ORO Co. Ltd. (3983) AI Stock Analysis

• Market Cap: ¥30.85B
• Dividend Yield: 1.45%
• Average Volume (3M): 62.97K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.80
• Revenue Growth: 5.48%
• EPS Growth: 5.36%
• Country: JP
• Employees: 546
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 42.29
• Shares Outstanding: 15,949,053
• 10 Day Avg. Volume: 75,140
• 30 Day Avg. Volume: 62,970
• PEG Ratio: -2.70
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 3.98
• P/FCF Ratio: 16.54
• 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): 128.4
• Revenue Forecast (FY): ¥9.10B

• Rating: 72 Outperform
• Price Target: ¥2,163.00 ▲(4.09% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is supported primarily by strong profitability and a conservative balance sheet, with reasonable valuation and dividend yield providing additional support. It is held back by weak technical momentum (below major moving averages with negative MACD) and fundamental trajectory concerns around slower 2025 growth, some margin softening, and operating cash flow lagging operating profit.

Positive Factors

High profit margins

ORO's persistently strong gross and EBIT margins indicate durable pricing power and efficient operating structure in its enterprise software business. High margins support sustained cash generation, fund R&D and dividends, and provide buffer versus slower top-line periods, preserving long-term profitability.

Conservative balance sheet

Low leverage and materially expanding equity create financial flexibility for investment, acquisitions or shareholder returns without heavy refinancing risk. A conservative capital structure reduces bankruptcy risk and supports steady operations through cyclical pressures, aiding multi-quarter resilience.

Strong cash conversion

Free cash flow that tracks earnings demonstrates high earnings quality and reliable internal funding. Consistent FCF supports capex, dividends and strategic reinvestment while limiting reliance on external capital, underpinning sustainable operations and strategic optionality over coming quarters.

Negative Factors

Revenue deceleration

A marked slowdown in top-line growth signals weaker demand or market-share pressure that can persist beyond a single quarter. Slower revenue expansion reduces leverage of fixed costs, limits reinvestment capacity and raises the bar for restoring previous growth trajectories over multiple quarters.

Margin and cash coverage erosion

A decline in net margins combined with operating cash flow failing to fully cover operating profit indicates rising cost pressure and working-capital timing strain. Persisting margin compression and sub‑1.0 cash coverage weaken earnings quality and could force restructuring or constrain investment.

Negative EPS trend

Negative EPS growth reflects recent earnings contraction and suggests near-term profitability headwinds. If EPS declines persist, the company may face reduced retained earnings, tighter capital allocation choices and lower capacity to expand dividends or fund growth initiatives over coming quarters.

ORO Co. Ltd. Business Overview & Revenue Model

Company Description

ORO Co. Ltd. (3983) is a leading company specializing in the development and production of high-quality electronic components and systems. Operating primarily in the technology sector, ORO focuses on providing innovative solutions for various industries, including telecommunications, automotive, and consumer electronics. The company is renowned for its cutting-edge research and development capabilities, which enable it to deliver a diverse range of products, including semiconductors, sensors, and integrated circuits.

How the Company Makes Money

ORO Co. Ltd. generates revenue through multiple streams, primarily by selling its electronic components and systems to manufacturers across various industries. The company benefits from long-term contracts with key clients in the telecommunications and automotive sectors, ensuring a stable revenue base. Additionally, ORO invests in research and development to innovate new products, which allows it to capture emerging market trends and demands. Strategic partnerships with other technology firms enhance its product offerings and market reach, further contributing to its earnings. The company also explores opportunities in licensing its technology and patents, providing an additional revenue stream.

ORO Co. Ltd. Financial Statement Overview

Summary

Strong fundamentals overall: consistently high gross margins (~60–67%) and solid EBIT margins (~32–38%) support profitability, while the balance sheet remains conservative with low leverage and healthy ROE (~18–24%). Key risks are the sharp slowdown in 2025 revenue growth (~2.6%), margin step-down in 2025 (net margin ~26% to ~23%), and operating cash flow trailing operating profit (coverage ~0.71 in 2025).

Income Statement

Revenue has grown steadily since 2021 (with only a small decline in 2020), but growth decelerated sharply in 2025 (2025 annual growth ~2.6% vs. low-teens in prior years). Profitability remains a key strength: gross margins are consistently strong (~60–67%) and operating profitability is high (EBIT margin ~32–38% over the period). The main weakness is the 2025 step-down in margins and earnings versus 2024 (net margin fell from ~26% to ~23%), suggesting some cost pressure and/or a less favorable mix despite higher revenue.

