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

• Market Cap: ¥47.83B
• Dividend Yield: 1.81%
• Average Volume (3M): 177.27K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.96
• Revenue Growth: -15.80%
• EPS Growth: N/A
• Country: JP
• Employees: 269
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 22.10
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥646.00 ▲(5.38% Upside)

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

Cash Flow Improvement

Improved cash flow enhances liquidity and financial flexibility, allowing for reinvestment and debt reduction, supporting long-term growth.

Balance Sheet Stability

A stable balance sheet with moderate leverage provides a strong foundation for future investments and resilience against economic fluctuations.

Profitability Recovery

Improving profitability margins indicate effective cost management and potential for sustained earnings growth, enhancing shareholder value.

Negative Factors

Negative Revenue Growth

Declining revenue growth can hinder future profitability and market expansion, posing a risk to long-term business sustainability.

Volatility in Profitability

Profitability volatility may reflect operational inefficiencies or market challenges, impacting investor confidence and strategic planning.

Limited Earnings Call Insights

Lack of earnings call insights limits transparency and investor understanding of management's strategic direction and operational performance.

eREX Co., Ltd. Business Overview & Revenue Model

Company Description

eREX Co., Ltd. (9517) is a leading company specializing in the development and provision of innovative solutions in the field of renewable energy and energy efficiency technologies. The company focuses on sectors such as solar power, energy storage systems, and smart grid solutions, aiming to enhance sustainable energy use and reduce carbon footprints. eREX is dedicated to delivering high-quality products and services that cater to both industrial and residential markets, thereby contributing to a greener future.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
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: Negative
• Last Price: 613.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9517, the sentiment is Negative. The current price of 613 is below the 20-day moving average (MA) of 623.55, below the 50-day MA of 663.62, and below the 200-day MA of 741.13, indicating a bearish trend. The MACD of -15.92 indicates Negative momentum. The RSI at 37.22 is Neutral, neither overbought nor oversold. The STOCH value of 63.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥57.90B	9.65	4.73%	2.35%	-1.96%	33.15%
1407	61 Neutral	¥56.67B	10.32	―	4.59%	-6.23%	-19.98%
9514	60 Neutral	¥7.70B	13.11	―	2.25%	4.05%	38.64%
9519	58 Neutral	¥59.40B	9.65	6.76%	―	28.85%	-9.70%
9517	55 Neutral	¥47.83B	22.21	―	1.81%	-15.80%	―
5074	48 Neutral	¥22.47B	-52.23	―	1.52%	25.53%	-128.67%

eREX Co., Ltd. Corporate Events

eREX Co., Ltd. Strengthens Energy Market Position with Southeast Asia and Japan Initiatives

eREX Co., Ltd. is advancing its de-carbonization efforts in Southeast Asia by leveraging its expertise in biomass power generation, addressing the region’s increasing power demand. Concurrently, the company is strengthening its business foundation in Japan, focusing on retail, trading, and power generation, which positions it strongly in the energy market.

eREX Co., Ltd. Reports Increased Sales but Declining Profits in H1 FY2026

eREX Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 2026, showing a 4% increase in net sales compared to the previous year. However, the company experienced a significant decline in operating income and net income, with decreases of 29.6% and 29.7% respectively, indicating potential challenges in profitability despite growth in sales.

eREX Co., Ltd. Reports Mixed Financial Results for First Half of FY 2026

eREX Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a 4% increase in net sales compared to the previous year. However, the company experienced a decline in operating income and net income, with decreases of 29.6% and 29.7%, respectively. Despite these challenges, eREX maintains its financial forecasts for the fiscal year ending March 31, 2026, with expectations of a 2.9% increase in net sales and a significant 61.3% rise in net income attributable to the owners of the parent company. These results and forecasts indicate a mixed performance, with the company facing short-term profitability pressures but remaining optimistic about future growth.

eREX Faces Financial Risk Due to ENETRADE’s Civil Rehabilitation

eREX Co., Ltd. has announced a potential financial risk due to its business partner, ENETRADE Inc., filing for civil rehabilitation proceedings. This situation could result in the non-collection or delayed collection of receivables amounting to 1,003 million yen, impacting eREX’s financial performance, which is currently under review.