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ELWSEarlyworks Co., Ltd
$5.29$80M
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  4. Financial Ratios

Earlyworks Co., Ltd (ELWS) Financial Ratios

Latest Ratios: P/E Ratio N/A · EV/EBITDA N/A · ROE -126.8%. (2021–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

ELWS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$80M—$12M———
Enterprise Value$79M—$-147068370———
P/E Ratio →——————
P/S Ratio28.31—0.06———
P/B Ratio168.380.390.04———
P/FCF——————
P/OCF——————

P/E links to full P/E history page with 30-year chart

ELWS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
EV / Revenue——-0.82———
EV / EBITDA——————
EV / EBIT——————
EV / FCF——————

ELWS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
Gross Margin51.6%51.6%79.0%34.5%76.6%84.5%
Operating Margin-55.8%-55.8%-212.7%-834.1%-123.4%-41.2%
Net Profit Margin-58.3%-58.3%-187.4%-821.0%-129.9%-32.6%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
ROE-126.8%-126.8%-124.7%-95.7%-131.8%-21.8%
ROA-67.0%-67.0%-65.4%-63.4%-101.3%-16.1%
ROIC-190.5%-190.5%-143.7%-254.0%-2330.5%-198.7%
ROCE-100.3%-100.3%-115.7%-84.7%-112.0%-23.4%

ELWS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
Debt / Equity0.700.700.540.940.120.23
Debt / EBITDA——————
Net Debt / Equity—-0.71-0.480.08-0.99-0.90
Net Debt / EBITDA——————
Debt / FCF————-5.92-8.54
Interest Coverage-143.20-143.20-240.02-143.91-454.52-61.55

Net cash position: cash ($104M) exceeds total debt ($52M)

ELWS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
Current Ratio1.741.742.751.336.637.32
Quick Ratio1.741.742.751.306.557.24
Cash Ratio1.261.262.271.015.906.51
Asset Turnover—2.310.310.100.620.49
Inventory Turnover5.36——5.3612.707.70
Days Sales Outstanding—21.85164.99392.5556.8868.69

ELWS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
Dividend Yield——————
Payout Ratio——————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021
Earnings Yield——————
FCF Yield——————
Buyback Yield0.0%—0.0%———
Total Shareholder Yield0.0%—0.0%———
Shares Outstanding—$0$3M$3M$3M$3M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetAdequate
Cash FlowBurning
Top Statement Risk

Persistent Operating Cash Burn

Growth Optionality Drives Premium Valuation

As reported in financial statements, Earlyworks trades at a price-to-sales multiple of 28.31, a valuation that appears to price in significant future growth optionality rather than current fundamental earnings power, which remains deeply negative according to the most recent quarterly data provided in the company's filings.

The absence of meaningful P/E or EV/EBITDA multiples underscores that the market is currently valuing the firm as a speculative growth venture rather than a mature software provider. Investors should monitor whether this high P/S ratio can be sustained if revenue growth decelerates or if the company fails to demonstrate a clear path toward positive operating margins.

Capital Efficiency Remains Fundamentally Impaired

Based on reported figures, Earlyworks has struggled to generate positive returns on invested capital, with ROIC plummeting to -3.5% in 2024Q4, suggesting that the company's current deployment of capital is failing to create shareholder value and is instead eroding the firm's underlying equity base over time.

The extreme volatility in ROIC, which swung from -174.8% in 2024Q2 to -3.5% in 2024Q4, indicates that the company's returns are highly sensitive to the timing of project-based revenue recognition. This trend suggests that the firm has yet to achieve the scale or operational efficiency required to generate sustainable, positive returns on its invested capital.

Working Capital Cycles Impede Liquidity

According to recent financial data, the company's asset turnover ratio remains exceptionally low at 0.22, reflecting a business model that is currently unable to efficiently convert its asset base into revenue, which warrants further investigation into the scalability of its proprietary Grid Ledger System technology.

The significant increase in DSO to 230 days in 2024Q4 suggests that the company is facing extended collection cycles, which may indicate limited leverage over its enterprise clients. This inefficiency in working capital management appears to be a primary driver of the company's persistent cash burn and reliance on external financing.

Misapplication of Revenue Growth Metrics

As indicated by the provided data, investors frequently misapply top-line revenue growth as a proxy for business health, failing to account for the fact that Earlyworks' 145% revenue expansion is currently accompanied by deep operating losses that suggest a lack of fundamental operating leverage in its model.

Relying solely on revenue growth obscures the underlying cost structure, which is heavily burdened by high R&D and personnel expenses. A more appropriate metric for this business model would be the ratio of gross profit to customer acquisition costs, which would better reveal whether the company's growth is truly sustainable or merely a result of aggressive, loss-making project bidding.

Download Financial Ratios Data

Includes 30+ ratios · 5 years · Updated daily

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ELWS — Frequently Asked Questions

Quick answers to the most common questions about buying ELWS stock.

What is Earlyworks Co., Ltd's ROE?

Earlyworks Co., Ltd's return on equity (ROE) is -126.8%. The historical average is -100.2%.

Is ELWS stock overvalued?

Based on historical data, Earlyworks Co., Ltd is trading at valuation metrics that vary. Compare with industry peers and growth rates for a complete picture.

What are Earlyworks Co., Ltd's profit margins?

Earlyworks Co., Ltd has 51.6% gross margin and -55.8% operating margin.