eREX Co., Ltd. (JP:9517)
:9517
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eREX Co., Ltd.
(9517)
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Rating:53Neutral
Price Target:
¥982.00
▲(59.93% Upside)
Action:Downgraded
Date:05/16/26
The score is held back primarily by the sharp FY2026 cash-flow deterioration and negative free cash flow, despite improved earnings and healthier leverage. Technicals are mildly constructive over the medium/long term but lack strong near-term momentum, while valuation is reasonable with a moderate P/E and a ~2.3% dividend yield.
Positive Factors
Improved leverage and profitability
Balance-sheet repair and a return to positive earnings give the company greater financial flexibility. A lower debt-to-equity ratio and recovered ROE reduce refinancing risk and support capacity to fund projects or absorb shocks over the medium term, strengthening credit resilience.
Negative Factors
Material cash-flow deterioration
A sharp swing to deeply negative free cash flow constrains the company’s ability to fund operations, service debt, or invest without external financing. Persistent cash volatility raises structural funding risk and limits strategic optionality over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage and profitability
Balance-sheet repair and a return to positive earnings give the company greater financial flexibility. A lower debt-to-equity ratio and recovered ROE reduce refinancing risk and support capacity to fund projects or absorb shocks over the medium term, strengthening credit resilience.
Read all positive factors
eREX Co., Ltd. (9517) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥69.05B
Dividend Yield1.79%
Average Volume (3M)177.27K
Price to Earnings (P/E)14.1
Beta (1Y)0.72
Revenue Growth-1.20%
EPS Growth115.90%
CountryJP
Employees269
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)4.71
Shares Outstanding78,161,606
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)57.46
Revenue Forecast (FY)¥176.33B
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 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 | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 174.82B | 169.17B | 171.22B | 244.98B | 296.31B | 230.50B |
| Gross Profit | 20.37B | 19.48B | 19.91B | -9.30B | 25.72B | 22.85B |
| EBITDA | 12.53B | 9.76B | 13.25B | -14.84B | 20.73B | 17.63B |
| Net Income | 236.00M | 5.33B | 2.12B | -21.35B | 9.13B | 9.65B |
Balance Sheet | ||||||
| Total Assets | 149.04B | 170.09B | 153.38B | 148.61B | 172.10B | 157.16B |
| Cash, Cash Equivalents and Short-Term Investments | 25.55B | 27.57B | 33.61B | 19.67B | 33.62B | 27.16B |
| Total Debt | 46.17B | 55.84B | 45.22B | 57.78B | 55.64B | 53.60B |
| Total Liabilities | 79.88B | 92.43B | 80.90B | 93.01B | 98.15B | 90.34B |
| Stockholders Equity | 61.73B | 70.39B | 64.14B | 48.10B | 62.01B | 55.72B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -11.68B | 13.90B | -25.38B | 20.74B | -298.00M |
| Operating Cash Flow | 0.00 | 1.89B | 19.50B | -22.70B | 21.49B | 13.31B |
| Investing Cash Flow | 0.00 | -15.53B | -5.34B | -6.56B | -14.58B | -22.98B |
| Financing Cash Flow | 0.00 | 7.16B | -160.00M | 15.15B | -225.00M | 4.66B |
eREX Co., Ltd. Technical Analysis
Neutral
614.00
Price Trends
945.19
Negative
792.38
Positive
739.18
Positive
Market Momentum
-13.17
Positive
41.33
Neutral
4.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9517, the sentiment is Neutral. The current price of 614 is below the 20-day moving average (MA) of 974.55, below the 50-day MA of 945.19, and below the 200-day MA of 739.18, indicating a neutral trend. The MACD of -13.17 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 4.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9517.
eREX Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | ¥118.54B | 22.90 | 7.71% | ― | 24.74% | 22.82% | |
58 Neutral | ¥774.46B | 13.31 | 7.17% | 3.22% | -10.21% | -35.69% | |
53 Neutral | ¥69.05B | 14.15 | ― | 1.79% | -1.20% | 115.90% | |
50 Neutral | ¥194.66B | -11.24 | 13.70% | 2.36% | -5.11% | -31.49% | |
49 Neutral | ¥50.40B | -2.83 | 4.73% | 2.31% | -6.92% | 44.23% | |
43 Neutral | ¥893.06B | 1.23 | -22.13% | ― | -7.07% | -381.65% |
* Utilities Sector Average
JP:9517
eREX Co., Ltd.
884.00
118.51
15.48%
JP:9513
Electric Power Development Co
4,134.00
1,778.09
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JP:9511
Okinawa Electric Power Co
924.00
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JP:9519
RENOVA
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JP:9501
Tokyo Electric Power Company Holdings
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154.50
39.16%
JP:9509
Hokkaido Electric Power Company,Incorporated
929.10
241.65
35.15%
eREX Co., Ltd. Corporate Events
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 ...
eREX Revamps Board Lineup With New Directors and Independent Members
Apr 13, 2026
eREX Co., Ltd. has announced planned changes to its executive lineup, with a slate of director candidates approved by the board on April 13, 2026, ahead of the June 26, 2026 shareholders meeting. The proposed board will see continuity at the top w...
eREX Unveils Mid-Term Plan to Expand Biomass and Power Businesses Through FY 2029
Apr 3, 2026
eREX Co., Ltd. has outlined a detailed mid-term business plan covering the fiscal years ending March 2027 to March 2029, centering on expanding its domestic and overseas energy operations. The plan reviews the past three years, highlights growth i...
eREX Updates Mid-Term Plan Amid Shifting Japanese Energy Landscape
Mar 12, 2026
eREX Co., Ltd. has released and subsequently corrected its mid-term business plan covering the fiscal years ending March 31, 2027 to March 31, 2029, clarifying that a key financial metric in its presentation should read “income before income...
Erex Doubles Year-End Dividend Forecast for FY2026
Mar 2, 2026
Erex Co., Ltd. has revised its dividend forecast for the fiscal year ending March 31, 2026, doubling the planned year-end dividend from 11 yen to 22 yen per share. This represents a significant increase from the previous fiscal year’s total ...
eREX Sets 2026–2029 Mid-Term Plan to Drive Biomass-Led Growth in Japan and Southeast Asia
Mar 2, 2026
eREX has unveiled a new mid-term business plan covering fiscal years ending March 2027 to March 2029, positioning itself to capitalize on Japan’s accelerating decarbonization policies and surging electricity demand from AI-driven data center...
Erex Sets Three-Year Mid-Term Plan Targeting Higher Revenue and Profit
Feb 26, 2026
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....
Erex Cuts Operating Profit Outlook but Lifts Net Income Forecast for FY 2026
Feb 26, 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 attrib...
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.