New Risk • May 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. This is currently the only risk that has been identified for the company. Reported Earnings • May 13
Full year 2026 earnings: EPS exceeds analyst expectations Full year 2026 results: EPS: JP¥68.36 (up from JP¥28.65 in FY 2025). Revenue: JP¥169.2b (down 1.2% from FY 2025). Net income: JP¥5.33b (up 152% from FY 2025). Profit margin: 3.2% (up from 1.2% in FY 2025). The increase in margin was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 19%. Revenue is forecast to stay flat during the next 3 years compared to a 8.6% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. お知らせ • May 12
eREX Co.,Ltd., Annual General Meeting, Jun 26, 2026 eREX Co.,Ltd., Annual General Meeting, Jun 26, 2026. お知らせ • May 10
eREX Co.,Ltd. to Report Fiscal Year 2026 Results on May 12, 2026 eREX Co.,Ltd. announced that they will report fiscal year 2026 results at 3:00 PM, Tokyo Standard Time on May 12, 2026 Major Estimate Revision • Apr 10
Consensus EPS estimates increase by 17% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from JP¥49.20 to JP¥57.54. Revenue forecast steady at JP¥169.9b. Net income forecast to grow 206% next year vs 13% growth forecast for Renewable Energy industry in Japan. Consensus price target up from JP¥770 to JP¥853. Share price fell 11% to JP¥957 over the past week. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥1,074, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 13x in the Renewable Energy industry in Asia. Total loss to shareholders of 36% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,636 per share. New Risk • Mar 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.3% average weekly change). Large one-off items impacting financial results. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 25 June 2026. Payout ratio is a comfortable 60% but the company is paying out more than the cash it is generating. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.6%). Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥964, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 13x in the Renewable Energy industry in Asia. Total loss to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥1,574 per share. Reported Earnings • Feb 11
Third quarter 2026 earnings released: EPS: JP¥27.54 (vs JP¥36.74 in 3Q 2025) Third quarter 2026 results: EPS: JP¥27.54 (down from JP¥36.74 in 3Q 2025). Revenue: JP¥41.4b (down 4.5% from 3Q 2025). Net income: JP¥2.15b (down 21% from 3Q 2025). Profit margin: 5.2% (down from 6.3% in 3Q 2025). Revenue is forecast to stay flat during the next 3 years compared to a 8.6% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 31% per year, which means it is performing significantly worse than earnings. お知らせ • Dec 27
eREX Co.,Ltd. to Report Q3, 2026 Results on Feb 10, 2026 eREX Co.,Ltd. announced that they will report Q3, 2026 results on Feb 10, 2026 New Risk • Dec 05
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 223% Dividend yield: 1.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Declared Dividend • Nov 13
Dividend of announced Shareholders will receive a dividend of . Sustainability & Growth Dividend is covered by earnings (42% earnings payout ratio) but not covered by cash flows (223% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 60% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 13
Second quarter 2026 earnings released: EPS: JP¥22.07 (vs JP¥0.81 loss in 2Q 2025) Second quarter 2026 results: EPS: JP¥22.07 (up from JP¥0.81 loss in 2Q 2025). Revenue: JP¥49.5b (flat on 2Q 2025). Net income: JP¥1.72b (up JP¥1.78b from 2Q 2025). Profit margin: 3.5% (up from net loss in 2Q 2025). Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has only fallen by 35% per year, which means it has not declined as severely as earnings. お知らせ • Sep 01
eREX Co.,Ltd. to Report Q2, 2026 Results on Nov 11, 2025 eREX Co.,Ltd. announced that they will report Q2, 2026 results on Nov 11, 2025 Reported Earnings • Aug 09
First quarter 2026 earnings released: JP¥1.73 loss per share (vs JP¥25.22 profit in 1Q 2025) First quarter 2026 results: JP¥1.73 loss per share (down from JP¥25.22 profit in 1Q 2025). Revenue: JP¥37.0b (up 11% from 1Q 2025). Net loss: JP¥135.0m (down 108% from profit in 1Q 2025). Revenue is forecast to stay flat during the next 3 years, in line with the revenue forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 31 percentage points per year, which is a significant difference in performance. お知らせ • Jul 18
