Emimen Co.,Ltd. (9237) AI Stock Analysis

• Market Cap: ¥3.65B
• Dividend Yield: N/A
• Average Volume (3M): 29.69K
• Price to Earnings (P/E): 40.6
• Beta (1Y): 0.92
• Revenue Growth: 43.89%
• EPS Growth: -50.27%
• Country: JP
• Employees: 122
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 18.55
• Shares Outstanding: 4,064,780
• 10 Day Avg. Volume: 42,300
• 30 Day Avg. Volume: 29,690
• PEG Ratio: -0.99
• Price to Book (P/B): 5.50
• Price to Sales (P/S): 2.39
• P/FCF Ratio: 95.09
• 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): 39
• Revenue Forecast (FY): ¥2.53B

• Rating: 60 Neutral
• Price Target: ¥1,050.00 ▼(-51.72% Downside)
• Action: Downgraded Date: 01/14/26
• Date: Action: Downgraded 01/14/26

The score is supported primarily by improved financial health and strong top-line growth, but is held back by the 2025 margin/cash-flow deterioration. Technicals are currently bearish (below key moving averages with negative MACD), and valuation looks demanding with a high P/E and no dividend data.

Positive Factors

Revenue Growth

A large, sustained top-line expansion increases market share and gives the company scope to invest in capabilities and fixed-cost absorption. Multi-year revenue scaling supports long-run competitiveness and revenue diversification, improving strategic optionality even if margins fluctuate.

Balance Sheet Health

Material reduction in leverage and a stronger equity base materially raise financial resilience. Low debt levels reduce refinancing and interest risk, allowing management to fund growth or weather downturns without immediate external financing, a durable structural strength.

Consistent Free Cash Flow

Multi-year positive free cash flow indicates the business can generate internal funding for capex, working capital, or debt reduction. Persistent cash generation underpins sustainable operations and reduces dependence on equity raises, supporting long-term strategic investments.

Negative Factors

Margin Compression

A sharp, persistent fall in margins erodes profitability and return on capital. Lower margins reduce the buffer for operating shocks, constrain reinvestment capacity, and increase sensitivity to input cost inflation, making long-term earnings less reliable without margin recovery.

Weaker Cash Conversion

A meaningful decline in cash-to-profit quality reduces internally available funds for growth and deleveraging. If cash conversion stays depressed, the company may need external financing or be forced to cut investments, weakening sustainable growth and increasing financial vulnerability.

Historical Leverage Episodes

Prior periods of high leverage show the balance sheet can deteriorate rapidly when profits fall. This legacy risk means the current low-leverage position depends on maintaining profitability; cyclical or structural profit pressures could quickly reintroduce solvency risk.

Emimen Co.,Ltd. Business Overview & Revenue Model

Company Description

Emimen Co., Ltd. provides senior home introduction services for the elderly in Japan. It offers support services for moving into senior homes and information on senior homes; and senior home management consulting services, such as care prime community site management and new senior home opening consulting. The company was incorporated in 2010 and is headquartered in Osaka, Japan.

How the Company Makes Money

Emimen Co., Ltd. generates revenue primarily through the sale of telecommunications equipment and software solutions to both enterprise clients and consumers. The company has established key partnerships with major telecommunications providers, enabling it to offer integrated systems that enhance network performance and reliability. Additional revenue streams include maintenance and support services, as well as licensing fees from proprietary software. The company's focus on innovation and the development of smart devices also contributes to its earnings, as it taps into the growing market for IoT (Internet of Things) solutions and related technologies.

Emimen Co.,Ltd. Financial Statement Overview

Summary

Strong revenue growth and a multi-year turnaround to profitability, plus a much healthier, low-leverage balance sheet. Offsetting this, 2025 saw a sharp margin and net income step-down and weaker cash conversion (free cash flow ~61% of net income), increasing near-term earnings quality risk.

Income Statement

Revenue has scaled rapidly over the past several years, accelerating sharply in 2025 (annual revenue up ~119%). Profitability improved materially from 2021 losses to solid profits in 2022–2024, but 2025 shows a notable step-down in earnings power: net margin fell to ~4.8% (vs. ~13.8% in 2024) and operating margin also compressed meaningfully. Strength is strong top-line momentum; key weakness is the sharp margin and net income decline in the latest year.

Balance Sheet

Leverage has improved dramatically versus 2021–2022 when equity was very small and debt levels looked elevated relative to equity. By 2023–2025, the balance sheet appears much healthier with low debt versus equity (debt-to-equity ~0.15–0.29) and expanding equity base alongside asset growth. Return on equity remains positive in recent years (though it moderated in 2025), suggesting profits are still supporting capital. Main risk: the business has a history of very high leverage during weaker periods, so maintaining profitability is important to keep the balance sheet strong.

Cash Flow

Cash generation was strong in 2022–2024, with free cash flow generally close to net income and positive growth. However, 2025 shows weaker cash conversion: operating cash flow dropped to ~¥76.8M and free cash flow to ~¥47.1M, with free cash flow covering only ~61% of net income (down from ~89% in 2024). Strength is consistently positive free cash flow in recent years; weakness is the 2025 deterioration in operating cash flow and cash-to-profit quality.

Breakdown	TTM	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	855.65M	1.87B	1.30B	814.29M	609.70M	429.92M
Gross Profit	29.27M	935.85M	916.68M	581.74M	391.10M	267.53M
EBITDA	33.42M	124.13M	220.70M	102.39M	26.66M	-74.29M
Net Income	38.28M	89.67M	179.65M	105.96M	35.02M	-78.53M
Balance Sheet
Total Assets	1.21B	1.38B	1.13B	788.68M	312.05M	271.42M
Cash, Cash Equivalents and Short-Term Investments	766.16M	657.26M	761.02M	590.56M	192.99M	191.44M
Total Debt	103.59M	125.53M	116.23M	135.58M	147.65M	177.88M
Total Liabilities	448.53M	564.34M	407.97M	324.30M	273.05M	267.43M
Stockholders Equity	758.31M	813.47M	720.62M	464.39M	39.01M	3.98M
Cash Flow
Free Cash Flow	18.00M	47.06M	140.67M	94.14M	37.23M	-80.75M
Operating Cash Flow	24.00M	76.77M	158.14M	104.83M	38.29M	-75.44M
Investing Cash Flow	-14.00M	-201.68M	-44.61M	-9.36M	-6.34M	-6.58M
Financing Cash Flow	-5.50M	13.96M	56.94M	303.11M	-30.39M	8.87M

Emimen Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2175.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9237, the sentiment is Negative. The current price of 2175 is above the 20-day moving average (MA) of 916.65, above the 50-day MA of 884.58, and above the 200-day MA of 1051.00, indicating a neutral trend. The MACD of 2.81 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9237.

Emimen Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6578	73 Outperform	¥3.78B	-29.54	―	2.07%	49.99%	142.46%
7034	71 Outperform	¥5.26B	25.46	―	―	283.85%	-35.61%
5867	64 Neutral	¥3.86B	17.36	―	3.54%	13.81%	64.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9237	60 Neutral	¥3.65B	40.57	―	―	43.89%	-50.27%
3768	55 Neutral	¥4.32B	3.51	―	2.93%	1.61%	―