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

• Market Cap: ¥4.54B
• Dividend Yield: 3.02%
• Average Volume (3M): 10.31K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.19
• Revenue Growth: 16.63%
• EPS Growth: 324.42%
• Country: JP
• Employees: 134
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 8.66
• Shares Outstanding: 3,913,800
• 10 Day Avg. Volume: 27,240
• 30 Day Avg. Volume: 10,310
• PEG Ratio: -8.41
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 2.40
• P/FCF Ratio: -26.66
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,226.00 ▲(5.69% Upside)

The overall stock score is driven by strong technical analysis indicating bullish momentum, despite financial challenges with declining revenues and negative cash flow trends. The valuation suggests potential overvaluation, but the dividend yield offers some investor appeal.

Positive Factors

Stable Balance Sheet

A stable balance sheet with low debt levels and significant cash reserves provides financial flexibility and resilience against economic downturns.

Revenue Growth

Positive revenue growth indicates expanding business operations and potential for increased market share, enhancing long-term competitiveness.

Cash Reserves

Large cash reserves offer a cushion to manage operational challenges and invest in growth opportunities, supporting long-term strategic initiatives.

Negative Factors

Declining Revenue

Continued revenue decline could weaken market position and reduce competitive edge, impacting long-term growth prospects.

Negative Cash Flow

Consistent negative cash flow can strain financial resources, limiting the ability to invest in growth and potentially affecting future stability.

Declining Profit Margins

Decreasing profit margins suggest operational inefficiencies, which could erode profitability and hinder long-term financial health.

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

Company Description

eMnet Japan.co.ltd. engages in the internet advertising business. The company offers search linked, operational display, SNS, feed, and net advertising services; inbound tourism and overseas advertising services; access analysis; and content marketing services. It is also involved in the Website production and LP/banner production activities. The company was founded in 2007 and is based in Tokyo, Japan.

How the Company Makes Money

eMnet Japan generates revenue primarily through its suite of digital marketing services and solutions. Key revenue streams include fees for advertising placements, subscription models for software-as-a-service (SaaS) platforms, and consulting services related to digital strategy and implementation. The company also benefits from partnerships with technology firms and advertising networks, allowing it to offer integrated solutions that enhance its service offerings. Additionally, eMnet Japan leverages data analytics to provide insights that help clients improve their marketing ROI, further solidifying its value proposition in the competitive digital marketing landscape.

eMnet Japan Co., Ltd. Financial Statement Overview

Summary

eMnet Japan Co., Ltd. is facing financial challenges with declining revenues and profitability margins. Despite a stable balance sheet with low debt levels and substantial cash reserves, negative cash flow trends are concerning and could impact future financial stability if not addressed.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.33B	1.37B	1.47B	10.67B	9.31B
Gross Profit	1.45B	1.33B	1.37B	1.47B	1.58B	1.23B
EBITDA	191.84M	114.49M	125.01M	251.83M	442.36M	298.37M
Net Income	128.14M	69.75M	73.19M	175.95M	311.01M	212.26M
Balance Sheet
Total Assets	2.82B	2.71B	3.01B	2.98B	3.31B	3.02B
Cash, Cash Equivalents and Short-Term Investments	1.04B	962.36M	1.42B	1.21B	1.57B	1.26B
Total Debt	0.00	403.00K	1.08M	1.75M	2.41M	3.05M
Total Liabilities	1.40B	1.30B	1.56B	1.48B	1.84B	1.79B
Stockholders Equity	1.42B	1.41B	1.45B	1.50B	1.47B	1.23B
Cash Flow
Free Cash Flow	177.00M	-119.87M	343.03M	-131.59M	374.22M	345.02M
Operating Cash Flow	177.00M	-115.89M	344.37M	-118.91M	385.59M	351.15M
Investing Cash Flow	-18.00M	-228.28M	-17.62M	-33.31M	-23.35M	98.78M
Financing Cash Flow	-124.00M	-109.49M	-116.93M	-212.34M	-54.90M	-29.37M

eMnet Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1160 is above the 20-day moving average (MA) of 1050.95, above the 50-day MA of 979.48, and above the 200-day MA of 938.02, indicating a bullish trend. The MACD of 50.72 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 94.98 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7036	66 Neutral	¥4.54B	29.38	―	3.02%	16.63%	324.42%
4196	63 Neutral	¥2.83B	110.67	―	―	9.93%	-81.98%
9466	63 Neutral	¥3.02B	6.50	―	6.49%	-13.21%	103.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.00B	7.82	―	―	-4.44%	―
3690	55 Neutral	¥3.54B	-24.35	―	1.41%	35.71%	-305.57%
7359	43 Neutral	¥2.96B	360.22	―	―	9.46%	―