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

• Market Cap: ¥8.03B
• Dividend Yield: 2.29%
• Average Volume (3M): 76.16K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.83
• Revenue Growth: 4.05%
• EPS Growth: 38.64%
• Country: JP
• Employees: 271
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): N/A
• 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: ¥410.00 ▲(16.15% Upside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

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

Revenue Growth

Sustained revenue expansion indicates the company is winning customers or expanding capacity in renewable utilities. Over the next 2–6 months this supports continued operating scale, steady top-line cash conversion, and better leverage of fixed costs, aiding margin recovery and reinvestment capacity.

Operating Cash Generation

Reliable operating cash flow demonstrates durable cash generation from core operations. Even with historical volatility, recent FCF improvement strengthens the firm's ability to fund maintenance capex, repay debt, and support dividends or project investments without heavy external financing over the medium term.

Improving Leverage

Incremental deleveraging improves financial flexibility and lowers refinancing risk for capex-heavy renewable projects. A more balanced capital structure enables the company to access capital markets more efficiently and invest in long-term growth initiatives while preserving credit profile stability.

Negative Factors

Margin Pressure

Eroding gross and net margins point to rising input costs or pricing pressure in a competitive renewables market. Persistent margin compression reduces retained earnings and capital available for investments, making it harder to finance growth and deliver consistent returns to shareholders over time.

Free Cash Flow Volatility

Volatile FCF undermines predictability of funding for maintenance, expansions, and dividends. Even with recent positive FCF, historical swings suggest sensitivity to project timing or working capital, which can constrain strategic planning and make the company more reliant on external financing during weaker periods.

Declining Return on Equity

A falling ROE signals lower efficiency in converting equity into profits, which can persistently depress shareholder returns. If not addressed through margin improvement or higher asset productivity, declining ROE will limit the company's ability to attract equity capital for long-term renewables investments.

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.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	17.60B	17.47B	16.95B	13.26B	13.14B
Gross Profit	2.22B	1.48B	2.29B	2.34B	3.39B
EBITDA	3.69B	2.91B	3.82B	2.97B	4.21B
Net Income	706.00M	281.00M	824.00M	893.00M	1.67B
Balance Sheet
Total Assets	44.58B	45.26B	45.72B	47.24B	45.60B
Cash, Cash Equivalents and Short-Term Investments	5.76B	5.57B	4.37B	4.53B	5.27B
Total Debt	22.03B	23.88B	24.36B	26.47B	25.49B
Total Liabilities	25.89B	27.03B	27.53B	29.70B	28.68B
Stockholders Equity	18.68B	18.23B	18.19B	17.54B	16.92B
Cash Flow
Free Cash Flow	2.29B	1.93B	2.14B	-1.36B	-2.07B
Operating Cash Flow	2.98B	2.58B	3.67B	2.77B	4.08B
Investing Cash Flow	-682.00M	-630.00M	-1.54B	-4.25B	-6.12B
Financing Cash Flow	-2.11B	-745.00M	-2.29B	708.00M	3.04B

EF-ON, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 353.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 353 is below the 20-day moving average (MA) of 357.00, below the 50-day MA of 363.30, and below the 200-day MA of 370.53, indicating a bullish trend. The MACD of 7.12 indicates Negative momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9514.

EF-ON, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9513	82 Outperform	$733.47B	6.68	7.17%	3.22%	-1.56%	9.17%
9509	71 Outperform	¥217.12B	13.52	13.70%	2.36%	-1.60%	-10.41%
9517	66 Neutral	¥75.68B	5.57	―	1.79%	-15.80%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9511	63 Neutral	¥55.83B	3.56	4.73%	2.31%	-1.96%	33.15%
9514	60 Neutral	¥8.03B	11.52	―	2.29%	4.05%	38.64%
9519	53 Neutral	¥68.85B	48.38	7.71%	―	28.85%	-9.70%