Encourage Technologies Co., Ltd. (JP:3682)
:3682
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Encourage Technologies Co., Ltd.
(3682)
Select Model
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Rating:72Outperform
Price Target:
¥763.00
▲(10.58% Upside)
Action:UpgradedDate:12/30/25
The score is primarily supported by a very conservative, debt-free balance sheet and solid profitability with improved FY2025 revenue growth. The main risks are cash flow volatility (including a sharp FY2025 free cash flow drop) and technically overbought signals despite an overall uptrend. Valuation appears reasonable with a supportive dividend yield.
Positive Factors
Debt-Free Balance Sheet
A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.
Negative Factors
Volatile Cash Generation
Volatile cash generation can lead to uncertainty in funding operations and growth initiatives, potentially impacting the company's ability to maintain consistent financial health.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-Free Balance Sheet
A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of interest payments.
Read all positive factors
Encourage Technologies Co., Ltd. (3682) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.48B
Dividend Yield2.99%
Average Volume (3M)5.93K
Price to Earnings (P/E)18.2
Beta (1Y)0.38
Revenue Growth1.14%
EPS Growth23.89%
CountryJP
Employees138
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)9.32
Shares Outstanding6,924,200
10 Day Avg. Volume7,980
30 Day Avg. Volume5,930
Financial Highlights & Ratios
PEG Ratio28.53
Price to Book (P/B)1.14
Price to Sales (P/S)1.61
P/FCF Ratio12.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Encourage Technologies Co., Ltd. Business Overview & Revenue Model
Company Description
Encourage Technologies Co., Ltd. develops, maintains, and sells computer system software products primarily in Japan. The company offers ESS SmartIT Operation products, including ESS REC, a standard tool for monitoring and auditing user system ope...
How the Company Makes Money
Encourage Technologies Co., Ltd. generates revenue primarily through the sale and licensing of its software products and IT solutions. The company offers its ERP software and IT management solutions to a wide range of industries, thus ensuring a s...
Encourage Technologies Co., Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.35B | 2.50B | 2.50B | 2.12B | 2.07B | 1.80B |
| Gross Profit | 1.31B | 1.28B | 1.26B | 1.39B | 1.29B | 1.17B |
| EBITDA | 562.54M | 581.89M | 692.59M | 350.05M | 432.53M | 251.50M |
| Net Income | 221.15M | 220.24M | 218.86M | 174.76M | 248.59M | 138.67M |
Balance Sheet | ||||||
| Total Assets | 4.66B | 4.67B | 4.89B | 4.22B | 4.46B | 3.92B |
| Cash, Cash Equivalents and Short-Term Investments | 3.76B | 3.71B | 3.76B | 3.39B | 3.74B | 3.28B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.32B | 1.16B | 1.47B | 878.21M | 1.16B | 745.88M |
| Stockholders Equity | 3.34B | 3.51B | 3.43B | 3.34B | 3.29B | 3.17B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 312.97M | 503.05M | -216.51M | 567.06M | 418.37M |
| Operating Cash Flow | 0.00 | 345.94M | 862.64M | 3.88M | 741.15M | 436.93M |
| Investing Cash Flow | 0.00 | -261.88M | -364.19M | -226.66M | -164.49M | 59.37M |
| Financing Cash Flow | 0.00 | -134.29M | -134.29M | -120.86M | -120.86M | -235.52M |
Encourage Technologies Co., Ltd. Technical Analysis
Positive
690.00
Price Trends
665.94
Positive
652.46
Positive
620.14
Positive
Market Momentum
3.41
Negative
56.68
Neutral
31.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3682, the sentiment is Positive. The current price of 690 is above the 20-day moving average (MA) of 662.62, above the 50-day MA of 665.94, and above the 200-day MA of 620.14, indicating a bullish trend. The MACD of 3.41 indicates Negative momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 31.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3682.
Encourage Technologies Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥5.10B | 11.37 | ― | 2.99% | 26.64% | 30.76% | |
72 Outperform | ¥4.48B | 18.20 | ― | 2.99% | 1.14% | 23.89% | |
67 Neutral | ¥5.08B | -16.02 | ― | 1.61% | 7.03% | 1.01% | |
64 Neutral | ¥4.44B | 10.29 | ― | 1.20% | 26.70% | 93.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | ¥5.64B | 21.55 | ― | ― | 27.60% | -15.54% | |
50 Neutral | ¥4.51B | -18.12 | ― | 0.94% | -12.25% | ― |
* Technology Sector Average
JP:3682
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.