Endo Lighting Corporation (6932) AI Stock Analysis

• Market Cap: ¥42.53B
• Dividend Yield: 2.83%
• Average Volume (3M): 62.59K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.19
• Revenue Growth: 2.27%
• EPS Growth: 24.78%
• Country: JP
• Employees: 1,552
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): N/A
• Shares Outstanding: 14,776,321
• 10 Day Avg. Volume: 36,420
• 30 Day Avg. Volume: 62,593
• PEG Ratio: 1.31
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -16.39
• 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: 75 Outperform
• Price Target: ¥3,131.00 ▲(28.37% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by strong profitability and a conservative balance sheet, tempered by negative free cash flow and moderate cash conversion. Valuation is a clear positive with a low P/E and a reasonable dividend yield. Technicals indicate an overall uptrend but near-term momentum appears overextended, adding pullback risk.

Positive Factors

High profitability

Sustained high gross and EBITDA margins indicate durable pricing power and efficient operations in lighting fixtures and solutions. These margins provide long-term capacity to fund R&D, service expansion, and dividends, making earnings less vulnerable to modest top-line swings.

Conservative balance sheet

Low leverage and a high equity ratio create financial resilience across cycles and flexibility for strategic investment or opportunistic M&A. Strong ROE shows capital is being used effectively, reducing default risk and supporting long-term stability for project-based contracts.

Earnings momentum (EPS growth)

Robust EPS growth alongside solid ROE signals management effectiveness in converting revenue and margins into shareholder returns. This structural earnings improvement can compound over time, supporting reinvestment in solutions, higher payout capacity, or balance sheet strengthening.

Negative Factors

Negative free cash flow

Persistent negative free cash flow driven by sizeable capital expenditures weakens internal funding for growth and dividends. Over months this can force external financing or slower reinvestment, increasing balance sheet and liquidity risk if cash generation doesn’t recover.

Moderate cash conversion

Only ~61% conversion of accounting profit to operating cash points to working capital, receivables, or timing issues that reduce cash available to fund capex or pay down liabilities. This structural gap heightens sensitivity to project timing and cyclical demand.

Modest revenue growth

Top-line growth is limited, reflecting a mature fixtures market and project-based sales that can be lumpy. Without faster revenue expansion or higher recurring service revenue, margin benefits may be constrained and scale advantages harder to realize over the medium term.

Endo Lighting Corporation Business Overview & Revenue Model

Company Description

ENDO Lighting Corporation plans, designs, manufactures, and sells light fixtures in Japan and internationally. The company offers various LED products, including downlights, spotlights, linear lights, and underwater lighting products. It also sells interior furnishings and supplies. The company delivers its lighting products to department stores, offices, factories, public facilities, and other properties, as well as various specialty stores. ENDO Lighting Corporation was founded in 1967 and is headquartered in Osaka, Japan.

How the Company Makes Money

Endo Lighting Corporation generates revenue primarily through the sale of its lighting products, which include LED lamps, fixtures, and control systems. The company operates through various sales channels, including direct sales to businesses, partnerships with distributors, and online sales platforms. Key revenue streams include sales from commercial lighting projects, residential lighting solutions, and specialized industrial lighting applications. Additionally, Endo Lighting engages in strategic partnerships with construction firms and other businesses to provide customized lighting solutions for large-scale projects, further enhancing its revenue potential. The focus on energy-efficient products also positions the company favorably in markets that prioritize sustainability, contributing to its overall earnings.

Endo Lighting Corporation Financial Statement Overview

Summary

Strong profitability and operating efficiency (38.74% gross margin, 8.93% net margin; 16.44% EBITDA margin) and a conservative balance sheet (0.30 debt-to-equity, 65.08% equity ratio). Offset by cash flow weakness, with negative free cash flow (-1.24B yen) and only moderate cash conversion (operating cash flow to net income of 0.61).

