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

• Market Cap: ¥7.67B
• Dividend Yield: 0.89%
• Average Volume (3M): 4.66K
• 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: 66
• Industry: Home Improvement
• EPS (TTM): -3.64
• Shares Outstanding: 6,857,497
• 10 Day Avg. Volume: 3,920
• 30 Day Avg. Volume: 4,656
• PEG Ratio: 0.49
• Price to Book (P/B): 0.62
• 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: 0.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ¥1,132.00 ▲(0.98%Upside)

The overall stock score reflects significant financial challenges, despite strong technical momentum. Financial performance issues, including declining revenues and profitability, are major concerns. While technical indicators are currently bullish, the overbought status suggests caution. Valuation metrics further highlight underlying profitability problems.

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. is facing financial challenges with declining revenue and profitability metrics, high leverage, and negative cash flows. These factors indicate potential instability and highlight the urgent need for strategic interventions to improve financial health and operational efficiency.

Income Statement

Encho Co., Ltd. has experienced declining revenues over the past three years, with a notable decrease from 2022 to TTM. The gross profit margin and EBIT margin have also seen a downturn, reflecting challenges in maintaining profitability. The net profit margin is negative, indicating consistent losses, which is a significant area of concern for the company.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, pointing to significant leverage. The return on equity is negative due to net losses, which is unfavorable. However, the equity ratio remains stable, suggesting a reasonable proportion of assets financed by equity.

Cash Flow

Encho Co., Ltd. is facing challenges with cash flows, as indicated by the negative operating cash flow in recent periods and a lack of free cash flow growth. The absence of operating cash flow in the TTM period further exacerbates concerns about liquidity and cash management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	34.93B	35.57B	37.30B	38.43B	39.30B	38.26B
Gross Profit	11.31B	11.47B	11.82B	12.03B	12.37B	11.87B
EBITDA	436.00M	536.00M	906.00M	1.38B	1.79B	903.00M
Net Income	-472.00M	-413.00M	-216.00M	406.00M	832.00M	-391.00M
Balance Sheet
Total Assets	36.82B	36.55B	36.73B	36.24B	36.26B	35.84B
Cash, Cash Equivalents and Short-Term Investments	3.08B	2.09B	1.85B	1.83B	2.11B	2.18B
Total Debt	16.40B	18.39B	18.19B	17.26B	16.95B	18.23B
Total Liabilities	27.64B	27.24B	27.31B	26.44B	26.68B	27.30B
Stockholders Equity	9.18B	9.30B	9.42B	9.80B	9.57B	8.54B
Cash Flow
Free Cash Flow	0.00	171.00M	-690.00M	-372.00M	1.89B	-655.00M
Operating Cash Flow	0.00	461.00M	-294.00M	-88.00M	2.63B	-173.00M
Investing Cash Flow	0.00	-159.00M	-235.00M	-109.00M	-779.00M	-10.00M
Financing Cash Flow	0.00	-66.00M	552.00M	-84.00M	-1.92B	48.00M

Encho Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1121.00
• 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:8208, the sentiment is Positive. The current price of 1121 is above the 20-day moving average (MA) of 1107.00, above the 50-day MA of 1065.70, and above the 200-day MA of 893.47, indicating a bullish trend. The MACD of 16.04 indicates Positive momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 is Neutral, 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	68 Neutral	¥5.28B	10.55		2.04%	3.20%	13.32%
8208	61 Neutral	¥7.67B	―		0.89%	-2.88%	88.38%
9903	59 Neutral	¥6.12B	14.61		2.27%	-0.69%	―
Sector *	57 Neutral	HK$24.54B	3.89	-2.03%	6.19%	-0.31%	-67.70%
9835	56 Neutral	¥3.98B	24.43		2.04%	-0.63%	-51.15%
7590	55 Neutral	¥7.43B	―		1.18%	6.82%	-80.98%
7450	46 Neutral	¥11.49B	―		0.47%	-1.79%	-491.60%