eSOL Co., Ltd. (4420) AI Stock Analysis

• Market Cap: ¥10.34B
• Dividend Yield: 1.1%
• Average Volume (3M): 54.95K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.28
• Revenue Growth: 2.20%
• EPS Growth: -34.47%
• Country: JP
• Employees: 523
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 17.21
• Shares Outstanding: 20,000,000
• 10 Day Avg. Volume: 83,630
• 30 Day Avg. Volume: 54,950
• PEG Ratio: -0.51
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 51.54
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥548.00 ▲(4.38% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 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.

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...

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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...

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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

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

• Technical Analysis Sentiment: Positive
• Last Price: 525.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 543.90, below the 50-day MA of 545.84, and below the 200-day MA of 534.02, indicating a bullish trend. The MACD of -3.98 indicates Positive momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 51.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8154	81 Outperform	¥194.85B	4.98	17.09%	2.94%	9.67%	45.58%
9824	75 Outperform	¥98.73B	14.91	―	2.72%	-0.41%	-10.32%
8137	74 Outperform	¥51.53B	13.51	―	4.12%	-4.88%	-26.05%
4420	69 Neutral	¥10.34B	7.36	―	1.10%	2.20%	-34.47%
7537	65 Neutral	¥30.34B	-17.27	―	5.16%	1.71%	-29.37%
8023	64 Neutral	¥14.75B	25.64	―	4.62%	-2.98%	4.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%