New Risk • May 13
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 18% per year for the foreseeable future. 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 expected to decline, then in most cases the share price will decline over time as well. 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 Risks Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Earnings are forecast to decline by an average of 18% per year for the foreseeable future. Minor Risk Market cap is less than US$100m (JP¥7.70b market cap, or US$48.8m). Reported Earnings • May 13
Third quarter 2026 earnings released: EPS: JP¥91.61 (vs JP¥6.48 in 3Q 2025) Third quarter 2026 results: EPS: JP¥91.61 (up from JP¥6.48 in 3Q 2025). Revenue: JP¥4.88b (up 18% from 3Q 2025). Net income: JP¥1.94b (up JP¥1.80b from 3Q 2025). Profit margin: 40% (up from 3.3% in 3Q 2025). The increase in margin was primarily driven by lower expenses. Revenue is expected to decline by 4.2% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Asia are expected to grow by 8.6%. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. New Risk • May 05
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 6.9% 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: Major Risk Debt is not well covered by operating cash flow (11% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥7.87b market cap, or US$50.1m). Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥402, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 14x in the Renewable Energy industry in Asia. Total loss to shareholders of 33% over the past three years. Declared Dividend • Feb 11
Dividend of JP¥8.00 announced Dividend of JP¥8.00 is the same as last year. Ex-date: 29th June 2026 Payment date: 8th September 2026 Dividend yield will be 2.3%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (7% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 90% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 10
Second quarter 2026 earnings released: EPS: JP¥7.66 (vs JP¥7.62 in 2Q 2025) Second quarter 2026 results: EPS: JP¥7.66 (up from JP¥7.62 in 2Q 2025). Revenue: JP¥4.85b (up 12% from 2Q 2025). Net income: JP¥162.0m (flat on 2Q 2025). Profit margin: 3.3% (down from 3.7% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue is expected to decline by 2.8% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Asia are expected to grow by 8.7%. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Announcement • Dec 02
EF-ON Inc. to Report Q2, 2026 Results on Feb 09, 2026 EF-ON Inc. announced that they will report Q2, 2026 results on Feb 09, 2026 Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥342, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 14x in the Renewable Energy industry in Japan. Total loss to shareholders of 38% over the past three years. Reported Earnings • Nov 08
First quarter 2026 earnings released: EPS: JP¥5.01 (vs JP¥11.10 in 1Q 2025) First quarter 2026 results: EPS: JP¥5.01 (down from JP¥11.10 in 1Q 2025). Revenue: JP¥4.92b (up 11% from 1Q 2025). Net income: JP¥106.0m (down 55% from 1Q 2025). Profit margin: 2.2% (down from 5.3% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.3% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. New Risk • Nov 07
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 6.7% 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: Major Risk Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Market cap is less than US$100m (JP¥7.17b market cap, or US$46.8m). Announcement • Sep 03
EF-ON Inc. to Report Q1, 2026 Results on Nov 06, 2025 EF-ON Inc. announced that they will report Q1, 2026 results on Nov 06, 2025 Reported Earnings • Aug 08
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: JP¥33.25 (up from JP¥13.13 in FY 2024). Revenue: JP¥17.6b (flat on FY 2024). Net income: JP¥706.0m (up 151% from FY 2024). Profit margin: 4.0% (up from 1.6% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 3.8% p.a. on average during the next 2 years, while revenues in the Renewable Energy industry in Japan are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Aug 07
EF-ON Inc., Annual General Meeting, Sep 26, 2025 EF-ON Inc., Annual General Meeting, Sep 26, 2025. Announcement • Jun 27
EF-ON Inc. to Report Fiscal Year 2025 Results on Aug 07, 2025 EF-ON Inc. announced that they will report fiscal year 2025 results on Aug 07, 2025 Upcoming Dividend • Jun 20
