Encho Co., Ltd. (8208) AI Stock Analysis

• Market Cap: ¥8.32B
• Dividend Yield: 1.23%
• Average Volume (3M): 4.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -2.88%
• EPS Growth: 88.38%
• Country: JP
• Employees: 451
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Home Improvement
• EPS (TTM): -3.64
• Shares Outstanding: 6,857,497
• 10 Day Avg. Volume: 5,360
• 30 Day Avg. Volume: 4,533
• PEG Ratio: -1.82
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,132.00
• Price Target Upside: -6.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥1,132.00 ▼(-6.98%Downside)

The overall stock score of 61 reflects the strong technical analysis indicators, suggesting bullish momentum, offset by poor financial performance and valuation metrics. The company faces significant financial challenges with declining revenues and profitability, high leverage, and negative earnings, impacting its long-term sustainability. The technical strength provides short-term upside, but caution is warranted due to fundamental weaknesses.

Encho Co., Ltd. Business Overview & Revenue Model

Company Description

Encho Co., Ltd. (8208) operates within the retail sector, primarily focusing on the sale of home improvement products. The company offers a wide range of products including hardware, tools, gardening supplies, and home appliances, catering to both consumer and business customers. With a network of retail stores, Encho Co., Ltd. positions itself as a one-stop shop for all home improvement needs, providing quality products and services to enhance the living spaces of its customers.

How the Company Makes Money

Encho Co., Ltd. generates revenue primarily through the sale of its home improvement products in its retail stores. The company's key revenue streams include the direct sale of hardware, tools, gardening supplies, and home appliances to individual consumers and businesses. Additionally, Encho Co., Ltd. benefits from any service offerings that may complement its retail products, such as installation or repair services. The company may also engage in strategic partnerships with suppliers and manufacturers to ensure a steady supply of high-demand products, potentially gaining favorable purchasing terms that can enhance its profit margins. Furthermore, Encho Co., Ltd. might leverage promotional activities and customer loyalty programs to drive sales and increase market share in the competitive retail space.

Encho Co., Ltd. Financial Statement Overview

Summary

Encho Co., Ltd. faces significant challenges across its financial statements. Declining revenues and profitability, coupled with high leverage and inconsistent cash flow, indicate financial instability.

Income Statement

The company has been facing challenges with declining revenue and profitability. Gross profit margin remains stable, but net income has been negative for recent years. The net profit margin is negative, indicating profitability issues. Revenue growth has been negative, reflecting a downward trend in sales. EBITDA margin also shows a decline, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows moderate financial stability with some concerns. The debt-to-equity ratio is relatively high, indicating significant leverage, which poses potential financial risk. The equity ratio is moderate, reflecting a balanced asset structure. Return on equity is negative due to consistent net losses, impacting investor returns.

Cash Flow

Cash flow analysis reveals weaknesses in cash generation. Operating cash flow has been inconsistent, with fluctuations between positive and negative values. Free cash flow is volatile, limiting the company's ability to fund growth and operations internally. The operating cash flow to net income ratio highlights inefficiencies in converting earnings into cash.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.55B	35.57B	37.30B	38.43B	39.30B
Gross Profit	11.25B	11.47B	11.82B	12.03B	12.37B
EBITDA	944.00M	536.00M	906.00M	1.38B	1.79B
Net Income	-48.00M	-413.00M	-216.00M	406.00M	832.00M
Balance Sheet
Total Assets	34.91B	36.55B	36.73B	36.24B	36.26B
Cash, Cash Equivalents and Short-Term Investments	2.06B	2.09B	1.85B	1.83B	2.11B
Total Debt	17.54B	18.39B	18.19B	17.26B	16.95B
Total Liabilities	25.87B	27.24B	27.31B	26.44B	26.68B
Stockholders Equity	9.04B	9.30B	9.42B	9.80B	9.57B
Cash Flow
Free Cash Flow	239.00M	171.00M	-690.00M	-372.00M	1.89B
Operating Cash Flow	507.00M	461.00M	-294.00M	-88.00M	2.63B
Investing Cash Flow	430.00M	-159.00M	-235.00M	-109.00M	-779.00M
Financing Cash Flow	-961.00M	-66.00M	552.00M	-84.00M	-1.92B

Encho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1217.00
• 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:8208, the sentiment is Positive. The current price of 1217 is above the 20-day moving average (MA) of 1155.50, above the 50-day MA of 1116.86, and above the 200-day MA of 919.02, indicating a bullish trend. The MACD of 28.42 indicates Negative momentum. The RSI at 80.08 is Negative, neither overbought nor oversold. The STOCH value of 91.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8208.

Encho Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9976	65 Neutral	¥5.45B	10.89		1.98%	3.20%	13.32%
Sector *	65 Neutral	€7.11B	13.85	9.70%	3.56%	1.82%	-128.10%
8208	61 Neutral	¥8.32B	―		1.23%	-2.88%	88.38%
9903	57 Neutral	¥6.15B	14.68		2.25%	-0.69%	―
9835	56 Neutral	¥3.98B	24.43		2.04%	-0.63%	-51.15%
7590	54 Neutral	¥7.56B	―		1.16%	6.82%	-80.98%
7450	46 Neutral	¥11.25B	―		0.48%	-1.79%	-491.60%