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Ecomott, Inc. (JP:3987)
:3987
Japanese Market
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Ecomott, Inc. (3987) AI Stock Analysis

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JP:3987

Ecomott, Inc.

(3987)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
¥656.00
▲(4.29% Upside)
Action:Reiterated
Date:08/06/26
The score is held down primarily by weak financial quality—especially deeply negative operating/free cash flow and increased leverage—despite improving revenue growth and a small recovery in operating profitability. Technicals are supportive with strong momentum above key moving averages, but overbought indicators temper the outlook. Valuation remains challenged due to ongoing losses (negative P/E) and no dividend yield provided.
Positive Factors
Re-accelerating revenue
A 13.8% revenue rebound signals recovering end-market demand and improved product traction. Sustained top-line growth provides operating leverage potential, supports investment in product and sales, and is a durable foundation for margin recovery and longer-term cash generation if conversion to cash improves.
Negative Factors
Deeply negative operating cash flow
Severely negative operating and free cash flow indicate earnings are not converting to cash, raising reliance on external financing. Persistent cash burn reduces runway for organic growth or capex, heightens liquidity and refinancing risk, and constrains the firm's ability to self-fund strategic initiatives over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Re-accelerating revenue
A 13.8% revenue rebound signals recovering end-market demand and improved product traction. Sustained top-line growth provides operating leverage potential, supports investment in product and sales, and is a durable foundation for margin recovery and longer-term cash generation if conversion to cash improves.
Read all positive factors

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

Ecomott, Inc. Business Overview & Revenue Model

Company Description
Established in Sapporo, Japan, in 2007, Ecomott Inc. delivers Internet of Things (IoT) and Machine-to-Machine (M2M) solutions across Japan. Their product lineup features "Yurimott," a system for remote oversight of snow-melting operations; "Gembar...

Ecomott, Inc. Financial Statement Overview

Summary
Financial performance is constrained by very weak cash generation (2025 operating cash flow and free cash flow both deeply negative) and higher leverage (debt-to-equity ~1.38). While revenue growth has re-accelerated and operating profitability has turned slightly positive, net income remains negative and margins are compressed versus prior years.
Income Statement
46
Neutral
Balance Sheet
40
Negative
Cash Flow
28
Negative
BreakdownTTMAug 2025Aug 2024Aug 2023Aug 2022Aug 2021
Income Statement
Total Revenue2.75B3.00B2.69B2.72B2.22B2.16B
Gross Profit1.01B1.07B1.00B956.25M1.01B972.68M
EBITDA97.30M119.64M38.60M-20.69M148.84M186.37M
Net Income-56.83M-35.04M-69.15M-174.86M27.77M13.71M
Balance Sheet
Total Assets2.51B2.56B2.58B2.24B1.87B1.96B
Cash, Cash Equivalents and Short-Term Investments792.65M333.37M582.79M586.20M546.12M742.01M
Total Debt1.08B1.08B946.60M707.62M427.25M492.23M
Total Liabilities1.65B1.77B1.72B1.30B768.64M887.66M
Stockholders Equity829.71M784.21M863.98M932.91M1.10B1.08B
Cash Flow
Free Cash Flow0.00-296.46M-54.51M-191.02M55.25M302.30M
Operating Cash Flow0.00-295.64M11.43M-179.96M84.06M304.00M
Investing Cash Flow0.00-247.71M-163.37M-104.87M-213.42M-12.46M
Financing Cash Flow0.00293.93M148.53M324.91M-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
82
Outperform
¥47.44B15.0020.19%3.09%12.25%84.46%
78
Outperform
¥31.30B18.3015.26%62.04%
73
Outperform
¥24.09B21.8310.88%-4.96%
63
Neutral
¥19.93B-50.5217.69%-175.52%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
¥3.65B9.992.04%45.95%
49
Neutral
¥3.48B-519.69-3.05%94.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3987
Ecomott, Inc.
660.00
45.00
7.32%
JP:3040
Soliton Systems KK
2,563.00
1,215.98
90.27%
JP:3694
OPTiM Corp.
442.00
-130.00
-22.73%
JP:3915
TerraSky Co., Ltd.
2,424.00
140.23
6.14%
JP:4434
Serverworks Co., Ltd.
2,505.00
280.49
12.61%
JP:9417
Smartvalue Co.Ltd.
349.00
-56.45
-13.92%
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: Aug 06, 2026