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ENEOS Holdings (JP:5020)
:5020
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ENEOS Holdings
(5020)
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Rating:64Neutral
Price Target:
¥1,100.00
▲(4.56% Upside)
ENEOS Holdings' overall stock score is driven by strong technical indicators and reasonable valuation, despite challenges in financial performance. The positive technical momentum and attractive dividend yield are significant strengths, while the need to improve revenue growth and profitability remains a key area for improvement.
Positive Factors
Cash Flow Performance
Strong free cash flow growth indicates effective cash management and the ability to fund operations and investments, supporting long-term stability.
Renewable Energy Initiatives
Investing in renewable energy aligns with global energy transition trends, potentially enhancing future revenue streams and sustainability.
Strategic Partnerships
Strategic partnerships can lead to improved operational efficiencies and market expansion, strengthening competitive positioning and growth prospects.
Negative Factors
Revenue Decline
Declining revenue growth poses challenges to financial performance, potentially impacting profitability and market competitiveness.
Profitability Concerns
Negative profitability indicates inefficiencies in operations, which could hinder financial health and shareholder returns if not addressed.
Negative Return on Equity
Negative ROE reflects challenges in generating shareholder value, potentially affecting investor confidence and capital raising capabilities.
ENEOS Holdings (5020) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
$2.82T
Dividend Yield2.87%
Average Volume (3M)8.65M
Price to Earnings (P/E)12.8
Beta (1Y)1.03
Revenue Growth-14.13%
EPS Growth33.18%
CountryJP
Employees43,683
SectorEnergy
Sector Strength52
IndustryOil & Gas Refining & Marketing
Share Statistics
EPS (TTM)29.47
Shares Outstanding2,706,766,600
10 Day Avg. Volume9,657,770
30 Day Avg. Volume8,652,513
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)0.71
Price to Sales (P/S)0.18
P/FCF Ratio7.52
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit4.48
Enterprise Value/Ebitda12.39
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
ENEOS Holdings Business Overview & Revenue Model
Company DescriptionENEOS Holdings, Inc., through its subsidiaries, engages in the energy, oil and natural gas exploration and production (E&P), and metals businesses Japan, China, and internationally. The company operates through Energy, Oil and Natural Gas E&P, Metals, and Other segments. It manufactures and sells petroleum products, including gasoline, kerosene, lubricants, etc., as well as petrochemicals; and offers crude oil, natural gas, and copper concentrates. In addition, the company offers non-ferrous metal products, including electrolytic coppers, functional materials, and thin-film materials. Further, the company develops and explores non-ferrous metal resources and products; recycles industrial waste treatment, titanium, and electric wires. Additionally, the company offers copper foils, precision rolled, and precision-fabricated products. Furthermore, it engages in the asphalt paving, civil engineering, construction, land transportation, and real estate leasing business. It is engaged in the sales of mineral resources; and researching, studying, evaluating, designing and planning, and consulting services. ENEOS Holdings, Inc. was founded in 1888 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyENEOS Holdings generates revenue primarily through the refining and sale of petroleum products, including gasoline, diesel, and jet fuel, which are distributed across domestic and international markets. Additionally, the company earns income from the sale of petrochemical products and lubricants. A significant revenue stream also comes from its exploration and production activities in oil and gas fields. ENEOS has formed strategic partnerships with various companies to enhance its operational efficiency and expand its market reach. Furthermore, the company's investment in renewable energy projects and technologies is expected to contribute to its future revenue growth as the demand for sustainable energy solutions increases.
ENEOS Holdings Earnings Call Summary
Earnings Call Date:Nov 13, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Positive
The earnings call highlights strong performance in the Energy segment and an upward revision of the operating income forecast, alongside improvements in cash flow and renewable energy profits. However, challenges remain in the oil and natural gas E&P and Metals segments, with expected declines in second-half net income.Q2-2024 Updates
Positive Updates
Energy Segment Profit Increase
The Energy segment saw a significant increase in profit, resulting in a group consolidated profit increase of JPY 152.5 billion. This was due to improved margins, including chemicals and improved selling prices in the electricity business.
Upward Revision of Operating Income Forecast
The operating income forecast for the full year was revised upward by JPY 80 billion to JPY 420 billion, with operating income excluding inventory valuation expected to rise by JPY 30 billion.
Improvement in UCL and Capacity Loss
UCL performance improved by 3% from the previous year, achieving an 8% UCL rate, and significant improvements were made in facility maintenance.
Profits in Renewable Energy
Profits in the renewable energy sector increased by JPY 7.3 billion due to an increase in power generation capacity and ForEx gains from asset sales.
Free Cash Flow Increase
Free cash flow was JPY 326.7 billion, with a net cash inflow of JPY 255.2 billion, reflecting a decrease in net interest-bearing debt by JPY 270.4 billion from the end of the previous year.
Negative Updates
Decline in Oil and Natural Gas E&P Business
Operating income for the oil and natural gas E&P business decreased by JPY 8.7 billion year-on-year due to a decline in resource prices.
Decrease in Metals Business Income
Operating income for the Metals business was JPY 72.1 billion, down JPY 8.9 billion from the previous year, largely due to decreased sales of semiconductor and ICT materials.