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 09 September 2025. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (4.0%). Lower than average of industry peers (2.8%). Reported Earnings • May 09
Third quarter 2025 earnings released: EPS: JP¥6.48 (vs JP¥2.72 loss in 3Q 2024) Third quarter 2025 results: EPS: JP¥6.48 (up from JP¥2.72 loss in 3Q 2024). Revenue: JP¥4.14b (down 1.5% from 3Q 2024). Net income: JP¥137.0m (up JP¥195.0m from 3Q 2024). Profit margin: 3.3% (up from net loss in 3Q 2024). The move to profitability was driven by lower expenses. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Renewable Energy industry in Asia. 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 16% per year, which means it has not declined as severely as earnings. New Risk • Apr 07
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 5.5% 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: Major Risk Interest payments are not well covered by earnings (2.9x net interest cover). Minor Risks Share price has been volatile over the past 3 months (5.5% average weekly change). Market cap is less than US$100m (JP¥5.97b market cap, or US$40.8m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to JP¥282, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Renewable Energy industry in Asia. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥526 per share. Announcement • Mar 06
EF-ON Inc. to Report Q3, 2025 Results on May 08, 2025 EF-ON Inc. announced that they will report Q3, 2025 results on May 08, 2025 Announcement • Feb 18
EF-ON Inc. Provides Consolidated Earnings Guidance for the Full Year Ending June 30, 2025 EF-ON Inc. provided consolidated earnings guidance for the full year ending June 30, 2025. For the year, the company expects net sales of JPY 18,500 million, operating profit of JPY 1,200 million, profit attributable to owners of parent of JPY 710 million and basic earnings per share of JPY 33.31. Declared Dividend • Feb 14
Dividend of JP¥8.00 announced Dividend of JP¥8.00 is the same as last year. Ex-date: 27th June 2025 Payment date: 9th September 2025 Dividend yield will be 2.1%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by both earnings (44% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 133% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 14
Second quarter 2025 earnings released: EPS: JP¥7.62 (vs JP¥9.15 in 2Q 2024) Second quarter 2025 results: EPS: JP¥7.62 (down from JP¥9.15 in 2Q 2024). Revenue: JP¥4.34b (flat on 2Q 2024). Net income: JP¥162.0m (down 17% from 2Q 2024). Profit margin: 3.7% (down from 4.5% in 2Q 2024). Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, earnings per share has fallen by 45% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Dec 18
Now 20% undervalued Over the last 90 days, the stock has risen 1.3% to JP¥385. The fair value is estimated to be JP¥484, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has declined by 46%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 133% in the next 2 years. Announcement • Dec 03
EF-ON Inc. to Report Q2, 2025 Results on Feb 12, 2025 EF-ON Inc. announced that they will report Q2, 2025 results on Feb 12, 2025 Buy Or Sell Opportunity • Nov 26
Now 20% undervalued Over the last 90 days, the stock has risen 4.4% to JP¥405. The fair value is estimated to be JP¥507, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has declined by 46%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 133% in the next 2 years. Reported Earnings • Nov 09
First quarter 2025 earnings released: EPS: JP¥11.10 (vs JP¥4.61 in 1Q 2024) First quarter 2025 results: EPS: JP¥11.10 (up from JP¥4.61 in 1Q 2024). Revenue: JP¥4.45b (down 2.3% from 1Q 2024). Net income: JP¥237.0m (up 139% from 1Q 2024). Profit margin: 5.3% (up from 2.2% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, earnings per share has fallen by 46% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Announcement • Nov 08
EF-ON Inc. Provides Consolidated Earnings Guidance for the Six Months Ending December 31, 2024 and Full Year Ending June 30, 2025 EF-ON Inc. provided consolidated earnings guidance for the six months ending December 31, 2024 and full year ending June 30, 2025. For the six months, the company expects net sales of JPY 9,000 million, operating profit of JPY 550 million, profit attributable to owners of parent of JPY 340 million and basic earnings per share of JPY 15.92.
