EDP Corp. (7794) AI Stock Analysis

• Market Cap: ¥8.62B
• Dividend Yield: N/A
• Average Volume (3M): 221.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥552.00 ▲(43.38% Upside)

The score is held back primarily by weak financial performance (profitability deterioration and negative operating/free cash flow), despite strong technical momentum. Valuation is mixed because the negative P/E reflects losses and dividend yield data is unavailable.

Positive Factors

Diversified renewable business model

EDP operates across generation, transmission, distribution and energy management with a clear emphasis on wind, solar and hydro. This multi-segment, renewables-focused model benefits from structural demand and regulatory support, providing durable revenue avenues and resilience versus single-product players.

Solid asset base / strong equity ratio

A strong equity ratio indicates substantial owned assets—critical for a utility/renewables operator. Large, long-lived grid and generation assets underpin service continuity and collateral for project financing, supporting investment capacity and operational continuity over the medium term.

Partnerships and energy services pipeline

Formal partnerships with public and private counterparts plus energy efficiency services create a project pipeline and recurring-service opportunities. These collaborations help secure long-term contracts, de-risk project development and expand addressable markets sustainably.

Negative Factors

Negative margins and profitability deterioration

Turned negative gross and net margins indicate core operations are not covering costs, undermining internal funding for capex and innovation. Persistent negative profitability erodes retained earnings, weakens competitive reinvestment ability and threatens medium-term viability if not reversed.

Negative operating and free cash flow

Consistently negative operating and free cash flow means the business is not generating cash from operations to fund maintenance, expansion or debt service. This forces reliance on external financing, raising refinancing and interest-rate risks and constraining strategic flexibility.

Rising leverage with negative ROE

Increasing leverage while ROE is negative amplifies financial risk: higher interest burdens and lower equity returns reduce buffer against shocks. This combination limits ability to invest, increases probability of covenant stress or dilution, and weakens resilience over multiple quarters.

EDP Corp. Business Overview & Revenue Model

Company Description

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.

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: Positive
• Last Price: 385.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 385 is below the 20-day moving average (MA) of 428.40, below the 50-day MA of 426.02, and below the 200-day MA of 530.68, indicating a bullish trend. The MACD of 31.90 indicates Negative momentum. The RSI at 70.15 is Negative, neither overbought nor oversold. The STOCH value of 83.18 is Negative, 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	75 Outperform	¥10.42B	22.03	―	5.21%	6.89%	-1.46%
2736	65 Neutral	¥2.18B	12.80	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8139	57 Neutral	¥34.34B	71.66	―	0.46%	8.02%	2.66%
7794	53 Neutral	¥8.62B	-3.43	―	―	-33.00%	-206.51%
7872	50 Neutral	¥6.56B	-10.01	―	4.64%	-0.68%	46.43%
7810	41 Neutral	¥2.52B	101.52	―	0.25%	18.69%	5.17%