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

• Market Cap: ¥3.53B
• Dividend Yield: 3.62%
• Average Volume (3M): 10.31K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 1.22
• Revenue Growth: 10.03%
• EPS Growth: 236.86%
• Country: JP
• Employees: 134
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 3.03
• Shares Outstanding: 3,909,000
• 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: ¥983.00
• Price Target Upside: 11.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥983.00 ▲(11.20% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and negative cash flow trends. Technical analysis suggests some bearish momentum, while valuation metrics indicate potential overvaluation. The absence of earnings call data and corporate events limits further insights.

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

Company Description

eMnet Japan Co., Ltd. (7036) is a leading digital marketing solutions provider based in Japan. The company specializes in offering comprehensive online marketing services, including search engine optimization (SEO), search engine marketing (SEM), social media marketing, and other digital advertising solutions. eMnet Japan caters to a diverse range of industries, aiming to enhance the online presence and performance of its clients through innovative and data-driven marketing strategies.

How the Company Makes Money

eMnet Japan Co., Ltd. generates its revenue primarily through the provision of digital marketing services. The company charges clients for developing and executing marketing campaigns tailored to their specific business needs. Key revenue streams include fees for SEO and SEM services, social media advertising, and performance-based marketing solutions. Additionally, eMnet Japan may engage in partnerships with technology platforms and media outlets to enhance its service offerings, contributing to its revenue growth. These partnerships can include revenue-sharing agreements or collaborative projects that expand the company's market reach and client base.

eMnet Japan Co., Ltd. Financial Statement Overview

Summary

eMnet Japan Co., Ltd. faces financial challenges with declining revenues and profitability margins, despite a stable balance sheet with low debt. Negative cash flow trends are concerning, though substantial cash reserves provide some buffer. 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	1.50B	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: Negative
• Last Price: 884.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7036, the sentiment is Negative. The current price of 884 is below the 20-day moving average (MA) of 1001.75, below the 50-day MA of 1000.50, and below the 200-day MA of 921.30, indicating a bearish trend. The MACD of -8.15 indicates Positive momentum. The RSI at 36.87 is Neutral, neither overbought nor oversold. The STOCH value of 2.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
9466	63 Neutral	¥3.09B	6.48	―	6.36%	-5.78%	177.67%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3690	56 Neutral	¥3.71B	31.29	―	1.35%	24.61%	19.89%
7036	56 Neutral	¥3.53B	27.19	―	3.62%	10.03%	236.86%
4196	54 Neutral	¥2.80B	37.83	―	―	1.64%	-65.79%
7069	48 Neutral	¥3.04B	23.18	―	―	-5.87%	―
7359	43 Neutral	¥3.83B	―	―	―	4.43%	24.14%