EDION Corp (2730) AI Stock Analysis

• Market Cap: ¥219.13B
• Dividend Yield: 2.24%
• Average Volume (3M): 211.15K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.18
• Revenue Growth: 3.24%
• EPS Growth: 12.49%
• Country: JP
• Employees: 9,170
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 58.11
• Shares Outstanding: 112,005,630
• 10 Day Avg. Volume: 180,360
• 30 Day Avg. Volume: 211,153
• PEG Ratio: 0.28
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 9.22
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,285.00 ▲(9.86% Upside)

EDION Corp's stock is supported by a stable financial position and positive technical indicators. The fair valuation further strengthens the stock's appeal. However, concerns about declining revenue growth and free cash flow generation slightly temper the overall score.

Positive Factors

Business Model Strength

A diversified revenue model with retail and service offerings enhances EDION's resilience and ability to adapt to market changes.

Competitive Advantages

Partnerships with top manufacturers provide EDION with unique product offerings, strengthening its market position and customer appeal.

Balance Sheet Health

A moderate debt level ensures financial stability and flexibility, allowing EDION to invest in growth opportunities without excessive risk.

Negative Factors

Revenue Growth Decline

A decline in revenue growth suggests potential challenges in maintaining market share and could impact long-term profitability if not addressed.

Free Cash Flow Challenges

Negative free cash flow growth limits EDION's ability to reinvest in business expansion, potentially hindering future growth and competitiveness.

Net Profit Margin Pressure

Decreased net profit margin indicates cost pressures or inefficiencies, which could affect EDION's ability to sustain profitability long-term.

EDION Corp Business Overview & Revenue Model

Company Description

EDION Corp (2730) is a leading Japanese retailer and distributor of consumer electronics and home appliances. The company operates a vast network of retail stores across Japan, offering a wide range of products including televisions, computers, mobile devices, home appliances, and various electronic accessories. EDION also provides services such as installation, repair, and customer support, catering to both residential and business customers. The company's focus on delivering quality products and excellent customer service has established it as a key player in the competitive electronics market.

How the Company Makes Money

EDION Corp generates revenue primarily through the sale of consumer electronics and home appliances in its retail outlets and online platforms. Key revenue streams include direct sales of products, service fees from installation and repair services, and revenue from warranty and insurance products. The company also benefits from strategic partnerships with major electronics manufacturers, allowing it to offer exclusive products and promotions. Additionally, EDION leverages its loyalty program and customer financing options to drive sales and enhance customer retention, contributing positively to its earnings.

EDION Corp Financial Statement Overview

Summary

EDION Corp demonstrates stable financial health with consistent profitability and a strong balance sheet. While revenue and profit margins are solid, the company faces challenges in cash flow management, particularly in free cash flow growth. Continued focus on improving cash flow and managing debt levels will be crucial for sustaining long-term growth.

Income Statement

EDION Corp shows a stable gross profit margin around 29%, indicating consistent cost management. The net profit margin has improved to 1.84% in TTM, reflecting better profitability. Revenue growth is modest at 1.16% in TTM, suggesting steady but slow expansion. EBIT and EBITDA margins are stable, indicating efficient operations. Overall, the income statement reflects a solid financial performance with room for growth.

Balance Sheet

The debt-to-equity ratio of 0.37 in TTM indicates a balanced approach to leveraging, though it has increased from previous years. Return on equity is stable at 6.41%, showing consistent returns to shareholders. The equity ratio remains strong, suggesting a solid financial structure. However, the increase in debt warrants monitoring for potential risks.

Cash Flow

Operating cash flow is healthy, but free cash flow growth is negative in TTM, indicating potential cash management issues. The operating cash flow to net income ratio is stable, suggesting efficient cash generation relative to earnings. However, the decline in free cash flow growth highlights the need for improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	773.30B	768.13B	721.09B	720.58B	713.77B	768.11B
Gross Profit	223.37B	222.87B	209.59B	210.88B	209.68B	225.64B
EBITDA	32.85B	33.51B	25.44B	28.13B	31.73B	37.00B
Net Income	13.42B	14.12B	9.02B	11.39B	13.11B	16.63B
Balance Sheet
Total Assets	422.25B	434.83B	431.69B	369.37B	377.97B	386.21B
Cash, Cash Equivalents and Short-Term Investments	9.06B	8.83B	12.01B	13.23B	29.89B	43.07B
Total Debt	70.77B	82.69B	91.21B	46.02B	55.56B	56.77B
Total Liabilities	192.33B	211.88B	216.77B	167.71B	178.49B	192.37B
Stockholders Equity	229.44B	222.52B	214.61B	201.66B	199.48B	193.84B
Cash Flow
Free Cash Flow	14.12B	21.38B	-46.47B	9.89B	8.63B	40.87B
Operating Cash Flow	22.85B	30.71B	19.96B	12.14B	10.58B	42.96B
Investing Cash Flow	-15.50B	-15.43B	-68.72B	-8.34B	-10.52B	-7.97B
Financing Cash Flow	-7.64B	-18.46B	47.53B	-20.45B	-13.24B	-7.89B

EDION Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2080.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2730, the sentiment is Positive. The current price of 2080 is above the 20-day moving average (MA) of 2042.00, above the 50-day MA of 2035.30, and above the 200-day MA of 1975.04, indicating a bullish trend. The MACD of 17.45 indicates Negative momentum. The RSI at 65.37 is Neutral, neither overbought nor oversold. The STOCH value of 83.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2730.

EDION Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7419	74 Outperform	¥360.96B	9.04	―	1.36%	15.92%	52.76%
2730	70 Outperform	¥219.13B	16.52	―	2.24%	3.24%	12.49%
3048	69 Neutral	¥282.19B	16.15	11.17%	2.61%	5.63%	25.64%
2681	69 Neutral	¥72.21B	14.60	―	1.87%	6.48%	-38.41%
8282	67 Neutral	¥247.94B	22.74	―	2.76%	2.23%	57.10%
9831	64 Neutral	¥414.00B	12.65	4.18%	2.63%	1.26%	14.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

EDION Corp Corporate Events

EDION Corp Reports Strong Q1 2025 Financial Performance

EDION Corporation reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 5.1% and operating profit increasing by 41.6% compared to the previous year. This growth reflects the company’s strong market positioning and effective strategies, which have positively impacted its operations and stakeholder confidence.