Ocean System Corporation (3096) AI Stock Analysis

• Market Cap: ¥14.00B
• Dividend Yield: 1.48%
• Average Volume (3M): 2.94K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.33
• Revenue Growth: 5.86%
• EPS Growth: -16.20%
• Country: JP
• Employees: 1,026
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 26.30
• Shares Outstanding: 10,833,000
• 10 Day Avg. Volume: 3,220
• 30 Day Avg. Volume: 2,936
• PEG Ratio: -0.49
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 8.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,560.00 ▲(4.91% Upside)

Ocean System Corporation's strong financial performance, characterized by consistent revenue growth and effective cost management, is the primary driver of its stock score. The stock's valuation is reasonable, with a fair P/E ratio and modest dividend yield. Technical analysis indicates some short-term bearish momentum, but longer-term support is evident. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Ocean System's products and services, enhancing its market position and supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation ensures the company can fund operations, invest in growth opportunities, and maintain financial flexibility, supporting long-term stability.

Balance Sheet Health

A strong balance sheet with reduced leverage enhances financial stability, enabling Ocean System to withstand economic fluctuations and invest in strategic initiatives.

Negative Factors

Profitability Pressure

Decreased net profit margins indicate potential challenges in cost management or pricing power, which could impact long-term profitability if not addressed.

Earnings Volatility

Fluctuations in cash flow management suggest potential earnings volatility, which can affect financial planning and investor confidence over the long term.

Earnings Growth Decline

Negative EPS growth reflects declining profitability, which may challenge the company's ability to generate shareholder value and invest in future growth.

Ocean System Corporation Business Overview & Revenue Model

Company Description

Ocean System Corporation engages in the supermarket, lunch service, food delivery, and inns and other businesses in Japan. It operates food supermarkets under the Challenger and Gyomu Super names; Japanese-style inn under the Kaifutei Teradomari Nihonkai name; and restaurant under the Yakiniku Kuroshin name, as well as manufactures and sells lunch boxes under brands, such as Fresh Lunch 39. The company also engages in the provision of contract manufacturing of side dishes, etc.; commissioned management of cafeterias within companies, such as offices and factories; home delivery of dinner ingredient sets, etc. under the Yoshikei brand name; and management of sub-FCs in the franchise area. The company was founded in 1963 and is headquartered in Sanjo, Japan.

How the Company Makes Money

Ocean System Corporation generates revenue through several key streams, including the sale of advanced underwater robotics and oceanographic instruments to governmental and commercial entities. The company also offers maintenance and support services for its products, creating a recurring revenue model. Additionally, Ocean System Corporation engages in research and development contracts with governmental agencies, which provide a significant source of income. Partnerships with academic institutions and environmental organizations further enhance its revenue through collaborative projects and grants, while strategic alliances with defense contractors may also contribute to earnings from defense-related contracts and projects.

Ocean System Corporation Financial Statement Overview

Summary

Ocean System Corporation exhibits a strong financial position with consistent revenue growth and effective cost management. The balance sheet is stable with a favorable equity position and reduced leverage. Cash flow generation is robust, though there are some fluctuations in free cash flow. Overall, the company is well-positioned financially, with minor areas for improvement in profitability and cash flow consistency.

Income Statement

Ocean System Corporation has demonstrated consistent revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin remains strong, indicating effective cost management. However, the net profit margin has slightly decreased, suggesting some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a strong equity base, as evidenced by a favorable equity ratio. The debt-to-equity ratio has improved over the years, indicating reduced leverage risk. Return on equity is solid, showcasing effective utilization of shareholder funds. Overall, the balance sheet reflects financial stability.

Cash Flow

Ocean System Corporation's cash flow position is robust, with positive free cash flow growth. The operating cash flow to net income ratio is strong, highlighting efficient cash generation from operations. However, the free cash flow to net income ratio has seen some fluctuations, indicating potential variability in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.69B	91.06B	85.90B	77.71B	72.70B	66.91B
Gross Profit	20.37B	20.13B	19.41B	17.38B	16.85B	16.01B
EBITDA	2.64B	2.57B	2.94B	1.77B	2.32B	2.13B
Net Income	1.09B	1.05B	1.34B	358.19M	798.55M	858.21M
Balance Sheet
Total Assets	23.68B	24.08B	23.65B	22.02B	21.38B	19.22B
Cash, Cash Equivalents and Short-Term Investments	3.99B	4.78B	4.90B	3.51B	3.62B	2.62B
Total Debt	3.11B	3.34B	3.73B	4.81B	4.43B	3.45B
Total Liabilities	12.02B	12.88B	13.29B	12.94B	12.53B	11.08B
Stockholders Equity	11.66B	11.20B	10.36B	9.07B	8.85B	8.13B
Cash Flow
Free Cash Flow	0.00	1.34B	2.75B	162.40M	541.16M	702.61M
Operating Cash Flow	0.00	1.90B	3.46B	1.28B	1.56B	1.66B
Investing Cash Flow	0.00	-810.80M	-698.79M	-1.34B	-1.07B	-997.13M
Financing Cash Flow	0.00	-1.21B	-1.37B	-47.35M	526.74M	-1.26B

Ocean System Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1487.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3096, the sentiment is Positive. The current price of 1487 is above the 20-day moving average (MA) of 1447.75, above the 50-day MA of 1418.46, and above the 200-day MA of 1312.92, indicating a bullish trend. The MACD of 19.03 indicates Negative momentum. The RSI at 76.73 is Negative, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3096.

Ocean System Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3096	74 Outperform	¥14.00B	13.16	―	1.48%	5.86%	-16.20%
9890	73 Outperform	¥11.98B	7.74	―	2.29%	10.43%	12.10%
9846	67 Neutral	¥11.11B	8.23	―	1.45%	-0.02%	-7.09%
2735	63 Neutral	¥8.25B	9.70	―	3.67%	0.52%	-3.78%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9993	51 Neutral	¥12.64B	-15.58	―	2.32%	2.43%	50.53%
3094	49 Neutral	¥10.01B	-5.72	―	―	-12.69%	22.75%