EDP Corp. (7794) AI Stock Analysis

• Market Cap: ¥8.18B
• Dividend Yield: N/A
• Average Volume (3M): 73.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: -24.62%
• EPS Growth: -747.64%
• Country: JP
• Employees: 62
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Luxury Goods
• EPS (TTM): -19.15
• Shares Outstanding: 14,474,600
• 10 Day Avg. Volume: 80,150
• 30 Day Avg. Volume: 73,763
• 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: ¥492.00
• Price Target Upside: -12.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ¥492.00 ▼(-12.92% Downside)

EDP Corp.'s overall stock score is primarily impacted by its poor financial performance, characterized by declining profitability and cash flow issues. The technical analysis suggests a bearish trend, further weighing on the score. The negative P/E ratio and lack of dividend yield contribute to a weak valuation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Renewable Energy Focus

EDP Corp.'s focus on renewable energy positions it well in a growing market as demand for sustainable solutions increases, supporting long-term growth.

Stable Revenue Streams

Long-term PPAs provide EDP Corp. with predictable cash flows, reducing revenue volatility and enhancing financial stability over the long term.

Strategic Partnerships

Partnerships expand EDP Corp.'s market reach and capabilities, fostering innovation and potentially driving revenue growth in the competitive energy sector.

Negative Factors

Declining Profitability

Negative profitability margins reflect operational inefficiencies, which could hinder EDP Corp.'s ability to invest in growth and maintain competitive positioning.

Cash Flow Issues

Persistent cash flow challenges could limit EDP Corp.'s ability to fund operations and strategic initiatives, impacting long-term financial health.

Increased Leverage

Higher leverage raises financial risk, potentially constraining EDP Corp.'s flexibility to navigate economic downturns or invest in growth opportunities.

EDP Corp. Business Overview & Revenue Model

Company Description

EDP Corp. (7794) is a leading energy company primarily engaged in the generation, distribution, and commercialization of electricity and natural gas. Operating across various sectors including renewable energy, thermal generation, and utility services, EDP Corp. is committed to sustainable energy solutions and innovation. The company's core products and services encompass electricity generation from renewable sources, such as wind and solar, and providing energy solutions to residential, commercial, and industrial customers.

How the Company Makes Money

EDP Corp. generates revenue through multiple streams, primarily from the sale of electricity and natural gas. The company earns money by producing and distributing electricity from its diverse portfolio of energy generation assets, which includes renewable energy facilities. Additionally, EDP Corp. engages in long-term power purchase agreements (PPAs) with various customers, securing stable revenue over time. The company also provides energy management services and solutions, which contribute to its earnings. Strategic partnerships with other energy firms and participation in government contracts for renewable energy projects further enhance its revenue potential. Factors such as regulatory incentives for renewable energy and the increasing demand for sustainable energy solutions also play a significant role in driving EDP Corp.'s profitability.

EDP Corp. Financial Statement Overview

Summary

EDP Corp. faces significant financial challenges, with declining profitability and cash flow issues. The balance sheet remains relatively stable, but increased leverage poses risks. The company needs to address operational inefficiencies and improve cash generation to enhance financial health.

Income Statement

EDP Corp. has experienced significant volatility in its income statement metrics. The gross profit margin has turned negative in the latest year due to a substantial increase in costs, leading to a negative net profit margin. Revenue growth has been inconsistent, with a recent decline. EBIT and EBITDA margins have also deteriorated, indicating operational challenges.

Balance Sheet

The balance sheet shows a relatively stable equity position, but the debt-to-equity ratio has increased, indicating higher leverage. The equity ratio remains strong, suggesting a solid asset base. However, the return on equity has been negative recently, reflecting profitability issues.

Cash Flow

Cash flow analysis reveals negative free cash flow and operating cash flow, highlighting liquidity concerns. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. Free cash flow growth has been negative, suggesting challenges in generating cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	903.35M	902.73M	757.55M	2.71B	1.56B	1.14B
Gross Profit	-403.65M	-635.05M	397.43M	1.82B	839.22M	469.19M
EBITDA	-1.84B	-1.84B	341.07M	1.60B	758.63M	474.80M
Net Income	-2.32B	-2.32B	-111.34M	909.63M	374.82M	253.35M
Balance Sheet
Total Assets	4.37B	4.37B	5.34B	6.02B	2.82B	2.28B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.44B	688.22M	2.24B	1.07B	948.03M
Total Debt	636.29M	636.29M	232.22M	350.05M	439.84M	452.18M
Total Liabilities	958.89M	958.89M	487.02M	1.09B	772.29M	645.27M
Stockholders Equity	3.41B	3.41B	4.85B	4.93B	2.05B	1.63B
Cash Flow
Free Cash Flow	0.00	-562.50M	-1.46B	-702.40M	99.99M	36.99M
Operating Cash Flow	0.00	-516.72M	-630.75M	1.18B	635.00M	440.58M
Investing Cash Flow	0.00	-77.96M	-908.50M	-1.89B	-545.00M	-401.28M
Financing Cash Flow	0.00	1.25B	-118.48M	1.86B	15.67M	525.96M

EDP Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 565.00
• 50DMA: Positive
• 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:7794, the sentiment is Positive. The current price of 565 is above the 20-day moving average (MA) of 511.25, above the 50-day MA of 548.58, and below the 200-day MA of 610.16, indicating a neutral trend. The MACD of -15.39 indicates Negative momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7794.

EDP Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	72 Outperform	¥9.99B	20.67		5.36%	3.88%	0.84%
2736	62 Neutral	¥2.18B	11.45		1.15%	5.68%	-60.91%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
8139	59 Neutral	¥26.07B	80.25		0.59%	2.98%	-42.40%
7872	56 Neutral	¥6.36B	―		4.52%	-1.15%	47.80%
7810	54 Neutral	¥2.76B	37.41		0.22%	7.20%	34.29%
7794	41 Neutral	¥8.18B	―		―	-24.62%	-747.64%