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eREX Co., Ltd.
(9517)
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Rating:56Neutral
Price Target:
¥927.00
▲(50.98% Upside)
Action:Reiterated
Date:07/17/26
The score is held back primarily by weak and volatile cash generation (sharp drop in operating cash flow and deeply negative free cash flow) and multi-year revenue declines, despite improved profitability and a healthier leverage profile. Technicals are supportive but look overbought, while valuation is reasonable (P/E ~13) with a modest dividend yield.
Positive Factors
Return to Profitability
The return to positive earnings restores internal funding capacity and demonstrates that the operating model can remain profitable after the FY2024 loss, although current margins still provide limited protection against cost or pricing pressure.
Negative Factors
Weak Cash Generation
The sharp deterioration in operating cash flow and deeply negative free cash flow weakens cash conversion and may increase reliance on financing. Persistent working-capital volatility or elevated investment needs could constrain future asset development.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to Profitability
The return to positive earnings restores internal funding capacity and demonstrates that the operating model can remain profitable after the FY2024 loss, although current margins still provide limited protection against cost or pricing pressure.
Read all positive factors
eREX Co., Ltd. (9517) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥69.11B
Dividend Yield2.51%
Average Volume (3M)177.27K
Price to Earnings (P/E)10.8
Beta (1Y)0.34
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. 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)61.72
Revenue Forecast (FY)¥176.33B
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 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 | 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
Positive
614.00
Price Trends
821.18
Positive
865.23
Positive
771.43
Positive
Market Momentum
13.09
Negative
55.43
Neutral
59.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9517, the sentiment is Positive. The current price of 614 is below the 20-day moving average (MA) of 859.15, below the 50-day MA of 821.18, and below the 200-day MA of 771.43, indicating a bullish trend. The MACD of 13.09 indicates Negative momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 59.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | ¥63.65B | 165.16 | 4.87% | 3.18% | -6.87% | -93.42% | |
60 Neutral | ¥224.62B | 7.91 | 9.95% | 3.18% | -3.77% | -56.08% | |
57 Neutral | ¥709.93B | 20.43 | 4.27% | 2.63% | -7.32% | -70.76% | |
56 Neutral | ¥69.11B | 10.83 | ― | 1.79% | 3.34% | 1621.01% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥88.70B | 32.66 | 3.23% | ― | 14.29% | -21.04% | |
51 Neutral | ¥862.45B | 2.15 | -14.76% | ― | -5.31% | ― |
* General Sector Average
JP:9517
eREX Co., Ltd.
875.00
171.02
24.29%
JP:9513
Electric Power Development Co
4,025.00
1,258.48
45.49%
JP:9511
Okinawa Electric Power Co
1,169.00
200.05
20.65%
JP:9519
RENOVA
924.00
48.00
5.48%
JP:9501
Tokyo Electric Power Company Holdings
529.50
-219.40
-29.30%
JP:9509
Hokkaido Electric Power Company,Incorporated
1,093.50
-37.51
-3.32%
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...
eREX Sets 2027 Business Plan Around Biomass Growth and Japan Power Expansion
Jul 17, 2026
eREX Co., Ltd. operates in the energy sector, focusing on power generation and related services. The company specializes in biomass power generation and co-firing technologies, and is also building a business base in Japan that spans retail power ...
eREX Issues 2027 Earnings Forecast and Reports Strong Q1 Sales on Higher Power Prices
Jul 15, 2026
eREX Co., Ltd. has released its previously deferred consolidated earnings forecast for the fiscal year ending March 31, 2027, projecting net sales of ¥240.7 billion and net income attributable to owners of the parent of ¥5.4 billion. The...
erex to Resume Earnings Forecast Disclosure as Power Market Visibility Improves
Jul 8, 2026
erex Co., Ltd. has decided to disclose its consolidated earnings forecast for the fiscal year ending March 31, 2027, after previously leaving it undetermined due to market volatility. The company had withheld guidance amid sharp fluctuations in fu...
eREX Corrects Terms and Confirms Restricted Stock Compensation Issuance
Jul 3, 2026
eREX Co., Ltd. has corrected certain terms in its previously announced restricted stock compensation issuance, including an increase in the issue price to ¥745 per share, a higher total issuance amount of about ¥116 million, and a revise...
eREX Issues Restricted Shares to Directors and Managers to Align Incentives
Jul 2, 2026
eREX has approved the issuance of 156,050 new common shares as restricted stock compensation to five internal directors and 55 managerial employees, raising ¥113.29 million at an issue price of ¥726 per share. The grant, contingent on re...
eREX Clarifies Relationship with Major Shareholder Hikari Tsushin
Jul 1, 2026
eREX Co., Ltd. disclosed that HIKARI TSUSHIN, INC. is classified as an other affiliated company, indirectly holding 22.62% of eREX’s voting rights through subsidiaries such as Hikari Tsushin Co., Ltd. and related investment vehicles. Despite...
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.