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

• Market Cap: ¥6.94B
• Dividend Yield: 2.47%
• Average Volume (3M): 36.85K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.87
• Revenue Growth: 1.41%
• EPS Growth: 522.92%
• Country: JP
• Employees: 271
• Sector: Utilities
• Sector Strength: 67
• Industry: Renewable Utilities
• EPS (TTM): 6.48
• Shares Outstanding: 21,635,143
• 10 Day Avg. Volume: 50,780
• 30 Day Avg. Volume: 36,850
• PEG Ratio: -0.66
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.24
• 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

• Rating: 61 Neutral
• Price Target: ¥347.00 ▲(7.10%Upside)

The overall stock score of 63 reflects moderate financial performance with profitability challenges and cash flow instability. The valuation is a strong point, suggesting the stock may be undervalued with a decent dividend yield. Technical indicators show a neutral to slightly bearish trend, indicating potential resistance ahead.

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 the production and sale of electricity sourced from renewable energy facilities. Key revenue streams include selling electricity to utility companies and participating in government-backed renewable energy programs. The company may also earn income through strategic partnerships and collaborations with other firms in the energy sector to enhance its production capabilities and expand its market reach. Additionally, any government incentives or subsidies for renewable energy production can significantly contribute to the company's earnings.

EF-ON, Inc. Financial Statement Overview

Summary

EF-ON, Inc. exhibits moderate financial health with stable revenue growth but faces profitability challenges. The balance sheet shows adequate leverage management, but cash flow instability poses a risk. Profit margins need improvement, and cash flows should be stabilized.

Income Statement

EF-ON, Inc. shows moderate revenue growth with a 9.4% increase from 2022 to 2023, but a minor decline in the TTM period. The gross profit margin stands at 9.3% for TTM, indicating challenges in maintaining strong profitability. Net profit margin for TTM is 2.2%, reflecting thin margins. EBIT and EBITDA margins are 4.3% and 9.0% respectively, suggesting operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio stands at 1.26, indicating a moderately leveraged position. The return on equity is 2.1% for TTM, reflecting low profitability relative to equity. The equity ratio is 40.7% in TTM, suggesting a stable capital structure with a decent proportion of equity.

Cash Flow

The cash flow analysis indicates volatility, with operating cash flow to net income ratio not calculable for TTM due to zero cash flow. Historical free cash flow shows improvement but remains inconsistent, impacting the company's ability to generate cash from operations.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	17.38B	17.47B	16.95B	13.26B	13.14B	12.22B
Gross Profit	1.62B	1.48B	2.29B	2.34B	3.39B	3.60B
EBITDA	2.50B	2.91B	3.65B	2.97B	4.21B	4.28B
Net Income	385.00M	281.00M	824.00M	893.00M	1.67B	1.76B
Balance Sheet
Total Assets	45.18B	45.26B	45.72B	47.24B	45.60B	39.85B
Cash, Cash Equivalents and Short-Term Investments	6.16B	5.57B	4.37B	4.53B	5.27B	4.25B
Total Debt	23.10B	23.88B	24.36B	26.47B	25.42B	22.11B
Total Liabilities	26.80B	27.03B	27.53B	29.70B	28.68B	24.41B
Stockholders Equity	18.38B	18.23B	18.19B	17.54B	16.92B	15.43B
Cash Flow
Free Cash Flow	0.00	1.93B	2.14B	-1.36B	-2.07B	-4.97B
Operating Cash Flow	0.00	2.58B	3.67B	2.77B	4.08B	2.83B
Investing Cash Flow	0.00	-630.00M	-1.54B	-4.25B	-6.12B	-7.70B
Financing Cash Flow	0.00	-745.00M	-2.29B	708.00M	3.04B	4.57B

EF-ON, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 324.00
• 50DMA: Negative
• 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 324 is below the 20-day moving average (MA) of 324.31, below the 50-day MA of 327.94, and below the 200-day MA of 352.02, indicating a bearish trend. The MACD of -1.92 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 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
1407	75 Outperform	¥68.75B	12.37		3.73%	-7.18%	-18.58%
Sector *	62 Neutral	€6.89B	3.78	-1.70%	4.51%	9.31%	-12.31%
9514	61 Neutral	¥6.94B	11.78		2.47%	1.41%	522.92%
9517	57 Neutral	¥57.90B	25.94		1.48%	-30.11%	―
9519	54 Neutral	$68.10B	25.18	3.36%	―	56.98%	-73.47%
5074	50 Neutral	¥22.82B	25.51		2.36%	4.05%	-112.10%
2743	29 Underperform	¥8.28B	―		―	45.56%	-109.42%

EF-ON, Inc. Corporate Events

EF-ON Inc. Reports Improved Profits Amid Slight Sales Decline

EF-ON Inc. has reported its consolidated financial results for the six months ending December 31, 2024, under Japanese GAAP. The company experienced a slight decline in net sales by 1.1% compared to the previous year, yet saw significant growth in operating profit and ordinary profit by 30% and 58.1% respectively. This reflects a strategic improvement in operational efficiency. Despite the decrease in total assets, the equity ratio has improved slightly, indicating a healthier balance sheet. The forward-looking statements forecast a positive outlook for the full fiscal year ending June 30, 2025, with expected increases in net sales, operating profit, and earnings per share.