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

• Market Cap: ¥62.11B
• Dividend Yield: 1.37%
• Average Volume (3M): 274.23K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.90
• Revenue Growth: -27.67%
• EPS Growth: 78.33%
• Country: JP
• Employees: 269
• Sector: Utilities
• Sector Strength: 82
• Industry: Renewable Utilities
• EPS (TTM): -32.17
• Shares Outstanding: 78,066,760
• 10 Day Avg. Volume: 237,860
• 30 Day Avg. Volume: 274,230
• PEG Ratio: -0.44
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

eREX Co., Ltd. is currently facing significant financial and operational challenges, as evidenced by declining revenues, negative profitability, and liquidity issues. While there is some technical support from longer-term moving averages, the lack of positive earnings and negative P/E ratio weigh heavily on the stock's valuation. Investors should be cautious due to the high risk associated with its financial performance and limited technical and valuation appeal.

eREX Co., Ltd. Business Overview & Revenue Model

Company Description

eREX Co., Ltd. (9517) is a Japanese company engaged in the renewable energy sector, focusing primarily on the generation and sale of electricity. The company operates biomass power plants and is committed to providing sustainable energy solutions. eREX is actively involved in the development, management, and operation of power generation facilities that utilize biomass as a primary fuel source, contributing to Japan's energy diversification and carbon reduction goals.

How the Company Makes Money

eREX Co., Ltd. generates revenue primarily through the sale of electricity produced by its biomass power plants. The company capitalizes on government incentives for renewable energy, such as feed-in tariffs, which guarantee a fixed purchase price for electricity generated from renewable sources. Additionally, eREX forms strategic partnerships with local governments and businesses to develop and operate new power generation projects. By leveraging its expertise in biomass energy, eREX is able to secure long-term contracts and stable income streams, contributing to its financial performance.

eREX Co., Ltd. Financial Statement Overview

Summary

eREX Co., Ltd. faces a challenging financial environment with declining revenues and negative profitability in the TTM period. Strengths include a strong equity ratio and operational efficiency improvements, but the negative cash flows and high leverage present significant risks.

Income Statement

The company has faced a challenging year, reflected by a negative net income in the TTM period, and a significant drop in revenue compared to previous years. The gross profit margin and EBIT margin are positive in TTM, showing some operational efficiency improvements, yet the overall trajectory is declining. Revenue growth has been volatile, indicating instability in revenue streams.

Balance Sheet

The company's debt-to-equity ratio has shown a moderate level of leverage, which remains manageable but indicates some financial risk. The equity ratio is strong, suggesting a solid base of equity relative to assets. However, negative net income impacts the return on equity significantly, pointing to potential profitability issues.

Cash Flow

Cash flow metrics highlight significant concerns, with operating and free cash flows being zero in the TTM period. Historic data shows fluctuations in free cash flow, and the lack of operating cash flow raises questions about the company’s ability to generate cash from operations. These factors indicate potential liquidity risks.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
187.25B	244.98B	296.31B	230.50B	141.88B	88.64B
	Gross Profit
13.54B	-9.17B	25.73B	22.85B	24.56B	15.71B
	EBIT
3.31B	-19.85B	14.88B	12.50B	15.72B	9.25B
	EBITDA
4.73B	-16.27B	21.60B	17.63B	19.72B	11.55B
	Net Income Common Stockholders
-1.96B	-22.26B	9.13B	9.65B	6.29B	4.51B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.40B	23.51B	33.62B	27.16B	31.70B	16.24B
	Total Assets
159.32B	145.18B	171.48B	157.16B	127.88B	104.78B
	Total Debt
47.24B	55.94B	55.13B	53.59B	47.67B	51.33B
	Net Debt
15.85B	32.44B	21.51B	26.43B	15.97B	35.10B
	Total Liabilities
83.58B	89.95B	97.09B	90.34B	73.39B	70.52B
	Stockholders Equity
66.56B	47.51B	62.07B	55.71B	44.08B	26.14B
Cash Flow		Free Cash Flow
0.00	-26.29B	20.12B	-595.00M	16.09B	-8.96B
	Operating Cash Flow
0.00	-23.23B	21.49B	13.31B	18.70B	6.51B
	Investing Cash Flow
0.00	-114.00M	-14.58B	-22.98B	-9.67B	-15.87B
	Financing Cash Flow
0.00	15.67B	-225.00M	4.66B	6.41B	15.38B

