EDP Corp. (7794) AI Stock Analysis

• Market Cap: ¥22.14B
• Dividend Yield: N/A
• Average Volume (3M): 221.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.08
• Revenue Growth: -33.00%
• EPS Growth: -206.51%
• Country: JP
• Employees: 62
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -104.04
• Shares Outstanding: 15,474,600
• 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: 52 Neutral
• Price Target: ¥1,484.00 ▲(285.45% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weak financial performance (loss-making margins and negative operating/free cash flow), with rising leverage adding risk. This is partially offset by strong technical trend strength (price well above major moving averages with positive MACD). Valuation remains a concern due to the negative P/E and lack of dividend yield data.

Positive Factors

Solid asset base / strong equity ratio

A strong equity ratio provides a durable capital cushion to absorb operating losses and supports refinancing or restructuring options. This asset base gives management flexibility to execute a turnaround or pursue selective investments without immediate solvency pressure.

Lean operating structure

A very small headcount implies lower fixed overhead and greater operational agility for a luxury goods firm. Over a multi-month horizon this enables faster cost adjustments, focused brand/product work, and potentially more efficient use of scarce cash during recovery.

Regular reporting / disclosure cadence

Consistent public reporting and scheduled earnings releases reflect governance and transparency. Reliable disclosure supports creditor and partner confidence, aids monitoring of restructuring progress, and reduces information friction when arranging financing or strategic partnerships.

Negative Factors

Loss-making margins

Negative gross and net margins signal core profitability loss from rising costs or weak pricing power. Over months this erodes retained earnings, limits reinvestment capacity, and demands material margin or revenue improvement to restore sustainable profitability.

Negative operating and free cash flow

Persistent negative operating and free cash flow depletes liquidity and forces reliance on external funding or asset sales. In a 2–6 month window this constrains day-to-day operations, limits marketing and product investment, and raises refinancing risk.

Rising leverage and weak returns

Increasing debt levels combined with negative ROE amplify financial risk: higher interest costs and curtailed borrowing capacity. Over the medium term this can increase funding costs, reduce strategic optionality, and pressure solvency if performance does not improve.

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

Overall fundamentals are weak: the income statement shows margins deteriorating into losses (negative gross and net margins), cash flow is negative (operating and free cash flow), and while the balance sheet is comparatively steadier, leverage has risen and ROE is negative.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• RSI: Neutral
• STOCH: Positive

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 1419.95, below the 50-day MA of 850.34, and below the 200-day MA of 614.52, indicating a bullish trend. The MACD of 191.47 indicates Positive momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 13.16 is Positive, 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	¥11.34B	24.66	―	5.21%	6.89%	-1.46%
2736	65 Neutral	¥2.28B	13.39	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8139	57 Neutral	¥30.67B	32.55	―	0.46%	8.02%	2.66%
7794	52 Neutral	¥22.14B	-5.69	―	―	-33.00%	-206.51%
7810	50 Neutral	¥3.85B	155.02	―	0.25%	18.69%	5.17%
7872	50 Neutral	¥6.66B	-11.45	―	4.64%	-0.68%	46.43%