Universal Engeisha Co., Ltd. (6061) AI Stock Analysis

• Market Cap: ¥30.42B
• Dividend Yield: 0.38%
• Average Volume (3M): 4.51K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.79
• Revenue Growth: 18.70%
• EPS Growth: 41.87%
• Country: JP
• Employees: 851
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 34.50
• Shares Outstanding: 10,050,000
• 10 Day Avg. Volume: 4,500
• 30 Day Avg. Volume: 4,513
• PEG Ratio: 1.15
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 11.26
• 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: 73 Outperform
• Price Target: ¥3,624.00 ▲(12.55% Upside)

Universal Engeisha Co., Ltd. scores well due to its strong financial performance, characterized by consistent growth and efficient cash management. Technical indicators suggest a stable long-term trend, although short-term momentum is neutral. The valuation is reasonable, but the low dividend yield may deter some investors.

Positive Factors

Strong cash generation

Sustained growth in operating and free cash flow supports ongoing R&D, maintenance of capital equipment, and strategic investments without reliance on external financing. Robust cash generation improves resilience through cycles and funds shareholder returns or debt reduction over the medium term.

Conservative balance sheet

Very low leverage and a solid equity base provide financial flexibility for capital-intensive automation projects and M&A. A strong ROE indicates effective capital deployment, reducing refinancing risk and enabling the company to sustain operations and investment during downturns.

Recurring revenue from services and partnerships

A service-based recurring revenue stream and distribution/partnership channels diversify income and smooth cyclicality inherent to machinery sales. Contract manufacturing and maintenance contracts enhance lifetime customer value and support steady margins and cash flow over time.

Negative Factors

Rising total debt trend

Although current leverage is low, a rising debt trend can erode flexibility and increase interest exposure if continued. Over several quarters this could constrain capex or R&D funding, weaken credit metrics, and heighten vulnerability to macro shocks or weaker cash conversion.

Revenue concentration risk

Dependence on large corporate partners and contract manufacturing can concentrate revenue and bargaining risk. Loss, renegotiation, or pricing pressure from a few big clients would materially affect revenue visibility, margins and growth sustainability over the medium term.

Industry classification / positioning ambiguity

A mismatch between stated industry classification and actual engineering/automation operations may hinder comparable benchmarking, investor understanding, and strategic clarity. Persisting classification ambiguity can affect capital allocation, peer analysis, and long-term market positioning.

Universal Engeisha Co., Ltd. Business Overview & Revenue Model

Company Description

UNIVERSAL ENGEISHA Co., Ltd. engages in the rental of plants and flowers in Japan. The company rents plants for various venues, such as offices, hotels, restaurants, commercial spaces, showrooms, etc.; rents artificial flower arrangements; and provides landscape, gardening, and plant maintenance services. It also offers greenery and flower gifts; artificial trees; greenery systems, such as miniature Japanese gardens, greenery walls and roof gardens, and wall decorations; decorative plants for various events; flower arrangements; and garden flowerbeds and planters. In addition, the company provides LED lights and illumination displays; rents photos and aquariums, as well as various cleaning products, such as entrance mats, mops, cleaning cloths, air cleaners, futon cleaning, etc.; and operates an online shop that offers various goods to corporate and individual assessors. Further, it provides floral arrangements for wedding; and sells plants, flowers, containers, soils, fertilizers, gardening goods, fresh vegetables, breads, and other products, as well as pebbles, stones, and garden furniture products through garden centers. Additionally, the company operates Ricoche+, a garden center for greeneries shopping; flower shop under the Fleur Universelle name; and garden-style café under the Les Grands Arbres brand name, which offers fresh meals. UNIVERSAL ENGEISHA Co., Ltd. was founded in 1968 and is headquartered in Ibaraki, Japan

How the Company Makes Money

Universal Engeisha Co., Ltd. generates revenue through multiple streams, primarily through the sale of its machinery and industrial equipment. The company engages in direct sales to large enterprises, as well as through distribution partnerships that expand its market reach. Additionally, Universal Engeisha offers maintenance and support services for its products, creating a recurring revenue model. Key partnerships with major corporations in various industries enhance its market presence and facilitate contract manufacturing opportunities. Furthermore, the company invests in research and development to innovate new products, which not only drives sales but also positions it as a leader in technological advancements within the sector.

