eREX Co., Ltd. (9517) AI Stock Analysis

• Market Cap: ¥57.42B
• Dividend Yield: 1.79%
• Average Volume (3M): 177.27K
• Price to Earnings (P/E): 40.0
• Beta (1Y): 0.97
• Revenue Growth: -15.80%
• EPS Growth: N/A
• Country: JP
• Employees: 269
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 27.55
• Shares Outstanding: 78,161,606
• 10 Day Avg. Volume: 188,250
• 30 Day Avg. Volume: 177,273
• PEG Ratio: -0.26
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 4.28
• 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): 46.15
• Revenue Forecast (FY): ¥169.22B

• Rating: 55 Neutral
• Price Target: ¥754.00 ▲(22.80% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

The overall stock score of 55 reflects a mixed outlook for eREX Co., Ltd. The company's financial performance shows signs of recovery with improved profitability and cash flow, which is a positive factor. However, the technical analysis indicates bearish momentum, and the valuation suggests limited upside potential. The absence of earnings call insights and notable corporate events leaves the current assessment reliant on financial and technical data.

Positive Factors

Improved free cash flow and cash generation

Material recovery to positive free cash flow and a high operating-cash-to-net-income ratio indicate the business now converts earnings to cash reliably. Durable cash generation supports reinvestment in projects, debt servicing or shareholder returns and reduces refinancing risk over the medium term.

Moderate leverage and stable capital structure

A balanced debt profile and healthy equity ratio provide financial flexibility to fund renewable projects or absorb cyclical shocks. This leverage posture supports sustainable investment without excessive refinancing pressure and underpins longer-term strategic execution capacity.

Margin stabilization and return to profitability

Transition from losses to positive gross, EBIT and net margins signals structural improvements in cost control and operational efficiency. Stabilized margins increase the sustainability of earnings and support continued cash generation even if top-line growth remains uneven.

Negative Factors

Negative revenue growth trend

Sustained year-over-year revenue decline undermines scale benefits and makes margin gains harder to sustain. Without a clear recovery in top-line demand or new contracts, improved cash flow and margins could prove fragile over the next several quarters.

Low net profit margin providing limited cushion

A single-digit net margin near 1% leaves little room to absorb input cost increases, regulatory changes or adverse weather in the renewables sector. This thin profitability limits reinvestment capacity and heightens sensitivity to operational setbacks.

Modest return on equity indicating limited capital efficiency

ROE at roughly 3.3% shows the company is only modestly converting equity into profit. Over the medium term this constrains shareholder value creation and suggests the firm must improve asset utilization or margins to justify continued capital deployment.

eREX Co., Ltd. Business Overview & Revenue Model

Company Description

eREX Co.,Ltd. engages in the generation and supply of power in Japan. The company operates a biomass power plant. It is also involved in electricity trading. The company was founded in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

eREX Co., Ltd. generates revenue primarily through the sale of renewable energy products, including solar panels and energy storage systems, as well as through its energy management services. The company's revenue model includes direct sales to consumers and businesses, installation services, and maintenance contracts. Additionally, eREX capitalizes on government incentives and subsidies for renewable energy projects, which significantly boost its earnings. Strategic partnerships with other technology firms and collaborations with local governments enhance its market reach and operational capabilities, further strengthening its revenue streams.

eREX Co., Ltd. Financial Statement Overview

Summary

eREX Co., Ltd. is showing signs of financial recovery with improved profitability and cash flow in the latest fiscal year. Despite revenue challenges, margins have stabilized, and the balance sheet remains solid with manageable leverage. The company's cash flow situation has improved, enhancing its liquidity position. Continued focus on revenue growth and cost management will be key to sustained financial health.

Income Statement

The company has shown volatility in its revenue and profitability over the years. Recent recovery in profitability is noted, with a gross profit margin of 11.98% and an EBIT margin of 5.61% for the year ending March 2025. The net profit margin improved to 1.24% from a significant loss in the previous year. However, revenue growth has been negative, indicating potential challenges in maintaining revenue levels.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.70, indicating balanced leverage. The equity ratio of 41.81% reflects a stable capital structure. Return on equity for 2025 was 3.30%, which is a recovery from losses in 2024 but still indicates room for improvement. Overall, the balance sheet shows a stable financial position.

