Enomoto Co Ltd

### Capital Structure and Liquidity Enomoto Co Ltd maintains a strong liquidity position, with a current ratio of 2.01 and cash and equivalents amounting to ¥5.03 billion, which represents 15.5% of total assets. The company's debt-to-equity ratio is 0.16, indicating a conservative capital structure with limited leverage. The liquidity risk is assessed as low, supported by positive operating cash flow of ¥3.10 billion and no immediate filing-based liquidity flags.

### Profitability and Returns Despite a revenue of ¥6.05 billion, Enomoto reported an operating loss of ¥86.41 million and a net income of ¥3.95 million, resulting in a return on equity (ROE) of 0.02% and a return on assets (ROA) of 0.01%. These returns are below the industry median for electrical components and equipment, suggesting underperformance in profitability relative to peers. Gross profit of ¥558.86 million reflects a margin of 9.23%, which is in line with the industry average but insufficient to offset operating costs.

### Segments and Geographic Exposure Enomoto operates as a single-segment entity, with all revenue derived from the industrial goods sector. The company is headquartered in Japan and does not disclose geographic revenue breakdowns, but its operations are likely concentrated in the domestic market. This lack of diversification may expose the company to regional economic fluctuations and regulatory changes.

### Growth Trajectory Enomoto's recent financial performance shows a decline in operating income, with a negative ¥86.41 million in the latest period. Analysts have issued a mean price target of ¥4,400.00, with a single "buy" recommendation and no "strong buy" or "hold" ratings. The company's growth trajectory remains uncertain, with no clear indication of expansion or diversification in the near term.

### Risk Factors and Dilution Potential The company faces low dilution risk, with no immediate filing-based dilution flags and no recent share issuance activity. The number of shares outstanding remains unchanged at 6.60 million for both basic and diluted shares. However, the operating loss and low profitability raise concerns about the company's ability to sustain operations without external financing, which could introduce future dilution pressure.

### Recent Events No recent filings or transcripts have been disclosed that indicate significant operational or strategic changes. The company's financial performance and risk profile remain stable, with no material events reported in the latest available data.

Operating income surged 899.3% year-over-year to JPY 506.6 million, signaling a dramatic operational turnaround.

Free cash flow turned positive to JPY 495.9 million, marking a 208.9% improvement from the prior year.

The single analyst consensus price target of JPY 4,400 implies 31.1% upside from the current market price.

Cash conversion of 783.28% ranks as best-in-class within the Electrical Components & Equipment cohort.

Net income rebounded 269.3% year-over-year to JPY 447.9 million, recovering from a near-zero base.

Operating margin of -1.4% and net margin of 0.07% place the company in the bottom quartile of peers.

Return on invested capital is negative at -0.35%, indicating inefficient capital deployment relative to the cohort.

The company carries a high credit risk flag, suggesting potential solvency or repayment concerns.

Long-term debt increased to JPY 4.43 billion in FY2025, rising steadily from JPY 1.34 billion in FY2021.

Revenue ¥7.76B, +12,2% YoY; Operating income +225,1% YoY.

• ▍Revenue ¥7.76B, +12,2% YoY
• ▍Operating income +225,1% YoY
• ▍Net income +178,3% YoY
• ▍Net margin 5.0%

Revenue ¥7.51B, +8,6% YoY; Operating income +63,7% YoY.

• ▍Revenue ¥7.51B, +8,6% YoY
• ▍Operating income +63,7% YoY
• ▍Net income +46,0% YoY
• ▍Net margin 4.3%

Revenue ¥7.15B, +9,8% YoY; Operating income +273,3% YoY.

• ▍Revenue ¥7.15B, +9,8% YoY
• ▍Operating income +273,3% YoY
• ▍Net income +458,6% YoY
• ▍Net margin 3.7%

Revenue ¥6.54B, +8,1% YoY; Operating income +98,6% YoY.

• ▍Revenue ¥6.54B, +8,1% YoY
• ▍Operating income +98,6% YoY
• ▍Net income +846,1% YoY
• ▍Net margin 0.6%

Revenue ¥6.92B; Operating income ¥172.5M.

• ▍Revenue ¥6.92B
• ▍Operating income ¥172.5M
• ▍Net margin 2.0%

Revenue ¥6.91B; Operating income ¥252.3M.

• ▍Revenue ¥6.91B
• ▍Operating income ¥252.3M
• ▍Net margin 3.2%

Revenue ¥6.51B; Operating income ¥83.1M.

• ▍Revenue ¥6.51B
• ▍Operating income ¥83.1M
• ▍Net margin 0.7%

Revenue ¥6.05B; Operating income -¥86.4M.

• ▍Revenue ¥6.05B
• ▍Operating income -¥86.4M
• ▍Net margin 0.1%

Revenue ¥26.88B, +6,5% YoY; Operating income +899,4% YoY.

• ▍Revenue ¥26.88B, +6,5% YoY
• ▍Operating income +899,4% YoY
• ▍Net income +269,3% YoY
• ▍Free cash flow +208,9% YoY
• ▍Net margin 1.7%

Revenue ¥25.24B, −13,7% YoY; Operating income −96,4% YoY.

• ▍Revenue ¥25.24B, −13,7% YoY
• ▍Operating income −96,4% YoY
• ▍Net income −90,4% YoY
• ▍Free cash flow −38,0% YoY
• ▍Net margin 0.5%

Revenue ¥29.27B, +7,4% YoY; Operating income −26,3% YoY.

• ▍Revenue ¥29.27B, +7,4% YoY
• ▍Operating income −26,3% YoY
• ▍Net income −17,9% YoY
• ▍Free cash flow −32,0% YoY
• ▍Net margin 4.3%

Revenue ¥27.25B, +18,5% YoY; Operating income +32,2% YoY.

• ▍Revenue ¥27.25B, +18,5% YoY
• ▍Operating income +32,2% YoY
• ▍Net income +3,8% YoY
• ▍Free cash flow −189,1% YoY
• ▍Net margin 5.7%