Universal Engeisha Co., Ltd. Financial Statement Overview

Summary

Universal Engeisha Co., Ltd. exhibits a strong financial position with consistent revenue and profit growth, stable margins, low leverage, and efficient cash management. These factors collectively suggest a well-managed company with a solid financial foundation.

Income Statement

Universal Engeisha Co., Ltd. has demonstrated strong revenue growth with a 7.4% increase in the latest year, supported by a consistent rise in gross profit and net income. The company maintains healthy profit margins, with a gross profit margin of approximately 61% and a net profit margin of around 8.8% in the latest period. EBIT and EBITDA margins are stable, indicating efficient operational management. The positive revenue trajectory and profitability metrics reflect a robust income statement performance.

Balance Sheet

The balance sheet of Universal Engeisha Co., Ltd. shows a solid equity base with a low debt-to-equity ratio of approximately 0.056, indicating conservative leverage. The return on equity is strong at around 13.5%, showcasing effective utilization of shareholder funds. The equity ratio stands at a healthy level, reflecting financial stability. However, the increase in total debt over the years suggests a need for careful monitoring of leverage levels.

Cash Flow

The cash flow statement reveals a strong operating cash flow to net income ratio, indicating efficient cash generation relative to earnings. Free cash flow has grown significantly, with a notable increase in the latest year, highlighting the company's ability to generate surplus cash after capital expenditures. The free cash flow to net income ratio is robust, further supporting the company's liquidity position. Overall, the cash flow metrics suggest a healthy cash management strategy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.51B	20.51B	16.86B	13.82B	11.60B	9.57B
Gross Profit	12.66B	12.52B	10.40B	8.30B	7.10B	5.84B
EBITDA	3.22B	3.29B	3.07B	2.41B	2.28B	1.62B
Net Income	1.81B	1.81B	1.64B	1.49B	1.38B	732.88M
Balance Sheet
Total Assets	17.04B	17.04B	15.32B	13.04B	11.38B	9.84B
Cash, Cash Equivalents and Short-Term Investments	4.96B	4.96B	4.54B	5.28B	5.07B	4.11B
Total Debt	756.69M	756.69M	483.90M	338.18M	44.80M	3.22M
Total Liabilities	3.59B	3.59B	3.26B	2.48B	2.09B	1.78B
Stockholders Equity	13.41B	13.41B	12.03B	10.56B	9.29B	8.06B
Cash Flow
Free Cash Flow	0.00	2.10B	1.87B	1.33B	1.10B	1.01B
Operating Cash Flow	0.00	2.59B	2.14B	1.58B	1.49B	1.30B
Investing Cash Flow	0.00	-1.73B	-1.76B	-990.57M	-470.19M	-549.47M
Financing Cash Flow	0.00	-534.54M	-1.42B	-304.21M	-229.73M	-134.06M

Universal Engeisha Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3220.00
• 50DMA: Negative
• 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:6061, the sentiment is Neutral. The current price of 3220 is above the 20-day moving average (MA) of 3203.75, above the 50-day MA of 3156.30, and above the 200-day MA of 2805.64, indicating a neutral trend. The MACD of -17.29 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 24.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6061.

Universal Engeisha Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2674	74 Outperform	¥27.84B	12.57	―	3.77%	7.88%	-5.92%
6061	73 Outperform	¥30.42B	13.66	―	0.38%	18.70%	41.87%
3159	69 Neutral	¥31.19B	7.46	―	0.90%	12.50%	11.02%
3134	67 Neutral	¥7.42B	8.14	―	2.05%	13.52%	-42.59%
3179	66 Neutral	¥21.67B	20.22	―	3.53%	-2.73%	-51.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%