Enjin Co.,Ltd. (7370) AI Stock Analysis

• Market Cap: ¥6.09B
• Dividend Yield: 5.56%
• Average Volume (3M): 26.64K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.53
• Revenue Growth: -9.76%
• EPS Growth: -24.52%
• Country: US
• Employees: 168
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 7,298,200
• 10 Day Avg. Volume: 38,580
• 30 Day Avg. Volume: 26,636
• PEG Ratio: -0.36
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.80
• P/FCF Ratio: 8.18
• 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: 77 Outperform
• Price Target: ¥927.00 ▲(13.05% Upside)

The score is primarily driven by strong financial quality (high margins and a near debt-free balance sheet) and attractive valuation (low P/E and high dividend yield). This is tempered by mixed technical signals and recent volatility in profitability and cash flow.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet reduces financial risk and provides flexibility, supporting long-term resilience and strategic opportunities.

High Gross Margins

High gross margins indicate strong pricing power and operational efficiency, enhancing profitability and competitive positioning.

Cash Generation Ability

Strong cash generation supports reinvestment and shareholder returns, providing a buffer against economic fluctuations.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive pressures, impacting growth prospects.

Profitability Volatility

Volatile profitability can strain financial planning and investor confidence, affecting long-term strategic initiatives.

Cash Flow Volatility

Volatile cash flow can hinder consistent capital allocation and operational stability, posing risks to financial health.

Enjin Co.,Ltd. Business Overview & Revenue Model

Company Description

Enjin Co., Ltd. provides public relation (PR) support services for corporations/managers and medical institutions/doctors. It also offers strategic PR services, direct branding services, and PR platform services.Enjin Co., Ltd. was founded in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Enjin Co., Ltd. generates revenue primarily through its recruitment and human resources services. The company earns fees from businesses seeking to recruit skilled professionals, which may be based on successful placements or through subscription-based access to Enjin's talent database. Additionally, they may offer consultancy services to help companies optimize their hiring processes, further contributing to their revenue. Key partnerships with industry leaders and the reputation for connecting top talent with desirable employers underpin Enjin's business model, driving consistent revenue growth.

Enjin Co.,Ltd. Financial Statement Overview

Summary

Strong overall fundamentals supported by very high gross margins and solid operating/net margins, plus an essentially debt-free balance sheet. Offsetting this, profitability and margins weakened in 2025 versus 2024 despite a sharp revenue rebound, and cash flow has shown notable year-to-year volatility (especially in 2024).

Income Statement

Profitability is strong for an advertising agency, with consistently high gross margins (~78%–83%) and solid operating and net margins (net margin ~18%–27% historically). However, growth and earnings momentum have softened: revenue declined in 2024 and, despite a rebound in 2025 (annual revenue growth ~76%), operating profit and net income fell versus 2024, with margins compressing (net margin down to ~18% in 2025 from ~23% in 2024). Overall, a high-quality margin profile with some recent volatility in top-line and profit trajectory.

Balance Sheet

Balance sheet strength is a clear positive: the company is essentially debt-free (debt-to-equity at or near 0 across the period), which meaningfully reduces financial risk and provides flexibility. Equity and assets have grown over time, supporting resilience. The main watch item is that returns on equity have come down from very elevated levels earlier in the period to ~12% in 2025 (from ~17% in 2024 and ~21% in 2023), indicating profitability on shareholder capital has moderated even as the balance sheet expanded.

Cash Flow

Cash generation is generally healthy, with free cash flow tracking net income well in most years (free cash flow roughly ~90%+ of net income in several periods, including 2025). That said, cash flow has been uneven: operating cash flow was notably weak in 2024 relative to earnings, and free cash flow fell sharply in 2024 before recovering strongly in 2025. The business shows the ability to convert profits into cash over time, but year-to-year volatility tempers the score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.92B	2.92B	3.27B	3.48B	3.07B	2.16B
Gross Profit	2.30B	2.34B	2.65B	2.89B	2.52B	1.70B
EBITDA	923.27M	901.49M	1.14B	1.35B	1.26B	630.72M
Net Income	538.45M	539.21M	749.01M	879.40M	828.64M	423.28M
Balance Sheet
Total Assets	5.30B	5.30B	5.05B	5.48B	4.88B	2.00B
Cash, Cash Equivalents and Short-Term Investments	4.13B	4.13B	3.54B	4.08B	4.01B	1.49B
Total Debt	0.00	0.00	0.00	28.33M	0.00	0.00
Total Liabilities	659.29M	659.29M	697.45M	1.31B	1.06B	763.21M
Stockholders Equity	4.64B	4.64B	4.36B	4.16B	3.82B	1.23B
Cash Flow
Free Cash Flow	0.00	642.00M	144.23M	648.71M	866.84M	485.51M
Operating Cash Flow	0.00	694.04M	230.00M	689.61M	967.37M	509.64M
Investing Cash Flow	0.00	163.89M	-191.09M	-577.95M	-199.55M	-24.57M
Financing Cash Flow	0.00	-257.34M	-585.79M	-529.60M	1.75B	0.00

Enjin Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 820.00
• 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:7370, the sentiment is Positive. The current price of 820 is above the 20-day moving average (MA) of 817.70, above the 50-day MA of 813.65, and above the 200-day MA of 795.58, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 59.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7370.

Enjin Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7804	78 Outperform	¥5.87B	11.83	―	3.26%	27.11%	24.70%
7370	77 Outperform	¥6.09B	14.13	―	5.56%	-9.76%	-24.52%
7857	67 Neutral	¥5.50B	49.67	―	1.93%	-0.57%	-69.39%
6031	64 Neutral	¥6.80B	20.40	―	2.30%	-11.33%	26.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9625	54 Neutral	¥6.13B	-9.94	―	2.25%	36.93%	-2016.27%
7078	52 Neutral	¥4.26B	-3.29	―	―	-8.67%	-407.35%

Enjin Co.,Ltd. Corporate Events

Enjin’s First-Half Profit Halves but Dividend Raised as Full-Year Outlook Cut

Enjin Co., Ltd. reported a sharp deterioration in earnings for the six months ended November 30, 2025, with net sales down 19.7% year on year to ¥1,125 million, operating profit down 58.1% to ¥169 million, ordinary profit down 52.4% to ¥194 million, and profit attributable to owners of parent halving to ¥101 million; basic earnings per share fell to ¥14.36. Despite weaker profits, the company’s financial position remains robust, with an equity ratio of 88.9% and stable net assets, and it raised its interim dividend from ¥13.00 to ¥20.00 per share while maintaining a full-year dividend forecast of ¥40.00, even as it projects a 21.2% decline in full-year net sales and profit drops of roughly 50% across key earnings metrics for the fiscal year ending May 31, 2026, following a downward revision to its earnings forecast.

The most recent analyst rating on (JP:7370) stock is a Buy with a Yen927.00 price target. To see the full list of analyst forecasts on Enjin Co.,Ltd. stock, see the JP:7370 Stock Forecast page.