RENOVA (9519) AI Stock Analysis

• Market Cap: $72.21B
• Dividend Yield: N/A
• Average Volume (3M): 560.25K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.30
• Revenue Growth: 28.85%
• EPS Growth: -9.70%
• Country: JP
• Employees: 287
• Sector: Real Estate
• Sector Strength: 53
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 91,242,700
• 10 Day Avg. Volume: 466,670
• 30 Day Avg. Volume: 560,246
• PEG Ratio: -0.29
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 2.47
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 15.4
• Revenue Forecast (FY): $92.77B

• Rating: 58 Neutral
• Price Target: ¥803.00 ▲(22.41% Upside)

RENOVA's stock score is primarily influenced by its financial performance and technical analysis. The company shows positive revenue growth but is challenged by declining profit margins and high leverage. Technical indicators suggest a bearish trend, with the stock trading below key moving averages and weak momentum signals. The valuation is reasonable, but the lack of a dividend yield may limit its attractiveness to some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for RENOVA's renewable energy solutions, supporting long-term business expansion and market presence.

Stable Income Stream

PPAs provide RENOVA with predictable and stable revenue, enhancing financial stability and allowing for better long-term planning and investment in new projects.

Renewable Energy Focus

The focus on renewable energy aligns with global trends towards sustainability, positioning RENOVA favorably in a growing industry with increasing demand for clean energy.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting RENOVA's ability to invest in new projects or weather economic downturns, impacting long-term financial health.

Declining Profit Margins

Falling profit margins suggest rising costs or pricing pressures, which could erode profitability and reduce the company's ability to reinvest in growth initiatives.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates challenges in generating cash after capital expenditures, potentially affecting RENOVA's capacity to fund future projects and operations.

RENOVA Business Overview & Revenue Model

Company Description

RENOVA, Inc. operates in the renewable energy industry in Japan. It operates through Renewable Energy Power Generation Business and Renewable Energy Development and Operation Business segments. The Renewable Energy Power Generation Business segment generates and sells electricity from renewable energy power plants. The Renewable Energy Development and Operation Business segment develops and assists in the operation of renewable energy power plants. The company generates electricity through solar, biomass, wind, geothermal and hydro power plants. RENOVA, Inc. was incorporated in 2000 and is based in Tokyo, Japan.

How the Company Makes Money

RENOVA generates revenue primarily through the sale of electricity produced by its solar power plants. The company enters into long-term power purchase agreements (PPAs) with utilities and large corporations, ensuring a stable income stream. Additionally, RENOVA may earn income from government incentives and subsidies related to renewable energy production. The firm also engages in project financing and may partner with other energy companies or investors, which can enhance its capital resources and expand its operational capacity.

RENOVA Financial Statement Overview

Summary

RENOVA shows positive revenue growth but faces challenges with declining profit margins and high leverage. The balance sheet indicates financial risk due to significant debt levels. Cash flow generation is moderate, with some concerns over free cash flow sustainability. Overall, the company needs to address profitability and leverage to improve financial health.

Income Statement

RENOVA's revenue growth is positive, with a TTM growth rate of 7.64%, indicating a steady increase in sales. However, the gross profit margin has decreased over time, from 89.69% in 2021 to 22.01% in TTM, suggesting rising costs or pricing pressures. The net profit margin is stable at around 3.82% in TTM, but significantly lower than previous years, indicating reduced profitability. The EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio of 3.74 in TTM, indicating significant leverage, which poses financial risk. Return on equity has decreased to 2.85% in TTM, reflecting lower profitability for shareholders. The equity ratio is relatively low, suggesting a higher reliance on debt financing. These factors highlight potential financial stability concerns.

Cash Flow

Operating cash flow is positive, but the free cash flow has shown negative growth of -3.93% in TTM, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 0.57, showing moderate cash generation efficiency. The free cash flow to net income ratio is 0.71, suggesting some ability to convert profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	75.67B	70.25B	44.75B	33.58B	29.34B	20.55B
Gross Profit	25.81B	17.65B	27.34B	23.61B	22.29B	18.41B
EBITDA	27.42B	25.47B	26.88B	17.15B	18.53B	21.54B
Net Income	3.22B	2.69B	8.86B	2.68B	1.58B	11.51B
Balance Sheet
Total Assets	510.51B	530.05B	465.40B	303.38B	296.22B	220.55B
Cash, Cash Equivalents and Short-Term Investments	82.59B	87.47B	66.49B	49.63B	44.28B	40.36B
Total Debt	329.13B	332.92B	306.87B	206.08B	207.10B	160.41B
Total Liabilities	388.75B	396.63B	359.70B	238.65B	243.78B	195.68B
Stockholders Equity	80.83B	89.11B	68.00B	42.95B	31.89B	15.25B
Cash Flow
Free Cash Flow	21.59B	23.00B	2.82B	-804.00M	-3.35B	6.85B
Operating Cash Flow	30.06B	31.50B	18.73B	10.13B	12.15B	12.47B
Investing Cash Flow	-16.94B	-16.50B	-24.35B	-9.33B	-18.52B	-13.48B
Financing Cash Flow	-22.51B	-8.29B	1.38B	3.03B	3.37B	9.78B

