EDP Corp. (7794) AI Stock Analysis

• Market Cap: ¥19.02B
• 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): 2.44
• 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: ¥1,241.00 ▲(222.34% 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 ratio

A strong equity ratio indicates the company retains a solid asset base despite operating losses. This durable balance-sheet buffer improves creditor confidence and provides time and flexibility to restructure operations or secure financing without immediate solvency pressure.

Relatively stable balance sheet position

Relative balance-sheet stability (stable equity base) gives the firm structural footing while it addresses operating issues. That stability supports negotiations with lenders, preserves access to capital markets, and allows multi-month turnaround plans without forcing asset fire sales.

Exposure to Luxury Goods industry

Operating in the luxury goods sector confers structural demand advantages: pricing power with affluent consumers and potential recovery leverage as high-end spending rebounds. These secular industry attributes can support margins and revenue recovery over several months.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flow erodes liquidity and forces reliance on external financing or asset disposal. Over a multi-month horizon, this constrains reinvestment, limits margin recovery initiatives, and increases refinancing and covenant risk.

Deteriorated margins and loss-making operations

Margins turning negative reflect structural cost and pricing imbalances that undermine profitability. Persistent loss-making operations reduce retained earnings, impair reinvestment capacity, and make sustained recovery dependent on meaningful operational changes or cost restructuring.

Rising leverage and negative ROE

Increasing leverage combined with negative ROE raises financial risk: higher interest burdens and weaker returns on capital limit strategic flexibility. Over several months, this elevates refinancing risk and the potential need for dilutive capital or costly restructuring.

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

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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	4.38B	5.36B	6.04B	2.83B	2.29B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.44B	688.22M	2.24B	1.07B	948.03M
Total Debt	604.03M	638.83M	232.22M	350.05M	439.84M	452.18M
Total Liabilities	977.22M	958.89M	509.37M	1.11B	786.54M	652.58M
Stockholders Equity	3.19B	3.42B	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 1288.50, below the 50-day MA of 1092.72, and below the 200-day MA of 655.65, indicating a neutral trend. The MACD of 18.64 indicates Positive momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 49.43 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
7769	76 Outperform	¥32.00B	18.74	―	1.93%	-2.29%	151.87%
9990	74 Outperform	¥24.03B	11.37	―	3.99%	-2.12%	-15.35%
7937	68 Neutral	¥49.62B	6.98	2.46%	3.50%	22.68%	-9.41%
2736	65 Neutral	¥2.33B	-6.03	―	1.21%	1.04%	-66.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7794	52 Neutral	¥19.02B	-0.93	―	―	-33.00%	-206.51%
7810	49 Neutral	¥3.24B	42.09	―	0.25%	18.69%	5.17%