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E-Guardian Inc. (JP:6050)
:6050
Japanese Market

E-Guardian Inc. (6050) AI Stock Analysis

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JP:6050

E-Guardian Inc.

(6050)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥1,840.00
▲(9.52% Upside)
The score is driven primarily by strong financial quality (notably a near debt-free balance sheet and ongoing profitability/cash flow), but it is held back by recent revenue and margin/return compression. Technicals are mixed with weaker longer-term trend signals, while valuation appears reasonable but not especially cheap.
Positive Factors
Balance Sheet Strength
A near debt-free balance sheet provides substantial financial flexibility and lowers solvency risk, supporting long-term stability.
Strategic Focus on AI and M&A
Investing in AI and M&A can enhance operational efficiency and market reach, positioning the company for sustainable growth.
Governance Measures
Strong governance practices protect minority shareholders and ensure independent management, fostering trust and stability.
Negative Factors
Revenue Decline
Declining revenue growth indicates potential challenges in market demand or competitiveness, affecting long-term profitability.
Margin Compression
Reduced margins suggest increased costs or pricing pressures, which could hinder future profit expansion and competitiveness.
Weaker Cash Conversion
Less efficient cash conversion may limit the company's ability to reinvest in growth opportunities and manage financial obligations.

E-Guardian Inc. (6050) vs. iShares MSCI Japan ETF (EWJ)

E-Guardian Inc. Business Overview & Revenue Model

Company DescriptionE-Guardian Inc., a comprehensive Internet security company, provides solutions to Internet security needs through post monitoring, customer support, debugging, and cyber security in Japan. It offers blog, SNS, and bulletin board plan consulting; real-time post monitoring; user support; online game customer support; compliance measures, harmful rumor, and trend investigation; and community site plan, site operation, advertisement inspection, and staffing services. The company was incorporated in 1998 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyE-Guardian Inc. generates revenue primarily through its internet security and content moderation services. The company offers subscription-based models and service contracts to businesses, digital platforms, and online communities, ensuring their digital environments remain safe and compliant with regulations. Key revenue streams include fees for content moderation, cybersecurity services, and real-time internet monitoring. E-Guardian may also engage in partnerships with other technology firms to enhance its service offerings and expand its reach, contributing to its earnings growth.

E-Guardian Inc. Financial Statement Overview

Summary
E-Guardian Inc. demonstrates financial stability with strong profit margins and a debt-free balance sheet. However, challenges in revenue growth and declining return on equity could hinder future performance. The company's cash flow position is solid, although recent data gaps pose risks to a complete assessment.
Income Statement
E-Guardian Inc. shows robust gross and net profit margins, currently standing at 30% and 9.5% respectively for TTM. The EBIT and EBITDA margins are strong, reflecting efficient cost management. However, revenue growth has been stagnant, with a slight decline from the previous year, indicating a potential challenge in expanding market share.
Balance Sheet
The company maintains a strong balance sheet with no debt, resulting in a debt-to-equity ratio of 0%. The equity ratio is high at 87%, showcasing financial stability and low leverage. However, the return on equity has decreased slightly due to declining net income, which may impact investor confidence in the long term.
Cash Flow
The cash flow statement indicates strong free cash flow generation, although the growth rate has been inconsistent. The operating cash flow to net income ratio is favorable, reflecting efficient cash management. Nevertheless, the absence of recent free cash flow data for TTM limits a comprehensive evaluation.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue11.52B11.32B11.39B11.91B11.75B9.93B
Gross Profit3.44B3.29B3.37B3.36B3.82B3.54B
EBITDA1.87B1.73B1.94B1.88B2.55B2.06B
Net Income1.04B943.19M1.06B1.23B1.69B1.09B
Balance Sheet
Total Assets13.53B13.73B13.36B9.11B8.41B6.83B
Cash, Cash Equivalents and Short-Term Investments10.74B10.99B10.40B5.75B4.95B3.69B
Total Debt0.000.000.000.000.00337.00K
Total Liabilities1.64B1.68B1.96B1.73B1.93B1.92B
Stockholders Equity11.89B12.05B11.40B7.39B6.48B4.91B
Cash Flow
Free Cash Flow0.001.00B1.71B1.12B1.41B1.56B
Operating Cash Flow0.001.05B1.74B1.26B1.66B1.63B
Investing Cash Flow0.00-122.26M-48.17M-140.58M-275.19M-837.16M
Financing Cash Flow0.00-339.93M2.96B-328.84M-138.60M-470.59M

E-Guardian Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1680.00
Price Trends
50DMA
1671.52
Positive
100DMA
1807.84
Negative
200DMA
1924.27
Negative
Market Momentum
MACD
6.36
Negative
RSI
58.98
Neutral
STOCH
85.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6050, the sentiment is Neutral. The current price of 1680 is above the 20-day moving average (MA) of 1657.10, above the 50-day MA of 1671.52, and below the 200-day MA of 1924.27, indicating a neutral trend. The MACD of 6.36 indicates Negative momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 85.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6050.

