ORO Co. Ltd. (3983) AI Stock Analysis

• Market Cap: ¥44.44B
• Dividend Yield: 1.04%
• Average Volume (3M): 50.08K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.80
• Revenue Growth: 8.10%
• EPS Growth: 0.69%
• Country: JP
• Employees: 546
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 25.66
• Shares Outstanding: 15,949,053
• 10 Day Avg. Volume: 64,700
• 30 Day Avg. Volume: 50,076
• PEG Ratio: -4.22
• Price to Book (P/B): 4.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.13
• 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

• Rating: 73 Outperform
• Price Target: ¥3,284.00 ▲(14.19%Upside)

ORO Co. Ltd. scores well due to its strong financial performance and positive technical indicators. The robust operational efficiency and balance sheet management highlight its competitive advantage in the industry. However, the overbought technical indicators and moderate valuation metrics temper the overall score. The absence of recent earnings call insights and corporate events leaves financial performance and technical analysis as the main drivers of the score.

ORO Co. Ltd. Business Overview & Revenue Model

Company Description

ORO Co. Ltd. is a Japan-based company primarily engaged in the provision of cloud solutions and digital marketing services. The company operates through two main segments: the Cloud Solutions segment, which offers SaaS-based business applications and infrastructure solutions, and the Digital Marketing segment, which provides digital advertising and web promotion solutions. ORO Co. Ltd. is known for its innovative approach to integrating technology and marketing to enhance business operations and customer engagement.

How the Company Makes Money

ORO Co. Ltd. generates revenue through a diversified model that primarily focuses on its cloud solutions and digital marketing services. In the Cloud Solutions segment, the company earns money by offering subscription-based SaaS products tailored to business operations, thus ensuring a steady stream of recurring income. This segment also includes consulting and support services, providing additional revenue. The Digital Marketing segment contributes to the company's earnings by offering advertising solutions and web-based promotional services, helping clients enhance their online presence. These services are typically billed based on performance metrics or contract agreements. Moreover, ORO Co. Ltd. may engage in strategic partnerships with other technology or marketing firms to expand its service offerings, potentially increasing its revenue streams.

ORO Co. Ltd. Financial Statement Overview

Summary

ORO Co. Ltd. exhibits strong financial health evidenced by high profitability margins, consistent revenue growth, and effective balance sheet management. Despite a slight contraction in certain cash flow metrics, the company's financial outlook remains positive and stable.

Income Statement

ORO Co. Ltd. demonstrates strong profitability with a consistent increase in revenue over the years. The TTM gross profit margin stands at 66.6%, while the net profit margin is at 24.6%. The EBIT and EBITDA margins are also robust at 33.8% and 39.3% respectively. Revenue has grown significantly from 2022 to TTM with a notable revenue growth rate of 12.1% from 2023 to 2024. These metrics indicate strong operational efficiency and a competitive edge in the software application industry.

Balance Sheet

The company's balance sheet reflects financial stability with a low debt-to-equity ratio of 0.03 in TTM, showcasing prudent leverage management. The return on equity is a solid 19.9%, indicating effective utilization of equity capital. Additionally, the equity ratio of 77.8% underscores a strong equity foundation. These factors contribute to a resilient financial structure, albeit with a slight decrease in total assets observed over the period.

Cash Flow

ORO Co. Ltd. has a healthy cash flow position with a free cash flow growth rate of -3.4% in the TTM, indicating slight contraction but remaining positive overall at ¥2.34 billion. The operating cash flow to net income ratio is 1.22, while the free cash flow to net income ratio is 1.19, reflecting strong cash conversion efficiency. Despite a minor decline in free cash flow, the company maintains robust cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.96B	7.90B	7.03B	6.21B	5.51B	5.24B
Gross Profit	5.30B	5.28B	4.67B	3.99B	3.32B	3.10B
EBITDA	3.13B	3.08B	2.95B	2.67B	2.33B	1.84B
Net Income	1.96B	2.07B	1.84B	1.62B	1.42B	1.20B
Balance Sheet
Total Assets	12.50B	13.59B	12.37B	11.05B	9.35B	8.61B
Cash, Cash Equivalents and Short-Term Investments	8.71B	9.90B	9.35B	7.41B	6.35B	6.29B
Total Debt	415.53M	335.83M	415.53M	479.15M	596.75M	743.87M
Total Liabilities	3.62B	3.31B	3.49B	3.71B	3.44B	1.39B
Stockholders Equity	8.88B	10.28B	8.88B	7.33B	5.91B	7.22B
Cash Flow
Free Cash Flow	2.34B	2.42B	2.42B	1.40B	2.06B	945.40M
Operating Cash Flow	2.40B	2.49B	2.52B	1.60B	2.09B	1.17B
Investing Cash Flow	-177.82M	-163.78M	-129.76M	-278.49M	-34.89M	-232.34M
Financing Cash Flow	-1.26B	-1.18B	-517.74M	-436.09M	-2.09B	-169.72M

