Eltes Co., Ltd. (3967) AI Stock Analysis

• Market Cap: ¥3.96B
• Dividend Yield: N/A
• Average Volume (3M): 14.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 15.39%
• EPS Growth: -562.65%
• Country: JP
• Employees: 409
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.77
• Shares Outstanding: 6,220,880
• 10 Day Avg. Volume: 13,450
• 30 Day Avg. Volume: 14,120
• PEG Ratio: 0.01
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 9.47
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥663.00 ▲(4.25% Upside)

The overall stock score is primarily impacted by weak financial performance and poor valuation metrics. Technical analysis further indicates bearish momentum, contributing to a low overall score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Gross Margin Stability

Stable gross margins suggest that Eltes Co., Ltd. is effectively managing its costs, which can support profitability even if revenue growth is challenged.

Cash Flow Improvement

Improving cash flow performance enhances Eltes' ability to fund operations and invest in growth opportunities, supporting long-term financial health.

Revenue Growth

A revenue growth rate of over 12% suggests that Eltes is successfully expanding its market presence, which is crucial for sustaining long-term business growth.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting Eltes' ability to invest in growth or weather economic downturns.

Profitability Challenges

Fluctuating net income and impacted profit margins suggest challenges in achieving consistent profitability, which can hinder long-term financial stability.

Inconsistent Free Cash Flow

Inconsistent free cash flow relative to net income indicates potential volatility in cash generation, which can affect Eltes' ability to sustain operations and growth.

Eltes Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Eltes Co., Ltd. generates revenue through multiple streams, primarily by selling software solutions and IT services tailored for financial institutions. The company's core revenue model includes the licensing of its proprietary software products, subscription fees for ongoing services, and consulting fees for implementation and support. Additionally, Eltes may engage in strategic partnerships with financial organizations to co-develop solutions, which can lead to shared revenue opportunities. The focus on innovative technology and compliance with regulatory standards further enhances its appeal to clients, contributing to consistent income growth.

Eltes Co., Ltd. Financial Statement Overview

Summary

Eltes Co., Ltd. presents a mixed financial picture. While the company demonstrates solid gross margins and improving cash flow, it faces challenges with revenue growth and profitability. High leverage on the balance sheet highlights potential financial risks, emphasizing the need for improved earnings stability.

Income Statement

The company shows a mixed performance on the income statement. Gross profit margin has been relatively stable, indicating effective cost management, but net income has fluctuated significantly, impacting net profit margins. Recent declines in revenue growth rate and negative net income in the latest year suggest challenges in maintaining profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. Return on equity has been inconsistent due to fluctuating net income. However, the equity ratio suggests a reasonable proportion of assets financed by equity, providing some stability.

Cash Flow

The cash flow statement reflects improving cash flow performance, with notable growth in operating cash flow and free cash flow in recent periods. However, the free cash flow to net income ratio is inconsistent due to varying net income levels, necessitating careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.59B	7.32B	6.54B	4.69B	2.68B	1.99B
Gross Profit	2.82B	2.51B	2.50B	1.94B	1.38B	979.98M
EBITDA	-70.10M	-140.39M	557.18M	446.73M	247.32M	-426.67M
Net Income	-783.76M	-860.38M	257.30M	42.64M	127.81M	-529.52M
Balance Sheet
Total Assets	7.13B	7.38B	6.90B	6.00B	2.47B	2.43B
Cash, Cash Equivalents and Short-Term Investments	2.29B	2.52B	1.56B	1.66B	1.27B	1.07B
Total Debt	3.90B	4.21B	3.33B	2.71B	731.98M	803.97M
Total Liabilities	5.19B	5.52B	4.29B	3.67B	1.07B	1.16B
Stockholders Equity	1.90B	1.84B	2.61B	2.34B	1.40B	1.27B
Cash Flow
Free Cash Flow	0.00	460.18M	-184.91M	566.01M	119.17M	-429.27M
Operating Cash Flow	0.00	587.69M	-76.00K	715.09M	190.78M	-412.44M
Investing Cash Flow	0.00	-570.56M	-690.00M	-3.11B	128.83M	-457.73M
Financing Cash Flow	0.00	938.55M	589.85M	2.79B	-74.06M	568.10M

Eltes Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 636.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3967, the sentiment is Negative. The current price of 636 is below the 20-day moving average (MA) of 636.20, below the 50-day MA of 655.60, and below the 200-day MA of 690.93, indicating a bearish trend. The MACD of -8.22 indicates Negative momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 48.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3967.

Eltes Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4075	72 Outperform	¥5.67B	40.39	―	―	25.01%	175.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4167	58 Neutral	¥2.49B	―	―	―	-6.33%	-129.18%
3917	50 Neutral	¥3.86B	―	―	―	17.30%	99.39%
3967	44 Neutral	¥3.96B	-5.11	―	―	15.39%	-562.65%