EF-ON, Inc. (9514) AI Stock Analysis

• Market Cap: ¥8.00B
• Dividend Yield: 2.29%
• Average Volume (3M): 76.16K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.90
• Revenue Growth: 4.05%
• EPS Growth: 38.64%
• Country: JP
• Employees: 271
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 5.03
• Shares Outstanding: 21,635,143
• 10 Day Avg. Volume: 68,300
• 30 Day Avg. Volume: 76,156
• PEG Ratio: 0.06
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 3.03
• 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: 60 Neutral
• Price Target: ¥399.00 ▲(13.03% Upside)

The overall stock score of 60 reflects a mixed outlook. The company's financial performance shows growth potential but is hindered by profitability and cash flow challenges. Technical analysis indicates bearish momentum, which could pose short-term risks. However, the valuation is reasonable, with a fair P/E ratio and an attractive dividend yield, providing some support for long-term investors.

Positive Factors

Consistent revenue growth

Sustained top-line growth indicates persistent demand for EF-ON's energy storage and software offerings. Recurring software subscriptions and consulting contracts help smooth revenue, supporting continued R&D and scale economics that can improve long-term competitive positioning and market share.

Diversified revenue streams and partnerships

A multi-pronged business model (hardware, subscription software, consulting) plus utility and government partnerships reduces single-market dependency. Pilot projects and grants can lower customer acquisition costs and accelerate deployments, strengthening durable revenue visibility and strategic market access.

Improving leverage and balanced capital structure

Gradual debt reduction and a stable equity ratio enhance financial flexibility for capex and R&D in a capital-intensive industry. Improved leverage lowers refinancing risk and interest burden, enabling EF-ON to execute multi-quarter growth initiatives without immediate funding stress.

Negative Factors

Declining profit margins

Eroding gross and net margins point to cost inflation or competitive pricing pressure in energy storage and services. Persistent margin compression would limit retained earnings, constrain reinvestment and weaken ability to achieve scalable profitability across new deployments and geographies.

Volatile free cash flow

Material swings in free cash flow create uncertainty about the firm's capacity to fund capex, repay debt, and support software subscription scaling. Even with healthy operating cash flow, FCF volatility can force reliance on external financing, raising execution and funding risk over coming quarters.

Reduced return on equity

A declining ROE signals less efficient use of shareholder capital and weaker profit generation per unit of equity. If ROE does not rebound, investors may see lower long-term returns and the company may need structural changes to pricing, cost base, or capital allocation to restore shareholder value.

EF-ON, Inc. Business Overview & Revenue Model

Company Description

EF-ON Inc. operates as an energy service company in Japan. It is involved in the energy-saving support service business, which includes improvement of boiler and hot water supply equipment, compressors, refrigerators, air conditioning equipment, lighting equipment, and other equipment; and biomass power generation business. The company was formerly known as The First Energy Service Company Limited and changed its name to EF-ON Inc. in October 2016. EF-ON Inc. was incorporated in 1997 and is headquartered in Tokyo, Japan.

How the Company Makes Money

EF-ON, Inc. generates revenue through multiple streams, including the sale of energy storage systems and related hardware to businesses and utilities. Additionally, the company offers subscription-based access to its energy management software, providing ongoing support and updates. Consulting services aimed at improving energy efficiency for clients also contribute to its revenue. Significant partnerships with utility companies and government entities for pilot projects and grants further bolster its earnings, allowing the company to scale its operations and invest in research and development.

EF-ON, Inc. Financial Statement Overview

Summary

EF-ON, Inc. demonstrates a solid growth trajectory in revenue with improving operational efficiency. However, profitability margins have been under pressure, and cash flow management remains a concern due to historical volatility. The balance sheet is stable, but there is room for improvement in profitability and leverage metrics.

Income Statement

EF-ON, Inc. has shown consistent revenue growth over the years, with a notable increase in the latest period. The gross profit margin has decreased over time, indicating rising costs or pricing pressures. The net profit margin has also declined, suggesting challenges in maintaining profitability. However, the company has improved its EBIT and EBITDA margins recently, reflecting better operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved slightly, indicating better leverage management. Return on equity has decreased, reflecting reduced profitability relative to equity. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the balance sheet shows moderate financial health with some room for improvement in profitability metrics.

Cash Flow

Operating cash flow has been strong, but free cash flow has been volatile, with significant fluctuations over the years. The recent positive free cash flow growth is a positive sign, but the historical negative free cash flow to net income ratio indicates potential cash flow management issues. The operating cash flow to net income ratio is healthy, showing good cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.60B	17.60B	17.47B	16.95B	13.26B	13.14B
Gross Profit	2.22B	2.22B	1.48B	2.29B	2.34B	3.39B
EBITDA	3.75B	3.69B	2.91B	3.82B	2.97B	4.21B
Net Income	706.00M	706.00M	281.00M	824.00M	893.00M	1.67B
Balance Sheet
Total Assets	44.58B	44.58B	45.26B	45.72B	47.24B	45.60B
Cash, Cash Equivalents and Short-Term Investments	5.76B	5.76B	5.57B	4.37B	4.53B	5.27B
Total Debt	22.03B	22.03B	23.88B	24.36B	26.47B	25.42B
Total Liabilities	25.89B	25.89B	27.03B	27.53B	29.70B	28.68B
Stockholders Equity	18.68B	18.68B	18.23B	18.19B	17.54B	16.92B
Cash Flow
Free Cash Flow	0.00	2.29B	1.93B	2.14B	-1.36B	-2.07B
Operating Cash Flow	0.00	2.98B	2.58B	3.67B	2.77B	4.08B
Investing Cash Flow	0.00	-682.00M	-630.00M	-1.54B	-4.25B	-6.12B
Financing Cash Flow	0.00	-2.11B	-745.00M	-2.29B	708.00M	3.04B

EF-ON, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 353.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9514, the sentiment is Negative. The current price of 353 is below the 20-day moving average (MA) of 371.10, below the 50-day MA of 354.26, and below the 200-day MA of 365.20, indicating a neutral trend. The MACD of 2.35 indicates Positive momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 23.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9514.

EF-ON, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1407	61 Neutral	¥64.68B	11.97	―	4.59%	-6.23%	-19.98%
9514	60 Neutral	¥8.00B	13.63	―	2.29%	4.05%	38.64%
9519	58 Neutral	¥62.58B	9.99	6.76%	―	28.85%	-9.70%
9517	55 Neutral	¥49.15B	22.82	―	1.79%	-15.80%	―
5074	48 Neutral	¥25.92B	-55.17	―	1.46%	25.53%	-128.67%