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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)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
¥599.00
▲(10.31% Upside)
Action:Reiterated
Date:05/17/26
The score is held back primarily by mixed financial performance—declining revenue and historically volatile earnings despite recent stabilization and improved cash flow. Technicals are mildly supportive with neutral-to-positive momentum and price above longer-term averages. Valuation is a key positive, supported by a very low P/E and a modest dividend yield.
Positive Factors
Cash generation
Operating cash flow turned consistently positive through 2024–2026 and rose to about ¥1.41B with free cash flow ~¥0.90B in 2026. Sustained internal cash generation provides durable funding for capex, working capital and debt service, lowering reliance on external financing during cycles.
Negative Factors
Multi-year revenue decline
Revenue has declined across multiple years (notably ~9.2% in 2025 and ~9.8% in 2026; overall RevenueGrowth -12.19%), signaling structural demand weakness, loss of market share, or pricing pressure. Persistent top-line contraction constrains operating leverage and makes margin recovery and earnings growth harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Operating cash flow turned consistently positive through 2024–2026 and rose to about ¥1.41B with free cash flow ~¥0.90B in 2026. Sustained internal cash generation provides durable funding for capex, working capital and debt service, lowering reliance on external financing during cycles.
Read all positive factors

Enshu Limited (6218) vs. iShares MSCI Japan ETF (EWJ)

Enshu Limited Business Overview & Revenue Model

Company Description
ENSHU Limited manufactures and sells machine tools and parts in Japan and internationally. It offers system equipment, such as flexible transfer lines, flexible manufacturing systems, and other production lines controlled by computers; and general...
How the Company Makes Money
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Enshu Limited Financial Statement Overview

Summary
Financials appear in recovery but not durable: multi-year revenue contraction and volatile profitability (large loss in 2025, only small profit in 2026). Balance sheet leverage looks manageable but moderate, while cash flow is a relative strength with positive operating cash flow and free cash flow in 2026 despite historical swings.
Income Statement
44
Neutral
Balance Sheet
52
Neutral
Cash Flow
58
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue21.30B19.22B21.89B24.09B24.81B23.90B
Gross Profit2.89B3.04B2.68B4.00B3.57B3.89B
EBITDA-445.25M1.37B-954.00M1.86B1.46B1.88B
Net Income-1.83B236.00M-2.26B221.00M-104.00M370.00M
Balance Sheet
Total Assets28.84B29.98B29.81B33.20B34.17B33.97B
Cash, Cash Equivalents and Short-Term Investments3.44B5.18B4.44B4.40B4.59B6.66B
Total Debt9.11B11.77B11.80B11.80B11.84B11.91B
Total Liabilities18.63B19.34B19.43B21.39B22.80B23.26B
Stockholders Equity10.21B10.63B10.38B11.81B11.36B10.71B
Cash Flow
Free Cash Flow0.00902.00M73.00M-272.00M-2.03B1.66B
Operating Cash Flow0.001.41B1.51B399.00M-1.31B2.25B
Investing Cash Flow0.00-531.00M-1.34B-736.00M-845.00M-518.00M
Financing Cash Flow0.00-186.00M-168.00M-223.00M-254.00M-337.00M

Enshu Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price543.00
Price Trends
50DMA
567.77
Positive
100DMA
554.35
Positive
200DMA
521.50
Positive
Market Momentum
MACD
3.65
Negative
RSI
57.02
Neutral
STOCH
64.71
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 543 is below the 20-day moving average (MA) of 572.25, below the 50-day MA of 567.77, and above the 200-day MA of 521.50, indicating a bullish trend. The MACD of 3.65 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 64.71 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥99.14B136.935.02%3.23%-30.60%-84.58%
73
Outperform
¥56.25B13.822.54%3.47%-12.26%
69
Neutral
¥15.29B4.563.41%1.98%150.85%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
¥30.41B20.203.56%-2.79%-35.37%
60
Neutral
¥3.63B14.421.93%-12.19%
49
Neutral
¥4.27B12.014.06%3.22%215.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6218
Enshu Limited
586.00
126.33
27.48%
JP:6104
Shibaura Machine Co., Ltd.
4,620.00
1,548.23
50.40%
JP:6118
Aida Engineering,Ltd.
1,131.00
233.93
26.08%
JP:6125
Okamoto Machine Tool Works,Ltd.
4,755.00
1,086.44
29.61%
JP:6317
Kitagawa Corporation
1,668.00
413.55
32.97%
JP:6757
OSG Corporation Co., Ltd.
827.00
82.11
11.02%

Enshu Limited Corporate Events

Enshu Returns to Profit and Signals Higher Payout as Earnings Recover
May 15, 2026
Enshu Limited reported consolidated net sales of ¥19.2 billion for the fiscal year ended 31 March 2026, down 12.2% year on year, but swung from a loss to a profit with operating income of ¥380 million and profit attributable to owners of...
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: May 17, 2026