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

• Market Cap: ¥22.85B
• Dividend Yield: 2.92%
• Average Volume (3M): 51.97K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.99
• Revenue Growth: 9.64%
• EPS Growth: 163.46%
• Country: JP
• Employees: 1,264
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 61.06
• 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): 160.25
• Revenue Forecast (FY): ¥28.88B

• Rating: 69 Neutral
• Price Target: ¥3,581.00 ▲(116.51% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is driven primarily by stable financial positioning (notably low leverage) but constrained by thin operating profitability and negative free cash flow. Technicals are supportive due to a strong uptrend and positive momentum, though overbought signals temper the outlook. Valuation is fair with a modest dividend yield, but not compelling enough to offset cash flow and margin concerns.

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio (0.18) and a 66.7% equity ratio provide durable financial flexibility. This reduces interest burden and refinancing risk, supports supplier and customer confidence, and preserves capacity to fund capex or weather cyclical downturns without forced asset sales.

Precision manufacturing & tooling capability

Specialized precision press processing and tooling create structural competitive advantages: high technical barriers, deep customer qualifications, and long product qualification cycles. These capabilities support recurring contracts in electronics and industrial markets and favor long-term customer stickiness.

Steady revenue growth & operating cash efficiency

Consistent mid-single-digit revenue growth alongside an OCF-to-net-income ratio of 1.63 signals underlying operational cash generation quality. Over months this supports working capital needs and incremental reinvestment, indicating revenues are not solely driven by accounting gains but by cash-generative operations.

Negative Factors

Low operating and net margins

Very slim EBIT and net margins limit the company's ability to absorb input cost increases, invest in R&D or tooling, and build retained earnings. Sustained low margins constrain profit reinvestment and reduce resilience to competitive pressure, slowing durable earnings growth.

Negative free cash flow

A large negative free cash flow outflow (-904.97M yen) is a structural concern: it reduces internal financing for capex, dividends, or debt paydown. If sustained, it forces reliance on external funding or asset sales and undermines the balance sheet cushion provided by low leverage.

Low return on equity

A low ROE of ~2% suggests shareholder capital is being underutilized and returns are modest versus competing allocations. Over the medium term this can limit investor support and indicates the business may need structural changes to improve pricing, cost structure, or capital deployment to raise long-term value creation.

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: moderate revenue growth (+6.49%) and a strong balance sheet (debt-to-equity 0.18; equity ratio 66.71%) are offset by thin profitability (net margin 1.67%, EBIT margin 2.26%) and weakening cash generation with free cash flow turning negative (-904.97M 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• RSI: Negative
• STOCH: Negative

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 2934.55, below the 50-day MA of 2633.12, and below the 200-day MA of 1887.11, indicating a bullish trend. The MACD of 211.61 indicates Negative momentum. The RSI at 74.66 is Negative, neither overbought nor oversold. The STOCH value of 86.94 is Negative, 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	¥8.23B	18.95	―	4.48%	2.63%	-32.95%
6658	76 Outperform	¥12.77B	6.79	―	4.44%	1.68%	15.79%
6928	69 Neutral	¥22.85B	21.34	―	2.92%	9.64%	163.46%
6919	66 Neutral	¥11.86B	52.79	―	5.75%	-0.23%	-32.32%
6772	62 Neutral	¥9.88B	49.02	―	1.78%	-1.17%	-42.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6926	46 Neutral	¥4.54B	-2.52	―	―	-6.31%	-64.22%