Cash Flow

Cash flow has improved significantly, with a free cash flow of ¥13.9 billion in 2025 compared to negative figures in previous years. The operating cash flow to net income ratio is strong at 9.20, reflecting efficient cash generation relative to net income. Free cash flow growth has been positive, indicating improved cash management and operational efficiency.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	174.82B	171.22B	244.98B	296.31B	230.50B	141.88B
Gross Profit	20.37B	20.50B	-9.17B	25.73B	22.85B	24.56B
EBITDA	9.94B	11.33B	-16.27B	21.60B	19.48B	18.06B
Net Income	236.00M	2.12B	-22.26B	9.13B	9.65B	6.29B
Balance Sheet
Total Assets	149.04B	153.38B	145.18B	171.48B	157.16B	127.88B
Cash, Cash Equivalents and Short-Term Investments	25.55B	33.61B	23.51B	33.62B	27.16B	31.70B
Total Debt	46.17B	45.62B	57.78B	55.66B	53.59B	47.67B
Total Liabilities	79.88B	80.90B	89.95B	97.09B	90.34B	73.39B
Stockholders Equity	61.73B	64.14B	47.51B	62.07B	55.71B	44.08B
Cash Flow
Free Cash Flow	0.00	13.90B	-26.29B	20.12B	-595.00M	16.09B
Operating Cash Flow	0.00	19.50B	-23.23B	21.49B	13.31B	18.70B
Investing Cash Flow	0.00	-5.53B	-6.56B	-14.58B	-22.98B	-9.67B
Financing Cash Flow	0.00	32.00M	15.15B	-225.00M	4.66B	6.41B

eREX Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 614.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9517, the sentiment is Positive. The current price of 614 is below the 20-day moving average (MA) of 664.65, below the 50-day MA of 641.72, and below the 200-day MA of 702.80, indicating a bullish trend. The MACD of 19.89 indicates Negative momentum. The RSI at 73.78 is Negative, neither overbought nor oversold. The STOCH value of 84.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9517.

eREX Co., Ltd. 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%
9511	63 Neutral	¥64.63B	10.32	4.73%	2.31%	-1.96%	33.15%
1407	61 Neutral	¥70.70B	13.09	―	4.59%	-6.23%	-19.98%
9514	60 Neutral	¥7.77B	13.21	―	2.29%	4.05%	38.64%
5074	58 Neutral	¥42.82B	46.35	―	1.46%	25.53%	-128.67%
9517	55 Neutral	¥57.42B	39.99	―	1.79%	-15.80%	―
9519	53 Neutral	¥67.21B	9.24	6.76%	―	28.85%	-9.70%

eREX Co., Ltd. Corporate Events

Erex Sets Three-Year Mid-Term Plan Targeting Higher Revenue and Profit

Erex Group has unveiled a new mid-term business plan covering the fiscal years ending March 31, 2027 to March 31, 2029, outlining a growth trajectory in revenue and profitability. The company projects consolidated net sales to rise from ¥174.9 billion in fiscal 2027 to ¥208.3 billion in fiscal 2029, with operating income expected to increase from ¥8.5 billion to ¥11.3 billion and net income attributable to owners of the parent climbing from ¥5.5 billion to ¥9.5 billion over the same period.

The plan signals management’s intention to steadily strengthen earnings capacity and scale in its energy operations, suggesting a more robust financial base that could support further investment and strategic initiatives. While the company cautions that the figures are subject to change depending on future conditions, the outlined targets indicate confidence in demand and Erex’s competitive positioning in Japan’s evolving power market, with potential implications for shareholder returns and capital allocation policies.

The most recent analyst rating on (JP:9517) stock is a Hold with a Yen708.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.

Erex Cuts Operating Profit Outlook but Lifts Net Income Forecast for FY 2026

Erex has revised its full-year consolidated forecast for the fiscal year ending March 31, 2026, keeping net sales and pretax profit unchanged but cutting operating income to ¥7.1 billion from ¥8.6 billion, while raising net income attributable to owners to ¥4.0 billion. The downgrade in operating income reflects losses linked to the civil rehabilitation of partner ENETRADE Inc. and timing issues in loss recognition on unpurchased inventory, but stronger-than-planned domestic power sales, stable biomass plant operations, lower PKS fuel costs, and reduced profit attributable to non-controlling interests are expected to lift bottom-line profit and earnings per share, signaling resilience in core operations despite one-off charges.