Income Statement

Endo Lighting Corporation's income statement shows strong performance with a consistent revenue growth from the previous year (3.92%). The gross profit margin stands at 38.74% and the net profit margin at 8.93%, indicating solid profitability. Additionally, the company maintains a healthy EBIT margin of 9.17% and EBITDA margin of 16.44%, reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.30, suggesting conservative use of leverage. The return on equity is a robust 10.89%, indicating effective use of shareholder funds. The equity ratio is 65.08%, highlighting strong equity financing and long-term stability. However, a slight increase in total liabilities from the previous year requires monitoring.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow of -1.24 billion yen, primarily due to significant capital expenditures. The operating cash flow to net income ratio is 0.61, suggesting moderate cash conversion efficiency. Despite a substantial increase in free cash flow in previous years, recent negative free cash flow poses potential liquidity concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	54.46B	53.73B	51.71B	45.73B	40.64B	35.42B
Gross Profit	21.51B	20.82B	19.89B	15.99B	15.91B	13.26B
EBITDA	9.36B	8.83B	9.01B	6.52B	7.65B	5.39B
Net Income	5.26B	4.80B	4.65B	2.96B	3.33B	1.28B
Balance Sheet
Total Assets	66.93B	67.67B	62.75B	57.34B	55.59B	50.55B
Cash, Cash Equivalents and Short-Term Investments	17.14B	16.33B	16.37B	12.05B	10.79B	10.06B
Total Debt	13.61B	13.08B	12.41B	16.02B	16.01B	17.89B
Total Liabilities	23.34B	23.61B	24.19B	25.81B	27.35B	27.01B
Stockholders Equity	43.58B	44.05B	38.57B	31.53B	28.24B	23.54B
Cash Flow
Free Cash Flow	0.00	-1.24B	7.09B	826.00M	1.75B	3.47B
Operating Cash Flow	0.00	2.92B	10.15B	3.90B	5.03B	5.84B
Investing Cash Flow	0.00	-4.32B	-2.90B	-2.79B	-3.06B	-2.48B
Financing Cash Flow	0.00	-6.00M	-4.09B	-461.00M	-2.13B	-2.33B

Endo Lighting Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2439.00
• 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:6932, the sentiment is Positive. The current price of 2439 is below the 20-day moving average (MA) of 2859.70, below the 50-day MA of 2641.20, and above the 200-day MA of 2319.38, indicating a bullish trend. The MACD of 77.93 indicates Positive momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6932.

Endo Lighting Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7989	77 Outperform	¥53.77B	12.25	―	2.52%	2.47%	6.88%
8130	76 Outperform	¥188.88B	11.81	―	4.91%	6.35%	14.05%
6932	75 Outperform	¥42.53B	8.19	―	2.83%	2.27%	24.78%
7981	72 Outperform	¥188.06B	8.20	―	3.41%	6.17%	61.39%
5946	67 Neutral	¥68.24B	31.55	1.61%	2.27%	1.82%	-32.79%
7874	63 Neutral	¥41.07B	8.04	―	1.90%	6.70%	53.04%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Endo Lighting Corporation Corporate Events

Endo Lighting Lifts Profits and Plans Sharp Dividend Increase for FY2025

Endo Lighting reported consolidated net sales of ¥39.4 billion for the nine months ended 31 December 2025, up 1.7% year on year, with operating profit rising 20.1% to ¥3.64 billion and profit attributable to owners of parent climbing 26.1% to ¥2.72 billion, reflecting improved profitability despite modest top-line growth. The balance sheet remained solid with total assets of ¥74.2 billion and an equity ratio of 63.1%, and the company plans to significantly increase shareholder returns, forecasting a full-year dividend of ¥84 per share for the fiscal year ending March 2026—up sharply from ¥50 in the prior year—while maintaining its full-year guidance for modest sales and profit growth and a slight year-on-year decline in net profit, signaling confidence in cash generation and financial stability.

The most recent analyst rating on (JP:6932) stock is a Hold with a Yen2562.00 price target. To see the full list of analyst forecasts on Endo Lighting Corporation stock, see the JP:6932 Stock Forecast page.