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Enshu Limited (JP:6218)
:6218
Japanese Market
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Enshu Limited (6218) AI Stock Analysis

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JP:6218

Enshu Limited

(6218)

Rating:47Neutral
Price Target:
¥438.00
▼(-8.37% 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 (6218) vs. iShares MSCI Japan ETF (EWJ)

Enshu Limited Business Overview & Revenue Model

Company DescriptionEnshu 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 MoneyEnshu 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
40
Negative
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
55
Neutral
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
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.09B21.89B24.09B24.81B23.90B22.12B
Gross Profit4.32B2.68B4.00B3.57B3.89B2.97B
EBITDA1.86B-954.00M1.86B1.46B1.88B1.72B
Net Income221.00M-2.26B221.00M-104.00M370.00M250.00M
Balance Sheet
Total Assets33.20B29.81B33.20B34.17B33.97B33.00B
Cash, Cash Equivalents and Short-Term Investments4.40B4.44B4.40B4.59B6.66B5.06B
Total Debt11.80B11.80B11.80B11.84B11.91B11.76B
Total Liabilities21.39B19.43B21.39B22.81B23.27B22.99B
Stockholders Equity11.81B10.38B11.81B11.36B10.70B10.01B
Cash Flow
Free Cash Flow1.91B73.00M-272.00M-2.03B1.66B-363.00M
Operating Cash Flow1.91B1.51B399.00M-1.31B2.25B884.00M
Investing Cash Flow0.00-1.34B-736.00M-845.00M-518.00M-1.35B
Financing Cash Flow0.00-168.00M-223.00M-254.00M-337.00M-313.00M

Enshu Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price478.00
Price Trends
50DMA
446.50
Positive
100DMA
447.14
Positive
200DMA
486.20
Negative
Market Momentum
MACD
11.95
Negative
RSI
66.23
Neutral
STOCH
57.33
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 478 is above the 20-day moving average (MA) of 462.20, above the 50-day MA of 446.50, and below the 200-day MA of 486.20, indicating a neutral trend. The MACD of 11.95 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 57.33 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥2.97B8.79
3.50%11.28%19.84%
73
Outperform
¥3.77B7.63
1.47%-4.62%21.46%
64
Neutral
$10.96B16.358.89%1.96%2.68%-15.17%
59
Neutral
¥3.32B58.34
1.63%2.91%-154.96%
55
Neutral
¥3.69B18.56
-5.32%-22.97%
55
Neutral
¥2.27B3.31
-12.77%-114.94%
47
Neutral
¥3.06B
2.09%-10.87%-3485.61%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6218
Enshu Limited
478.00
-151.44
-24.06%
JP:6166
Nakamura Choukou Co., Ltd.
330.00
-94.00
-22.17%
JP:6217
TSUDAKOMA Corp.
354.00
-18.00
-4.84%
JP:6248
Yokota Manufacturing Co., Ltd.
1,572.00
319.60
25.52%
JP:6396
Unozawa-Gumi Iron Works, Limited
3,400.00
23.68
0.70%
JP:6467
Nichidai Corporation
368.00
33.75
10.10%

Enshu Limited Corporate Events

Enshu Limited Reports Financial Decline Amid Market Challenges
Feb 13, 2025

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.

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: Aug 06, 2025