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ERI Holdings Co., Ltd. (JP:6083)
:6083
Japanese Market
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ERI Holdings Co., Ltd. (6083) AI Stock Analysis

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JP:6083

ERI Holdings Co., Ltd.

(6083)

Rating:74Outperform
Price Target:
¥3,261.00
▲(13.23% 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. (6083) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionERI 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 MoneyERI 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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.52B19.77B18.02B17.41B16.15B14.40B
Gross Profit6.10B6.41B6.35B6.36B5.56B3.94B
EBITDA1.81B2.53B2.36B2.66B2.30B772.24M
Net Income821.01M1.29B1.23B1.53B1.23B264.76M
Balance Sheet
Total Assets11.65B13.44B11.47B10.86B8.57B6.48B
Cash, Cash Equivalents and Short-Term Investments4.93B5.86B6.74B6.41B4.91B2.65B
Total Debt2.66B2.55B2.22B2.38B1.07B1.03B
Total Liabilities6.03B7.05B5.69B5.78B4.55B3.45B
Stockholders Equity5.58B6.34B5.73B5.04B3.98B2.99B
Cash Flow
Free Cash Flow0.00403.28M1.17B1.28B2.33B116.40M
Operating Cash Flow0.00784.60M1.51B1.39B2.42B209.06M
Investing Cash Flow0.00-852.10M-391.62M-562.61M52.20M114.39M
Financing Cash Flow0.00-866.01M-740.99M563.87M-210.42M-422.22M

ERI Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2880.00
Price Trends
50DMA
2758.66
Positive
100DMA
2406.73
Positive
200DMA
2278.45
Positive
Market Momentum
MACD
29.62
Positive
RSI
46.65
Neutral
STOCH
22.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6083, the sentiment is Neutral. The current price of 2880 is below the 20-day moving average (MA) of 2961.40, above the 50-day MA of 2758.66, and above the 200-day MA of 2278.45, indicating a neutral trend. The MACD of 29.62 indicates Positive momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 22.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6083.

ERI Holdings Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥24.10B20.02
1.40%15.87%25.64%
74
Outperform
¥22.56B17.01
2.08%9.67%6.16%
72
Outperform
¥20.82B10.39
3.11%9.52%17.18%
69
Neutral
¥17.51B8.80
3.83%8.33%22.89%
67
Neutral
¥41.26B13.96
1.52%7.37%15.48%
64
Neutral
$10.72B16.047.75%2.00%2.65%-15.66%
56
Neutral
¥25.59B15.29
0.65%25.13%-158.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6083
ERI Holdings Co., Ltd.
2,880.00
780.21
37.16%
JP:4809
Paraca Inc.
2,055.00
227.97
12.48%
JP:6086
Shin Maint Holdings Co.Ltd.
1,145.00
385.82
50.82%
JP:7320
Japan Living Warranty, Inc.
2,142.00
655.12
44.06%
JP:7377
DN HOLDINGS CO. LTD.
2,080.00
521.72
33.48%
JP:7814
JAPAN Creative Platform Group Co., Ltd.
891.00
366.91
70.01%

ERI Holdings Co., Ltd. Corporate Events

ERI Holdings Reclassifies HIKARI TSUSHIN as Affiliated Company
Apr 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025