ORO Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2876.00
• 50DMA: Positive
• 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:3983, the sentiment is Positive. The current price of 2876 is above the 20-day moving average (MA) of 2804.35, above the 50-day MA of 2671.48, and above the 200-day MA of 2482.00, indicating a bullish trend. The MACD of 63.83 indicates Positive momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 34.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3983.

ORO Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3692	76 Outperform	¥44.06B	62.86		0.26%	12.07%	21.48%
5038	74 Outperform	¥36.16B	39.55		0.50%	24.27%	24.90%
3983	73 Outperform	¥44.44B	23.60		1.04%	8.10%	0.69%
4375	70 Neutral	¥58.02B	―		―	24.24%	-6.95%
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%
4323	63 Neutral	¥45.74B	18.59		1.46%	12.00%	16.52%
4165	60 Neutral	¥43.29B	48.27		―	25.28%	―

ORO Co. Ltd. Corporate Events

ORO Co., Ltd. Reports Progress on Treasury Stock Repurchase Plan

ORO Co., Ltd. announced the progress of its treasury stock repurchase plan, which was decided at a Board of Directors meeting in May 2025. As of June 30, 2025, the company repurchased 127,800 shares totaling 349,558,200 yen, with the repurchase period extending until November 30, 2025. This move is part of a broader strategy to manage capital structure and enhance shareholder value.

ORO Co., Ltd. Announces Treasury Stock Repurchase Progress

ORO Co., Ltd. announced the repurchase of 52,000 shares of its common stock, amounting to 143,693,800 yen, as part of a broader plan approved by its Board of Directors. This strategic move is part of a larger initiative to repurchase up to 500,000 shares, aiming to enhance shareholder value and optimize capital structure.

ORO Co., Ltd. Announces Treasury Stock Repurchase Plan

ORO Co., Ltd. has announced a decision to repurchase up to 500,000 shares of its common stock, representing 3.14% of the total issued shares, with a maximum repurchase price of 1,000 million yen. This move aims to strengthen shareholder returns and improve capital efficiency, with plans to cancel the repurchased shares, excluding those for restricted stock compensation.

ORO Co., Ltd Reports Q1 2025 Financial Results with Revenue Growth Amid Profit Declines

ORO Co., Ltd reported its consolidated financial results for the first quarter of 2025, showing a slight increase in revenue by 3.1% compared to the previous year. However, the company experienced declines in operating profit, profit before tax, and profit attributable to owners, indicating challenges in maintaining profitability. Despite these setbacks, the company maintains a strong equity position with a high ratio of equity attributable to owners of the parent company. The forecast for the full year 2025 anticipates a revenue increase of 15.7%, although profit growth is expected to be modest. The company has not revised its dividend forecast, maintaining a stable outlook for shareholders.

ORO Co., Ltd. Completes Treasury Share Cancellation

ORO Co., Ltd. announced the completion of the cancellation of 207,400 treasury shares, which accounted for 1.28% of the total issued shares before cancellation. This move is part of the company’s strategic financial management, potentially impacting its share value and benefiting shareholders by reducing the number of outstanding shares.

ORO Co., Ltd. Completes Treasury Share Disposal for Compensation

ORO Co., Ltd. has completed the payment for the disposal of 7,149 treasury shares as part of its restricted stock compensation plan, as resolved by its Board of Directors. This move is aimed at compensating the company’s directors and executive officers, potentially impacting its financial structure and aligning management interests with shareholder value.

ORO Co., Ltd. Announces Treasury Share Cancellation

ORO Co., Ltd. announced a decision by its Board of Directors to cancel 207,400 treasury shares, which constitutes 1.28% of the total issued shares before cancellation. This move is expected to optimize the company’s capital structure and may positively impact shareholder value by reducing the number of outstanding shares.