ENDO Lighting Corporation6932

Why the market may be pricing it low

• Top shareholder Urban Co. holds 33.4% of shares, leaving little free float for institutional investors to accumulate.

  株式会社アーバン 33.4%Shareholders

• The lighting fixture industry faces harsh price competition from new entrants, making the market view it as a mature commodity business.

  当社グループが属する照明器具業界は、新規企業が参入する厳しい価格競争の環境にあります。Risk factors

• High reliance on imported LED parts and China/Thailand-made products sold mainly in Japan exposes the company to currency swings.

  ＬＥＤ照明器具に使用するＬＥＤ素子並びに電源等の海外輸入比率が高く、中国、タイに所在する子会社にて製造した製品の大部分を日本で販売する事業体制のため、為替変動の影響を受けます。Risk factors

What could close the gap

• A tie-up with outside investment firm Advantage Partners is driving corporate transformation, which could reshape how the market views governance.

  昨年11月からの株式会社アドバンテッジパートナーズとの業務提携により、外部の豊富な知見や経営支援を活用しManagement policy

• Progress toward the 2027 mid-term targets of 61 billion yen sales and 7 billion yen operating profit could trigger re-rating if achieved.

  2027年度売上610億円・営業利益70億円を目指して参ります。Management policy

• Replacement demand tied to the 2027 fluorescent lamp manufacturing ban could materialize into a concrete growth catalyst.

  2027年末の蛍光灯製造・輸出入禁止及びサステナビリティに関する社会的要請の高まりを背景とした既存照明器具の取り換え需要MD&A

How a buyer could still lose (value trap)

• The interior furniture segment's profit fell 67% year over year, from 78 million to 25 million yen, showing one diversification pillar already weakening.

  インテリア家具事業の売上高は1,160百万円（前連結会計年度比16.8％の減収）となり、セグメント利益は25百万円（前連結会計年度は78百万円のセグメント利益）となりました。MD&A

• Operating profit rose 16.5% while net income attributable to shareholders fell 9.5%, indicating core-business gains are not flowing through to the bottom line.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✗ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥55.5bn

Operating profit

¥5.7bn

Net profit

¥4.3bn

Operating cash flow

¥10.3bn

Cash

¥24.0bn

Debt

¥10.1bn

Equity

¥50.0bn

Annual report for the year to 2026-03-31