For the full year, the company expects net sales of JPY 18,500 million, operating profit of JPY 1,200 million, profit attributable to owners of parent of JPY 710 million and basic earnings per share of JPY 33.24. Reported Earnings • Oct 03
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥13.13 (down from JP¥38.35 in FY 2023). Revenue: JP¥17.5b (up 3.1% from FY 2023). Net income: JP¥281.0m (down 66% from FY 2023). Profit margin: 1.6% (down from 4.9% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) also missed analyst estimates by 25%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. New Risk • Sep 28
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 8.4% 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: Major Risk Interest payments are not well covered by earnings (2.3x net interest cover). 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 (8.4% average weekly change). Profit margins are more than 30% lower than last year (1.6% net profit margin). Market cap is less than US$100m (JP¥8.18b market cap, or US$57.5m). Announcement • Sep 25
EF-ON Inc. to Report Q1, 2025 Results on Nov 07, 2024 EF-ON Inc. announced that they will report Q1, 2025 results on Nov 07, 2024 Reported Earnings • Aug 13
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: JP¥13.13 (down from JP¥38.35 in FY 2023). Revenue: JP¥17.5b (up 3.1% from FY 2023). Net income: JP¥281.0m (down 66% from FY 2023). Profit margin: 1.6% (down from 4.9% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) also missed analyst estimates by 25%. Revenue is forecast to grow 5.4% p.a. on average during the next 2 years, compared to a 10% growth forecast for the Renewable Energy industry in Asia. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Announcement • Aug 08
EF-ON Inc., Annual General Meeting, Sep 27, 2024 EF-ON Inc., Annual General Meeting, Sep 27, 2024. New Risk • Aug 05
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 6.7% 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: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risks Dividend is not well covered by earnings (182% payout ratio). Share price has been volatile over the past 3 months (6.7% average weekly change). Profit margins are more than 30% lower than last year (0.6% net profit margin). Market cap is less than US$100m (JP¥6.32b market cap, or US$44.4m). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 26% After last week's 26% share price decline to JP¥296, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Renewable Energy industry in Asia. Total loss to shareholders of 74% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at JP¥173 per share. Upcoming Dividend • Jun 20
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 06 September 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (2.2%). Announcement • Jun 19
EF-ON Inc. to Report Fiscal Year 2024 Results on Aug 08, 2024 EF-ON Inc. announced that they will report fiscal year 2024 results on Aug 08, 2024 Reported Earnings • May 18
Third quarter 2024 earnings released: JP¥2.72 loss per share (vs JP¥12.85 profit in 3Q 2023) Third quarter 2024 results: JP¥2.72 loss per share (down from JP¥12.85 profit in 3Q 2023). Revenue: JP¥4.20b (down 5.4% from 3Q 2023). Net loss: JP¥58.0m (down 121% from profit in 3Q 2023). Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Announcement • Mar 02
EF-ON Inc. to Report Q3, 2024 Results on May 14, 2024 EF-ON Inc. announced that they will report Q3, 2024 results on May 14, 2024 Major Estimate Revision • Feb 27
Consensus EPS estimates increase by 30% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from JP¥53.51 to JP¥69.81. Revenue forecast unchanged at JP¥18.5b. Net income forecast to grow 117% next year vs 32% growth forecast for Renewable Energy industry in Japan. Consensus price target of JP¥630 unchanged from last update. Share price was steady at JP¥406 over the past week. Reported Earnings • Feb 19
Second quarter 2024 earnings released: EPS: JP¥9.15 (vs JP¥16.24 in 2Q 2023) Second quarter 2024 results: EPS: JP¥9.15 (down from JP¥16.24 in 2Q 2023). Revenue: JP¥4.33b (flat on 2Q 2023). Net income: JP¥196.0m (down 44% from 2Q 2023). Profit margin: 4.5% (down from 8.0% in 2Q 2023). Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 27% per year, which means it has not declined as severely as earnings. Declared Dividend • Feb 16
