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Ecomott, Inc.
(3987)
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Rating:50Neutral
Price Target:
¥582.00
▲(31.97% Upside)
Action:Reiterated
Date:04/23/26
The score is held back primarily by weak financial quality—especially sharply negative operating/free cash flow and higher leverage—despite improving revenue and a small recovery in operating profitability. Technicals are supportive with price above major moving averages and positive MACD, while valuation (P/E ~25.3) is moderate and does not offset the cash-flow and balance-sheet risks.
Positive Factors
Diversified revenue streams
Ecomott earns from hardware sales, software subscriptions/licenses, system integration, and maintenance contracts. This multi-channel revenue model smooths income volatility, supports recurring cash inflows from software/services, and enables cross-selling to existing clients across implementations, strengthening revenue resilience over the medium term.
Negative Factors
Deeply negative operating and free cash flow
The company’s operating and free cash flows are deeply negative in 2025, indicating earnings are not converting to cash and that working-capital or cash-cost pressures are material. Persistent negative FCF forces reliance on external financing, elevating liquidity and refinancing risk and limiting the firm's ability to self-fund growth or absorb shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams
Ecomott earns from hardware sales, software subscriptions/licenses, system integration, and maintenance contracts. This multi-channel revenue model smooths income volatility, supports recurring cash inflows from software/services, and enables cross-selling to existing clients across implementations, strengthening revenue resilience over the medium term.
Read all positive factors
Ecomott, Inc. (3987) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.94B
Dividend YieldN/A
Average Volume (3M)20.07K
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth2.31%
EPS Growth-140.24%
CountryJP
Employees140
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-6.59
Shares Outstanding5,280,400
10 Day Avg. Volume35,060
30 Day Avg. Volume20,070
Financial Highlights & Ratios
PEG Ratio1.56
Price to Book (P/B)3.43
Price to Sales (P/S)0.89
P/FCF Ratio-9.06
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
Ecomott, Inc. generates revenue primarily by selling its IoT systems and solutions to corporate clients across multiple industries. The company earns income from hardware sales, such as sensors and IoT devices, as well as through subscriptions and...
Ecomott, Inc. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
40
Negative
Cash Flow
28
Negative
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.00B | 2.69B | 2.72B | 2.22B | 2.16B |
| Gross Profit | 1.07B | 1.00B | 956.25M | 1.01B | 972.68M |
| EBITDA | 119.64M | 38.60M | -20.69M | 148.84M | 186.37M |
| Net Income | -35.04M | -69.15M | -174.86M | 27.77M | 13.71M |
Balance Sheet | |||||
| Total Assets | 2.56B | 2.58B | 2.24B | 1.87B | 1.96B |
| Cash, Cash Equivalents and Short-Term Investments | 333.37M | 582.79M | 586.20M | 546.12M | 742.01M |
| Total Debt | 1.08B | 946.60M | 707.62M | 427.25M | 492.23M |
| Total Liabilities | 1.77B | 1.72B | 1.30B | 768.64M | 887.66M |
| Stockholders Equity | 784.21M | 863.98M | 932.91M | 1.10B | 1.08B |
Cash Flow | |||||
| Free Cash Flow | -296.46M | -54.51M | -191.02M | 55.25M | 302.30M |
| Operating Cash Flow | -295.64M | 11.43M | -179.96M | 84.06M | 304.00M |
| Investing Cash Flow | -247.71M | -163.37M | -104.87M | -213.42M | -12.46M |
| Financing Cash Flow | 293.93M | 148.53M | 324.91M | -64.93M | -161.75M |
Ecomott, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥35.89B | 13.92 | 19.71% | 3.09% | 9.27% | 48.93% | |
78 Outperform | ¥29.12B | 18.51 | ― | ― | 13.54% | 54.38% | |
73 Outperform | ¥21.53B | 19.51 | ― | ― | 10.88% | -4.96% | |
68 Neutral | ¥15.36B | -24.59 | ― | ― | 12.01% | -191.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥3.50B | 9.59 | ― | 2.04% | 45.95% | ― | |
50 Neutral | ¥2.94B | -51.86 | ― | ― | 2.31% | -140.24% |
* Technology Sector Average
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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.