Enomoto Co., Ltd. (6928) AI Stock Analysis

• Market Cap: ¥16.36B
• Dividend Yield: 2.92%
• Average Volume (3M): 51.97K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.87
• Revenue Growth: 9.64%
• EPS Growth: 163.46%
• Country: JP
• Employees: 1,264
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 50.94
• Shares Outstanding: 6,865,360
• 10 Day Avg. Volume: 51,870
• 30 Day Avg. Volume: 51,966
• PEG Ratio: 0.07
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -10.11
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥2,814.00 ▲(70.13% Upside)

The score is driven primarily by solid balance sheet strength but weighed down by negative free cash flow and low operating profitability. Technicals remain in a strong uptrend, though overbought signals add short-term risk, while valuation is only moderate with a mid-20s P/E and a ~2.7% dividend yield.

Positive Factors

Strong balance sheet

Very low leverage and a high equity ratio provide durable financial flexibility, lowering refinancing and solvency risk. This enables the company to absorb cyclicality in electronics demand, pursue selective capex or tooling investments, and support customer commitments over the medium term.

Specialized manufacturing capability

Core expertise in precision press processing and tooling creates structural competitive advantages: high technical barriers, validated quality systems and mass-production readiness. These attributes support long-term customer stickiness in electronics and industrial supply chains and steady order flows.

Consistent revenue growth

Sustained top-line expansion signals ongoing product demand and market penetration in component markets. Over the medium term this revenue momentum can support scale economics, incremental tooling utilization, and gradual margin recovery if cost controls and mix improvements continue.

Negative Factors

Negative free cash flow

Material negative free cash flow reduces internal funding for capex, tooling replacement and working capital, forcing reliance on external financing or equity to fund growth. Persisting FCF deficits can constrain strategic investments and limit dividend or buyback flexibility over months.

Low operating profitability

Thin operating and net margins indicate limited pricing power or cost inefficiencies in manufacturing. Low profitability lowers the cushion against input cost increases and reduces retained earnings for reinvestment, making long-term profit improvement and returns to shareholders more challenging.

Low return on equity

A low ROE suggests shareholder capital is not being deployed efficiently into profitable activities. Over the medium term this can indicate structural issues in asset utilization or pricing, limiting the company’s ability to generate attractive long-term shareholder returns without strategic operational changes.

Enomoto Co., Ltd. Business Overview & Revenue Model

Company Description

Enomoto Co., Ltd. (6928) is a Japanese company primarily engaged in the manufacturing and sales of electronic components, particularly focusing on high-quality connectors and sensors. The company serves a diverse range of industries, including automotive, telecommunications, and consumer electronics, by providing innovative solutions that enhance connectivity and performance. With a commitment to research and development, Enomoto aims to deliver cutting-edge products that meet the evolving needs of its clients.

How the Company Makes Money

Enomoto Co., Ltd. generates revenue primarily through the sale of its electronic components, including connectors and sensors, to various sectors such as automotive, telecommunications, and consumer electronics. The company operates on a business-to-business (B2B) model, where it establishes long-term contracts and partnerships with manufacturers and suppliers in these industries. Key revenue streams include direct sales of products, custom solutions tailored to specific client needs, and ongoing support services. Additionally, Enomoto may benefit from strategic partnerships with major technology firms and participation in industry-specific trade shows, which enhance its visibility and market reach. The company's focus on innovation and quality helps maintain customer loyalty and allows for premium pricing on its products.

Enomoto Co., Ltd. Financial Statement Overview

Summary

Financials are stable but mixed: a strong balance sheet (low debt-to-equity of 0.18 and high equity ratio of 66.71%) supports resilience, while profitability is modest (net margin 1.67%, low EBIT margin 2.26%) and cash flow is a key concern with free cash flow turning negative (-904.97 million yen).

Income Statement

The company exhibits moderate revenue growth with a 6.49% increase in revenue for the latest year. Gross profit margin is 11.69%, which shows some room for improvement in cost management. Net profit margin improved to 1.67%, indicating better profitability control compared to previous years. However, EBIT and EBITDA margins are relatively low at 2.26% and 10.34%, respectively, suggesting potential inefficiencies in operations.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.18, reflecting minimal reliance on debt financing. The equity ratio stands at 66.71%, indicating a solid equity base. Return on Equity (ROE) is relatively low at 2.04%, which may point to underutilization of shareholder funds or conservative financial strategies.

Cash Flow

Cash flow analysis reveals challenges, with free cash flow turning negative in the most recent year at -904.97 million yen, a decline from positive free cash flow in the previous year. Operating cash flow to net income ratio is favorable at 1.63, suggesting operational efficiency in cash generation, but the negative free cash flow growth rate indicates potential issues with capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.52B	26.88B	25.24B	29.27B	27.25B	23.00B
Gross Profit	3.33B	3.14B	2.65B	4.10B	4.46B	3.82B
EBITDA	2.94B	2.78B	2.11B	3.41B	3.76B	3.05B
Net Income	663.53M	447.93M	121.28M	1.27B	1.55B	1.49B
Balance Sheet
Total Assets	32.41B	32.83B	32.37B	34.04B	30.17B	25.58B
Cash, Cash Equivalents and Short-Term Investments	4.24B	4.45B	5.03B	4.04B	4.37B	3.32B
Total Debt	4.40B	4.04B	3.11B	3.13B	2.15B	1.20B
Total Liabilities	11.18B	10.93B	11.39B	13.44B	11.55B	8.84B
Stockholders Equity	21.22B	21.90B	20.98B	20.59B	18.63B	16.74B
Cash Flow
Free Cash Flow	0.00	-904.97M	1.08B	-1.10B	280.27M	-11.64M
Operating Cash Flow	0.00	732.03M	3.10B	1.81B	3.33B	2.51B
Investing Cash Flow	0.00	-1.65B	-1.76B	-3.00B	-2.97B	-2.40B
Financing Cash Flow	0.00	-98.63M	-511.55M	535.79M	386.59M	-113.92M

Enomoto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1654.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6928, the sentiment is Positive. The current price of 1654 is below the 20-day moving average (MA) of 2443.70, below the 50-day MA of 2351.98, and below the 200-day MA of 1726.30, indicating a neutral trend. The MACD of 30.46 indicates Positive momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 11.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6928.

Enomoto Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6899	78 Outperform	¥8.27B	9.15	―	4.48%	2.63%	-32.95%
6658	76 Outperform	¥11.46B	6.09	―	4.44%	1.68%	15.79%
6919	66 Neutral	¥11.05B	33.65	―	5.75%	-0.23%	-32.32%
6772	65 Neutral	¥10.02B	25.67	―	1.78%	-1.17%	-42.36%
6928	64 Neutral	¥16.36B	20.28	―	2.92%	9.64%	163.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6926	46 Neutral	¥4.43B	-2.35	―	―	-6.31%	-64.22%