eREX Co.,Ltd. to Report Q1, 2026 Results on Aug 08, 2025 eREX Co.,Ltd. announced that they will report Q1, 2026 results on Aug 08, 2025 Reported Earnings • Jul 01
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥28.65 (up from JP¥375 loss in FY 2024). Revenue: JP¥171.2b (down 30% from FY 2024). Net income: JP¥2.12b (up JP¥24.4b from FY 2024). Profit margin: 1.2% (up from net loss in FY 2024). The move to profitability was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.1%. Revenue is forecast to stay flat during the next 3 years compared to a 7.9% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 47 percentage points per year, which is a significant difference in performance. Reported Earnings • May 13
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥28.65 (up from JP¥375 loss in FY 2024). Revenue: JP¥171.2b (down 30% from FY 2024). Net income: JP¥2.12b (up JP¥24.4b from FY 2024). Profit margin: 1.2% (up from net loss in FY 2024). The move to profitability was driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.1%. Revenue is forecast to stay flat during the next 3 years compared to a 8.1% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 53 percentage points per year, which is a significant difference in performance. お知らせ • Mar 27
eREX Co.,Ltd. to Report Fiscal Year 2025 Results on May 12, 2025 eREX Co.,Ltd. announced that they will report fiscal year 2025 results on May 12, 2025 New Risk • Feb 14
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 31% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (31% increase in shares outstanding). Minor Risk Share price has been volatile over the past 3 months (5.5% average weekly change). お知らせ • Feb 13
eREX Co.,Ltd. Provides Dividend Guidance for the Fiscal Year Ending March 31, 2025 eREX Co.,Ltd. provided dividend guidance for the fiscal year ending March 31, 2025. For the year, the company expects dividend of JPY 11.00 per share compared to Nil a year ago. Reported Earnings • Feb 13
Third quarter 2025 earnings released: EPS: JP¥36.74 (vs JP¥79.66 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥36.74 (up from JP¥79.66 loss in 3Q 2024). Revenue: JP¥43.4b (down 32% from 3Q 2024). Net income: JP¥2.73b (up JP¥7.45b from 3Q 2024). Profit margin: 6.3% (up from net loss in 3Q 2024). Revenue is expected to decline by 3.1% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Asia are expected to grow by 10%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. お知らせ • Dec 04
eREX Co.,Ltd. to Report Q3, 2025 Results on Feb 12, 2025 eREX Co.,Ltd. announced that they will report Q3, 2025 results on Feb 12, 2025 Reported Earnings • Nov 09
Second quarter 2025 earnings released: JP¥0.81 loss per share (vs JP¥124 loss in 2Q 2024) Second quarter 2025 results: JP¥0.81 loss per share (improved from JP¥124 loss in 2Q 2024). Revenue: JP¥49.8b (down 23% from 2Q 2024). Net loss: JP¥60.0m (loss narrowed 99% from 2Q 2024). Revenue is expected to decline by 6.2% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Asia are expected to grow by 9.4%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. お知らせ • Oct 09
eREX Co.,Ltd. to Report Q2, 2025 Results on Nov 08, 2024 eREX Co.,Ltd. announced that they will report Q2, 2025 results on Nov 08, 2024 お知らせ • Sep 25
erex Co., Ltd. and Taiheiyo Cement Corporation Announce Complete PKS Co-Firing Test erex Co. Ltd. announced that a cofiring test of PKS (Palm Kernel Shell) has been conducted at the Itoigawa Power Plant, which is jointly operated by the Company and Taiheiyo Cement Corporation as follows: As part of efforts to address the social issue of achieving a de-carbonized society, the company is planning fuel conversion of coal-fired power plants in Japan. As a test to implement the plan, a co-firing test with coal using inexpensively procured PKS was conducted for eight days from September 6 to 13. The test operation was conducted with a maximum of approximately 30% PKS mixed with coal, and it was confirmed that stable firing and power generation were available. The company will continue to implement initiatives to achieve a de-carbonized society in Japan and abroad, with its biomass power generation business as a cornerstone. With regard to the fuel conversion of coal-fired power plants, the company will steadily proceed with the plan with the understanding and cooperation of local residents and other related parties. New Risk • Aug 13