E-Guardian Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥26.68B25.841.50%7.83%49.73%
73
Outperform
¥22.96B13.200.85%11.50%11.20%
72
Outperform
¥25.28B10.721.21%7.21%0.30%
69
Neutral
¥19.61B20.812.13%-0.62%-11.36%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
55
Neutral
¥34.90B126.52-10.49%
46
Neutral
¥8.47B-6.225.44%-2.17%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6050
E-Guardian Inc.
1,696.00
-113.72
-6.28%
JP:2158
FRONTEO, Inc.
886.00
283.00
46.93%
JP:2349
Nippon Information Development Co., Ltd.
2,276.00
-233.62
-9.31%
JP:2370
MEDINET Co., Ltd.
32.00
-3.00
-8.57%
JP:3788
GMO GlobalSign Holdings K.K.
2,316.00
33.81
1.48%
JP:6199
SERAKU Co., Ltd.
1,678.00
385.69
29.85%

E-Guardian Inc. Corporate Events

E-Guardian Clarifies Ties With Parent CHANGE Holdings and Moves to Safeguard Minority Shareholders
Dec 19, 2025

E-Guardian Inc. disclosed its relationship with its controlling shareholder, CHANGE Holdings, Inc., which holds 49.76% of its voting rights and positions E-Guardian within the NEW-IT Transformation Business segment of the group. The company reported ongoing but limited transactions with the parent, including sales of services, and highlighted governance measures to safeguard independent management, noting that only one of six directors concurrently serves as an executive at CHANGE Holdings and its group company. To protect minority shareholders in dealings with the controlling shareholder, E-Guardian has established a special committee composed solely of independent outside directors to oversee significant related-party transactions and monitor potential conflicts of interest.

E-Guardian Inc. Announces Merger with Subsidiary to Boost Efficiency
Dec 17, 2025

E-Guardian Inc. announced a merger with its wholly-owned subsidiary, E-Guardian Tohoku Inc., to enhance decision-making and operational efficiency. The merger, set to be effective on April 1, 2026, will not impact the company’s trade name, business description, or financial results significantly, as it is a simplified merger with no share allotments involved.

E-Guardian Inc. Announces Change of Accounting Auditor
Nov 21, 2025

E-Guardian Inc. has announced a change in its accounting auditor, resolving to appoint Kanade Partnership as the new auditor, replacing Grant Thornton Taiyo LLC, whose term expires in December 2025. This decision aims to enhance corporate value through audits conducted from a fresh perspective, leveraging Kanade Partnership’s expertise and independence.

E-Guardian Inc. Unveils Strategic Focus on AI and M&A for Future Growth
Nov 19, 2025

E-Guardian Inc. has released a Q&A on its financial results for the fiscal year ended September 2025, highlighting its strategic focus on AI integration and M&A activities to drive growth and profitability. The company aims to enhance its operational efficiency and market reach by revamping its management and sales systems, developing AI tools to reduce labor costs, and expanding its cybersecurity services, which have shown improvement in sales performance.

E-Guardian Inc. Announces New Director Elections
Nov 13, 2025

E-Guardian Inc. has announced the election of candidates for various director positions, including Directors and Executive Officers, as well as Directors of the Audit and Supervisory Committee. These appointments, which include both re-elections and new appointments, are set to be confirmed at the upcoming Ordinary General Meeting of Shareholders. The inclusion of Tomohiro Noda as a new Director is highlighted due to his extensive experience and expertise, which are expected to contribute significantly to the company’s growth strategy.

E-Guardian Inc. Announces Dividend Payment for 2025
Nov 13, 2025

E-Guardian Inc. announced a dividend payment of 35 yen per share from retained earnings, with a total dividend amount of 411 million yen, effective December 18, 2025. This decision aligns with the company’s policy of maintaining a consolidated dividend payout ratio of around 30%, balancing sustainable growth investments, and financial stability, reflecting its commitment to shareholder returns.

E-Guardian Inc. Reports Financial Decline but Increases Dividends
Nov 7, 2025

E-Guardian Inc. reported a slight decline in its financial performance for the fiscal year ended September 30, 2025, with net sales decreasing by 0.6% and operating profit dropping by 11.8% compared to the previous year. Despite these declines, the company increased its annual dividend per share from 31 yen to 35 yen, indicating a commitment to returning value to shareholders. The company forecasts a recovery in the next fiscal year with expected growth in net sales and profits, suggesting a positive outlook for stakeholders.

E-Guardian Inc. Meets Tokyo Stock Exchange Listing Standards
Oct 24, 2025

E-Guardian Inc. announced that it has successfully met all the listing maintenance standards set by the Tokyo Stock Exchange as of September 2025. This achievement marks a significant milestone for the company, reflecting its efforts to enhance market capitalization and shareholder value, thereby strengthening its position in the industry.

E-Guardian Inc. Revises Earnings Forecast Due to Decline in Project Sales
Oct 10, 2025

E-Guardian Inc. has revised its consolidated earnings forecast for the fiscal year ended September 30, 2025, citing lower-than-expected revenue from social support and gaming projects. The company attributes the decline to a larger-than-anticipated drop in social support sales for large-scale projects and underperformance in game support sales, compounded by increased labor costs. Despite these challenges, the dividend forecast remains unchanged.

E-Guardian Inc. Revamps Leadership with New Executive Officer System
Oct 1, 2025

E-Guardian Inc. has introduced an executive officer system to enhance its management structure and adapt swiftly to the evolving market environment. The company has appointed new directors and executive officers to lead its main businesses, BPO and cybersecurity, aiming to strengthen group alliances and expand business operations and corporate value.

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: Dec 30, 2025