Endo Manufacturing Co., Ltd. (7841) AI Stock Analysis

• Market Cap: ¥9.64B
• Dividend Yield: 3.69%
• Average Volume (3M): 11.45K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.48
• Revenue Growth: 9.49%
• EPS Growth: -3.05%
• Country: JP
• Employees: 1,214
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Leisure
• EPS (TTM): 15.45
• Shares Outstanding: 9,441,800
• 10 Day Avg. Volume: 9,710
• 30 Day Avg. Volume: 11,450
• PEG Ratio: -0.17
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.47
• 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: 72 Outperform
• Price Target: ¥1,212.00 ▲(11.71%Upside)

The strong financial performance of Endo Manufacturing Co., Ltd. is the most significant factor, supported by solid revenue growth and a stable balance sheet. The technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is attractive with a low P/E ratio and decent dividend yield, providing a cushion against market volatility.

Endo Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Endo Manufacturing Co., Ltd. (7841) is a Japanese company primarily engaged in the manufacturing and sale of industrial machinery and equipment. The company specializes in the production of hoists and cranes, offering a wide range of products that cater to various industries including construction, manufacturing, and logistics. Endo Manufacturing Co., Ltd. is known for its high-quality and durable products that are designed to enhance operational efficiency and safety in material handling processes.

How the Company Makes Money

Endo Manufacturing Co., Ltd. generates revenue predominantly through the sale of its industrial machinery and equipment, specifically hoists and cranes. The company's revenue model is centered around direct sales to industrial clients who require reliable material handling solutions. In addition to product sales, Endo Manufacturing may also earn income from after-sales services, including maintenance and repair services that ensure the longevity and optimal performance of their equipment. The company may also engage in strategic partnerships with distributors and other industrial equipment providers to expand its market reach and enhance its product offerings. These partnerships can be significant in accessing new markets and customer segments, contributing to the company's overall earnings.

Endo Manufacturing Co., Ltd. Financial Statement Overview

Summary

Endo Manufacturing Co., Ltd. demonstrates strong financial health with consistent revenue growth and improved profit margins. The balance sheet is robust with low leverage, indicated by a high equity ratio and low debt-to-equity ratio. Cash flow management is efficient, though there are challenges with gross profit and operating cash flow trends.

Income Statement

Endo Manufacturing Co., Ltd. has shown strong revenue growth with a consistent upward trajectory from 2020 to 2024, notably a 10.88% increase from 2023 to 2024. The gross profit margin has remained healthy, and the net profit margin has improved significantly to 6.42% in 2024 from 4.86% in 2023. Both EBIT and EBITDA margins are robust, indicating efficient operations. However, the dip in gross profit in 2024 suggests some cost management challenges.

Balance Sheet

The company exhibits a strong balance sheet with a high equity ratio of 83.86% in 2024, reflecting financial stability and low reliance on debt. The debt-to-equity ratio is impressively low at 0.0079, minimizing financial risk. Return on equity has improved to 5.03%, indicating better utilization of equity to generate profits, though it could be higher for optimal performance.

Cash Flow

Endo Manufacturing's cash flow management is sound, with positive free cash flow indicating efficient capital expenditure control. However, the operating cash flow has decreased in 2024 compared to 2023, which may indicate rising operational costs or reduced cash conversion efficiency. The free cash flow to net income ratio remains positive, underscoring strong cash generation relative to earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.42B	15.71B	14.58B	12.59B	8.28B
	Gross Profit
3.48B	2.76B	3.73B	3.56B	1.45B
	EBIT
1.55B	1.18B	1.85B	1.84B	103.67M
	EBITDA
2.72B	2.16B	2.82B	2.74B	1.00B
	Net Income Common Stockholders
1.12B	762.90M	796.80M	1.60B	-88.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.86B	9.04B	7.26B	6.83B	6.44B
	Total Assets
26.48B	24.02B	21.87B	20.48B	17.96B
	Total Debt
175.00M	275.00M	375.00M	1.07B	700.00M
	Net Debt
-9.59B	-8.66B	-6.78B	-5.65B	-5.74B
	Total Liabilities
4.28B	4.05B	3.50B	3.74B	2.72B
	Stockholders Equity
22.20B	19.97B	18.37B	16.73B	15.24B
Cash Flow		Free Cash Flow
354.93M	1.58B	889.84M	709.06M	-73.95M
	Operating Cash Flow
1.76B	2.40B	1.93B	1.58B	599.62M
	Investing Cash Flow
-1.31B	-606.68M	-1.03B	-1.41B	-828.27M
	Financing Cash Flow
-287.29M	-298.36M	-868.55M	231.35M	-260.00M

Endo Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1085.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7841, the sentiment is Negative. The current price of 1085 is below the 20-day moving average (MA) of 1105.25, below the 50-day MA of 1153.60, and below the 200-day MA of 1222.33, indicating a bearish trend. The MACD of -15.01 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 17.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7841.

Endo Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8135	84 Outperform	¥8.24B	2.75		1.90%	6.45%	269.38%
7809	73 Outperform	¥12.95B	11.18		2.25%	7.79%	22.67%
7841	72 Outperform	¥9.64B	10.73		3.69%	9.49%	-3.05%
7847	70 Outperform	¥4.09B	10.88		4.75%	15.88%	115.04%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%