RENOVA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 656.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9519, the sentiment is Negative. The current price of 656 is below the 20-day moving average (MA) of 746.35, below the 50-day MA of 819.28, and below the 200-day MA of 746.62, indicating a bearish trend. The MACD of -40.22 indicates Positive momentum. The RSI at 22.98 is Positive, neither overbought nor oversold. The STOCH value of 6.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9519.

RENOVA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1407	61 Neutral	¥59.92B	10.91	―	4.59%	-6.23%	-19.98%
9514	60 Neutral	¥7.16B	12.19	―	2.41%	4.05%	38.64%
9519	58 Neutral	$72.21B	11.71	6.76%	―	28.85%	-9.70%
9517	55 Neutral	¥53.37B	145.21	―	1.82%	-15.80%	―
1711	53 Neutral	¥2.78B	-20.21	―	―	3.63%	7.60%
5074	48 Neutral	¥24.44B	119.94	―	1.60%	25.53%	-128.67%

RENOVA Corporate Events

RENOVA Secures Loan for Non-FIT Solar PV Expansion

RENOVA, Inc. has announced that its subsidiary, First Solar Power G.K., has executed a loan agreement with financial covenants to support project financing for its Non-FIT solar PV projects. This agreement is part of RENOVA’s strategy to expand its Non-FIT solar PV business, which is crucial for achieving its Medium-term Management Plan 2030 goals. The project finance arrangement covers approximately 170MW of the total 206MW capacity under existing PPAs, supporting the company’s aim to reach a total capacity of 5.0GW by the fiscal year ending March 2031. The impact on the current fiscal year’s financial results is expected to be minor.

RENOVA Reports October 2025 Electricity Sales with Strong Year-Over-Year Growth

RENOVA, Inc. reported its electricity sales figures for October 2025, highlighting a 5.9% decrease from planned sales but a significant 57% year-over-year increase. Despite minor output curtailment affecting revenue, the company remains on track with its annual revenue plan, reflecting strong growth and resilience in the renewable energy market.

RENOVA Resumes Operations at Omaezakikou Biomass Power Plant

RENOVA, Inc. announced the resumption of operations at its Omaezakikou Biomass Power Plant following extensive inspection and repair work. The plant’s maintenance, initially scheduled for January 2026, has been deemed unnecessary due to the recent repairs. Despite the temporary suspension affecting revenue, the financial impact for the fiscal year ending March 31, 2026, is expected to be minor, thanks to completed maintenance, a buffer for unscheduled suspensions, lower fuel prices, and additional business development fees.

RENOVA Announces Strategic Executive Changes to Boost Renewable Energy Focus

RENOVA, Inc. has announced a series of personnel changes within its executive team, effective October 10, 2025. These changes include new roles for key executives, aiming to strengthen the company’s focus on its biomass energy division and global business development, potentially enhancing its operational efficiency and market positioning.

RENOVA Reports September 2025 Electricity Sales with Year-Over-Year Growth

RENOVA, Inc. reported its electricity sales for September 2025, highlighting a slight decline in actual sales compared to planned figures, with a notable year-over-year increase. Despite minor output curtailment due to control instructions, the impact on the company’s financial forecast remains minimal, reflecting RENOVA’s strategic risk management in accounting for output and weather-related challenges.

RENOVA Expands Biomass Energy Stake with New Acquisition

RENOVA, Inc. has acquired an additional equity interest in Karatsu Biomass Energy G.K., increasing its stake to 51% and making it a consolidated subsidiary. This acquisition aligns with RENOVA’s mission to expand its renewable energy operations, particularly in biomass power generation, and is expected to have a positive impact on its market positioning and operational capabilities.

RENOVA Delays Restart of Biomass Power Plant with Minimal Financial Impact

RENOVA has announced a delay in the restart of its Omaezakikou Biomass Power Plant to October 2025 due to material delivery delays. Despite this, the impact on the company’s financial results for the fiscal year ending March 31, 2026, is expected to be minor, thanks to completed maintenance work, a buffer for unscheduled suspensions, lower fuel costs, and additional revenue from storage battery businesses.

RENOVA’s August Electricity Sales Reflect Resilience Amid Output Curtailments

RENOVA reported its electricity sales for August 2025, indicating a 10.5% decrease from planned sales, yet a 151.2% increase year-over-year. Despite output curtailment impacting some plants, the financial forecast remains largely unaffected, highlighting RENOVA’s resilience and strategic planning in managing operational risks.