EDP Corp. (7794) AI Stock Analysis

• Market Cap: ¥6.18B
• Dividend Yield: N/A
• Average Volume (3M): 221.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -33.00%
• EPS Growth: -206.51%
• Country: JP
• Employees: 62
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -15.75
• Shares Outstanding: 14,544,600
• 10 Day Avg. Volume: 107,130
• 30 Day Avg. Volume: 221,143
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 9.24
• P/FCF Ratio: -14.83
• 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): 20,087.34
• Revenue Forecast (FY): ¥857.77B

• Rating: 38 Underperform
• Price Target: ¥379.00 ▼(-5.96% Downside)

EDP Corp.'s overall stock score is primarily impacted by its poor financial performance and valuation. The company's financial health is concerning, with negative profitability and cash flow issues. Technical analysis indicates bearish momentum, further weighing down the stock's prospects. The lack of earnings call data and corporate events does not provide any additional insights to offset these challenges.

Positive Factors

Renewable Energy Focus

EDP Corp.'s focus on renewable energy positions it well in the growing sustainable energy market, offering long-term growth potential as demand for clean energy increases.

Diverse Revenue Streams

Diverse revenue streams from electricity sales and renewable incentives provide stability and growth opportunities, reducing reliance on a single income source.

Partnerships for Clean Energy

Strategic partnerships enhance EDP Corp.'s ability to expand its clean energy projects, driving future revenue and strengthening its market position.

Negative Factors

Declining Profitability

Negative profitability indicates operational inefficiencies and cost management issues, which could hinder long-term financial health and competitiveness.

Negative Cash Flow

Persistent negative cash flow raises concerns about liquidity and the company's ability to fund operations and growth initiatives sustainably.

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting EDP Corp.'s ability to invest in future growth opportunities.

EDP Corp. Business Overview & Revenue Model

Company Description

EDP Corp. (7794) operates primarily in the energy sector, focusing on the production and distribution of electricity and renewable energy solutions. The company is involved in various segments including generation, transmission, and distribution of electrical power, with a strong emphasis on sustainable energy sources such as wind, solar, and hydroelectric power. EDP Corp. also offers energy management services and solutions for both residential and commercial customers, aiming to enhance energy efficiency and reduce carbon footprints.

How the Company Makes Money

EDP Corp. generates revenue through multiple streams primarily centered around its energy production and distribution activities. The company earns significant income from the sale of electricity to consumers and businesses, leveraging its extensive grid infrastructure for transmission. Additionally, EDP Corp. capitalizes on incentives and subsidies associated with renewable energy projects, which not only provide direct financial benefits but also enhance its marketability in an increasingly eco-conscious marketplace. Furthermore, the company has established partnerships with various governmental and private entities to develop clean energy projects, driving additional revenue through joint ventures and collaborative initiatives. The focus on energy efficiency services also contributes to its earnings, as businesses and homeowners seek to reduce their energy costs.

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	697.60M	902.73M	757.55M	2.71B	1.56B	1.14B
Gross Profit	-423.09M	-635.05M	397.43M	1.82B	839.22M	469.19M
EBITDA	-1.94B	-1.84B	341.07M	1.60B	758.63M	474.80M
Net Income	-2.43B	-2.32B	-111.34M	909.63M	374.82M	253.35M
Balance Sheet
Total Assets	4.17B	4.37B	5.34B	6.02B	2.82B	2.28B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.44B	688.22M	2.24B	1.07B	948.03M
Total Debt	603.00M	636.29M	232.22M	350.05M	439.84M	452.18M
Total Liabilities	977.00M	958.89M	487.02M	1.09B	772.29M	645.27M
Stockholders Equity	3.19B	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: Negative
• Last Price: 403.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7794, the sentiment is Negative. The current price of 403 is below the 20-day moving average (MA) of 470.05, below the 50-day MA of 500.50, and below the 200-day MA of 571.90, indicating a bearish trend. The MACD of -26.09 indicates Positive momentum. The RSI at 28.20 is Positive, neither overbought nor oversold. The STOCH value of 11.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7794.

EDP Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9904	75 Outperform	¥10.18B	21.51	―	5.26%	6.89%	-1.46%
2736	62 Neutral	¥2.13B	11.96	―	1.18%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7872	50 Neutral	¥6.19B	―	―	4.64%	-0.68%	46.43%
8139	48 Neutral	¥27.82B	58.06	―	0.59%	8.02%	2.66%
7810	41 Neutral	¥2.56B	115.72	―	0.23%	10.06%	-22.67%
7794	38 Underperform	¥6.18B	―	―	―	-33.00%	-206.51%