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

• Market Cap: ¥10.48B
• Dividend Yield: 3.37%
• Average Volume (3M): 20.17K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.52
• Revenue Growth: 3.14%
• EPS Growth: -40.34%
• Country: JP
• Employees: 1,214
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 8.80
• Shares Outstanding: 9,441,800
• 10 Day Avg. Volume: 19,830
• 30 Day Avg. Volume: 20,166
• 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: 80 Outperform
• Price Target: ¥1,457.00 ▲(15.09% Upside)

Endo Manufacturing Co., Ltd. scores well due to its strong financial performance and reasonable valuation. Technical analysis supports a positive outlook, though not overwhelmingly bullish. The absence of earnings call and corporate events data does not detract from the overall positive assessment.

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

Company Description

Endo Manufacturing Co., Ltd., together with its subsidiaries, manufactures and sells golf club heads, metal sleeve products, forged components, and medical devices in Japan and internationally. The company offers golf club heads under the Epon Golf brand; and medical devices, including hip joint, femoral head, femoral cup, trauma plate, tibial tray, and knee and femur components. It also provides metal sleeves, such as metal tubes, high precision ultra-thin pipes, heat pipes, bellows base materials, and IH parts for medical parts, automobile parts, and the new energy-related sector; and forged parts, such as engine and transmission gears for automobiles and motorcycles, as well as agricultural machinery parts and others. The company was incorporated in 1950 and is headquartered in Tsubame, Japan.

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. Challenges include a dip in gross profit and decreased operating cash flow, but overall financial stability is strong.

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: Negative
• Last Price: 1266.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 1266 is above the 20-day moving average (MA) of 1247.50, above the 50-day MA of 1260.58, and above the 200-day MA of 1209.19, indicating a bearish trend. The MACD of -19.15 indicates Positive momentum. The RSI at 29.80 is Positive, neither overbought nor oversold. The STOCH value of 24.58 is Neutral, 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
7841	80 Outperform	¥10.48B	13.68	―	3.37%	3.14%	-40.34%
8135	78 Outperform	¥8.87B	3.12	―	3.97%	7.24%	216.11%
7847	75 Outperform	¥3.98B	20.50	―	4.89%	-11.24%	-48.52%
7809	70 Outperform	¥13.89B	12.12	―	2.47%	0.75%	-2.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%