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

• Market Cap: ¥11.22B
• Dividend Yield: 3.31%
• Average Volume (3M): 18.53K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.57
• Revenue Growth: 3.14%
• EPS Growth: -40.34%
• Country: JP
• Employees: 1,214
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 8.79
• Shares Outstanding: 9,441,800
• 10 Day Avg. Volume: 18,030
• 30 Day Avg. Volume: 18,533
• PEG Ratio: 0.22
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 31.82
• 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: 66 Neutral
• Price Target: ¥1,386.00 ▲(9.48% Upside)

Endo Manufacturing Co., Ltd. has a strong financial foundation with robust revenue growth and solid balance sheet metrics. However, the technical analysis indicates bearish momentum, which is a significant concern. The valuation is fair with a decent dividend yield, but the negative technical indicators weigh heavily on the overall score.

Positive Factors

Strong balance sheet and low leverage

An equity ratio of 83.86% and nearly zero debt provide durable financial resilience, lowering bankruptcy risk and preserving capacity to invest in tooling and capex for OEM wheel programs. This balance-sheet strength supports long-term supplier trust and stability through automotive cycles.

Consistent revenue growth trend

Sustained revenue growth, including a notable 10.88% rise year-over-year, indicates ongoing demand and successful OEM or aftermarket penetration. Persistent top-line expansion supports scale economies, product investment, and contractual relevance to automakers over the medium term.

Positive free cash flow generation

Positive free cash flow demonstrates the company's ability to fund capex and dividends internally, reducing reliance on external financing. Durable FCF supports reinvestment in manufacturing capacity and quality controls critical for long-term OEM relationships and aftermarket serviceability.

Negative Factors

Declining operating cash flow

A drop in operating cash flow signals weakening cash conversion from core operations, which can persistently constrain working capital, limit capacity to fund cyclical production needs, and force reliance on retained earnings or reduce flexibility for program bids over months.

Dip in gross profit indicates cost pressures

A gross profit decline points to margin compression from rising input costs (e.g., aluminum) or pricing pressure from OEM contracts. If persistent, it undermines margin sustainability, reduces cushions for operating leverage, and forces longer-term pricing or efficiency adjustments.

Significant EPS volatility

A ~40% decline in EPS reflects meaningful earnings volatility, which can complicate capital allocation, dividend predictability, and investor confidence. For a supplier to a cyclical industry, large EPS swings indicate exposure to demand cycles and cost variability that may repeat over time.

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

Company Description

Endo Manufacturing Co., Ltd. (7841) is a prominent player in the manufacturing sector, specializing in the production of high-quality electronic components and equipment. The company operates primarily in the sectors of industrial automation and consumer electronics, providing innovative solutions that cater to a diverse range of applications across various industries. Endo Manufacturing is known for its commitment to technological advancement and quality assurance, offering products that include sensors, control systems, and automation tools that enhance operational efficiency for its clients.

How the Company Makes Money

Endo Manufacturing Co., Ltd. generates revenue through multiple streams primarily focused on the sale of its core electronic components and systems. The company's revenue model is largely based on direct sales to manufacturers and distributors in the industrial automation and consumer electronics sectors. Key revenue streams include the sale of proprietary sensors and control systems, which are essential for automation processes in various industries. Additionally, Endo Manufacturing benefits from long-term contracts and partnerships with key industry players, providing them with a stable source of income. The company's investment in research and development enables it to innovate continuously, thereby attracting new clients and retaining existing ones, which further contributes to its earnings.

Endo Manufacturing Co., Ltd. Financial Statement Overview

Summary

Endo Manufacturing Co., Ltd. demonstrates robust financial health with strong revenue growth, solid profit margins, and a stable balance sheet with low leverage. However, challenges in gross profit and operating cash flow trends slightly temper the overall financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.04B	17.42B	15.71B	14.58B	12.59B	8.28B
Gross Profit	3.38B	3.48B	2.76B	3.73B	3.56B	1.45B
EBITDA	2.68B	2.72B	2.16B	2.82B	2.74B	979.74M
Net Income	944.92M	1.12B	762.90M	796.80M	1.60B	-88.10M
Balance Sheet
Total Assets	26.61B	26.48B	24.02B	21.87B	20.48B	17.96B
Cash, Cash Equivalents and Short-Term Investments	8.51B	9.86B	9.04B	7.26B	6.83B	6.44B
Total Debt	147.75M	175.00M	275.00M	375.00M	1.07B	700.00M
Total Liabilities	4.67B	4.28B	4.05B	3.50B	3.74B	2.72B
Stockholders Equity	21.94B	22.20B	19.97B	18.37B	16.73B	15.24B
Cash Flow
Free Cash Flow	0.00	354.93M	1.58B	889.84M	709.06M	-73.95M
Operating Cash Flow	0.00	1.76B	2.40B	1.93B	1.58B	599.62M
Investing Cash Flow	0.00	-1.31B	-606.68M	-1.03B	-1.41B	-828.27M
Financing Cash Flow	0.00	-287.29M	-298.36M	-868.55M	231.35M	-260.00M

Endo Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1266.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7841, the sentiment is Neutral. The current price of 1266 is below the 20-day moving average (MA) of 1276.50, above the 50-day MA of 1200.12, and above the 200-day MA of 1156.37, indicating a neutral trend. The MACD of 24.25 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 32.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7608	82 Outperform	¥12.20B	9.94	―	2.37%	―	―
8135	78 Outperform	¥10.45B	3.59	―	3.96%	7.77%	247.26%
7847	75 Outperform	¥4.36B	24.00	―	4.78%	-11.24%	-48.52%
7809	70 Outperform	¥12.46B	9.54	―	2.70%	9.10%	27.73%
7841	66 Neutral	¥11.22B	14.65	―	3.31%	3.14%	-40.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7865	42 Neutral	¥1.61B	202.48	―	―	―	―