New major risk - Revenue and earnings growth Earnings have declined by 39% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 39% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.0% average weekly change). Shareholders have been diluted in the past year (25% increase in shares outstanding). Reported Earnings • Aug 13
First quarter 2025 earnings released: EPS: JP¥25.22 (vs JP¥64.09 loss in 1Q 2024) First quarter 2025 results: EPS: JP¥25.22 (up from JP¥64.09 loss in 1Q 2024). Revenue: JP¥33.4b (down 40% from 1Q 2024). Net income: JP¥1.75b (up JP¥5.54b from 1Q 2024). Profit margin: 5.2% (up from net loss in 1Q 2024). Revenue is expected to decline by 2.5% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Asia are expected to grow by 10%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 65 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • Aug 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to JP¥693. The fair value is estimated to be JP¥872, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 18% over the last 3 years. Meanwhile, the company became loss making. お知らせ • Jun 28
eREX Co.,Ltd. to Report Q1, 2025 Results on Aug 09, 2024 eREX Co.,Ltd. announced that they will report Q1, 2025 results on Aug 09, 2024 New Risk • May 31
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 25% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (currently running at an operating cash loss). Minor Risks Share price has been volatile over the past 3 months (7.7% average weekly change). Shareholders have been diluted in the past year (25% increase in shares outstanding). お知らせ • May 28
eREX Co.,Ltd. Provides Consolidated Earnings Guidance for the Full Year of Fiscal Year Ending March 31, 2025 eREX Co.,Ltd. provided consolidated earnings guidance for the full year of fiscal year ending March 31, 2025. For the period, the company expects net sales of JPY 155,456 million, operating profit of JPY 5,378 million, profit attributable to owners of parent of JPY 1,885 million and basic earnings per share of JPY 31.75. New Risk • May 27
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (7.8% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. お知らせ • May 15
eREX Co.,Ltd., Annual General Meeting, Jun 25, 2024 eREX Co.,Ltd., Annual General Meeting, Jun 25, 2024. Reported Earnings • May 12
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: JP¥375 loss per share (down from JP¥155 profit in FY 2023). Revenue: JP¥245.0b (down 17% from FY 2023). Net loss: JP¥22.3b (down 342% from profit in FY 2023). Revenue exceeded analyst estimates by 6.8%. Earnings per share (EPS) missed analyst estimates by 67%. Revenue is expected to decline by 2.6% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Japan are expected to grow by 4.6%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. お知らせ • Mar 31
eREX Co.,Ltd. to Report Q4, 2024 Results on May 10, 2024 eREX Co.,Ltd. announced that they will report Q4, 2024 results on May 10, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings released: JP¥79.66 loss per share (vs JP¥23.67 profit in 3Q 2023) Third quarter 2024 results: JP¥79.66 loss per share (down from JP¥23.67 profit in 3Q 2023). Revenue: JP¥63.4b (down 25% from 3Q 2023). Net loss: JP¥4.73b (down 437% from profit in 3Q 2023). Revenue is expected to decline by 7.7% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Japan are expected to grow by 3.5%. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 25% per year, which means it has not declined as severely as earnings. お知らせ • Jan 09
eREX Co.,Ltd. to Report Q3, 2024 Results on Feb 09, 2024 eREX Co.,Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 New Risk • Nov 15
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Share price has been volatile over the past 3 months (6.9% average weekly change). New Risk • Nov 13
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (7.6% average weekly change). Minor Risks High level of debt (45% net debt to equity). Paying a dividend despite being loss-making. New Risk • Nov 11
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 45% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Minor Risks High level of debt (45% net debt to equity). Paying a dividend despite being loss-making. Share price has been volatile over the past 3 months (6.7% average weekly change). お知らせ • Sep 28
eREX Co.,Ltd. to Report Q2, 2024 Results on Nov 10, 2023 eREX Co.,Ltd. announced that they will report Q2, 2024 results on Nov 10, 2023 Major Estimate Revision • Sep 05
