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

• Market Cap: ¥2.42B
• Dividend Yield: 2.52%
• Average Volume (3M): 7.82K
• Price to Earnings (P/E): 46.9
• Beta (1Y): 0.29
• Revenue Growth: 0.99%
• EPS Growth: -61.74%
• Country: JP
• Employees: 147
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -11.30
• Shares Outstanding: 4,693,200
• 10 Day Avg. Volume: 5,550
• 30 Day Avg. Volume: 7,823
• 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: 59 Neutral
• Price Target: ―

The overall stock score of 58.5 reflects a strong balance sheet with low leverage and high equity ratio, offering financial stability. However, the bearish technical indicators and an overvalued P/E ratio present significant challenges. Additionally, the current absence of cash flow figures points to potential liquidity issues, requiring attention.

ECOMIC CO., LTD. Business Overview & Revenue Model

Company Description

Ecomic Co., Ltd provides payroll process outsourcing services primarily in Japan. The company operates through two segments, BPO Business and Software/Hardware Development Business. It also offers year-end adjustments outsourcing services; residential tax collection services; collection agency services; my number collection services; and other services. The company was incorporated in 1997 and is headquartered in Sapporo, Japan.

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

ECOMIC CO., LTD. demonstrates strong balance sheet health with low leverage and high equity ratio, providing stability. Income statement metrics indicate growth potential but highlight areas for profitability improvement. Cash flow metrics are currently limited by zero reported figures, suggesting a need for better cash management or clarification of cash flow statements.

Income Statement

The company shows a consistent growth trend with a TTM gross profit margin of 26.96% and net profit margin of 1.19%. However, the revenue has declined in the recent TTM period by 2.96% compared to the previous annual report. The EBIT and EBITDA margins stand at 1.96% and 6.42% respectively for TTM, indicating moderate operational efficiency but room for improvement in profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 84.88%. The company has a very low debt-to-equity ratio of 0.05, demonstrating minimal leverage and financial risk. Return on equity is modest at 1.38% for TTM, suggesting potential for efficiency improvements in generating returns from equity.

Cash Flow

Cash flow analysis indicates volatility, with current TTM operating and free cash flows reported as zero. Historically, the operating cash flow to net income ratio has been favorable, but the absence of current cash flow figures suggests potential liquidity concerns or reporting issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.12B	2.12B	2.16B	2.22B	1.76B	1.58B
Gross Profit	588.24M	588.94M	650.95M	714.25M	542.00M	464.71M
EBITDA	179.21M	194.66M	307.72M	338.70M	273.69M	194.04M
Net Income	42.74M	43.22M	127.39M	170.29M	113.28M	101.20M
Balance Sheet
Total Assets	1.97B	1.97B	2.11B	1.72B	1.35B	1.11B
Cash, Cash Equivalents and Short-Term Investments	1.35B	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	168.60M	168.60M	291.04M	418.10M	203.46M	101.23M
Stockholders Equity	1.80B	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: Neutral
• Last Price: 513.00
• 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:3802, the sentiment is Neutral. The current price of 513 is below the 20-day moving average (MA) of 522.10, above the 50-day MA of 506.16, and above the 200-day MA of 475.42, indicating a neutral trend. The MACD of 3.46 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 47.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3802.

ECOMIC CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6180	76 Outperform	¥9.07B	13.52	20.30%	3.70%	4.74%	54.18%
3923	76 Outperform	¥493.39B	52.30	36.42%	0.33%	25.22%	70.77%
4825	73 Outperform	¥107.03B	33.28	―	1.48%	5.68%	27.44%
4686	73 Outperform	¥305.39B	23.39	―	0.46%	11.66%	9.96%
3802	59 Neutral	¥2.42B	46.87	―	2.52%	0.99%	-61.74%
3936	46 Neutral	¥6.38B	-34.74	-44.64%	―	33.37%	53.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%