Enechange Ltd. (4169) AI Stock Analysis

• Market Cap: ¥11.08B
• Dividend Yield: N/A
• Average Volume (3M): 213.66K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.83
• Revenue Growth: 14.25%
• EPS Growth: N/A
• Country: JP
• Employees: 285
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -1.40
• Shares Outstanding: 42,767,834
• 10 Day Avg. Volume: 157,990
• 30 Day Avg. Volume: 213,656
• PEG Ratio: 0.09
• Price to Book (P/B): -13.21
• Price to Sales (P/S): 2.37
• P/FCF Ratio: -2.81
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ¥284.00 ▲(3.27% Upside)

Enechange Ltd.'s overall stock score is primarily impacted by its challenging financial performance, characterized by negative equity and liquidity issues. Technical analysis indicates bearish momentum, further weighing on the score. The valuation is moderate, but the lack of a dividend yield reduces its appeal. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Enechange's energy solutions and positions the company well for future expansion.

Business Model

Diversified revenue streams from software and consulting services provide stability and potential for recurring income, supporting long-term growth.

Industry Position

Enechange's focus on renewable energy and smart grid solutions aligns with global sustainability trends, enhancing its competitive position.

Negative Factors

Profitability Challenges

Persistent profitability issues indicate operational inefficiencies, which could hinder the company's ability to reinvest in growth and innovation.

Financial Stability

High leverage and negative equity raise concerns about Enechange's financial resilience and ability to weather economic downturns.

Cash Flow Constraints

Inability to generate positive cash flow limits Enechange's capacity to fund operations and invest in strategic initiatives, impacting long-term viability.

Enechange Ltd. Business Overview & Revenue Model

Company Description

ENECHANGE Ltd. engages in the energy platform and energy data businesses. The Energy Platform Business segment offers Enechange, an electricity/gas switching platform for households; Enechange Biz, an electricity/gas switching platform for companies; Omakase Switch for easy review of electricity charges from meter reading slips; client acquisition services; and energy use optimization services, as well as balancing group mediation. The Energy Data segment provides cloud solutions to electricity and gas utilities in the field of digitalization comprising Energy Marketing Acceleration Platform, a marketing support services; EV Charging infrastructure that provides an ultrafast battery-integrated electric vehicle charger, and the Boost Charger; GreenCart, an online platform for issuing green power certificates; and JEF, an analysis and operations management service for renewable energy power plants, as well as ENECHANGE INSIGHT solutions and smart meter data analysis services. This segment also provides Electricity and Gas Client Acquisition Platform for charges simulations and application management; Plan Information support services that use electricity charge plan information; and Online Payment Platform to pay electricity/gas bills, as well as power source portfolio analysis, forwarding charges optimization, PL analysis, and demand response services. Its technology is applied in the field of deregulation, decentralization, digitalization, and decarbonization. The company was incorporated in 2015 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Enechange Ltd. generates revenue through a multi-faceted business model that includes the sale of energy management software and hardware, consulting services for energy efficiency, and subscription-based access to its energy monitoring platforms. Key revenue streams include direct sales to commercial and industrial clients seeking to enhance their energy efficiency, as well as partnerships with utility companies that provide incentives for renewable energy adoption. Additionally, Enechange benefits from government grants and incentives aimed at promoting renewable energy solutions, further contributing to its earnings.

Enechange Ltd. Financial Statement Overview

Summary

Enechange Ltd. is experiencing revenue growth but faces significant challenges in profitability and financial stability. Negative net income, high leverage, and liquidity constraints are major concerns.

Income Statement

Enechange Ltd. has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024. However, the company is experiencing negative net income and EBIT margins, indicating challenges in achieving profitability. The gross profit margin remains healthy, but the substantial operating losses suggest operational inefficiencies or high costs impacting the bottom line.

Balance Sheet

The company's balance sheet reveals a concerning negative stockholders' equity, reflecting accumulated losses. The high debt-to-equity ratio indicates significant leverage, posing financial risk if cash flows do not improve. Enechange Ltd.'s equity ratio is negative, highlighting solvency issues and potential financial instability.

