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eMnet Japan Co., Ltd. (JP:7036)
:7036
Japanese Market

eMnet Japan Co., Ltd. (7036) AI Stock Analysis

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eMnet Japan Co., Ltd.

(7036)

Rating:66Neutral
Price Target:
¥1,086.00
▲(13.13%Upside)
The overall stock score of 66 is driven by strong technical analysis indicating bullish momentum but tempered by financial performance challenges and potential overvaluation concerns. While the stock's current upward trend is a positive indicator, the high P/E ratio and negative cash flow warrant caution. Investors should monitor financial trends closely.

eMnet Japan Co., Ltd. (7036) vs. iShares MSCI Japan ETF (EWJ)

eMnet Japan Co., Ltd. Business Overview & Revenue Model

Company DescriptioneMnet Japan Co., Ltd. (7036) is a Japanese company that operates in the digital marketing sector. The company specializes in providing comprehensive online advertising solutions, focusing on internet advertising services such as search engine marketing, display advertising, and social media marketing. eMnet Japan leverages its expertise in digital marketing strategies to help businesses optimize their online presence and achieve their marketing objectives.
How the Company Makes MoneyeMnet Japan Co., Ltd. generates revenue primarily through its digital marketing services, offering a range of advertising solutions that include search engine marketing (SEM), display ads, and social media marketing. The company earns money by charging clients for these services, often based on performance metrics such as clicks, impressions, or conversions. Additionally, eMnet Japan may have partnerships with major digital platforms and search engines, allowing them to offer competitive rates and access exclusive advertising spaces, which further contributes to their revenue. Their business model revolves around providing tailored advertising solutions that deliver measurable results for clients, ensuring ongoing demand for their expertise in the digital marketing space.

eMnet Japan Co., Ltd. Financial Statement Overview

Summary
eMnet Japan Co., Ltd. is experiencing financial challenges with decreasing revenues and profitability margins, despite a stable balance sheet with low debt levels. While the company has substantial cash reserves, the negative cash flow trends are concerning and could impact future financial stability if not addressed. Close monitoring of operational efficiency and cash management is recommended.
Income Statement
45
Neutral
The company's revenue has been declining over the past few years, with a significant drop from 2021 to 2022. The gross profit margin is 100% due to the entire revenue being considered as gross profit, which is unusual and may require further analysis. Net profit margin is positive but decreased in recent years. Both EBIT and EBITDA margins are positive but have shown a downward trend, indicating potential issues with operational efficiency.
Balance Sheet
70
Positive
The company maintains a strong equity base with a favorable equity ratio and low levels of debt, resulting in a very low debt-to-equity ratio. Return on equity has declined over the years, reflecting reduced profitability. The balance sheet shows stability due to significant cash reserves and low leverage, but declining ROE could be a concern for future profitability.
Cash Flow
40
Negative
The company experienced negative operating cash flow in the most recent year, a significant deterioration from prior periods. Free cash flow growth is negative, indicating potential issues in generating cash. The company’s high cash reserves may provide some buffer, but consistent negative cash flow could pose a risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.34B1.33B1.37B1.47B10.67B9.31B
Gross Profit1.32B1.33B1.37B1.45B1.58B1.23B
EBITDA74.97M114.49M125.01M251.83M442.36M298.37M
Net Income37.78M69.75M73.19M175.95M311.01M212.26M
Balance Sheet
Total Assets2.69B2.71B3.01B2.98B3.31B3.02B
Cash, Cash Equivalents and Short-Term Investments1.01B962.36M1.42B1.21B1.57B1.26B
Total Debt57.00K403.00K1.08M1.75M2.41M3.05M
Total Liabilities1.28B1.30B1.56B1.48B1.84B1.79B
Stockholders Equity1.41B1.41B1.45B1.50B1.47B1.23B
Cash Flow
Free Cash Flow0.00-119.87M343.03M-131.59M374.22M345.02M
Operating Cash Flow0.00-115.89M344.37M-118.91M385.59M351.15M
Investing Cash Flow0.00-228.28M-17.62M-33.31M-23.35M98.78M
Financing Cash Flow0.00-109.49M-116.93M-212.34M-54.90M-29.37M

eMnet Japan Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price960.00
Price Trends
50DMA
871.75
Positive
100DMA
872.18
Positive
200DMA
863.43
Positive
Market Momentum
MACD
33.92
Negative
RSI
62.35
Neutral
STOCH
41.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7036, the sentiment is Positive. The current price of 960 is above the 20-day moving average (MA) of 943.88, above the 50-day MA of 871.75, and above the 200-day MA of 863.43, indicating a bullish trend. The MACD of 33.92 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 41.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7036.

eMnet Japan Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
¥2.90B12.02
-3.61%66.56%
66
Neutral
¥3.89B35.59
3.42%6.89%187.15%
62
Neutral
¥3.27B6.91
8.00%-4.30%198.64%
61
Neutral
$41.24B-0.79-14.21%3.80%2.39%-73.52%
61
Neutral
¥3.35B76.29
1.43%13.67%-63.44%
53
Neutral
¥3.67B
-4.55%-45.82%
50
Neutral
¥2.79B36.62
1.11%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7036
eMnet Japan Co., Ltd.
1,000.00
106.32
11.90%
JP:3690
YRGLM, Inc.
532.00
-84.96
-13.77%
JP:4196
NEO MARKETING Inc.
1,184.00
164.00
16.08%
JP:7069
CyberBuzz, Inc.
706.00
-813.00
-53.52%
JP:7359
Tokyo Communications Group,Inc.
364.00
-139.00
-27.63%
JP:9466
Aidma Marketing Communication Corp.
249.00
28.38
12.86%
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: Jun 24, 2025