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EDP Corp. (JP:7794)
:7794
Japanese Market
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EDP Corp. (7794) AI Stock Analysis

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JP:7794

EDP Corp.

(7794)

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Neutral 43 (OpenAI - Gpt-5.6Sol)
Rating:43Neutral
Price Target:
¥952.00
▼(-5.84% Downside)
Action:Reiterated
Date:08/29/26
The score is primarily weighed down by sharply deteriorating financial performance, including deep losses, contracting revenue, and sustained negative operating/free cash flow. Technicals are mixed with neutral RSI and positive MACD but an uneven moving-average trend. Valuation offers limited support due to a negative P/E and no provided dividend yield.
Positive Factors
Moderate Leverage
Moderate leverage provides more financial flexibility than a highly debt-funded structure and may reduce fixed repayment pressure. However, this advantage is being weakened by declining equity and assets if operating losses continue.
Negative Factors
Persistent Cash Burn
Sustained negative operating and free cash flow limits the company’s ability to fund operations internally. Continued cash burn can increase reliance on external funding or balance-sheet drawdowns, creating a durable constraint on financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate Leverage
Moderate leverage provides more financial flexibility than a highly debt-funded structure and may reduce fixed repayment pressure. However, this advantage is being weakened by declining equity and assets if operating losses continue.
Read all positive factors

EDP Corp. (7794) vs. iShares MSCI Japan ETF (EWJ)

EDP Corp. Business Overview & Revenue Model

Company Description
EDP Corporation specializes in the manufacturing and distribution of single-crystal artificial diamonds and their related merchandise. Its product portfolio encompasses synthetic diamond seeds for jewelry, diamond substrates for semiconductor appl...

EDP Corp. Financial Statement Overview

Summary
Financial fundamentals are severely weakened: profitability deteriorated from strong 2022–2023 results to steep losses in 2024–2026, including negative gross margin and deeply negative net margin. Revenue momentum also weakened materially with a large decline in 2026. Cash flow is particularly concerning with negative operating cash flow and deeply negative free cash flow in 2024–2026, indicating ongoing cash burn. While leverage is not extreme, equity and assets have eroded quickly and returns on equity are meaningfully negative.
Income Statement
12
Very Negative
Balance Sheet
48
Neutral
Cash Flow
9
Very Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue516.55M902.73M757.55M2.71B1.56B
Gross Profit-762.61M-635.05M397.43M1.82B839.22M
EBITDA-1.16B-1.84B341.07M1.60B758.63M
Net Income-2.42B-2.32B-111.34M909.63M374.82M
Balance Sheet
Total Assets2.51B4.38B5.36B6.04B2.83B
Cash, Cash Equivalents and Short-Term Investments825.33M1.44B688.22M2.24B1.07B
Total Debt484.54M638.83M232.22M350.05M439.84M
Total Liabilities800.66M958.89M509.37M1.11B786.54M
Stockholders Equity1.71B3.42B4.85B4.93B2.05B
Cash Flow
Free Cash Flow-1.19B-562.50M-1.46B-702.40M99.99M
Operating Cash Flow-968.71M-516.72M-630.75M1.18B635.00M
Investing Cash Flow-225.85M-77.96M-908.50M-1.89B-545.00M
Financing Cash Flow542.04M1.25B-118.48M1.86B15.67M

EDP Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥41.68B11.695.39%4.37%39.41%127.01%
71
Outperform
¥33.07B27.001.93%7.58%-40.23%
71
Outperform
¥22.29B11.543.99%0.30%-18.45%
61
Neutral
¥2.28B28.041.06%5.56%-57.40%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
45
Neutral
¥3.05B22.630.25%47.30%
43
Neutral
¥18.33B-6.144.78%7.39%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7794
EDP Corp.
987.00
487.00
97.40%
JP:7937
Tsutsumi Jewelry Co
2,667.00
495.65
22.83%
JP:2736
Festaria Holdings Company Limited
631.00
25.44
4.20%
JP:7769
Rhythm Co., Ltd.
4,005.00
823.61
25.89%
JP:7810
Crossfor Co. Ltd.
174.00
10.67
6.53%
JP:9990
SAC'S BAR HOLDINGS INC.
767.00
9.16
1.21%
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.Date of analysis: Aug 29, 2026