EDP Corp. (7794) AI Stock Analysis

• Market Cap: ¥18.83B
• Dividend Yield: N/A
• Average Volume (3M): 221.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• 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: ¥1,229.00 ▲(219.22% 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

Strong equity / asset base

A strong equity ratio and solid asset base provide a durable cushion against operating losses and increase the company's ability to access financing or restructure. Over 2-6 months this supports solvency and preserves options for strategic investment or recapitalization.

Lean operating footprint

A small headcount implies a lower fixed cost base and greater operational flexibility. This makes it easier to scale costs with revenue, execute efficiency measures quickly, and preserve cash runways, aiding margin recovery if top-line stabilization occurs.

Positioned in luxury goods sector

Operating in the luxury goods sector confers structural advantages like brand pricing power and resilient demand among targeted consumer segments. These industry characteristics can support margin recovery and pricing resilience over the medium term if product-market fit is restored.

Negative Factors

Negative gross and net margins

Persistently negative gross and net margins indicate core unit economics are currently unprofitable. Over several months this undermines reinvestment capacity, erodes equity, and makes operational turnaround dependent on sustained revenue recovery or structural cost reduction.

Negative operating and free cash flow

Negative operating and free cash flow mean the business is not generating internal funds to support operations or investment. This creates reliance on external financing, increases refinancing risk, and limits strategic flexibility over the medium term if cash generation does not improve.

Severe recent revenue and EPS declines

Sharp declines in revenue and EPS point to meaningful demand loss or operational disruption. Such declines deepen margin pressure, complicate forecasting, and increase the time and capital required to return to sustainable profitability, raising medium-term execution risk.

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: Neutral
• Last Price: 385.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 385 is below the 20-day moving average (MA) of 1531.75, below the 50-day MA of 935.60, and below the 200-day MA of 627.92, indicating a neutral trend. The MACD of 66.46 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 21.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	13.22	―	5.21%	6.89%	-1.46%
2736	65 Neutral	¥2.34B	-6.03	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8139	57 Neutral	¥30.70B	16.44	―	0.46%	8.02%	2.66%
7794	52 Neutral	¥18.83B	-0.93	―	―	-33.00%	-206.51%
7810	50 Neutral	¥3.36B	79.60	―	0.25%	18.69%	5.17%
7872	50 Neutral	¥6.74B	-1,548.06	―	4.64%	-0.68%	46.43%