above the 200-day MA of 360.69, indicating a neutral trend. The MACD of -7.57 indicates Positive momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.52 is Neutral, 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
4431	71 Outperform	¥39.71B	20.49	―	0.52%	26.98%	19.69%
4686	69 Neutral	¥225.75B	21.08	―	0.43%	15.01%	19.66%
3633	65 Neutral	¥10.06B	13.23	―	2.16%	2.75%	25.24%
3769	64 Neutral	¥587.48B	35.93	20.54%	1.47%	11.81%	16.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3665	56 Neutral	¥15.82B	48.95	―	2.31%	9.71%	-70.49%
3778	52 Neutral	¥111.14B	367.27	―	0.14%	36.42%	28.23%

ENIGMO, Inc. Corporate Events

Enigmo Misses Revenue and Bottom-Line Forecast but Beats Profit Targets on Cost Controls

Enigmo Inc. reported that revenues for the fiscal year ended January 2026 fell short of its previous forecast due to a challenging consumer environment in its core BUYMA business, exacerbated by euro appreciation, leading to slightly lower net sales. Despite this, strict cost controls enabled operating and ordinary profit to exceed projections, though profit attributable to owners of the parent declined versus both the forecast and the prior year.

The company incurred a one-time structural reform expense of about JPY 170 million, including AI-related investments, which it largely offset through company-wide cost discipline, underscoring its focus on strengthening future earning capacity. Enigmo also sold part of its investment securities to improve its financial position and asset efficiency, but booked a smaller-than-expected extraordinary gain due to weaker sale prices, slightly depressing bottom-line profit while advancing its medium- to long-term strategy of balance sheet streamlining and cash enhancement.

The most recent analyst rating on (JP:3665) stock is a Hold with a Yen454.00 price target. To see the full list of analyst forecasts on ENIGMO, Inc. stock, see the JP:3665 Stock Forecast page.

Enigmo Lifts Profit Above Plan as PHOENIX PROJECT Restructuring Advances

Enigmo Inc. reported fiscal year ended January 2026 results showing operating income above plan despite one-time structural reform costs, while net sales rose year-on-year but slightly missed internal targets. Management advanced its PHOENIX PROJECT restructuring, laying system and organizational groundwork to enhance profitability and efficiency in core operations while maintaining a stable dividend of 30 yen per share during the reform period.

Key measures include revitalizing the BUYMA business through AI-driven productivity gains and improvements in product offerings, customer acquisition, and conversion rates, alongside expansion of BUYMA TRAVEL and the rapid creation of a third earnings pillar in healthcare and M&A. For the fiscal year ending January 2027, the company plans further one-off investments to both restore profitability and expand its business base, targeting a path toward 2.0 billion yen in operating income by the fiscal year ending January 2028.

The most recent analyst rating on (JP:3665) stock is a Hold with a Yen454.00 price target. To see the full list of analyst forecasts on ENIGMO, Inc. stock, see the JP:3665 Stock Forecast page.

Enigmo Boosts Dividend Despite Profit Slump, Targets Earnings Rebound in FY2027

Enigmo reported net sales of ¥6.3 billion for the fiscal year ended January 31, 2026, up 6.2% year on year, but operating and ordinary profits plunged more than 90% to around ¥40 million, while profit attributable to owners fell 24.7% to ¥326 million. Despite weaker profitability and a lower equity ratio, the company maintained solid net assets of ¥11.8 billion and cash and cash equivalents of ¥7.5 billion, cut investing and financing cash outflows, and sharply raised its annual dividend from ¥10 to ¥30 per share, signaling a strong shareholder-return stance even as it forecasts only modest profit recovery in fiscal 2027.

Management projects fiscal 2027 net sales to rise 15.4% to ¥7.27 billion and profit attributable to owners to grow 51.1% to ¥493 million, with earnings per share expected to reach ¥12.44. The company has yet to decide its next dividend, indicating that future payouts will depend on funding needs and cash flow trends, a key consideration for investors given the combination of compressed margins, a generous current payout, and a planned push for renewed earnings growth.

The most recent analyst rating on (JP:3665) stock is a Hold with a Yen454.00 price target. To see the full list of analyst forecasts on ENIGMO, Inc. stock, see the JP:3665 Stock Forecast page.

Enigmo to Book Extraordinary Gain from Sale of Investment Securities

Enigmo Inc. has resolved to sell part of its holdings in listed investment securities, expecting to recognize an extraordinary gain of around 800 million yen, based on current market prices, by the end of January 2027. The move is intended to comply with Japan’s Corporate Governance Code by reassessing cross-shareholdings while strengthening the company’s financial position and improving asset efficiency.

The anticipated gain will be recorded as extraordinary income in the fiscal year ending January 2027, although the precise impact on full-year consolidated earnings is still under review. Details of how this transaction will affect the company’s earnings outlook will be incorporated into a forthcoming full-year consolidated earnings forecast, signaling potential upside but also some uncertainty for investors until the review is completed.

The most recent analyst rating on (JP:3665) stock is a Hold with a Yen446.00 price target. To see the full list of analyst forecasts on ENIGMO, Inc. stock, see the JP:3665 Stock Forecast page.