ERI Holdings Co., Ltd. (6083) AI Stock Analysis

• Market Cap: ¥22.81B
• Dividend Yield: 2.06%
• Average Volume (3M): 14.69K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.77
• Revenue Growth: 9.67%
• EPS Growth: 6.16%
• Country: JP
• Employees: 1,512
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 100.56
• Shares Outstanding: 7,832,400
• 10 Day Avg. Volume: 17,630
• 30 Day Avg. Volume: 14,690
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,261.00
• Price Target Upside: 11.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥3,261.00 ▲(11.98% Upside)

ERI Holdings Co., Ltd. is performing well financially, with strong revenue growth and profitability. The technical indicators suggest a positive trend, supporting the stock's potential. Valuation metrics indicate the stock is fairly valued, with a reasonable P/E ratio and modest dividend yield. However, cash flow management issues could pose a risk to sustaining growth.

ERI Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

ERI Holdings Co., Ltd. (6083) is a diversified company primarily engaged in the manufacturing and distribution of electronic components and systems. It operates across various sectors, including consumer electronics, automotive, and telecommunications, providing innovative solutions that enhance connectivity and efficiency. The company's core products encompass a wide range of electronic components, including semiconductors, circuit boards, and integrated systems designed for both commercial and industrial applications.

How the Company Makes Money

ERI Holdings generates revenue through multiple streams, primarily from the sale of its electronic components and systems to various industries. The company leverages long-term contracts with large manufacturers in the automotive and telecommunications sectors, ensuring a steady flow of orders. Additionally, ERI Holdings benefits from partnerships with technology firms and research institutions, allowing for collaborative development of cutting-edge products that meet market demands. The company's focus on innovation and quality drives repeat business and customer loyalty, contributing significantly to its earnings.

ERI Holdings Co., Ltd. Financial Statement Overview

Summary

ERI Holdings Co., Ltd. exhibits strong revenue growth and profitability, supported by a solid balance sheet. However, cash flow management presents some challenges, which could impact future growth.

Income Statement

ERI Holdings Co., Ltd. has demonstrated strong revenue growth with a 7.79% increase in the latest year. The company maintains healthy margins, with a gross profit margin of 32.43% and a net profit margin of 6.55%. The EBIT margin is robust at 10.35%, indicating efficient operational management. However, there is a slight decline in EBITDA margin compared to previous years, which could be a point of concern.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.40, indicating moderate leverage. The return on equity is strong at 20.40%, reflecting effective use of shareholder funds. The equity ratio stands at 47.21%, suggesting a solid equity base. However, the increase in total debt over the years should be monitored.

Cash Flow

Cash flow analysis reveals a challenging year with a significant drop in operating cash flow. The free cash flow growth rate is notably high due to a low base effect, but the operating cash flow to net income ratio is low at 0.61, indicating potential cash flow management issues. The free cash flow to net income ratio is healthy at 0.31, showing good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.52B	19.77B	18.02B	17.41B	16.15B	14.40B
Gross Profit	6.10B	6.41B	6.35B	6.36B	5.56B	3.94B
EBITDA	1.81B	2.53B	2.36B	2.66B	2.30B	772.24M
Net Income	821.01M	1.29B	1.23B	1.53B	1.23B	264.76M
Balance Sheet
Total Assets	11.65B	13.44B	11.47B	10.86B	8.57B	6.48B
Cash, Cash Equivalents and Short-Term Investments	4.93B	5.86B	6.74B	6.41B	4.91B	2.65B
Total Debt	2.66B	2.55B	2.22B	2.38B	1.07B	1.03B
Total Liabilities	6.03B	7.05B	5.69B	5.78B	4.55B	3.45B
Stockholders Equity	5.58B	6.34B	5.73B	5.04B	3.98B	2.99B
Cash Flow
Free Cash Flow	0.00	403.28M	1.17B	1.28B	2.33B	116.40M
Operating Cash Flow	0.00	784.60M	1.51B	1.39B	2.42B	209.06M
Investing Cash Flow	0.00	-852.10M	-391.62M	-562.61M	52.20M	114.39M
Financing Cash Flow	0.00	-866.01M	-740.99M	563.87M	-210.42M	-422.22M

ERI Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2912.00
• 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:6083, the sentiment is Positive. The current price of 2912 is above the 20-day moving average (MA) of 2884.25, below the 50-day MA of 2948.56, and above the 200-day MA of 2370.93, indicating a bullish trend. The MACD of 10.17 indicates Negative momentum. The RSI at 56.52 is Neutral, neither overbought nor oversold. The STOCH value of 82.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6083.

ERI Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6086	76 Outperform	¥24.84B	20.63	29.09%	1.36%	15.87%	25.64%
6083	74 Outperform	¥22.81B	17.20	―	2.06%	9.67%	6.16%
4809	72 Outperform	¥20.57B	10.26	9.37%	3.30%	9.52%	17.18%
7377	69 Neutral	¥17.22B	8.65	―	3.91%	8.33%	23.11%
7814	67 Neutral	¥41.21B	13.95	18.69%	1.52%	7.37%	15.48%
7320	56 Neutral	¥28.28B	-41.44	-15.06%	0.59%	25.13%	-158.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ERI Holdings Co., Ltd. Corporate Events

ERI Holdings Reclassifies HIKARI TSUSHIN as Affiliated Company

ERI Holdings Co., Ltd. announced that HIKARI TSUSHIN, INC. has been classified as an ‘other affiliated company’ due to HTI indirectly holding over 20% of ERI’s voting rights through its subsidiaries. This reclassification follows a notification from HTI and discussions with their auditing firm. The change will not impact ERI’s financial performance.