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ES Networks Co., Ltd. (JP:5867)
:5867
Japanese Market
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ES Networks Co., Ltd. (5867) AI Stock Analysis

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JP:5867

ES Networks Co., Ltd.

(5867)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥1,437.00
▲(9.86% Upside)
Action:Upgraded
Date:06/19/26
The score is primarily driven by solid financial performance (growth and improved leverage) tempered by margin normalization and volatile operating cash flow. Valuation is supportive with a reasonable P/E and strong dividend yield, while technicals are constructive on trend but show mixed momentum and elevated RSI.
Positive Factors
Stronger balance sheet / lower leverage
Material leverage reduction meaningfully lowers financial risk and increases strategic optionality. A stronger capital structure supports investment, working-capital flexibility and potential opportunistic M&A or buybacks, providing durable financial resilience over the next several quarters.
Negative Factors
Net margin compression in 2025
A meaningful net margin pullback reduces the company’s earnings power and free cash flow potential even with higher revenue. If structural, compressed margins can limit reinvestment, dividend capacity and weaken returns on capital over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger balance sheet / lower leverage
Material leverage reduction meaningfully lowers financial risk and increases strategic optionality. A stronger capital structure supports investment, working-capital flexibility and potential opportunistic M&A or buybacks, providing durable financial resilience over the next several quarters.
Read all positive factors

ES Networks Co., Ltd. (5867) vs. iShares MSCI Japan ETF (EWJ)

ES Networks Co., Ltd. Business Overview & Revenue Model

Company Description
Based in Tokyo, Japan, es Networks Co., Ltd. offers a broad spectrum of consulting services throughout Asia. The firm primarily supports Japanese companies looking to expand into Asian markets, providing expertise in business advancement and accou...
How the Company Makes Money
ES Networks Co., Ltd. generates revenue primarily through its IT solutions and consulting business. The company earns from the design, customization, and implementation of enterprise software tailored to meet its clients' specific needs. It also p...

ES Networks Co., Ltd. Financial Statement Overview

Summary
Steady multi-year revenue growth and a markedly stronger balance sheet (lower leverage, consistent equity growth) support a solid fundamental profile. The main offset is profitability and cash-flow variability, including a notable net margin reset in 2025 versus 2024 and volatile operating cash flow.
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.05B3.42B2.95B2.71B2.65B2.33B
Gross Profit1.39B1.52B1.34B1.26B1.24B989.71M
EBITDA324.99M316.82M317.67M297.67M210.25M149.21M
Net Income313.83M217.54M301.66M136.80M143.15M122.65M
Balance Sheet
Total Assets2.07B2.69B2.29B2.24B2.38B2.40B
Cash, Cash Equivalents and Short-Term Investments1.17B1.47B1.39B1.21B1.38B1.67B
Total Debt126.00M395.04M277.06M538.21M770.18M866.03M
Total Liabilities475.75M861.01M717.99M841.52M1.13B1.21B
Stockholders Equity1.52B1.75B1.50B1.33B1.21B1.16B
Cash Flow
Free Cash Flow0.00157.10M384.27M12.21M130.80M196.64M
Operating Cash Flow0.00164.47M389.70M184.45M132.04M218.64M
Investing Cash Flow0.00-71.63M218.44M-66.10M-315.24M149.18M
Financing Cash Flow0.00-16.70M-442.60M-315.48M-178.74M-195.38M

ES Networks Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1308.00
Price Trends
50DMA
1182.84
Positive
100DMA
1190.62
Negative
200DMA
1221.43
Negative
Market Momentum
MACD
-0.77
Negative
RSI
53.38
Neutral
STOCH
48.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5867, the sentiment is Positive. The current price of 1308 is above the 20-day moving average (MA) of 1151.35, above the 50-day MA of 1182.84, and above the 200-day MA of 1221.43, indicating a neutral trend. The MACD of -0.77 indicates Negative momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 48.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5867.

ES Networks Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥25.68B22.423.50%11.96%10.15%
72
Outperform
¥31.60B11.014.39%17.36%0.10%
71
Outperform
¥3.70B15.383.54%18.09%-25.64%
71
Outperform
¥22.85B11.722.18%
68
Neutral
¥9.97B7.811.04%9.65%-12.83%
63
Neutral
¥16.19B24.4619.98%-45.53%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5867
ES Networks Co., Ltd.
1,189.00
159.08
15.45%
JP:4792
YAMADA Consulting Group Co., Ltd.
1,662.00
103.69
6.65%
JP:7033
Management Solutions Co., Ltd.
1,361.00
-226.32
-14.26%
JP:9168
Rise Consulting Group,Inc.
399.00
-617.69
-60.76%
JP:9556
INTLOOP, Inc.
1,775.00
-1,575.00
-47.01%
JP:9644
TANABE CONSULTING GROUP CO. LTD
761.00
43.25
6.03%
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: Jun 19, 2026