Cash Flow

Enechange Ltd.'s cash flow statement shows zero free cash flow for the latest period, indicating challenges in generating cash from operations. The negative operating cash flow in previous periods further underscores the company's struggle to maintain positive cash flow. The absence of positive free cash flow growth rates and operating cash flow to net income ratio suggests liquidity constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.72B	5.18B	4.38B	3.73B	3.02B	1.71B
Gross Profit	8.36B	4.09B	3.35B	2.94B	2.58B	1.32B
EBITDA	-2.24B	-2.72B	-4.69B	-1.09B	80.50M	41.35M
Net Income	-3.02B	-3.36B	-4.99B	-1.32B	-85.59M	-16.74M
Balance Sheet
Total Assets	6.40B	9.01B	5.56B	6.76B	6.95B	1.97B
Cash, Cash Equivalents and Short-Term Investments	3.96B	2.44B	2.18B	3.07B	5.57B	1.33B
Total Debt	719.85M	6.43B	3.73B	1.98B	1.01B	759.90M
Total Liabilities	1.96B	9.94B	7.04B	3.26B	2.14B	1.11B
Stockholders Equity	4.44B	-929.00M	-1.48B	3.50B	4.81B	852.47M
Cash Flow
Free Cash Flow	-4.37B	-4.37B	-2.44B	-2.23B	405.51M	63.21M
Operating Cash Flow	220.93M	220.93M	-1.62B	-1.91B	481.69M	139.54M
Investing Cash Flow	-3.40B	-3.40B	-931.24M	-1.55B	-552.95M	-294.70M
Financing Cash Flow	5.28B	5.28B	1.65B	958.45M	4.30B	1.29B

Enechange Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 275.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4169, the sentiment is Neutral. The current price of 275 is above the 20-day moving average (MA) of 270.75, below the 50-day MA of 296.42, and below the 200-day MA of 319.00, indicating a neutral trend. The MACD of -10.10 indicates Negative momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4169.

Enechange Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4011	67 Neutral	¥10.40B	60.60	―	―	34.56%	4.59%
4447	62 Neutral	¥3.04B	33.98	―	4.17%	-15.23%	-65.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4425	54 Neutral	¥12.84B	-22.50	―	―	36.08%	-7.71%
4169	45 Neutral	¥11.08B	12.60	―	―	14.25%	―
3856	43 Neutral	¥6.80B	3.56	―	1.45%	-40.21%	-54.31%

Enechange Ltd. Corporate Events

ENECHANGE Ltd. Announces Strategic Enhancements and Revenue Growth Plans

ENECHANGE Ltd. is working on several projects to improve its energy switching comparison services, including site renovations and AI chat service integration, with plans to release these improvements by the end of the fiscal year 2025. The company is also addressing a temporary decline in household recurring customers by shifting its strategy to focus on profitability and efficient customer acquisition. Additionally, fluctuations in non-recurring revenues are attributed to project schedules, and the company anticipates future revenue growth from electricity procurement support projects and new SaaS services.

ENECHANGE Ltd. Reports Non-operating Expenses for FY25 Q2

ENECHANGE Ltd. announced the recording of non-operating expenses amounting to 205 million JPY for the second quarter of FY25, primarily due to an equity method investment loss in its affiliated companies, Miraiz ENECHANGE Ltd. and Japan Energy Capital 2 L.P. This financial update may impact the company’s financial performance and stakeholder interests, as the total non-operating expenses for the first half of the fiscal year reached 603 million JPY.

ENECHANGE Ltd. Revises Financial Forecast Upwards Amid Strong Performance

ENECHANGE Ltd. has announced an upward revision of its consolidated financial results forecast for the fiscal year ending March 2026, driven by better-than-expected business performance and significant cost reductions at its headquarters. The company’s adjusted EBITDA for the second quarter has almost reached the forecast for the entire fiscal year, prompting a reassessment of revenue projections. This revision reflects the company’s strategic focus on growth investments and adapting to market conditions, such as changes in electricity usage and prices.

Enechange Ltd. Reports Q2 2025 Financial Results with Upward Forecast Revision

Enechange Ltd. reported its consolidated financial results for the second quarter ending September 30, 2025, showing a revenue of 2,980 million yen. Despite an increase in revenue compared to the previous period, the company experienced a loss attributable to owners of the parent amounting to 229 million yen. The financial position remains stable with a high equity-to-asset ratio of 66.2%. The company has revised its earnings forecast upwards for the fiscal year ending March 31, 2026, indicating potential growth and improved financial performance in the future.

ENECHANGE Ltd. Expands Operations and Enhances Services Amid Growing Energy Demands

ENECHANGE Ltd. has recently relocated its head office to Toranomon, Minato-ku, to support its medium-term management plan, ENECHANGE 2.0, aiming to improve communication, reduce costs, and accommodate future growth. The company has also enhanced its EV charging port database, improving location accuracy for drivers, and partnered with Tokyu Livable to promote its energy switching services to rental tenants, facilitating easier energy selection during relocations. Additionally, the anticipated increase in power demand from data centers presents opportunities for ENECHANGE’s renewable energy solutions, aligning with the industry’s move towards carbon neutrality.