O'Will Corporation (3143) AI Stock Analysis

• Market Cap: ¥6.79B
• Dividend Yield: 3.25%
• Average Volume (3M): 9.42K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.65
• Revenue Growth: 12.52%
• EPS Growth: 17.04%
• Country: JP
• Employees: 101
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 71.20
• Shares Outstanding: 9,450,000
• 10 Day Avg. Volume: 7,700
• 30 Day Avg. Volume: 9,423
• PEG Ratio: -0.11
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -6.24
• 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: 62 Neutral
• Price Target: ¥762.00 ▲(11.24% Upside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is supported by attractive valuation (low P/E and solid dividend yield), but is held back by elevated financial risk driven by the swing to negative operating/free cash flow and higher leverage. Technical indicators are broadly neutral and do not materially offset the financial-cash-flow concerns.

Positive Factors

Revenue and profitability improvement

Sustained top-line expansion and rising operating/net margins indicate improving execution and customer demand across the distribution network. This durable improvement supports earnings resilience and capacity to absorb costs, strengthening medium-term operating performance.

Equity growth and solid ROE

Growing equity and solid ROE reflect efficient use of capital and accumulated retained earnings, which provide a thicker equity cushion. This enhances long-term financial flexibility and the firm’s ability to fund operations or weather shocks without immediate external financing.

Stable end-market (food distribution)

Operating in food distribution gives exposure to essential, recurring demand, supporting steady revenue baselines and lower cyclicality versus discretionary sectors. That structural demand profile underpins predictable sales and contract renewal potential over the medium term.

Negative Factors

Negative operating and free cash flow

Conversion of reported earnings into cash has weakened materially, limiting internal funding for capex, dividends, or working capital. Negative OCF/FCF forces reliance on external financing and raises default and liquidity risks over the coming months if cash generation does not recover.

Rising leverage

A near-doubling of leverage reduces balance-sheet flexibility and increases interest and refinancing risk. With higher debt relative to equity, the company is more vulnerable to margin pressure or cash-flow volatility, constraining strategic options in the medium term.

Low-margin business sensitivity

Low single-digit margins mean small cost increases or volume declines sharply erode profits. Combined with weaker cash conversion and higher leverage, margin sensitivity raises the risk that operational hiccups or input-cost inflation will materially harm earnings durability.

O'Will Corporation Business Overview & Revenue Model

Company Description

O'will Corporation engages in the import/export and sale of food and drink materials in Japan and internationally. The company provides vitamin, calcium, amino acid, emulsifier, stabilizer, nutritional fortifier, dietary fiber, flavoring, high-fructose corn syrup, granulated sugar, fruit sugar, liquid sucrose, refined white sugar, and other food additive products. It also offers pasteurized milk, concentrated milk, powdered milk, cream, fermented milk, butter, cheese, and other dairy products; and fruit and vegetable juices, puree, fresh fruits and vegetables, canned foods, frozen fruits and vegetables, powders, extracts, and other fruit and vegetable products. In addition, the company provides green, matcha green, oolong, black, rooibos, blended, cocoa, herb, and other tea products, as well as other beverages. Further, it offers wastewater treatment systems, smart ceiling fans, and nozzle type steam traps. O'will Corporation was incorporated in 1986 and is headquartered in Tokyo, Japan.

O'Will Corporation Financial Statement Overview

Summary

Income statement trends are positive (revenue and profitability improved; score 72), but balance-sheet risk increased with sharply higher leverage (score 61) and cash generation deteriorated materially with negative operating and free cash flow in 2025 (cash flow score 34), which meaningfully raises financial risk.

Income Statement

Revenue expanded meaningfully in 2025 (annual report) after modest growth in 2024, and profitability improved steadily over the period, with operating and net margins trending higher versus earlier years. However, this remains a low-margin distribution business (roughly low-single-digit operating and net margins), so earnings are more sensitive to cost pressure and execution missteps than in higher-margin industries.

Balance Sheet

Equity has grown over time and returns on equity are solid, indicating decent profitability relative to the capital base. The key concern is leverage: debt rose sharply in 2025 (annual report), pushing debt to roughly near equity (debt-to-equity moving from ~0.5 to ~0.9), which reduces balance-sheet flexibility if margins soften or working capital needs rise.

Cash Flow

Cash generation is the weakest area. Operating cash flow and free cash flow turned negative in 2025 (annual report), a significant deterioration from positive levels in the prior three years, suggesting unfavorable working-capital swings and/or higher cash outlays despite higher reported earnings. The history is also uneven (negative operating cash flow in 2020), increasing uncertainty around cash conversion consistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.46B	39.16B	31.78B	31.26B	28.31B	29.53B
Gross Profit	4.32B	4.06B	3.26B	3.17B	2.98B	2.66B
EBITDA	1.49B	1.46B	1.08B	935.10M	901.07M	599.75M
Net Income	1.07B	915.10M	681.51M	580.45M	575.49M	347.24M
Balance Sheet
Total Assets	17.95B	16.23B	13.63B	11.45B	10.52B	10.09B
Cash, Cash Equivalents and Short-Term Investments	2.27B	2.86B	1.85B	1.79B	1.78B	1.91B
Total Debt	5.44B	4.76B	2.27B	2.23B	2.14B	2.32B
Total Liabilities	12.40B	10.97B	9.08B	7.28B	6.76B	6.78B
Stockholders Equity	5.39B	5.12B	4.40B	4.05B	3.68B	3.25B
Cash Flow
Free Cash Flow	0.00	-864.75M	65.69M	144.32M	126.01M	774.88M
Operating Cash Flow	0.00	-829.43M	280.50M	184.88M	149.52M	801.02M
Investing Cash Flow	0.00	1.02B	28.28M	-31.76M	-21.27M	-192.94M
Financing Cash Flow	0.00	825.69M	-310.97M	-166.59M	-300.22M	-96.50M

O'Will Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 685.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3143, the sentiment is Negative. The current price of 685 is below the 20-day moving average (MA) of 745.10, below the 50-day MA of 729.66, and below the 200-day MA of 691.90, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 31.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3143.

O'Will Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7698	69 Neutral	¥10.14B	168.55	―	0.89%	6.46%	80.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3143	62 Neutral	¥6.79B	7.00	―	3.25%	12.52%	17.04%
3182	61 Neutral	¥48.02B	3.77	―	0.52%	20.97%	-56.39%
8039	61 Neutral	¥8.82B	12.72	―	0.95%	6.26%	67.81%
3160	49 Neutral	¥8.38B	23.75	―	2.67%	4.13%	-86.75%
5884	42 Neutral	¥5.44B	56.14	―	―	6.26%	―