Recurring Revenue ModelEltes' subscription-style contracts for continuous monitoring create predictable revenue streams and higher customer retention. Durable recurring fees improve revenue visibility and support long-term customer lifetime value, enabling steady investment in product enhancement and client service capabilities.

Improving Cash Flow GenerationRecent improvement in operating and free cash flow signals stronger cash generation ability. That enhances financial resilience, reduces dependence on external funding for operations or growth initiatives, and provides capacity to pay down debt or reinvest in platform and client services over the medium term.

Stable Gross MarginsRelatively stable gross margins indicate effective cost control in delivering monitoring and response services. Margin stability in a software/service business implies scalable delivery and pricing discipline, which supports profitability recovery as revenue growth normalizes and enhances long-term earnings durability.

Bears Say

High LeverageSignificant debt levels increase interest and refinancing risk and constrain capital allocation. High leverage reduces strategic flexibility for hiring, R&D, or M&A, raises vulnerability to revenue shocks, and can force prioritization of debt service over growth investments across the medium term.

Volatile / Negative ProfitabilityLarge swings and recent negative net income undermine retained earnings and internal funding capacity. Persistent profit volatility complicates long-term planning, increases reliance on external financing, and makes it harder to sustain investment in product development and client expansion over multiple quarters.

Decelerating Revenue GrowthA slowdown in revenue growth reduces operating leverage in a services-oriented business, limiting margin expansion potential and free cash flow scalability. If sustained, weaker top-line momentum may reflect competitive pressures or market saturation, challenging durable earnings and investment plans.

3967 FAQ

What was Eltes Co., Ltd.’s price range in the past 12 months?

Eltes Co., Ltd. lowest stock price was ¥489.00 and its highest was ¥808.00 in the past 12 months.

What is Eltes Co., Ltd.’s market cap?

Eltes Co., Ltd.’s market cap is ¥3.77B.

When is Eltes Co., Ltd.’s upcoming earnings report date?

Eltes Co., Ltd.’s upcoming earnings report date is Apr 14, 2026 which is in 36 days.

How were Eltes Co., Ltd.’s earnings last quarter?

Eltes Co., Ltd. released its earnings results on Jan 13, 2026. The company reported -¥0.07 earnings per share for the quarter, missing the consensus estimate of N/A by -¥0.07.

Is Eltes Co., Ltd. overvalued?

According to Wall Street analysts Eltes Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Eltes Co., Ltd. pay dividends?

Eltes Co., Ltd. does not currently pay dividends.

What is Eltes Co., Ltd.’s EPS estimate?

Eltes Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Eltes Co., Ltd. have?

Eltes Co., Ltd. has 6,220,880 shares outstanding.

What happened to Eltes Co., Ltd.’s price movement after its last earnings report?

Eltes Co., Ltd. reported an EPS of -¥0.07 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -2.187%.

Which hedge fund is a major shareholder of Eltes Co., Ltd.?

Currently, no hedge funds are holding shares in JP:3967

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Eltes Co., Ltd.

Eltes Co.,Ltd. engages in the AI security, digital risk, and DX promotion businesses in Japan. The company offers social and internal risk management, on-line reputation management, digital credit, information bank/e-Government and security services. It also operates a physical security business; and provides services related to the promotion of DX in the security industry by combining AI and IoT. order. In addition, the company offers digitization support for administrative services for residents; dispatch services for DX human resources, such as engineers; and property management business. Further, it provides multiple solutions from pre-avoidance of social risks to post-crisis response methods, as well as internal threat detection services. Eltes Co.,Ltd. was founded in 2004 and is headquartered in Tokyo, Japan.