Stable Equity BaseA relatively stable equity position provides a durable capital cushion that supports operations, supplier relations, and potential restructuring. Over months this reduces insolvency risk, gives management time to execute turnarounds, and preserves strategic optionality despite short-term losses.

Industry: Luxury GoodsOperating in the luxury goods sector confers structural advantages like pricing power and demand resilience among affluent consumers. These industry characteristics support margin recovery potential and more predictable revenue for niche premium brands over a 2–6 month horizon as discretionary spending normalizes.

Lean Operating FootprintA small workforce implies a lean cost structure and lower fixed overhead, which helps preserve cash burn rates and enables faster scalability when revenue improves. This operational nimbleness increases the likelihood that incremental revenue translates to margin recovery over several months.

Bears Say

Negative ProfitabilityA shift to negative gross and net margins indicates core product economics are loss-making, a structural issue that undermines sustainable profitability. Unless costs or pricing are materially changed, negative margins will continue to erode equity and limit the company's ability to fund growth or investment over the medium term.

Weak Cash GenerationConsistent negative operating and free cash flow signal persistent liquidity strain and limited internal funding for operations or capex. Over 2–6 months this constrains strategic flexibility, increases reliance on external financing, and elevates refinancing and solvency risk if losses continue.

Rising Leverage & Negative ROEHigher leverage combined with negative ROE means the firm is using more debt while failing to generate shareholder returns. This structural imbalance raises fixed financial costs and reduces headroom for investment, magnifying downside risk if earnings do not recover within the coming months.

7794 FAQ

What was EDP Corp.’s price range in the past 12 months?

EDP Corp. lowest stock price was ¥360.00 and its highest was ¥2090.00 in the past 12 months.

What is EDP Corp.’s market cap?

EDP Corp.’s market cap is ¥27.44B.

When is EDP Corp.’s upcoming earnings report date?

EDP Corp.’s upcoming earnings report date is May 08, 2026 which is in 81 days.

How were EDP Corp.’s earnings last quarter?

EDP Corp. released its earnings results on Feb 12, 2026. The company reported -¥104.04 earnings per share for the quarter, missing the consensus estimate of N/A by -¥104.04.

Is EDP Corp. overvalued?

According to Wall Street analysts EDP Corp.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does EDP Corp. pay dividends?

EDP Corp. does not currently pay dividends.

What is EDP Corp.’s EPS estimate?

EDP Corp.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does EDP Corp. have?

EDP Corp. has 15,474,600 shares outstanding.

What happened to EDP Corp.’s price movement after its last earnings report?

EDP Corp. reported an EPS of -¥104.04 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 21.567%.

Which hedge fund is a major shareholder of EDP Corp.?

Currently, no hedge funds are holding shares in JP:7794

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

EDP Corp.

EDP Corporation engages in the fabrication and sale of single crystal synthetic diamonds and related products. It offers synthetic jewel/diamond seeds, semiconductor/diamond substrates, application product/heat spreaders, optical windows, and cutting tools/diamond tool blanks. EDP Corporation was incorporated in 2009 and is headquartered in Toyonaka, Japan.