Consensus EPS estimates fall by 56%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from JP¥215.0b to JP¥225.0b. EPS estimate fell from JP¥88.60 to JP¥38.80 per share. Net income forecast to shrink 24% next year vs 20% growth forecast for Renewable Energy industry in Japan . Consensus price target down from JP¥2,120 to JP¥1,770. Share price fell 7.2% to JP¥904 over the past week. New Risk • Aug 14
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.5% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (1.3% net profit margin). Reported Earnings • Aug 12
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: JP¥64.09 loss per share (down from JP¥28.33 profit in 1Q 2023). Revenue: JP¥55.9b (down 4.7% from 1Q 2023). Net loss: JP¥3.80b (down 327% from profit in 1Q 2023). Revenue exceeded analyst estimates by 35%. Earnings per share (EPS) missed analyst estimates. Revenue is expected to decline by 6.9% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Japan are expected to grow by 4.9%. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. お知らせ • Jun 28
eREX Co.,Ltd. to Report Q1, 2024 Results on Aug 10, 2023 eREX Co.,Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 お知らせ • May 17
eREX Co.,Ltd., Annual General Meeting, Jun 23, 2023 eREX Co.,Ltd., Annual General Meeting, Jun 23, 2023. Reported Earnings • May 16
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥155 (down from JP¥163 in FY 2022). Revenue: JP¥296.3b (up 29% from FY 2022). Net income: JP¥9.19b (down 4.8% from FY 2022). Profit margin: 3.1% (down from 4.2% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is expected to decline by 12% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Japan are expected to grow by 6.8%. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 15
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥1,371, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Renewable Energy industry in Japan. Total returns to shareholders of 11% over the past three years. Major Estimate Revision • Mar 27
Consensus revenue estimates increase by 18%, EPS downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from JP¥250.9b to JP¥296.0b. EPS estimate fell from JP¥149 to JP¥146. Net income forecast to grow 15% next year vs 34% growth forecast for Renewable Energy industry in Japan. Consensus price target down from JP¥3,120 to JP¥2,570. Share price was steady at JP¥1,818 over the past week. Price Target Changed • Mar 24
Price target decreased by 21% to JP¥2,570 Down from JP¥3,233, the current price target is an average from 2 analysts. New target price is 41% above last closing price of JP¥1,818. Stock is down 1.3% over the past year. The company is forecast to post earnings per share of JP¥146 for next year compared to JP¥163 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥22.00 per share at 1.2% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 27 June 2023. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.8%). Reported Earnings • Feb 12
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: JP¥23.67 (down from JP¥60.70 in 3Q 2022). Revenue: JP¥84.1b (up 23% from 3Q 2022). Net income: JP¥1.40b (down 61% from 3Q 2022). Profit margin: 1.7% (down from 5.3% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 15%. Earnings per share (EPS) missed analyst estimates by 23%. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. お知らせ • Dec 28
eREX Co.,Ltd. to Report Q3, 2023 Results on Feb 10, 2023 eREX Co.,Ltd. announced that they will report Q3, 2023 results on Feb 10, 2023 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent External Director Shigeru Kimura was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 13
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: JP¥48.34 (down from JP¥59.07 in 2Q 2022). Revenue: JP¥78.9b (up 60% from 2Q 2022). Net income: JP¥2.86b (down 18% from 2Q 2022). Profit margin: 3.6% (down from 7.1% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.0%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Aug 29
Consensus revenue estimates increase by 22% The consensus outlook for revenues in 2023 has improved. 2023 revenue forecast increased from JP¥247.2b to JP¥300.6b. EPS estimate increased from JP¥143 to JP¥148 per share. Net income forecast to shrink 16% next year vs 3.7% decline forecast for Renewable Energy industry in Japan. Consensus price target up from JP¥3,233 to JP¥3,433. Share price was steady at JP¥2,772 over the past week. Major Estimate Revision • Aug 19
