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eREX Co., Ltd.
(9517)
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Rating:53Neutral
Price Target:
¥777.00
▲(26.55% Upside)
Action:Reiterated
Date:10/18/26
The score is held back primarily by unstable cash flow (sharp drop in operating cash flow and deeply negative free cash flow) and bearish technicals (price below all key moving averages with negative MACD and weak RSI). These risks are partially offset by improved profitability/leverage versus FY2024 and a relatively attractive valuation (low P/E and moderate dividend yield).
Positive Factors
Return to Profitability
The return to profitability restores earnings capacity after FY2024’s loss year and provides a stronger base for ongoing operations. Although margins remain modest, positive EBITDA and net income improve the company’s ability to support investment, debt service, and shareholder returns over the coming quarters.
Negative Factors
Unstable Cash Generation
The sharp deterioration in operating cash flow and swing to deeply negative free cash flow weaken cash conversion relative to earnings. This can constrain internally funded investment and reduce flexibility for debt reduction or shareholder distributions, particularly if the volatility persists into subsequent reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to Profitability
The return to profitability restores earnings capacity after FY2024’s loss year and provides a stronger base for ongoing operations. Although margins remain modest, positive EBITDA and net income improve the company’s ability to support investment, debt service, and shareholder returns over the coming quarters.
Read all positive factors
eREX Co., Ltd. (9517) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥59.02B
Dividend Yield2.82%
Average Volume (3M)191.31K
Price to Earnings (P/E)9.6
Beta (1Y)0.26
Revenue Growth3.34%
EPS Growth1621.01%
CountryJP
Employees302
SectorGeneral
Sector StrengthN/A
IndustryRenewable Utilities
Share Statistics
EPS (TTM)81.07
Shares Outstanding78,317,660
10 Day Avg. Volume169,410
30 Day Avg. Volume191,310
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)66.64
Revenue Forecast (FY)¥209.93B
eREX Co., Ltd. Business Overview & Revenue Model
Company Description
eREX Co.,Ltd. is a Japanese energy company that specializes in the production and distribution of electricity. The firm operates a power generation facility that utilizes biomass. In addition to its energy generation activities, eREX also actively...
How the Company Makes Money
eREX primarily earns revenue from selling electricity generated by its power plants. For biomass and other eligible renewable projects in Japan, a major monetization route is typically the sale of electricity under government-backed schemes and/or...
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 | 180.66B | 169.17B | 171.22B | 244.98B | 296.31B | 230.50B |
| Gross Profit | 19.34B | 19.48B | 19.91B | -9.30B | 25.72B | 22.85B |
| EBITDA | 9.58B | 9.76B | 13.25B | -14.84B | 20.73B | 17.63B |
| Net Income | 6.32B | 5.33B | 2.12B | -21.35B | 9.13B | 9.65B |
Balance Sheet | ||||||
| Total Assets | 173.78B | 170.09B | 153.38B | 148.61B | 172.10B | 157.16B |
| Cash, Cash Equivalents and Short-Term Investments | 25.49B | 27.57B | 33.61B | 19.67B | 33.62B | 27.16B |
| Total Debt | 57.06B | 55.84B | 45.22B | 57.78B | 55.64B | 53.60B |
| Total Liabilities | 97.24B | 92.43B | 80.90B | 93.01B | 98.15B | 90.34B |
| Stockholders Equity | 70.71B | 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
Negative
614.00
Price Trends
833.10
Negative
813.53
Negative
806.42
Negative
Market Momentum
-19.14
Positive
40.32
Neutral
35.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9517, the sentiment is Negative. The current price of 614 is below the 20-day moving average (MA) of 794.05, below the 50-day MA of 833.10, and below the 200-day MA of 806.42, indicating a bearish trend. The MACD of -19.14 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 35.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9517.
eREX Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | ¥223.59B | 8.05 | 6.17% | 3.05% | -3.77% | -56.08% | |
58 Neutral | ¥61.81B | 162.89 | 0.30% | 3.48% | -6.87% | -93.42% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ¥59.02B | 9.62 | ― | 2.82% | 3.34% | 1621.01% | |
51 Neutral | ¥69.98B | 27.50 | 2.20% | ― | 14.29% | -21.04% | |
51 Neutral | ¥808.14B | 2.06 | 12.23% | 10.07% | -5.31% | ― | |
49 Neutral | ¥701.81B | 20.35 | 2.44% | 2.51% | -7.32% | -70.76% |
* General Sector Average
JP:9517
eREX Co., Ltd.
773.00
71.95
10.26%
JP:9513
Electric Power Development Co
4,001.00
1,080.75
37.01%
JP:9511
Okinawa Electric Power Co
1,149.00
141.77
14.07%
JP:9519
RENOVA
756.00
-126.00
-14.29%
JP:9501
Tokyo Electric Power Company Holdings
498.10
-271.70
-35.29%
JP:9509
Hokkaido Electric Power Company,Incorporated
1,090.50
15.32
1.42%
eREX Co., Ltd. Corporate Events
eREX Posts Strong Revenue Growth but Softer Margins in First Quarter FY2027
Aug 12, 2026
eREX reported consolidated net sales of ¥48.54 billion for the quarter ended June 30, 2026, up 31.0% year-on-year, while operating income fell 56.6% to ¥631 million, and quarterly net income attributable to owners recovered to ¥857 ...
eREX Boosts Sales on Power Price Surge as Yen Tailwind Lifts Profit
Aug 12, 2026
eREX reported a sharp year-on-year increase in net sales for the first quarter of the fiscal year ending March 2027, driven mainly by higher electric power market prices and improved operating rates in its overseas business. Despite this revenue g...
eREX Delivers Strong Sales Growth but Weaker Margins in First Quarter
Aug 10, 2026
eREX Co., Ltd. reported strong top-line growth for the three months ended June 30, 2026, with net sales rising 31% year on year to ¥48.5 billion. However, operating income fell 56.6% to ¥631 million, reflecting margin pressure, while inc...
eREX Completes Restricted Stock Compensation Share Issuance
Jul 29, 2026
eREX Co., Ltd. is a Japan-based power company listed on the Tokyo Stock Exchange Prime Market under stock code 9517. The firm operates in the energy sector, focusing on electricity-related businesses and serving domestic customers as part of Japan...
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.