Enshu Limited (6218) AI Stock Analysis

• Market Cap: ¥2.84B
• Dividend Yield: 2.22%
• Average Volume (3M): 7.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -9.15%
• EPS Growth: -1123.11%
• Country: JP
• Employees: 988
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): -253.66
• Shares Outstanding: 6,353,454
• 10 Day Avg. Volume: 6,020
• 30 Day Avg. Volume: 7,706
• PEG Ratio: 0.32
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.09
• 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

• Rating: 55 Neutral
• Price Target: ¥465.00 ▲(4.03%Upside)

The overall stock score is primarily influenced by significant financial performance challenges, with declining revenues and profitability. Technical analysis indicates neutral momentum, while valuation is impacted by a negative P/E ratio, despite a reasonable dividend yield. Financial performance issues are the most significant factor affecting the score.

Enshu Limited Business Overview & Revenue Model

Company Description

Enshu Limited (6218) is a Japan-based manufacturing company primarily engaged in the production and sale of machine tools and related components. The company operates through several segments, with a focus on providing high-precision machining centers, specialized machine tools, and automotive-related equipment. Enshu Limited serves various industries, including automotive, aerospace, and industrial machinery, offering both standard and customized solutions to meet diverse customer needs.

How the Company Makes Money

Enshu Limited makes money through the sale of its machine tools and related equipment to a broad range of industries. The company's primary revenue stream comes from the manufacturing and distribution of high-precision machining centers, which are essential for automating and optimizing production processes in various sectors. Additionally, Enshu generates income through after-sales services, such as maintenance and technical support, which enhance customer satisfaction and foster long-term relationships. The company may also benefit from strategic partnerships and collaborations with other firms in the machine tool industry, which can lead to co-development projects or expanded market reach. Furthermore, Enshu's involvement in the automotive sector, particularly in providing specialized equipment for manufacturing processes, is a significant contributor to its earnings.

Enshu Limited Financial Statement Overview

Summary

Enshu Limited faces significant financial challenges, with declining revenues and profitability impacting its operational performance. While the balance sheet remains moderately leveraged, the 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
24.09B	21.89B	24.09B	24.81B	23.90B	22.12B
	Gross Profit
4.32B	2.68B	4.55B	3.57B	3.89B	2.97B
	EBIT
539.00M	-705.00M	541.00M	79.00M	751.00M	463.00M
	EBITDA
1.86B	-954.00M	1.82B	1.27B	1.88B	1.55B
	Net Income Common Stockholders
221.00M	-2.26B	221.00M	-104.00M	370.00M	250.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.40B	4.44B	4.40B	4.59B	6.66B	5.06B
	Total Assets
33.20B	29.81B	33.20B	34.17B	33.97B	33.00B
	Total Debt
11.80B	11.80B	11.80B	11.84B	11.91B	11.76B
	Net Debt
7.58B	7.36B	7.58B	7.25B	5.25B	6.70B
	Total Liabilities
21.39B	19.43B	21.39B	22.81B	23.27B	22.99B
	Stockholders Equity
11.81B	10.38B	11.81B	11.36B	10.70B	10.01B
Cash Flow		Free Cash Flow
1.91B	73.00M	-272.00M	-2.03B	1.66B	-363.00M
	Operating Cash Flow
1.91B	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: Negative
• Last Price: 447.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 447 is below the 20-day moving average (MA) of 454.70, below the 50-day MA of 451.24, and below the 200-day MA of 531.19, indicating a bearish trend. The MACD of -2.23 indicates Positive momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 28.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6218.

Enshu Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	81 Outperform	¥2.96B	9.16		3.48%	11.07%	17.66%
6396	78 Outperform	¥3.25B	8.19		1.70%	-10.20%	-6.44%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
6217	64 Neutral	¥2.36B	3.37		―	-14.05%	―
6467	61 Neutral	¥3.20B	56.57		2.27%	2.46%	25.52%
6218	55 Neutral	¥2.84B	―		2.22%	-9.15%	-1123.11%
6166	45 Neutral	¥3.30B	5.87		―	9.44%	-122.75%

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.