Expected Drop in Second Half Net Income
Net income for the second half is expected to drop to JPY 100.9 billion from JPY 269.1 billion in the first half due to a negative time lag and increased expenses like fixed asset taxes.
Company Guidance
During the second quarter earnings call for fiscal 2024, ENEOS Group executives reported several key metrics and guidance. Operating income decreased by JPY 103.3 billion to JPY 291.5 billion due to reduced inventory impact from crude oil price fluctuations. Despite this, the energy segment showed significant profit growth, contributing to a JPY 152.5 billion increase in consolidated group profits. Forecasts for the full year have been revised, with expected operating income of JPY 420 billion, up by JPY 80 billion, and operating income excluding inventory valuation projected at JPY 370 billion, an increase of JPY 30 billion. Net income is anticipated to reach JPY 200 billion, revised upward by JPY 20 billion. Additionally, the company highlighted progress in business process reengineering and energy transition efforts, aiming for improved returns on equity (ROE) and an enhanced management structure.ENEOS Holdings Financial Statement Overview
Summary
ENEOS Holdings faces challenges with declining revenue and profitability, as evidenced by negative net income and low margins. However, the company maintains a stable balance sheet with moderate leverage and a reasonable equity ratio. Cash flow performance is a positive aspect, with significant growth in free cash flow, indicating effective cash management. Overall, while there are areas of concern, particularly in profitability, the company shows resilience in cash flow and balance sheet stability.Income Statement
ENEOS Holdings has experienced a decline in revenue over the TTM period, with a negative revenue growth rate of -2.41%. The company also reported a negative net profit margin of -0.83% in the TTM, indicating a loss. However, the gross profit margin remains positive at 7.70%, suggesting some level of operational efficiency. The EBIT and EBITDA margins are low, reflecting challenges in maintaining profitability.45
Neutral
Balance Sheet
The company's debt-to-equity ratio stands at 0.90, indicating a moderate level of leverage. The return on equity is negative at -3.20% in the TTM, reflecting the net loss. However, the equity ratio is 34.94%, showing a reasonable proportion of equity financing. The balance sheet shows stability but highlights the need for improved profitability.55
Neutral
Cash Flow
ENEOS Holdings has shown a significant improvement in free cash flow growth at 47.02% in the TTM. The operating cash flow to net income ratio is 0.27, indicating a positive cash generation relative to net income. The free cash flow to net income ratio is 0.62, suggesting effective cash management despite the net loss.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.67T | 12.32T | 13.86T | 15.02T | 10.92T | 7.66T |
| Gross Profit | 1.05T | 1.10T | 1.34T | 1.21T | 1.58T | 1.08T |
| EBITDA | 378.01B | 120.15B | 829.62B | 650.45B | 1.04T | 591.55B |
| Net Income | -6.91B | 226.07B | 288.12B | 143.77B | 537.12B | 114.00B |
Balance Sheet | ||||||
| Total Assets | 8.71T | 8.79T | 10.14T | 9.95T | 9.65T | 8.06T |
| Cash, Cash Equivalents and Short-Term Investments | 1.00T | 846.56B | 775.91B | 414.04B | 547.27B | 417.72B |
| Total Debt | 2.65T | 2.68T | 3.27T | 3.56T | 3.22T | 2.54T |
| Total Liabilities | 5.24T | 5.32T | 6.43T | 6.67T | 6.41T | 5.31T |
| Stockholders Equity | 3.12T | 3.10T | 3.23T | 2.86T | 2.86T | 2.33T |
Cash Flow | ||||||
| Free Cash Flow | 538.41B | 294.01B | 681.87B | -428.98B | -46.01B | 420.04B |
| Operating Cash Flow | 783.45B | 576.84B | 1.01T | -110.25B | 209.51B | 679.09B |
| Investing Cash Flow | 166.29B | 130.76B | -238.20B | -115.93B | -349.93B | -306.79B |
| Financing Cash Flow | -513.51B | -631.19B | -331.03B | -13.32B | 226.05B | -355.08B |
ENEOS Holdings Technical Analysis
Positive
1052.00
Price Trends
972.24
Positive
894.38
Positive
808.11
Positive
Market Momentum
21.47
Positive
63.68
Neutral
73.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5020, the sentiment is Positive. The current price of 1052 is above the 20-day moving average (MA) of 1018.21, above the 50-day MA of 972.24, and above the 200-day MA of 808.11, indicating a bullish trend. The MACD of 21.47 indicates Positive momentum. The RSI at 63.68 is Neutral, neither overbought nor oversold. The STOCH value of 73.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5020.
ENEOS Holdings Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥119.01B | 9.80 | ― | 2.42% | 7.46% | 153.98% | |
70 Outperform | ¥130.53B | 17.95 | ― | 4.87% | 1.07% | -28.19% | |
67 Neutral | ¥66.56B | 21.16 | ― | 1.32% | -5.02% | 186.97% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | ¥214.25B | 13.24 | ― | 3.40% | -4.87% | 26.27% | |
64 Neutral | $2.82T | 12.76 | -0.15% | 2.87% | -14.13% | 33.18% | |
63 Neutral | $1.40T | 110.05 | 2.23% | 3.19% | -7.68% | -73.03% |
* Energy 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.