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eREX Co., Ltd.
(9517)
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Rating:56Neutral
Price Target:
Â¥927.00
â–²(50.98% Upside)
Action:Reiterated
Date:07/17/26
The score is held back primarily by weak and volatile cash generation (sharp drop in operating cash flow and deeply negative free cash flow) and multi-year revenue declines, despite improved profitability and a healthier leverage profile. Technicals are supportive but look overbought, while valuation is reasonable (P/E ~13) with a modest dividend yield.
Positive Factors
Vertical integration in biomass fuel supply
eREX’s involvement in fuel procurement, logistics and fuel-service sales creates vertical integration across its biomass value chain. That control can stabilize fuel margins, reduce supply risk, and create an additional revenue stream from third-party fuel services, supporting durable earnings.
Negative Factors
Weak and volatile cash generation
A large year‑to‑year cash swing and deeply negative free cash flow reduce internal funding for maintenance and growth, increase reliance on external financing, and raise refinancing and liquidity risk. Persistent cash volatility undermines the firm’s ability to execute medium-term plans reliably.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration in biomass fuel supply
eREX’s involvement in fuel procurement, logistics and fuel-service sales creates vertical integration across its biomass value chain. That control can stabilize fuel margins, reduce supply risk, and create an additional revenue stream from third-party fuel services, supporting durable earnings.
Read all positive factors
eREX Co., Ltd. (9517) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
Â¥66.06B
Dividend Yield2.6%
Average Volume (3M)177.27K
Price to Earnings (P/E)12.4
Beta (1Y)0.66
Revenue Growth-1.20%
EPS Growth115.89%
CountryJP
Employees302
SectorGeneral
Sector StrengthN/A
IndustryRenewable Utilities
Share Statistics
EPS (TTM)68.36
Shares Outstanding78,317,660
10 Day Avg. Volume188,250
30 Day Avg. Volume177,273
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.07
Price to Sales (P/S)0.45
P/FCF Ratio-6.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)61.72
Revenue Forecast (FY)Â¥176.33B
eREX Co., Ltd. Business Overview & Revenue Model
Company Description
eREX Co.,Ltd. is a Japanese energy company that specializes in the production and distribution of electricity. The firm operates a power generation facility that utilizes biomass. In addition to its energy generation activities, eREX also actively...
How the Company Makes Money
eREX primarily earns revenue by generating electricity at its power plants and selling that electricity into the Japanese power market under applicable commercial arrangements (e.g., power sales contracts and/or regulated support schemes where app...
eREX Co., Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 169.17B | 171.22B | 244.98B | 296.31B | 230.50B |
| Gross Profit | 19.48B | 19.91B | -9.30B | 25.72B | 22.85B |
| EBITDA | 9.76B | 13.25B | -14.84B | 20.73B | 17.63B |
| Net Income | 5.33B | 2.12B | -21.35B | 9.13B | 9.65B |
Balance Sheet | |||||
| Total Assets | 170.09B | 153.38B | 148.61B | 172.10B | 157.16B |
| Cash, Cash Equivalents and Short-Term Investments | 27.57B | 33.61B | 19.67B | 33.62B | 27.16B |
| Total Debt | 55.84B | 45.22B | 57.78B | 55.64B | 53.60B |
| Total Liabilities | 92.43B | 80.90B | 93.01B | 98.15B | 90.34B |
| Stockholders Equity | 70.39B | 64.14B | 48.10B | 62.01B | 55.72B |
Cash Flow | |||||
| Free Cash Flow | -11.68B | 13.90B | -25.38B | 20.74B | -298.00M |
| Operating Cash Flow | 1.89B | 19.50B | -22.70B | 21.49B | 13.31B |
| Investing Cash Flow | -15.53B | -5.34B | -6.56B | -14.58B | -22.98B |
| Financing Cash Flow | 7.16B | -160.00M | 15.15B | -225.00M | 4.66B |
eREX Co., Ltd. Technical Analysis
Positive
614.00
Price Trends
794.86
Positive
871.91
Negative
760.18
Positive
Market Momentum
13.41
Positive
59.02
Neutral
48.63
Neutral
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 852.80, below the 50-day MA of 794.86, and below the 200-day MA of 760.18, indicating a bullish trend. The MACD of 13.41 indicates Positive momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 48.63 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | ¥210.65B | 7.52 | 9.95% | 3.18% | -3.77% | -56.08% | |
58 Neutral | ¥670.07B | 19.37 | 4.27% | 2.63% | -7.32% | -70.76% | |
58 Neutral | ¥57.25B | 149.29 | 4.87% | 3.18% | -6.87% | -93.42% | |
56 Neutral | ¥66.06B | 12.36 | ― | 1.79% | -1.20% | 115.89% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥84.50B | 25.42 | 3.23% | ― | 24.74% | 22.80% | |
51 Neutral | ¥833.13B | 2.12 | -14.76% | ― | -5.31% | ― |
* General Sector Average
JP:9517
eREX Co., Ltd.
