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

• Market Cap: ¥36.66B
• Dividend Yield: 1.75%
• Average Volume (3M): 22.68K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.57
• Revenue Growth: 17.36%
• EPS Growth: 70.92%
• Country: JP
• Employees: 1,512
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 99.05
• Shares Outstanding: 7,832,400
• 10 Day Avg. Volume: 14,690
• 30 Day Avg. Volume: 22,683
• PEG Ratio: 2.10
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 39.86
• 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: 71 Outperform
• Price Target: ¥4,680.00 ▼(-4.88% Downside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

ERI Holdings Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability. However, technical indicators suggest the stock is overbought, which could lead to a short-term correction. The valuation is fair, but the low dividend yield may not appeal to all investors. Improving cash flow management will be crucial for sustaining growth.

Positive Factors

Sustained Revenue Growth

ERI’s multi-year revenue growth metric (20.8%) and the firm-level commentary about strong revenue expansion indicate durable demand for its IT services and cloud/ERP offerings. Persistent top-line growth supports investment in platform capabilities, scale economics, and recurring contract expansion over the next several months.

Healthy Profitability Margins

Consistently robust gross and EBIT margins show ERI can extract value from systems integration and software projects, signaling competitive pricing and operational efficiency. Margin resiliency underpins cash generation potential and funds R&D or sales scaling without immediate dilution of profitability.

Solid Capital Structure & ROE

A moderate leverage profile and strong 20.4% ROE reflect effective deployment of shareholder capital and balanced risk. The 47% equity base gives financial flexibility for selective debt-funded growth or M&A while limiting solvency stress, supporting durable operational plans over the medium term.

Negative Factors

Operating Cash Flow Weakness

A marked decline in operating cash flow and a low OCF-to-net-income ratio signal weaker cash conversion despite accounting profits. Structural OCF shortfalls can constrain reinvestment, subscription scaling, or increase reliance on external financing, raising execution risk over the coming months.

Rising Total Debt Trend

Although current leverage is moderate, the noted increase in total debt over time reduces headroom for additional financing and raises interest and refinancing exposure. If cash conversion remains subdued, escalating debt levels could strain liquidity and limit strategic flexibility.

EBITDA Margin Pressure

A downward drift in EBITDA margin suggests emerging cost pressure or pricing compression in competitive IT services and integration projects. Sustained margin erosion would undermine free cash flow and the company’s ability to fund growth initiatives without sacrificing profitability or increasing leverage.

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

Company Description

ERI Holdings Co., Ltd. (6083) is a Japan-based company primarily engaged in the provision of various information technology services and solutions. The company operates in sectors such as IT consulting, system integration, and software development. Its core products and services include cloud computing solutions, data analysis tools, and enterprise resource planning (ERP) systems, aimed at enhancing operational efficiency and business productivity for organizations across different industries.

How the Company Makes Money

ERI Holdings generates revenue through multiple streams, primarily by offering IT consulting services, custom software development, and system integration projects to businesses. The company charges clients based on project scope, which may include hourly fees, fixed project fees, or ongoing service contracts. Key revenue streams include subscription fees from cloud services, licensing fees from proprietary software, and maintenance contracts for ongoing support. Additionally, partnerships with technology providers and industry stakeholders enhance ERI's service offerings and contribute to its earnings by expanding its market reach and providing bundled solutions.

ERI Holdings Co., Ltd. Financial Statement Overview

Summary

ERI Holdings Co., Ltd. exhibits strong revenue growth and profitability, supported by a solid balance sheet. The income statement and balance sheet reflect a positive trajectory, but cash flow management presents some challenges, with a significant drop in operating cash flow.