Consensus revenue estimates increase by 16% The consensus outlook for revenues in 2023 has improved. 2023 revenue forecast increased from JP¥213.9b to JP¥247.2b. EPS estimate increased from JP¥135 to JP¥143 per share. Net income forecast to shrink 18% next year vs 3.7% decline forecast for Renewable Energy industry in Japan. Consensus price target of JP¥3,233 unchanged from last update. Share price rose 3.7% to JP¥2,823 over the past week. Reported Earnings • Aug 12
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: JP¥28.33 (up from JP¥14.13 in 1Q 2022). Revenue: JP¥58.7b (up 77% from 1Q 2022). Net income: JP¥1.68b (up 101% from 1Q 2022). Profit margin: 2.9% (up from 2.5% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 96%. Earnings per share (EPS) also surpassed analyst estimates by 233%. Over the next year, revenue is expected to shrink by 15% compared to a 15% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 27% per year. Major Estimate Revision • Jun 01
Consensus revenue estimates fall by 12% The consensus outlook for revenues in 2023 has deteriorated. 2023 revenue forecast decreased from JP¥226.0b to JP¥200.0b. EPS estimate fell from JP¥140 to JP¥135 per share. Net income forecast to shrink 17% next year vs 32% growth forecast for Renewable Energy industry in Japan . Consensus price target of JP¥3,038 unchanged from last update. Share price fell 5.4% to JP¥1,958 over the past week. Valuation Update With 7 Day Price Move • May 20
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥2,126, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 16x in the Renewable Energy industry in Japan. Total returns to shareholders of 70% over the past three years. Reported Earnings • May 17
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: JP¥163 (up from JP¥116 in FY 2021). Revenue: JP¥230.5b (up 63% from FY 2021). Net income: JP¥9.65b (up 54% from FY 2021). Profit margin: 4.2% (down from 4.4% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.5%. Earnings per share (EPS) also surpassed analyst estimates by 8.3%. Over the next year, revenue is expected to shrink by 2.0% compared to a 28% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 27
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from JP¥220.0b to JP¥225.0b. EPS estimate increased from JP¥135 to JP¥152 per share. Net income forecast to shrink 16% next year vs 18% growth forecast for Renewable Energy industry in Japan . Consensus price target of JP¥3,017 unchanged from last update. Share price fell 3.9% to JP¥1,912 over the past week. Board Change • Apr 27
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent External Director Shigeru Kimura was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥1,988, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 13x in the Renewable Energy industry in Japan. Total returns to shareholders of 101% over the past three years. Price Target Changed • Mar 23
Price target increased to JP¥3,017 Up from JP¥2,813, the current price target is an average from 4 analysts. New target price is 67% above last closing price of JP¥1,808. Stock is down 1.7% over the past year. The company is forecast to post earnings per share of JP¥127 for next year compared to JP¥116 last year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥20.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 23 June 2022. Payout ratio is a comfortable 10% and this is well supported by cash flows. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.6%). Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥1,699, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Renewable Energy industry in Japan. Total returns to shareholders of 106% over the past three years. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥1,699, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 13x in the Renewable Energy industry in Japan. Total returns to shareholders of 106% over the past three years. Reported Earnings • Feb 12
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: JP¥60.70 (up from JP¥22.92 in 3Q 2021). Revenue: JP¥68.3b (up 141% from 3Q 2021). Net income: JP¥3.59b (up 182% from 3Q 2021). Profit margin: 5.3% (up from 4.5% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 64%. Earnings per share (EPS) also surpassed analyst estimates by 156%. Over the next year, revenue is expected to shrink by 17% compared to a 17% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 12
