We Think Estic's (TSE:6161) Healthy Earnings Might Be Conservative

Estic Corporation (TSE:6161) reported stable earnings, with shares unchanged recently. Analysts suggest that shareholders may overlook positive factors in the earnings report. Estic's accrual ratio is -0.11, indicating strong cash conversion, with free cash flow of JP¥2.0b exceeding statutory profit of JP¥1.18b. Despite previous negative cash flow, this improvement is notable. Estic's earnings per share have grown 44% annually over the last three years, but there are two warning signs to consider. Overall, the earnings potential appears strong, warranting further analysis of other financial factors.