Adish Co. Ltd. (7093) AI Stock Analysis

• Market Cap: ¥1.30B
• Dividend Yield: N/A
• Average Volume (3M): 9.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• Revenue Growth: 1.68%
• EPS Growth: 73.17%
• Country: JP
• Employees: 411
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.08
• Shares Outstanding: 2,142,470
• 10 Day Avg. Volume: 9,710
• 30 Day Avg. Volume: 9,820
• PEG Ratio: 0.19
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -4.24
• 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: 45 Neutral
• Price Target: ¥534.00 ▼(-8.72% Downside)

Adish Co. Ltd.'s overall stock score is primarily impacted by its financial difficulties, with negative profitability and cash flow metrics. The technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. The lack of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Diversified revenue streams and long-term contracts

A multi-stream model—product sales, bespoke contracts with automotive and telecom customers, and R&D-backed proprietary offerings—reduces customer and end-market concentration. Long-term contracts provide recurring revenue visibility and help stabilize income across industry cycles over the next 2–6 months.

Manageable leverage on the balance sheet

Moderate debt levels imply the company retains financial flexibility to fund operations and targeted investments without excessive interest burden. Manageable leverage lowers near-term default risk and preserves capacity to support R&D or restructuring initiatives over a medium-term horizon.

Positive gross profit margins on core products

Sustained positive gross margins indicate the core manufacturing and component businesses are inherently profitable before overhead. That underlying product-level profitability supports the potential for operating leverage and targeted cost controls to restore overall profitability if SG&A and other fixed costs are addressed.

Negative Factors

Negative operating and free cash flow

Persistent negative operating cash flow and free cash flow constrain the company’s ability to fund capex, repay debt, or invest in growth without external financing. This undermines financial flexibility and increases refinancing or dilution risk if cash conversion does not improve in the coming quarters.

Negative EBIT/EBITDA and net profit margins

Negative operating and earnings margins signal the business is losing money at the core operational level. Without structural margin improvement—through pricing, mix, or cost reduction—losses erode retained earnings and limit reinvestment capacity, prolonging the path to sustainable profitability.

Declining shareholders' equity and weakening returns

Falling equity and negative ROE shrink the capital buffer that absorbs operational shocks and can restrict access to credit. Over time, declining book equity increases the likelihood of covenant pressure, investor concern, and constrained growth financing unless profitability and retained earnings recover.

Adish Co. Ltd. Business Overview & Revenue Model

Company Description

Adish Co. Ltd. (7093) is a diversified company primarily engaged in the manufacturing and distribution of electronic components and consumer electronics. Operating within the technology sector, the company specializes in providing high-quality products such as semiconductors, circuit boards, and smart devices. With a commitment to innovation, Adish Co. Ltd. focuses on developing advanced technologies that cater to various industries, including automotive, telecommunications, and consumer goods.

How the Company Makes Money

Adish Co. Ltd. generates revenue through multiple key streams. The primary source of income comes from the sale of its electronic components and consumer electronics, which are supplied to various manufacturers and retailers. Additionally, the company earns revenue from long-term contracts with automotive and telecommunications companies for bespoke electronic solutions. Strategic partnerships with technology firms and suppliers enhance its market reach and operational efficiency. Furthermore, Adish Co. Ltd. invests in research and development, allowing it to create proprietary technologies that command premium pricing in the market. This combination of product sales, contracts, and innovative solutions solidifies the company's financial performance.

Adish Co. Ltd. Financial Statement Overview

Summary

Adish Co. Ltd. is experiencing financial difficulties across all verticals. Despite modest revenue growth, profitability and cash flow are under pressure, with negative margins and cash flow metrics. The balance sheet shows moderate leverage but declining equity, indicating financial instability.

Income Statement

Adish Co. Ltd. has experienced a decline in profitability, with negative EBIT and EBITDA margins indicating operational challenges. The gross profit margin remains positive, but the net profit margin is negative, reflecting overall financial difficulties. Revenue growth has been modest, but the company has struggled to convert this into profit.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the decline in stockholders' equity and negative return on equity indicate financial strain. The equity ratio is relatively stable, but the company's overall financial health is weakened by declining equity and profitability.

Cash Flow

Adish Co. Ltd. faces challenges with negative free cash flow and operating cash flow, highlighting liquidity issues. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in cash generation relative to net income. Free cash flow growth is negative, pointing to cash management concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.59B	3.59B	3.52B	3.42B	2.99B	2.72B
Gross Profit	936.04M	962.31M	999.00M	1.25B	1.10B	907.26M
EBITDA	-64.05M	-112.00M	-149.00M	126.98M	84.99M	17.58M
Net Income	-79.78M	-115.33M	-193.00M	77.03M	48.80M	-4.12M
Balance Sheet
Total Assets	1.23B	1.34B	1.18B	1.46B	1.16B	1.12B
Cash, Cash Equivalents and Short-Term Investments	585.03M	579.32M	557.00M	849.02M	634.18M	649.57M
Total Debt	338.06M	485.84M	271.00M	200.06M	65.71M	147.38M
Total Liabilities	788.81M	988.31M	737.00M	731.50M	518.66M	538.82M
Stockholders Equity	439.13M	352.06M	439.00M	726.37M	645.20M	586.12M
Cash Flow
Free Cash Flow	0.00	-200.58M	-269.00M	78.34M	70.38M	12.84M
Operating Cash Flow	0.00	-186.15M	-249.00M	93.65M	112.52M	28.58M
Investing Cash Flow	0.00	-16.00M	-14.57M	-15.12M	-55.83M	-24.86M
Financing Cash Flow	0.00	224.00M	-27.99M	136.25M	-72.46M	296.80M

Adish Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 585.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7093, the sentiment is Positive. The current price of 585 is above the 20-day moving average (MA) of 551.90, above the 50-day MA of 538.80, and above the 200-day MA of 583.78, indicating a bullish trend. The MACD of 19.00 indicates Negative momentum. The RSI at 70.95 is Negative, neither overbought nor oversold. The STOCH value of 98.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7093.

Adish Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3908	68 Neutral	¥1.91B	13.40	―	―	-10.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3803	56 Neutral	¥1.23B	-5.70	―	―	39.34%	-765.51%
4316	47 Neutral	¥3.24B	-16.40	―	―	11.96%	-453.36%
7093	45 Neutral	¥1.30B	-26.99	―	―	1.68%	73.17%
3634	44 Neutral	¥1.61B	-34.11	―	0.42%	6.81%	62.28%