eSOL Co., Ltd. (JP:4420)
:4420
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eSOL Co., Ltd.
(4420)
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Rating:69Neutral
Price Target:
¥548.00
▲(4.38% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by solid overall financial health anchored by a conservatively financed balance sheet and steady revenue growth, tempered by uneven profitability and notably weak 2025 cash conversion. Technicals add support with price above key moving averages and positive MACD, while valuation is acceptable but not especially compelling due to the low dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.02) gives durable financial flexibility, allowing eSOL to fund R&D, support long lifecycle customer programs and weather cyclical downturns without refinancing risk. This supports multi-year embedded project execution and strategic optionality.
Negative Factors
Weak cash conversion
Operating cash flow volatility and a 2025 cash conversion ratio near 0.12x indicate earnings are not reliably turned into cash. Over time this can constrain funding for R&D, delay investments in product roadmap and increase reliance on retained earnings despite low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage (debt-to-equity ~0.02) gives durable financial flexibility, allowing eSOL to fund R&D, support long lifecycle customer programs and weather cyclical downturns without refinancing risk. This supports multi-year embedded project execution and strategic optionality.
Read all positive factors
eSOL Co., Ltd. (4420) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥9.73B
Dividend Yield1.1%
Average Volume (3M)54.95K
Price to Earnings (P/E)16.3
Beta (1Y)1.28
Revenue Growth1.86%
EPS Growth-31.36%
CountryJP
Employees523
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)17.21
Shares Outstanding20,000,000
10 Day Avg. Volume83,630
30 Day Avg. Volume54,950
Financial Highlights & Ratios
PEG Ratio-0.51
Price to Book (P/B)1.65
Price to Sales (P/S)0.80
P/FCF Ratio51.54
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
eSOL Co., Ltd. Business Overview & Revenue Model
Company Description
eSOL Co.,Ltd. designs, plans, operates, and maintains embedded software solutions and logistics systems in Japan. The company offers real-time operating systems(RTOS) that include Extended T-Kernel, RTOS for embedded systems; POSIX, a compliant RT...
How the Company Makes Money
eSOL makes money primarily by selling and licensing embedded software products and by providing engineering and support services tied to those products.
Key revenue streams typically include:
1) Software licensing/royalties: Revenue from licensin...
eSOL Co., Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.52B | 12.13B | 11.91B | 9.63B | 8.87B | 8.94B |
| Gross Profit | 3.61B | 3.70B | 4.41B | 3.30B | 2.93B | 2.80B |
| EBITDA | 657.66M | 919.37M | 1.21B | 20.56M | -273.36M | 145.68M |
| Net Income | 461.70M | 598.07M | 892.39M | 136.72M | -357.83M | 200.70M |
Balance Sheet | ||||||
| Total Assets | 6.86B | 8.19B | 6.99B | 7.64B | 7.21B | 7.37B |
| Cash, Cash Equivalents and Short-Term Investments | 3.32B | 3.19B | 3.27B | 3.50B | 3.98B | 4.22B |
| Total Debt | 0.00 | 97.50M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.83B | 2.29B | 2.00B | 1.97B | 1.80B | 1.60B |
| Stockholders Equity | 5.03B | 5.91B | 4.99B | 5.66B | 5.41B | 5.78B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 188.65M | 1.06B | -157.96M | 76.17M | -329.86M |
| Operating Cash Flow | 0.00 | 229.13M | 1.10B | -140.97M | 161.40M | -199.71M |
| Investing Cash Flow | 0.00 | -108.59M | -29.04M | -232.60M | -89.59M | -137.39M |
| Financing Cash Flow | 0.00 | -111.63M | -1.29B | -112.40M | -111.61M | -111.47M |
eSOL Co., Ltd. Technical Analysis
Positive
525.00
Price Trends
546.36
Positive
530.38
Positive
535.86
Positive
Market Momentum
1.84
Negative
55.16
Neutral
53.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4420, the sentiment is Positive. The current price of 525 is below the 20-day moving average (MA) of 538.50, below the 50-day MA of 546.36, and below the 200-day MA of 535.86, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 55.16 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4420.
eSOL Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥210.61B | 4.98 | 17.09% | 2.94% | 12.12% | 75.98% | |
75 Outperform | ¥99.06B | 14.91 | ― | 2.72% | -3.00% | -13.90% | |
74 Outperform | ¥50.66B | 13.51 | ― | 4.12% | 1.37% | -9.80% | |
69 Neutral | ¥9.73B | 16.26 | ― | 1.10% | 1.86% | -31.36% | |
65 Neutral | ¥30.47B | -17.27 | ― | 5.16% | 1.33% | 52.96% | |
64 Neutral | ¥13.20B | 25.64 | ― | 4.62% | -2.56% | -1.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4420
eSOL Co., Ltd.
515.00
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-11.04%
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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.