Second quarter 2022 earnings released: EPS JP¥59.07 (vs JP¥42.56 in 2Q 2021) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2022 results: Revenue: JP¥49.5b (up 72% from 2Q 2021). Net income: JP¥3.49b (up 61% from 2Q 2021). Profit margin: 7.1% (down from 7.5% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Sep 09
Price target increased to JP¥2,688 Up from JP¥2,367, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of JP¥2,716. Stock is up 157% over the past year. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥2,640, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 21x in the Renewable Energy industry in Japan. Total returns to shareholders of 169% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,517 per share. Reported Earnings • Aug 13
First quarter 2022 earnings released: EPS JP¥14.13 (vs JP¥10.08 in 1Q 2021) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2022 results: Revenue: JP¥33.2b (up 79% from 1Q 2021). Net income: JP¥833.0m (up 62% from 1Q 2021). Profit margin: 2.5% (down from 2.8% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 25% per year whereas the company’s share price has increased by 30% per year. Valuation Update With 7 Day Price Move • Aug 11
Investor sentiment deteriorated over the past week After last week's 18% share price decline to JP¥2,569, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 27x in the Renewable Energy industry in Japan. Total returns to shareholders of 142% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,522 per share. Major Estimate Revision • Jul 09
Consensus revenue estimates increase to JP¥154.8b The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from JP¥133.1b to JP¥154.8b. EPS estimate increased from JP¥114 to JP¥116 per share. Net income forecast to grow 8.2% next year vs 9.2% growth forecast for Renewable Energy industry in Japan. Consensus price target of JP¥2,433 unchanged from last update. Share price rose 5.3% to JP¥2,922 over the past week. Reported Earnings • Jun 27
Full year 2021 earnings released: EPS JP¥116 (vs JP¥89.01 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: JP¥141.9b (up 60% from FY 2020). Net income: JP¥6.29b (up 39% from FY 2020). Profit margin: 4.4% (down from 5.1% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 26% per year. Major Estimate Revision • Jun 26
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from JP¥119.5b to JP¥133.1b. EPS estimate unchanged at JP¥114. Net income forecast to grow 5.5% next year vs 9.2% growth forecast for Renewable Energy industry in Japan. Consensus price target up from JP¥2,302 to JP¥2,367. Share price rose 16% to JP¥2,348 over the past week. Valuation Update With 7 Day Price Move • Jun 26
Investor sentiment improved over the past week After last week's 16% share price gain to JP¥2,348, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 21x in the Renewable Energy industry in Japan. Total returns to shareholders of 109% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥4,315 per share. Price Target Changed • May 31
Price target increased to JP¥2,367 Up from JP¥2,167, the current price target is an average from 4 analysts. New target price is 28% above last closing price of JP¥1,843. Stock is up 25% over the past year. Reported Earnings • May 16
Full year 2021 earnings released: EPS JP¥116 (vs JP¥89.01 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: JP¥141.9b (up 60% from FY 2020). Net income: JP¥6.29b (up 39% from FY 2020). Profit margin: 4.4% (down from 5.1% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 20% per year. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 30 June 2021. Trailing yield: 0.9%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (2.6%). Price Target Changed • Mar 09
Price target raised to JP¥2,267 Up from JP¥2,067, the current price target is an average from 4 analysts. The new target price is 32% above the current share price of JP¥1,716. As of last close, the stock is up 34% over the past year. Major Estimate Revision • Mar 04
Analysts increase revenue estimates to JP¥108.5b The 2021 consensus revenue estimate increased from JP¥94.5b. Earning per share (EPS) estimate also increased from JP¥93.40 to JP¥104 for the same period. Net income is expected to grow by 29% next year compared to 1.7% decline forecast for the Renewable Energy industry in Japan. The consensus price target of JP¥2,167 was unchanged from the last update. Share price is up 3.0% to JP¥1,787 over the past week.