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

• Market Cap: ¥3.11B
• Dividend Yield: N/A
• Average Volume (3M): 29.69K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.97
• Revenue Growth: 43.89%
• EPS Growth: -50.27%
• Country: JP
• Employees: 122
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): -20.82
• 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: 61 Neutral
• Price Target: ¥806.00 ▼(-62.94% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven primarily by improved underlying financial health (growth, profitability turnaround, and stronger leverage position), partially offset by the latest-year deterioration in margins and cash conversion. Technicals further weigh on the score due to a clear downtrend versus key moving averages and a negative MACD, while valuation is moderately supportive with a mid-teens P/E.

Positive Factors

Sustained Revenue Growth

Multi-year top-line expansion and a sharp 2025 revenue lift demonstrate scalable demand and market traction. Durable revenue growth supports reinvestment, scale economies, and resilience vs cyclical swings, providing a structural base for future margin recovery and capital generation.

Improved Balance Sheet / Low Leverage

A materially lower debt-to-equity and growing equity base reduce financial risk and increase strategic optionality. This improved capital structure boosts funding flexibility for investments or acquisitions and lowers refinancing vulnerability over the medium term, strengthening durability.

Historically Positive Free Cash Flow

Consistent positive FCF in prior years shows the business can convert profits to cash to fund operations, capex, and deleveraging. While 2025 weakened conversion, the historical cash generation track record is a durable strength if margins stabilize.

Negative Factors

Sharp 2025 Margin Compression

A large drop in margins materially weakens earnings power and return on capital, reducing internal funding for growth and debt reduction. If margin erosion persists, it undermines the benefits of revenue growth and pressures long-term profitability resilience.

Deteriorated Cash Conversion in 2025

Lower operating cash flow and reduced FCF coverage shrink liquidity and the firm's ability to self-fund investments or cushion shocks. Persistent weak cash conversion would force reliance on external financing and could reverse recent balance-sheet gains.

Cyclic History of High Leverage

Prior episodes of high leverage indicate the balance sheet can quickly deteriorate under stress. Combined with current margin and cash risks, recurrence of weak earnings could re-elevate leverage, increasing refinancing risk and constraining strategic choices over the medium term.

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.

Emimen Co.,Ltd. Financial Statement Overview

Summary

Strong multi-year revenue growth and a clear turnaround to profitability, with a much healthier balance sheet (low debt-to-equity) supporting overall strength. The key drag is 2025’s sharp margin compression and weaker cash conversion (lower operating cash flow and free cash flow covering a smaller share of net income).

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	32.80M	123.22M	222.17M	118.08M	26.99M	-73.60M
Net Income	38.28M	89.67M	179.65M	105.96M	35.02M	-78.53M
Balance Sheet
Total Assets	1.21B	1.38B	1.13B	789.28M	312.76M	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	570.00M	410.30M	324.89M	273.75M	267.43M
Stockholders Equity	758.31M	813.47M	720.62M	464.39M	39.01M	3.99M
Cash Flow
Free Cash Flow	18.00M	47.06M	147.13M	104.21M	37.23M	-78.00M
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: Negative
• 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 864.00, above the 50-day MA of 883.48, and above the 200-day MA of 1048.35, indicating a bearish trend. The MACD of -17.20 indicates Positive momentum. The RSI at 34.48 is Neutral, neither overbought nor oversold. The STOCH value of 57.89 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
6035	78 Outperform	¥13.39B	14.72	―	2.91%	7.68%	39.87%
4490	71 Outperform	¥4.82B	3.41	―	―	0.36%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9237	61 Neutral	¥3.11B	14.89	―	―	43.89%	-50.27%
4422	57 Neutral	¥4.46B	13.18	―	―	-4.85%	-41.71%
9246	54 Neutral	¥6.03B	19.88	―	―	-1.71%	-303.36%
9236	46 Neutral	¥1.48B	23.80	―	―	8.62%	-658.96%