ECOMIC CO., LTD. (3802) AI Stock Analysis

• Market Cap: ¥2.29B
• Dividend Yield: 2.81%
• Average Volume (3M): 6.13K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.28
• Revenue Growth: 3.86%
• EPS Growth: -32.58%
• Country: JP
• Employees: 147
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 39.85
• Shares Outstanding: 4,693,200
• 10 Day Avg. Volume: 7,810
• 30 Day Avg. Volume: 6,133
• PEG Ratio: -0.74
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 22.40
• 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: 59 Neutral
• Price Target: ¥483.00 ▼(-1.02% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is primarily driven by solid financial stability (low leverage and positive cash generation) but is held back by a sharp recent profitability decline. Technicals are mildly negative (below key moving averages and negative MACD), and valuation is only moderately supportive given the P/E, partially offset by the dividend yield.

Positive Factors

Balance Sheet Health

A strong balance sheet with no debt enhances financial flexibility, allowing the company to invest in growth opportunities without financial strain.

Cash Generation

Consistent positive cash flow supports ongoing operations and strategic investments, ensuring the company can sustain its business model and pursue growth.

Revenue Growth

Long-term revenue growth indicates strong market demand and effective business strategies, positioning the company for continued expansion.

Negative Factors

Profitability Decline

Significant margin compression suggests challenges in cost management or pricing power, which could impact long-term profitability and competitiveness.

Earnings Volatility

Earnings volatility can create uncertainty in financial performance, affecting investor confidence and the company's ability to plan for the future.

Free Cash Flow Volatility

Inconsistent free cash flow may limit the company's ability to fund new projects or return capital to shareholders, impacting long-term strategic flexibility.

ECOMIC CO., LTD. Business Overview & Revenue Model

Company Description

ECOMIC CO., LTD. (3802) is a Japanese company that operates within the technology and e-commerce sectors. The company specializes in providing online retail solutions, offering a wide range of products and services through its e-commerce platforms. ECOMIC CO., LTD. is dedicated to enhancing the online shopping experience for consumers while providing efficient and effective solutions for vendors and partners.

How the Company Makes Money

ECOMIC CO., LTD. generates revenue primarily through its e-commerce platforms, which facilitate the sale of products and services to consumers. The company earns money through transaction fees charged to vendors who sell on its platforms, as well as through direct sales of products. Additionally, ECOMIC CO., LTD. may earn revenue from advertising services offered to businesses that wish to promote their products on its platforms. The company also benefits from strategic partnerships with other technology firms and retail brands, which help expand its market reach and enhance its service offerings.

ECOMIC CO., LTD. Financial Statement Overview

Summary

Financially stable overall with a strong, low-leverage balance sheet (including no debt in the latest year) and generally positive operating/free cash flow. However, profitability has deteriorated sharply in 2025 with significant margin compression and weaker returns, raising near-term performance risk.

Income Statement

Revenue has grown meaningfully over the long run (from 2020 to 2025), but the recent trajectory is mixed with a decline in 2024 and only modest improvement in 2025. Profitability has weakened materially: net margin fell from ~7.7% (2023) to ~5.9% (2024) and ~2.0% (2025), alongside a sharp drop in operating profit and EBITDA margins. Strengths are the still-positive profits and historically solid margins, while the key weakness is the steep margin compression and earnings volatility in the most recent year.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage and, in the latest year, no debt. Equity has grown over time, supporting a solid capital base. Returns on equity were strong in 2020–2023 but have cooled substantially in 2024–2025, reflecting weaker profitability rather than balance-sheet strain. Overall strength is financial flexibility and low leverage; the main concern is the declining return on equity driven by lower earnings.

Cash Flow

Operating cash flow and free cash flow are positive in recent years, and cash generation generally tracks earnings at a healthy level. However, free cash flow has been inconsistent (including a negative year in 2021 and a decline in 2024), and free cash flow has not consistently exceeded net income. Strengths are sustained positive operating and free cash flow in 2022–2025; the weakness is volatility and a step-down from the stronger cash performance seen around 2022–2023.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.15B	2.12B	2.16B	2.22B	1.76B	1.58B
Gross Profit	614.02M	588.94M	650.95M	714.25M	542.00M	464.71M
EBITDA	194.14M	194.66M	307.72M	338.70M	273.69M	194.04M
Net Income	50.71M	43.22M	127.39M	170.29M	113.28M	101.20M
Balance Sheet
Total Assets	1.81B	1.97B	2.11B	1.72B	1.35B	1.11B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.35B	1.49B	1.05B	824.99M	690.23M
Total Debt	0.00	0.00	114.43M	166.15M	0.00	0.00
Total Liabilities	126.94M	168.60M	291.04M	418.10M	203.46M	101.23M
Stockholders Equity	1.68B	1.80B	1.82B	1.30B	1.14B	1.01B
Cash Flow
Free Cash Flow	0.00	102.47M	140.34M	179.71M	123.95M	-72.04M
Operating Cash Flow	0.00	149.60M	205.76M	264.79M	277.67M	97.20M
Investing Cash Flow	0.00	-116.71M	-75.90M	28.73M	-143.80M	-198.07M
Financing Cash Flow	0.00	-170.66M	299.69M	-72.60M	-21.33M	176.97M

ECOMIC CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 488.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3802, the sentiment is Positive. The current price of 488 is above the 20-day moving average (MA) of 480.20, above the 50-day MA of 476.88, and above the 200-day MA of 483.04, indicating a bullish trend. The MACD of 1.81 indicates Negative momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 65.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3802.

ECOMIC CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7805	77 Outperform	¥3.57B	7.45	―	1.93%	-1.00%	105.56%
3958	70 Outperform	¥3.37B	13.65	―	3.30%	-3.41%	-24.95%
7914	68 Neutral	¥45.17B	13.14	―	3.71%	-0.04%	93.95%
7919	66 Neutral	¥3.64B	10.58	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.77B	19.83	―	2.72%	-1.30%	―
3802	59 Neutral	¥2.29B	34.62	―	2.81%	3.86%	-32.58%