865.00
96.58
12.57%
JP:9513
Electric Power Development Co
3,912.00
1,194.99
43.98%
JP:9511
Okinawa Electric Power Co
1,069.00
95.19
9.77%
JP:9519
RENOVA
884.00
92.00
11.62%
JP:9501
Tokyo Electric Power Company Holdings
521.30
-144.70
-21.73%
JP:9509
Hokkaido Electric Power Company,Incorporated
1,022.50
4.68
0.46%
eREX Co., Ltd. Corporate Events
eREX Completes Restricted Stock Compensation Share Issuance
Jul 29, 2026
eREX Co., Ltd. is a Japan-based power company listed on the Tokyo Stock Exchange Prime Market under stock code 9517. The firm operates in the energy sector, focusing on electricity-related businesses and serving domestic customers as part of Japan...
eREX Sets 2027 Business Plan Around Biomass Growth and Japan Power Expansion
Jul 17, 2026
eREX Co., Ltd. operates in the energy sector, focusing on power generation and related services. The company specializes in biomass power generation and co-firing technologies, and is also building a business base in Japan that spans retail power ...
eREX Issues 2027 Earnings Forecast and Reports Strong Q1 Sales on Higher Power Prices
Jul 15, 2026
eREX Co., Ltd. has released its previously deferred consolidated earnings forecast for the fiscal year ending March 31, 2027, projecting net sales of ¥240.7 billion and net income attributable to owners of the parent of ¥5.4 billion. The...
erex to Resume Earnings Forecast Disclosure as Power Market Visibility Improves
Jul 8, 2026
erex Co., Ltd. has decided to disclose its consolidated earnings forecast for the fiscal year ending March 31, 2027, after previously leaving it undetermined due to market volatility. The company had withheld guidance amid sharp fluctuations in fu...
eREX Corrects Terms and Confirms Restricted Stock Compensation Issuance
Jul 3, 2026
eREX Co., Ltd. has corrected certain terms in its previously announced restricted stock compensation issuance, including an increase in the issue price to ¥745 per share, a higher total issuance amount of about ¥116 million, and a revise...
eREX Issues Restricted Shares to Directors and Managers to Align Incentives
Jul 2, 2026
eREX has approved the issuance of 156,050 new common shares as restricted stock compensation to five internal directors and 55 managerial employees, raising ¥113.29 million at an issue price of ¥726 per share. The grant, contingent on re...
eREX Clarifies Relationship with Major Shareholder Hikari Tsushin
Jul 1, 2026
eREX Co., Ltd. disclosed that HIKARI TSUSHIN, INC. is classified as an other affiliated company, indirectly holding 22.62% of eREX’s voting rights through subsidiaries such as Hikari Tsushin Co., Ltd. and related investment vehicles. Despite...
Erex Outperforms FY2025 Targets and Prepares Full-Scale Overseas Expansion
May 18, 2026
Erex Co., Ltd. reported financial results for the fiscal year ending March 2026 that exceeded both its initial and revised plans, continuing the strong performance trend seen in the prior year. Operating income, pre-tax income, and net income all ...
Erex Corrects Effective Date for FY2026 Dividend Payment
May 13, 2026
Erex Co., Ltd. has issued a correction to its previously announced dividend of surplus for the fiscal year ending March 2026, clarifying an error in the stated effective date. The company confirmed that the dividend per share remains 22 yen, with ...
eREX Posts Profit Surge, Doubles Dividend but Withholds 2027 Forecast
May 13, 2026
eREX Co., Ltd. reported consolidated net sales of ¥169.2 billion for the year ended March 31, 2026, down 1.2% year on year, while operating income rose 5.3% to ¥7.5 billion and pre-tax income jumped 41.8% to ¥9.0 billion. Net income...
EREX Doubles Year-End Dividend as It Pursues Restructuring and Growth
May 12, 2026
EREX Co., Ltd., the Japan-based power supplier listed on the TSE Prime Market, is working to improve its financial health while investing in growth areas to drive sustainable expansion and enhance corporate value. The company views stable, continu...
Erex to Revise Articles of Incorporation to Reflect Expanded Energy and Environmental Focus
May 12, 2026
Erex Co., Ltd. has approved a proposal to partially amend its Articles of Incorporation, redefining its corporate purpose to better reflect its current operations and future business development. The revisions clarify its core electricity and gas ...
eREX Ends Alliance With JFE Engineering to Pursue Flexible Partnership Strategy
May 12, 2026
eREX has terminated its capital and business alliance with JFE Engineering, concluding that the initial goals of their 2024 collaboration have largely been met and that operating independently will better enhance each company’s corporate val...
Erex Beats Profit Forecasts Despite Slight Sales Shortfall on Derivative Gains
May 12, 2026
Erex Co., Ltd. reported that net sales for the fiscal year ended March 31, 2026 were slightly below its February forecast, but operating income, pre-tax income and net income all exceeded expectations. The company’s operating profit was boos...
erex Withdraws FY March 2027 Targets Amid Fuel Price Volatility
May 12, 2026
erex Co., Ltd. has revised the planned figures for its mid-term business plan, changing its consolidated forecasts for the fiscal year ending March 2027 to undetermined. The company had previously disclosed specific targets for net sales, operatin...
eREX Doubles Dividend as Profit Surges but Holds Back on 2027 Outlook
May 12, 2026
eREX reported fiscal 2026 consolidated net sales of ¥169.2 billion, down 1.2%, while operating income rose 5.3% to ¥7.5 billion and pre-tax income surged 41.8% to ¥9.0 billion. Net income attributable to owners more than doubled to ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.