Dividend of JP¥8.00 announced Dividend of JP¥8.00 is the same as last year. Ex-date: 27th June 2024 Payment date: 6th September 2024 Dividend yield will be 2.0%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by both earnings (30% earnings payout ratio) and cash flows (8% cash payout ratio). The dividend has increased by an average of 14% per year over the past 9 years and payments have been stable during that time. EPS is expected to grow by 107% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Dec 05
Consensus EPS estimates fall by 12% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from JP¥60.96 to JP¥53.51. Revenue forecast unchanged from JP¥17.6b at last update. Net income forecast to grow 111% next year vs 111% growth forecast for Renewable Energy industry in Japan. Consensus price target of JP¥630 unchanged from last update. Share price fell 2.9% to JP¥471 over the past week. Announcement • Dec 02
EF-ON Inc. to Report Q2, 2024 Results on Feb 14, 2024 EF-ON Inc. announced that they will report Q2, 2024 results on Feb 14, 2024 Reported Earnings • Nov 20
First quarter 2024 earnings released: EPS: JP¥4.61 (vs JP¥15.92 in 1Q 2023) First quarter 2024 results: EPS: JP¥4.61 (down from JP¥15.92 in 1Q 2023). Revenue: JP¥4.55b (up 9.7% from 1Q 2023). Net income: JP¥99.0m (down 71% from 1Q 2023). Profit margin: 2.2% (down from 8.2% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has only fallen by 24% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Oct 26
Consensus EPS estimates increase by 17%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from JP¥18.0b to JP¥17.6b. EPS estimate rose from JP¥52.10 to JP¥60.96. Net income forecast to grow 59% next year vs 47% growth forecast for Renewable Energy industry in Japan. Consensus price target down from JP¥670 to JP¥630. Share price rose 2.4% to JP¥473 over the past week. Announcement • Sep 17
EF-ON Inc. to Report Q1, 2024 Results on Nov 14, 2023 EF-ON Inc. announced that they will report Q1, 2024 results on Nov 14, 2023 Reported Earnings • Aug 12
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: JP¥38.35 (down from JP¥41.45 in FY 2022). Revenue: JP¥16.9b (up 28% from FY 2022). Net income: JP¥824.0m (down 7.7% from FY 2022). Profit margin: 4.9% (down from 6.7% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) also missed analyst estimates by 43%. Revenue is forecast to grow 4.3% p.a. on average during the next 2 years, compared to a 4.9% growth forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Announcement • Aug 12
EF-ON Inc., Annual General Meeting, Sep 26, 2023 EF-ON Inc., Annual General Meeting, Sep 26, 2023. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥8.00 per share at 1.4% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 07 September 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Japanese dividend payers (3.5%). Lower than average of industry peers (3.4%). Announcement • Jun 03
EF-ON Inc. to Report Fiscal Year 2023 Results on Aug 10, 2023 EF-ON Inc. announced that they will report fiscal year 2023 results on Aug 10, 2023 Reported Earnings • May 18
Third quarter 2023 earnings released: EPS: JP¥12.85 (vs JP¥11.40 in 3Q 2022) Third quarter 2023 results: EPS: JP¥12.85 (up from JP¥11.40 in 3Q 2022). Revenue: JP¥4.44b (up 31% from 3Q 2022). Net income: JP¥276.0m (up 13% from 3Q 2022). Profit margin: 6.2% (down from 7.2% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Renewable Energy industry in Japan. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • May 17
Ef-On Inc. Provides Consolidated Earnings Guidance for the Full Year Ending June 30, 2023 EF-ON Inc. provided consolidated earnings guidance for the full year ending June 30, 2023. For the year, the company expects net sales of JPY 17,000 million, operating profit of JPY 2,500 million, profit attributable to owners of parent of JPY 1,500 million or JPY 69.81 per share. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥570, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 15x in the Renewable Energy industry in Japan. Total loss to shareholders of 9.5% over the past three years. Reported Earnings • Feb 12
