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

• Market Cap: ¥3.49B
• Dividend Yield: 3.36%
• Average Volume (3M): 3.98K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.22
• Revenue Growth: 6.89%
• EPS Growth: 187.15%
• Country: JP
• Employees: 134
• Sector: Communication Services
• Sector Strength: 90
• Industry: Advertising Agencies
• EPS (TTM): 10.84
• Shares Outstanding: 3,909,000
• 10 Day Avg. Volume: 2,630
• 30 Day Avg. Volume: 3,983
• PEG Ratio: -0.53
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.38
• 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

• Rating: 59 Neutral
• Price Target: ¥914.00 ▲(2.35%Upside)

eMnet Japan Co., Ltd. demonstrates a mixed financial performance, with challenges in revenue and cash flow, offset by a stable balance sheet. Technical indicators show positive momentum, yet investors should be cautious of potential overbought conditions. While the valuation appears high, the dividend yield adds attractiveness. The lack of recent earnings call data limits insights into future prospects.

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

Company Description

eMnet 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 Money

eMnet 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

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
1.34B	1.33B	1.37B	1.47B	10.67B	9.31B
	Gross Profit
1.32B	1.33B	1.37B	1.45B	1.58B	1.23B
	EBIT
58.06M	93.12M	111.62M	230.29M	503.71M	290.80M
	EBITDA
74.97M	114.49M	125.01M	251.83M	442.36M	298.37M
	Net Income Common Stockholders
37.78M	69.75M	73.19M	175.95M	311.01M	212.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.01B	962.36M	1.42B	1.21B	1.57B	1.26B
	Total Assets
2.69B	2.71B	3.01B	2.98B	3.31B	3.02B
	Total Debt
57.00K	403.00K	1.08M	1.75M	2.41M	3.05M
	Net Debt
-1.01B	-961.96M	-1.41B	-1.20B	-1.57B	-1.26B
	Total Liabilities
1.28B	1.30B	1.56B	1.48B	1.84B	1.79B
	Stockholders Equity
1.41B	1.41B	1.45B	1.50B	1.47B	1.23B
Cash Flow		Free Cash Flow
0.00	-119.87M	343.03M	-131.59M	374.22M	345.02M
	Operating Cash Flow
0.00	-115.89M	344.37M	-118.91M	385.59M	351.15M
	Investing Cash Flow
0.00	-228.28M	-17.62M	-33.31M	-23.35M	98.78M
	Financing Cash Flow
0.00	-109.49M	-116.93M	-212.34M	-54.90M	-29.37M

eMnet Japan Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 893.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 893 is above the 20-day moving average (MA) of 880.55, above the 50-day MA of 823.48, and above the 200-day MA of 874.43, indicating a bullish trend. The MACD of 19.18 indicates Negative momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 71.83 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4196	67 Neutral	¥2.74B	11.22		―	-3.61%	66.56%
9466	66 Neutral	¥3.31B	7.00		7.91%	-4.30%	198.64%
Sector *	61 Neutral	$14.75B	5.86	-3.99%	6.11%	2.67%	-30.24%
3690	61 Neutral	¥3.36B	76.57		1.43%	13.67%	-63.44%
7036	59 Neutral	¥3.49B	31.94		3.36%	6.89%	187.15%
7359	54 Neutral	¥3.45B	―		―	-4.55%	-45.82%
7069	51 Neutral	¥2.96B	38.23		―	1.11%	―