Enshu Limited (6218) AI Stock Analysis

• Market Cap: ¥3.24B
• Dividend Yield: 2.06%
• Average Volume (3M): 8.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -10.87%
• EPS Growth: -3485.61%
• Country: JP
• Employees: 988
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 16.86
• Shares Outstanding: 6,353,454
• 10 Day Avg. Volume: 10,460
• 30 Day Avg. Volume: 8,693
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥438.00
• Price Target Upside: -14.79% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ¥438.00 ▼(-14.79% Downside)

Enshu Limited's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and nearing overbought conditions. Valuation is constrained by a negative P/E ratio, although the dividend yield offers some appeal. The absence of earnings call data and corporate events limits additional insights.

Enshu Limited Business Overview & Revenue Model

Company Description

Enshu Limited (6218) is a Japanese company specializing in the manufacturing and distribution of machine tools and industrial machinery. The company operates in sectors including automotive, aerospace, and general manufacturing, providing high-precision machining solutions. Enshu's core products and services include machining centers, machine tools, and the provision of contract machining services, catering to a diverse range of industrial applications.

How the Company Makes Money

Enshu Limited generates revenue primarily through the sale of its machine tools and machining centers, which are used by various industries to manufacture components and products. The company's key revenue streams include direct sales of machinery, after-sales services, and maintenance contracts. Enshu also engages in contract machining services, providing outsourced manufacturing capabilities to clients who require additional production capacity or specialized machining expertise. Additionally, the company may benefit from partnerships with major industrial players, enhancing its market reach and customer base.

Enshu Limited Financial Statement Overview

Summary

Enshu Limited faces significant financial challenges, with declining revenues and profitability impacting its operational performance. The balance sheet shows moderate leverage, but negative returns indicate inefficient use of equity. Cash flow management requires improvement to support operational stability.

Income Statement

The company has faced a declining revenue trend over the years, with the latest year showing a revenue decrease of 9% from the previous year. Gross profit margins have been volatile, and the company reported a negative EBIT and net income for the latest period, indicating operational challenges. The net profit margin has significantly deteriorated, showing a concerning trajectory in profitability.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio of approximately 1.14. The equity ratio is relatively stable, indicating that equity forms a reasonable portion of the company's capital structure. However, the return on equity has turned negative in the recent year, reflecting poor profitability.

Cash Flow

The company has improved its operating cash flow compared to the previous year but still faces challenges in maintaining positive free cash flow. The free cash flow to net income ratio indicates inefficiencies in converting profits into free cash, hampering liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.89B	21.89B	24.09B	24.81B	23.90B	22.12B
Gross Profit	2.68B	2.68B	4.00B	3.57B	3.89B	2.97B
EBITDA	-819.25M	-954.00M	1.86B	1.46B	1.88B	1.72B
Net Income	-2.26B	-2.26B	221.00M	-104.00M	370.00M	250.00M
Balance Sheet
Total Assets	29.81B	29.81B	33.20B	34.17B	33.97B	33.00B
Cash, Cash Equivalents and Short-Term Investments	4.44B	4.44B	4.40B	4.59B	6.66B	5.06B
Total Debt	11.80B	11.80B	11.80B	11.84B	11.91B	11.76B
Total Liabilities	19.43B	19.43B	21.39B	22.81B	23.27B	22.99B
Stockholders Equity	10.38B	10.38B	11.81B	11.36B	10.70B	10.01B
Cash Flow
Free Cash Flow	0.00	73.00M	-272.00M	-2.03B	1.66B	-363.00M
Operating Cash Flow	0.00	1.51B	399.00M	-1.31B	2.25B	884.00M
Investing Cash Flow	0.00	-1.34B	-736.00M	-845.00M	-518.00M	-1.35B
Financing Cash Flow	0.00	-168.00M	-223.00M	-254.00M	-337.00M	-313.00M

Enshu Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 514.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6218, the sentiment is Positive. The current price of 514 is above the 20-day moving average (MA) of 489.10, above the 50-day MA of 459.90, and above the 200-day MA of 479.46, indicating a bullish trend. The MACD of 12.61 indicates Negative momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6218.

Enshu Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	79 Outperform	3.57B	10.55	10.94%	3.05%	11.28%	19.84%
6396	73 Outperform	3.61B	7.30	11.82%	1.53%	-4.62%	21.46%
6467	59 Neutral	3.39B	-44.46	0.52%	1.59%	2.91%	-154.96%
6166	55 Neutral	3.44B	17.34	-4.00%	―	-5.32%	-22.97%
6217	54 Neutral	2.29B	-63.17	17.97%	―	-12.77%	-114.94%
6218	47 Neutral	¥3.24B	―		2.06%	-10.87%	-3485.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Enshu Limited Corporate Events

Enshu Limited Reports Financial Decline Amid Market Challenges

Enshu Limited reported a decline in its consolidated financial results for the nine months ending December 31, 2024, with net sales dropping by 9.2% compared to the previous year. The company experienced operating and ordinary losses, and its profit attributable to owners was negative, reflecting a challenging period financially. Despite this, the capital adequacy ratio improved slightly from the previous period, indicating some resilience in its financial structure.