Second quarter 2023 earnings released: EPS: JP¥16.24 (vs JP¥8.44 in 2Q 2022) Second quarter 2023 results: EPS: JP¥16.24 (up from JP¥8.44 in 2Q 2022). Revenue: JP¥4.37b (up 34% from 2Q 2022). Net income: JP¥349.0m (up 92% from 2Q 2022). Profit margin: 8.0% (up from 5.6% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.1% 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 fallen by 26% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings. Announcement • Nov 30
EF-ON Inc. to Report Q2, 2023 Results on Feb 10, 2023 EF-ON Inc. announced that they will report Q2, 2023 results on Feb 10, 2023 Price Target Changed • Nov 16
Price target increased to JP¥710 Up from JP¥650, the current price target is an average from 2 analysts. New target price is 24% above last closing price of JP¥573. Stock is down 16% over the past year. The company is forecast to post earnings per share of JP¥74.50 for next year compared to JP¥41.44 last year. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 7 highly experienced directors. No independent directors (8 non-independent directors). Manager of Technology and Director Mutsumi Nagasawa was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Nov 13
First quarter 2023 earnings released: EPS: JP¥15.92 (vs JP¥13.91 in 1Q 2022) First quarter 2023 results: EPS: JP¥15.92 (up from JP¥13.91 in 1Q 2022). Revenue: JP¥4.15b (up 20% from 1Q 2022). Net income: JP¥342.0m (up 14% from 1Q 2022). Profit margin: 8.2% (down from 8.7% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.7% 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 fallen by 24% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Aug 31
EF-ON Inc. to Report Q1, 2023 Results on Nov 11, 2022 EF-ON Inc. announced that they will report Q1, 2023 results on Nov 11, 2022 Valuation Update With 7 Day Price Move • Aug 19
Investor sentiment improved over the past week After last week's 33% share price gain to JP¥736, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 20x in the Renewable Energy industry in Japan. Total returns to shareholders of 12% over the past three years. Announcement • Aug 14
EF-ON Inc., Annual General Meeting, Sep 27, 2022 EF-ON Inc., Annual General Meeting, Sep 27, 2022. Reported Earnings • Aug 14
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: JP¥41.45 (down from JP¥77.32 in FY 2021). Revenue: JP¥13.3b (flat on FY 2021). Net income: JP¥893.0m (down 47% from FY 2021). Profit margin: 6.7% (down from 13% in FY 2021). Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) exceeded analyst estimates by 11%. Over the next year, revenue is forecast to grow 24%, compared to a 13% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 08 September 2022. Payout ratio is a comfortable 16% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.7%). Announcement • Jun 03
EF-ON Inc. to Report Fiscal Year 2022 Results on Aug 12, 2022 EF-ON Inc. announced that they will report fiscal year 2022 results on Aug 12, 2022 Major Estimate Revision • Jun 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from JP¥50.05 to JP¥37.20. Revenue forecast unchanged from JP¥13.6b at last update. Net income forecast to grow 35% next year vs 32% growth forecast for Renewable Energy industry in Japan. Consensus price target of JP¥650 unchanged from last update. Share price rose 2.7% to JP¥536 over the past week. Reported Earnings • May 16
Third quarter 2022 earnings: EPS misses analyst expectations Third quarter 2022 results: EPS: JP¥11.40 (down from JP¥16.27 in 3Q 2021). Revenue: JP¥3.40b (up 4.2% from 3Q 2021). Net income: JP¥245.0m (down 30% from 3Q 2021). Profit margin: 7.2% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 19%, compared to a 21% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 12% per year. Price Target Changed • Apr 27
Price target decreased to JP¥650 Down from JP¥1,360, the current price target is an average from 2 analysts. New target price is 18% above last closing price of JP¥553. Stock is down 45% over the past year. The company is forecast to post earnings per share of JP¥50.05 for next year compared to JP¥77.32 last year. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 7 highly experienced directors. No independent directors (7 non-independent directors). Manager of Technology and Director Mutsumi Nagasawa was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Apr 08