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	May 2024	May 2023	May 2022	May 2021	May 2021
Income Statement
Total Revenue	21.04B	19.77B	18.02B	17.41B	16.15B	14.40B
Gross Profit	7.09B	6.41B	6.35B	6.36B	5.56B	3.94B
EBITDA	2.24B	2.53B	2.36B	2.66B	2.30B	772.24M
Net Income	1.76B	1.29B	1.23B	1.53B	1.23B	264.76M
Balance Sheet
Total Assets	13.95B	13.44B	11.47B	10.86B	8.57B	6.48B
Cash, Cash Equivalents and Short-Term Investments	7.76B	5.86B	6.74B	6.41B	4.91B	2.65B
Total Debt	3.19B	2.55B	2.22B	2.38B	1.07B	1.03B
Total Liabilities	7.27B	7.05B	5.69B	5.78B	4.55B	3.45B
Stockholders Equity	6.64B	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: 4920.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4920 is above the 20-day moving average (MA) of 4490.75, above the 50-day MA of 4612.80, and above the 200-day MA of 3390.55, indicating a bullish trend. The MACD of 35.26 indicates Negative momentum. The RSI at 63.32 is Neutral, neither overbought nor oversold. The STOCH value of 67.92 is Neutral, 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
4658	78 Outperform	¥59.52B	17.38	―	3.33%	9.63%	11.40%
6083	71 Outperform	¥36.66B	16.27	―	1.75%	17.36%	70.92%
6044	71 Outperform	¥11.71B	14.34	―	1.08%	18.17%	191.50%
6086	67 Neutral	¥25.38B	19.06	―	1.34%	16.06%	31.24%
6183	64 Neutral	¥110.95B	11.62	―	4.17%	0.44%	44.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6544	61 Neutral	¥300.59B	43.42	―	0.87%	16.30%	23.34%

ERI Holdings Co., Ltd. Corporate Events

ERI Holdings Lifts Full-Year Outlook on Strong Demand for Regulatory-Driven Building Evaluations

ERI Holdings reported higher sales and earnings for the second quarter of its fiscal year, supported by increased demand for housing performance evaluations and energy-efficiency standard reviews following major revisions to Japan’s Building Standards Act in April 2025. While new housing starts and associated building confirmations remain sluggish, the growth in structural and energy-related review work, along with business expansion via M&A, has driven revenue and profit gains, enabling the company to raise its full-year earnings and dividend forecasts and reinforcing its role and responsibilities in maintaining smooth application procedures under the new regulatory regime.

The most recent analyst rating on (JP:6083) stock is a Buy with a Yen5437.00 price target. To see the full list of analyst forecasts on ERI Holdings Co., Ltd. stock, see the JP:6083 Stock Forecast page.

ERI Holdings Doubles Annual Dividend Forecast with ¥55 Interim Payout

ERI Holdings Co., Ltd. has approved an interim dividend of ¥55 per share, with a record date of November 30, 2025, and a total payout of ¥411 million, to be distributed from retained earnings on January 30, 2026. The payout, which doubles the prior fiscal year’s annual dividend of ¥60 to a forecast ¥110 per share for the current year, underscores the company’s emphasis on enhancing shareholder returns through sustainable semi-annual dividends while preserving financial strength and funding for future growth investments.

The most recent analyst rating on (JP:6083) stock is a Buy with a Yen5437.00 price target. To see the full list of analyst forecasts on ERI Holdings Co., Ltd. stock, see the JP:6083 Stock Forecast page.

ERI Holdings Delivers Strong First-Half Earnings and Plans to Double Dividend

ERI Holdings reported strong results for the six months ended November 30, 2025, with net sales rising 26.7% year on year to ¥11.37 billion and profit attributable to owners of parent jumping 273.9% to ¥1.27 billion, alongside a sharp improvement in operating profit and ordinary profit. Total assets and net assets increased modestly, the shareholders’ equity ratio remained around 47%, and the company plans to more than double its annual dividend to ¥110 per share for the fiscal year ending May 31, 2026, reflecting confidence in sustained earnings growth, supported in part by the addition of two newly consolidated subsidiaries and an unchanged full-year forecast calling for double-digit sales and profit expansion.

The most recent analyst rating on (JP:6083) stock is a Buy with a Yen5437.00 price target. To see the full list of analyst forecasts on ERI Holdings Co., Ltd. stock, see the JP:6083 Stock Forecast page.