The most recent analyst rating on (JP:9517) stock is a Hold with a Yen708.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.

eREX Posts Solid Underlying Earnings as It Expands Renewable Power Strategy

eREX Co., Ltd. reported that its retail and fuel businesses delivered steady growth for the first three quarters of the fiscal year ending March 31, 2026, with net sales and income before taxes progressing largely in line with full-year plans. Operating income was temporarily pressured by the impact of ENETRADE’s civil rehabilitation and inventory allowance losses tied to the suspension of the Itoigawa Power Plant, but on a normalized basis the operating income progress rate reached 79.0%, underscoring resilient underlying performance supported by favorable financial income.

eREX emphasized it is building a solid domestic business foundation in Japan across retail, trading, aggregation, and power generation and fuel, while positioning itself as a pioneer in a new era of electric power centered on renewables. By leveraging its expertise in biomass power and co-firing to promote decarbonization in Southeast Asia, where electricity demand is expanding, the company aims to strengthen its industry positioning and open additional growth avenues beyond its home market, which could benefit shareholders and energy market stakeholders over the longer term.

The most recent analyst rating on (JP:9517) stock is a Hold with a Yen639.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.

eREX Posts Lower Nine-Month Profit but Sticks to FY2026 Earnings and Dividend Outlook

eREX Co., Ltd. reported consolidated net sales of ¥127.98 billion for the nine months ended December 31, 2025, a modest 1.1% year-on-year increase, while operating income fell 41.9% to ¥4.66 billion and net income attributable to owners of the parent declined 15.4% to ¥3.74 billion. Despite weaker interim profitability, the company maintained a solid equity ratio of 43.4%, confirmed its full-year forecast calling for higher operating income and net profit versus the prior year, and kept its plan for an annual ¥11 per-share dividend for the fiscal year ending March 31, 2026, signaling confidence in its financial stability and medium-term earnings outlook.

The most recent analyst rating on (JP:9517) stock is a Hold with a Yen639.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.

eREX Launches Shareholder Benefit Program to Boost Liquidity and Engagement

eREX Co., Ltd. has approved the introduction of a new shareholder benefit program, the “erex Premium Yutai-Club,” starting from the fiscal period ending March 2026, to reward shareholders holding at least 300 shares at the end of March and September each year. Eligible shareholders will receive points, roughly equivalent to yen, that can be redeemed for a wide array of products and experiences or converted into common shareholder benefit coins, with the initiative aimed at boosting share liquidity, broadening the investor base, and digitizing shareholder management to strengthen communication and support sustainable business growth.

The most recent analyst rating on (JP:9517) stock is a Hold with a Yen639.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.

EREX Maintains Full-Year Guidance Despite Profit Drop in First Nine Months of FY 2026

EREX Co., Ltd. reported consolidated net sales of ¥127.98 billion for the nine months ended December 31, 2025, a modest 1.1% increase year on year, while operating income fell 41.9% to ¥4.66 billion and net income attributable to owners declined 15.4% to ¥3.74 billion, reflecting margin pressure despite stable revenues. The company’s equity attributable to owners rose to ¥67.82 billion and its equity ratio improved to 43.4%, and it maintained its full-year forecast for fiscal 2026, projecting higher operating income and a 61.3% jump in net income to ¥3.42 billion on slightly higher sales, alongside plans to pay a year-end dividend of ¥11 per share, signaling confidence in its financial base and future earnings recovery.

Management left dividend and earnings forecasts unchanged, suggesting the recent profit decline is viewed as temporary and manageable within its capital structure. With total assets up to ¥156.43 billion and no changes in consolidation scope or core accounting policies, stakeholders are likely to focus on the company’s ability to restore profitability in the final quarter and meet its guidance, which implies a stronger earnings performance ahead despite earlier headwinds.

The most recent analyst rating on (JP:9517) stock is a Hold with a Yen639.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.