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

• Market Cap: ¥57.66B
• Dividend Yield: 1.47%
• Average Volume (3M): 216.02K
• Price to Earnings (P/E): 156.9
• Beta (1Y): 0.98
• Revenue Growth: -21.43%
• EPS Growth: N/A
• Country: JP
• Employees: 269
• Sector: Utilities
• Sector Strength: 57
• Industry: Renewable Utilities
• EPS (TTM): -1.74
• Shares Outstanding: 78,161,606
• 10 Day Avg. Volume: 155,300
• 30 Day Avg. Volume: 216,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥757.00
• Price Target Upside: 1.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥757.00 ▲(1.07% Upside)

The overall stock score reflects a mixed financial performance with signs of recovery, but significant valuation concerns due to a high P/E ratio. Technical indicators suggest neutral to bearish momentum, which could pose challenges in the near term. The lack of earnings call data and corporate events limits further insights into the company's strategic direction.

Positive Factors

Cash Flow Improvement

Improved cash flow enhances liquidity and operational efficiency, providing a stronger financial base for future investments and growth.

Margin Stabilization

Stable margins indicate effective cost management and operational efficiency, supporting long-term profitability despite revenue challenges.

Balanced Leverage

Balanced leverage provides financial stability and flexibility, reducing risk and supporting sustainable growth strategies.

Negative Factors

Revenue Decline

Declining revenue poses a risk to long-term growth and market position, necessitating strategic adjustments to regain momentum.

Low Return on Equity

Low ROE suggests inefficient use of equity capital, potentially limiting shareholder value creation and competitive positioning.

Profitability Volatility

Profitability volatility can undermine investor confidence and complicate long-term strategic planning, impacting stability.

eREX Co., Ltd. Business Overview & Revenue Model

Company Description

eREX Co., Ltd. is a Japanese energy company primarily engaged in the generation and retail of electricity. The company focuses on renewable energy sources, including biomass, as a part of its commitment to sustainable power solutions. eREX operates within the energy sector, providing electricity services to both residential and commercial customers across Japan.

How the Company Makes Money

eREX Co., Ltd. generates revenue through its electricity generation and retail operations. The company primarily earns money by selling electricity generated from its biomass and renewable energy facilities to end-users, such as households and businesses. eREX may also engage in power purchase agreements (PPAs) with other entities, securing stable revenue streams. Additionally, the company might receive government subsidies or incentives aimed at promoting renewable energy, which can further contribute to its earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	171.22B	244.98B	296.31B	230.50B	141.88B
Gross Profit	20.50B	-9.17B	25.73B	22.85B	24.56B
EBITDA	11.33B	-16.27B	21.60B	17.63B	19.72B
Net Income	2.12B	-22.26B	9.13B	9.65B	6.29B
Balance Sheet
Total Assets	153.38B	145.18B	171.48B	157.16B	127.88B
Cash, Cash Equivalents and Short-Term Investments	33.61B	23.51B	33.62B	27.16B	31.70B
Total Debt	45.22B	55.94B	55.13B	53.59B	47.67B
Total Liabilities	80.90B	89.95B	97.09B	90.34B	73.39B
Stockholders Equity	64.14B	47.51B	62.07B	55.71B	44.08B
Cash Flow
Free Cash Flow	13.90B	-26.29B	20.12B	-595.00M	16.09B
Operating Cash Flow	19.50B	-23.23B	21.49B	13.31B	18.70B
Investing Cash Flow	-5.34B	-114.00M	-14.58B	-22.98B	-9.67B
Financing Cash Flow	-160.00M	15.67B	-225.00M	4.66B	6.41B

eREX Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 749.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 749 is above the 20-day moving average (MA) of 722.60, above the 50-day MA of 738.42, and above the 200-day MA of 748.78, indicating a bullish trend. The MACD of -1.70 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 91.39 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	$17.40B	17.96	5.60%	3.67%	6.62%	11.55%
9517	55 Neutral	¥57.66B	156.89		1.47%	-21.43%	―
OKEPF	―	$378.83M	9.76	5.05%	1.40%	―	―
REOVF	―	$587.27M	14.35	3.54%	―	―	―
1407	72 Outperform	¥77.97B	15.42		3.52%	-9.53%	-10.29%
9514	71 Outperform	¥9.45B	13.14		1.87%	0.72%	153.87%
5074	54 Neutral	¥26.34B	129.28		2.10%	19.71%	-82.80%

eREX Co., Ltd. Corporate Events

eREX Co., Ltd. Advances De-carbonization Efforts in Southeast Asia

eREX Co., Ltd. is leveraging its expertise in biomass power generation to promote de-carbonization in Southeast Asia, addressing the region’s increasing power demand. The company’s solid foundation in Japan and strategic focus on sustainable energy solutions position it well for growth and impact in the energy industry.

The most recent analyst rating on (JP:9517) stock is a Sell with a Yen690.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.

eREX Co., Ltd. Reports Q1 2025 Financial Results with Mixed Performance

eREX Co., Ltd. reported its consolidated financial results for the first quarter ending June 30, 2025, showing a 10.8% increase in net sales compared to the previous year. However, the company experienced a significant decline in operating income and net income, with a notable decrease in income before taxes by 83%. Despite these challenges, eREX maintains its financial forecasts for the fiscal year ending March 31, 2026, projecting a 2.9% increase in net sales and a 61.3% rise in net income attributable to owners of the parent company. The company continues to focus on its strategic goals, although the current financial performance may impact its short-term market positioning.

The most recent analyst rating on (JP:9517) stock is a Sell with a Yen690.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.

eREX Co., Ltd. Reports Q1 2026 Financial Results with Sales Growth

eREX Co., Ltd. reported a 10.8% increase in net sales for the first quarter of fiscal year 2026, despite a significant drop in net income compared to the previous year. The company’s financial forecast for the full fiscal year anticipates a modest growth in net sales and a significant increase in net income, indicating a potential recovery in profitability.

The most recent analyst rating on (JP:9517) stock is a Sell with a Yen690.00 price target. To see the full list of analyst forecasts on eREX Co., Ltd. stock, see the JP:9517 Stock Forecast page.