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

• Market Cap: ¥19.32B
• Dividend Yield: 2.92%
• Average Volume (3M): 51.97K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.03
• 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: 66 Neutral
• Price Target: ¥3,101.00 ▲(87.48% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven mainly by solid balance sheet strength but held back by weak profitability and negative free cash flow. Technicals are mixed with neutral momentum, while the low P/E and dividend yield provide valuation support.

Positive Factors

Balance sheet strength

A very low debt-to-equity ratio and high equity ratio provide durable financial flexibility. Over months this supports capital expenditure, working capital needs, and resilience in downturns without reliance on external borrowing, enabling strategic investments or opportunistic M&A.

Precision manufacturing niche

Specialized precision press and tooling capabilities represent a structural competitive advantage. High technical barriers and quality requirements foster long-term customer relationships in electronics and industrial markets, supporting stable order books and pricing power over time.

Revenue growth trend

Consistent mid-single-digit revenue growth indicates ongoing demand for products and modest market share gains. Sustained top-line expansion provides a platform to scale fixed-cost absorption and, if paired with cost initiatives, can translate into durable margin improvement and cash generation.

Negative Factors

Negative free cash flow

A large negative free cash flow amount is a structural concern: prolonged negative FCF strains liquidity and limits internal funding for capex, working capital, or dividends. Even with low leverage, sustained cash outflows may force asset sales or external financing.

Low profitability margins

Persistently low gross and operating margins reduce the company's ability to absorb cost inflation, invest in process improvements, or fund growth initiatives. Over months these thin margins magnify downside from demand swings and limit reinvestment capacity.

Low return on equity

A low ROE indicates the firm is not efficiently converting equity into returns, suggesting underutilized assets or conservative capital deployment. Over time, this can constrain shareholder value creation and make it harder to justify reinvestment without operational improvements.

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

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Enomoto Co., Ltd. Financial Statement Overview

Summary

Stable overall fundamentals supported by a strong balance sheet (low debt-to-equity of 0.18 and 66.71% equity ratio), but profitability is modest (net margin 1.67%; EBIT margin 2.26%) and cash generation is a concern 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	4.96B	3.44B	3.47B	2.25B	1.34B
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: Neutral
• Last Price: 1654.00
• 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:6928, the sentiment is Neutral. The current price of 1654 is below the 20-day moving average (MA) of 3115.00, below the 50-day MA of 2818.66, and below the 200-day MA of 2005.11, indicating a neutral trend. The MACD of 32.19 indicates Positive momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 38.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6928.

Enomoto Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥27.43B	13.32	―	2.89%	6.15%	2.98%
6853	73 Outperform	¥19.30B	18.81	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥23.12B	7.24	―	2.84%	8.78%	16.25%
6928	66 Neutral	¥19.32B	9.82	―	2.92%	9.64%	163.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6962	60 Neutral	¥19.54B	10.83	1.29%	4.91%	-1.71%	―
6926	46 Neutral	¥4.52B	-3.85	―	―	-6.31%	-64.22%