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Ecomott, Inc. (JP:3987)
:3987
Japanese Market

Ecomott, Inc. (3987) AI Stock Analysis

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JP:3987

Ecomott, Inc.

(3987)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
¥485.00
▲(9.98% Upside)
Action:ReiteratedDate:03/24/26
The score is held down primarily by weak financial performance—especially deeply negative operating/free cash flow, increased leverage, and still-negative net income—despite improving revenue growth and a small recovery in operating profitability. Technicals are neutral-to-slightly weak and valuation is constrained by negative earnings and no stated dividend yield.
Positive Factors
Revenue Growth Resumption
A return to double-digit top-line growth signals renewed demand and traction in the software-infrastructure market. Sustained revenue expansion gives scope to leverage fixed costs, fund product development internally, and supports a multi-quarter path to durable margin recovery if maintained.
Negative Factors
Deep Negative Cash Flow
Large negative operating and free cash flows create structural financing risk: earnings are not converting to cash, forcing reliance on external funding or asset sales. Persistently negative cash flow undermines liquidity, limits reinvestment, and heightens downside if revenue growth slows.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth Resumption
A return to double-digit top-line growth signals renewed demand and traction in the software-infrastructure market. Sustained revenue expansion gives scope to leverage fixed costs, fund product development internally, and supports a multi-quarter path to durable margin recovery if maintained.
Read all positive factors

Ecomott, Inc. (3987) vs. iShares MSCI Japan ETF (EWJ)

Ecomott, Inc. Business Overview & Revenue Model

Company Description
Ecomott Inc. provides Internet of Things (IoT) and M2M solutions in Japan. It offers Yurimott, a snow-melting system remote supervision solution; Gembaroid, a computerized construction work support solution; FASTIO, an IoT platform solution; and P...

Ecomott, Inc. Financial Statement Overview

Summary
Financial health is pressured by very weak cash generation (2025 operating cash flow and free cash flow both deeply negative) and higher leverage (debt-to-equity ~1.38) alongside still-negative net income. Positives include renewed revenue growth in 2025 (~13.8% YoY) and a return to a small operating profit, but margin compression versus 2021–2022 and negative returns on equity keep the score low.
Income Statement
46
Neutral
Balance Sheet
40
Negative
Cash Flow
28
Negative
BreakdownAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue3.00B2.69B2.72B2.22B2.16B
Gross Profit1.07B1.00B956.25M1.01B972.68M
EBITDA159.83M88.73M43.32M132.82M181.49M
Net Income-35.04M-69.15M-174.86M27.77M13.71M
Balance Sheet
Total Assets2.56B2.58B2.24B1.87B1.96B
Cash, Cash Equivalents and Short-Term Investments333.37M582.79M586.20M546.12M742.01M
Total Debt1.08B946.60M707.62M427.25M492.23M
Total Liabilities1.77B1.72B1.30B768.64M887.66M
Stockholders Equity784.21M863.98M932.91M1.10B1.08B
Cash Flow
Free Cash Flow-296.46M-54.51M-191.02M55.25M302.30M
Operating Cash Flow-295.64M11.43M-179.96M84.06M304.00M
Investing Cash Flow-247.71M-163.37M-104.87M-213.42M-12.46M
Financing Cash Flow293.93M148.53M324.91M-64.93M-161.75M

Ecomott, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥32.72B16.5919.71%3.09%3.44%79.35%
68
Neutral
¥21.45B9.9617.93%91.21%
68
Neutral
¥23.60B119.616.33%14.82%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥15.78B8.71
58
Neutral
¥4.07B-2.642.04%14.34%
44
Neutral
¥2.74B-21.01
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3987
Ecomott, Inc.
520.00
167.00
47.31%
JP:3040
Soliton Systems KK
1,768.00
640.65
56.83%
JP:3694
OPTiM Corp.
433.00
-163.00
-27.35%
JP:3915
TerraSky Co., Ltd.
1,661.00
-189.60
-10.25%
JP:4434
Serverworks Co., Ltd.
1,989.00
-130.94
-6.18%
JP:9417
Smartvalue Co.Ltd.
389.00
55.34
16.59%
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.Date of analysis: Mar 24, 2026