EF-ON Inc. to Report Q3, 2022 Results on May 13, 2022 EF-ON Inc. announced that they will report Q3, 2022 results on May 13, 2022 Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improved over the past week After last week's 15% share price gain to JP¥589, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Renewable Energy industry in Japan. Total loss to shareholders of 17% over the past three years. Reported Earnings • Feb 12
Second quarter 2022 earnings: EPS misses analyst expectations Second quarter 2022 results: EPS: JP¥8.44 (down from JP¥20.43 in 2Q 2021). Revenue: JP¥3.25b (up 2.2% from 2Q 2021). Net income: JP¥182.0m (down 59% from 2Q 2021). Profit margin: 5.6% (down from 14% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 23%, compared to a 17% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 13% per year. Reported Earnings • Nov 16
First quarter 2022 earnings released: EPS JP¥13.91 (vs JP¥25.56 in 1Q 2021) The company reported a poor first quarter result with weaker earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥3.45b (down 1.7% from 1Q 2021). Net income: JP¥301.0m (down 46% from 1Q 2021). Profit margin: 8.7% (down from 16% in 1Q 2021). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 11% per year. Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥934, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 23x in the Renewable Energy industry in Japan. Total loss to shareholders of 16% over the past three years. Price Target Changed • Sep 01
Price target decreased to JP¥1,070 Down from JP¥1,360, the current price target is an average from 2 analysts. New target price is 26% above last closing price of JP¥848. Stock is up 35% over the past year. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment deteriorated over the past week After last week's 26% share price decline to JP¥855, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 19x in the Renewable Energy industry in Japan. Total loss to shareholders of 24% over the past three years. Reported Earnings • Aug 15
Full year 2021 earnings released: EPS JP¥77.32 (vs JP¥81.21 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: JP¥13.1b (up 7.6% from FY 2020). Net income: JP¥1.67b (down 4.8% from FY 2020). Profit margin: 13% (down from 14% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Aug 13
EF-ON Inc. Provides Earnings Guidance for the Six Months Ending December 31, 2021 and Year Ending June 30, 2022 EF-ON Inc. provided earnings guidance for the six months ending December 31, 2021 and year ending June 30, 2022. For the six months ending December 31, 2021, the company expects Net sales to be JPY 16,000 million, Operating profit to be JPY 3,100 million, profit attributable to owners of parent to be JPY 2,000 million, EPS to be JPY 92.43.
For the year, the company expects Net sales to be JPY 14,500 million, Operating profit to be JPY 3,000 million, profit attributable to owners of parent to be JPY 2,000 million, EPS to be JPY 92.44. Valuation Update With 7 Day Price Move • Jul 26
Investor sentiment improved over the past week After last week's 17% share price gain to JP¥1,151, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 26x in the Renewable Energy industry in Japan. Total loss to shareholders of 15% over the past three years. Price Target Changed • Jul 09
Price target decreased to JP¥1,285 Down from JP¥1,410, the current price target is an average from 2 analysts. New target price is 35% above last closing price of JP¥949. Stock is up 62% over the past year. Upcoming Dividend • Jun 22
Upcoming dividend of JP¥8.00 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 07 September 2021. Trailing yield: 0.9%. Lower than top quartile of Japanese dividend payers (3.0%). Lower than average of industry peers (2.8%). Reported Earnings • May 14
Third quarter 2021 earnings released: EPS JP¥16.27 (vs JP¥28.24 in 3Q 2020) The company reported a poor third quarter result with weaker earnings, revenues and profit margins. Third quarter 2021 results: Revenue: JP¥3.27b (down 9.2% from 3Q 2020). Net income: JP¥352.0m (down 42% from 3Q 2020). Profit margin: 11% (down from 17% in 3Q 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 11% per year.