eREX Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 833.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 833 is above the 20-day moving average (MA) of 820.20, above the 50-day MA of 803.96, and above the 200-day MA of 726.95, indicating a neutral trend. The MACD of 4.01 indicates Positive momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 34.66 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9502	73 Outperform	¥1.33T	6.60	7.38%	3.13%	1.63%	-49.85%
9513	70 Neutral	$452.13B	4.88	7.15%	3.94%	-10.35%	71.27%
9506	66 Neutral	$505.05B	2.76	19.86%	3.36%	-6.14%	-19.16%
Sector *	63 Neutral	$8.53B	10.12	4.66%	4.41%	3.73%	-14.17%
9501	63 Neutral	¥662.50B	4.06	4.39%	―	-1.56%	-39.79%
9503	61 Neutral	¥1.80T	3.89	15.53%	3.82%	6.84%	-11.94%
9517	43 Neutral	¥62.11B	27.96		1.37%	-27.67%	78.33%

eREX Co., Ltd. Corporate Events

eREX Co., Ltd. Announces Executive Leadership Changes

eREX Co., Ltd. has announced planned changes in its executive officers, with new appointments and reappointments scheduled for the upcoming general meeting of shareholders. This strategic move is aimed at strengthening the company’s leadership and aligning with its goals of enhancing corporate governance and maintaining compliance with Tokyo Stock Exchange regulations.

eREX Co., Ltd. Secures Subsidy for Biomass Co-Firing Project in Vietnam

eREX Co., Ltd. has been selected to receive a subsidy for its biomass fuel co-firing test at coal-fired power plants in Vietnam, a move that aligns with Vietnam’s goal to become carbon neutral by 2050. This initiative supports Vietnam’s growing electricity demand and energy self-sufficiency while reinforcing eREX’s commitment to renewable energy and de-carbonization.

eREX Co., Ltd. Expands Biomass Power Generation Efforts in Southeast Asia

eREX Co., Ltd. is leveraging its expertise in biomass power generation to promote de-carbonization in Southeast Asia, responding to the region’s increasing power demand. This strategic move might strengthen its market position and influence in the renewable energy sector, potentially impacting stakeholders by aligning with global sustainability trends.

eREX Co., Ltd. Shows Profitability Amid Decline in Sales

For the nine months ended December 31, 2024, eREX Co., Ltd. reported a significant decline in net sales by 31.3% compared to the previous year. Despite this, the company managed to achieve a positive operating income and net income, indicating a recovery in profitability. The company also revised its dividend forecast, signaling an optimistic outlook for stakeholders, although changes in the scope of consolidation were noted with the removal of T’dash G.K.

eREX Co., Ltd. Resumes Dividend with Strategic Focus on Growth

eREX Co., Ltd. announced a revision of its year-end dividend forecast for the fiscal year ending March 31, 2025, deciding to resume dividends by issuing 11 yen per share. This decision reflects the company’s commitment to returning profits to shareholders while maintaining financial stability and pursuing sustainable growth through organizational restructuring and strategic investments.

eREX Co., Ltd. Reports Financial Results and Dividend Forecast for FY 2024

eREX Co., Ltd. reported consolidated financial results for the nine months ending December 31, 2024, showing a decline in net sales by 31.3% compared to the previous year. Despite the drop in sales, the company managed to achieve positive operating income and net income figures. The adoption of International Financial Reporting Standards (IFRS) for the first time this fiscal year represents a significant move towards enhancing financial transparency and comparability. Additionally, eREX announced a forecasted annual dividend, reflecting confidence in its future financial stability.

eREX Co., Ltd. Earns ‘B’ Score in CDP Climate Change Report 2024

eREX Co., Ltd. announced that it has achieved a ‘B’ score in the 2024 Climate Change Questionnaire by the Carbon Disclosure Project (CDP), indicating its active management level in addressing climate change risks and opportunities. This recognition reflects eREX’s continuous efforts in renewable energy and de-carbonization as part of its strategy to lead in the new era of electric power, enhancing its environmental credentials and market positioning.