Enshu Limited (6218) AI Stock Analysis

• Market Cap: ¥3.26B
• Dividend Yield: 1.89%
• Average Volume (3M): 14.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: 6,840
• 30 Day Avg. Volume: 14,143
• PEG Ratio: <0.01
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 42.66
• 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: -15.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ¥438.00 ▼(-15.28% 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 leading Japanese company specializing in the manufacturing and distribution of high-precision machine tools and automated production systems. Founded in 1920, Enshu operates primarily in the industrial machinery sector, providing solutions that enhance the efficiency and precision of manufacturing processes. The company offers a range of products, including CNC (Computer Numerical Control) machine tools, machining centers, and various automation technologies that cater to diverse industries such as automotive, aerospace, and electronics.

How the Company Makes Money

Enshu Limited generates revenue primarily through the sale of its machine tools and automated production systems. The company operates a B2B (business-to-business) model, where it sells its products directly to manufacturers and industrial clients. Key revenue streams include the sale of CNC machine tools, which are in high demand due to their precision and efficiency, as well as contracts for automated production solutions that help clients optimize their manufacturing processes. Additionally, Enshu earns revenue from after-sales services, including maintenance, support, and spare parts, which provide a steady income stream. Strategic partnerships with other technology firms and participation in industry trade shows further enhance its market reach and contribute to its earnings.

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	21.30B	21.89B	24.09B	24.81B	23.90B	22.12B
Gross Profit	2.89B	2.68B	4.00B	3.57B	3.89B	2.97B
EBITDA	-685.25M	-954.00M	1.86B	1.46B	1.88B	1.72B
Net Income	-1.83B	-2.26B	221.00M	-104.00M	370.00M	250.00M
Balance Sheet
Total Assets	28.84B	29.81B	33.20B	34.17B	33.97B	33.00B
Cash, Cash Equivalents and Short-Term Investments	3.44B	4.44B	4.40B	4.59B	6.66B	5.06B
Total Debt	9.11B	11.80B	11.80B	11.84B	11.91B	11.76B
Total Liabilities	18.63B	19.43B	21.39B	22.81B	23.27B	22.99B
Stockholders Equity	10.21B	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: 517.00
• 50DMA: Positive
• 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:6218, the sentiment is Positive. The current price of 517 is below the 20-day moving average (MA) of 521.05, above the 50-day MA of 488.68, and above the 200-day MA of 476.99, indicating a neutral trend. The MACD of 10.27 indicates Positive momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 60.92 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	¥3.18B	9.41	―	4.41%	11.28%	19.84%
6396	73 Outperform	¥4.05B	8.20	―	1.36%	-4.62%	21.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6467	56 Neutral	¥3.33B	58.34	―	1.63%	2.91%	-154.96%
6166	55 Neutral	¥3.34B	17.39	―	―	-5.32%	-22.97%
6217	55 Neutral	¥2.33B	3.31	―	―	-5.76%	-120.95%
6218	47 Neutral	¥3.26B	―	―	1.89%	-10.87%	-3485.61%

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.