Balance Sheet

The balance sheet looks conservative with low leverage overall (debt-to-equity mostly ~3–12% historically), though debt increased in 2025 (to ~10% debt-to-equity) from 2024’s unusually low level. Equity has expanded materially over time, supporting a larger asset base. Returns on equity remain strong (~18–24%), albeit trending down from earlier years and modestly lower in 2025, indicating profitability is still solid but less powerful than the peak period.

Cash Flow

Cash generation is generally healthy: free cash flow closely tracks net income (roughly ~0.87–0.99x), indicating earnings quality is solid and cash conversion is strong. Free cash flow was essentially flat in 2024 and grew in 2025, but the year-to-year path has been somewhat uneven (notably a decline in 2022). A key watch item is that operating cash flow has not consistently covered operating profitability (coverage ratio below 1.0 across the period, improving from 2020–2022 levels but still ~0.71 in 2025), pointing to working-capital or timing headwinds.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.31B	7.90B	7.03B	6.21B	5.51B
Gross Profit	5.46B	5.28B	4.67B	3.99B	3.32B
EBITDA	2.98B	3.08B	2.95B	2.67B	2.33B
Net Income	1.90B	2.07B	1.84B	1.62B	1.42B
Balance Sheet
Total Assets	13.75B	13.59B	12.37B	11.05B	9.35B
Cash, Cash Equivalents and Short-Term Investments	10.06B	9.90B	8.71B	6.83B	5.91B
Total Debt	1.07B	335.83M	415.53M	479.15M	596.75M
Total Liabilities	3.39B	3.31B	3.49B	3.71B	3.44B
Stockholders Equity	10.36B	10.28B	8.88B	7.33B	5.91B
Cash Flow
Free Cash Flow	2.00B	2.42B	2.42B	1.40B	2.06B
Operating Cash Flow	2.02B	2.49B	2.52B	1.60B	2.09B
Investing Cash Flow	-101.77M	-163.78M	-129.76M	-278.49M	-34.89M
Financing Cash Flow	-1.77B	-1.18B	-517.74M	-436.09M	-2.09B

ORO Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2078.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 2078 is above the 20-day moving average (MA) of 1993.80, below the 50-day MA of 2086.44, and below the 200-day MA of 2447.18, indicating a neutral trend. The MACD of -36.25 indicates Negative momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 54.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3983.

ORO Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4481	78 Outperform	¥63.00B	14.61	―	3.34%	11.81%	18.17%
4477	73 Outperform	¥37.49B	20.04	―	―	27.97%	-5.25%
3983	72 Outperform	¥30.85B	16.60	―	1.45%	5.48%	5.36%
9553	68 Neutral	¥24.30B	45.78	―	―	14.28%	-30.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3905	57 Neutral	¥56.30B	-35.71	―	―	27.58%	-1.50%
5027	49 Neutral	¥31.62B	33.52	―	―	20.84%	10.41%

ORO Co. Ltd. Corporate Events

ORO Reports Preliminary January License Metrics for ZAC Cloud Service

ORO Co., Ltd. reported January 2026 operating metrics for its ZAC cloud solution, disclosing 350.5 thousand active licenses. The month saw 1.1 thousand new licenses, 1.6 thousand additional licenses from existing clients, and 5.2 thousand licenses cancelled or decreased, with all figures presented as preliminary and subject to revision.

The reported data offer investors and stakeholders a snapshot of current usage trends and customer dynamics within ORO’s core cloud business. While net license volumes appear pressured by cancellations, the continued acquisition of new and additional licenses indicates ongoing engagement with the ZAC platform as the company refines its official financial disclosures.

The most recent analyst rating on (JP:3983) stock is a Buy with a Yen2525.00 price target. To see the full list of analyst forecasts on ORO Co. Ltd. stock, see the JP:3983 Stock Forecast page.

ORO Co. Ltd. Releases FY2025 Results and Three-Year Outlook

ORO Co. Ltd. has released its financial results highlights for the fiscal year ending December 2025, outlining performance metrics and key developments in its business segments. The company also presented a mid-term business outlook covering FY2026 to FY2028, signaling its strategic direction and growth plans over the next three years, which are expected to shape its operational focus and market positioning.

While detailed figures are not provided in the excerpt, the disclosure of results and a multi-year outlook suggests ORO is aiming to communicate transparency and long-term strategy to investors. The emphasis on business segment topics and future planning indicates ongoing efforts to strengthen its competitive standing in the IT services market and provide clearer expectations for stakeholders.

The most recent analyst rating on (JP:3983) stock is a Buy with a Yen2525.00 price target. To see the full list of analyst forecasts on ORO Co. Ltd. stock, see the JP:3983 Stock Forecast page.

ORO Co. Lifts Dividend as Revenue Rises but Profit Slips, Eyes Double-Digit Growth in 2026

ORO Co., Ltd. reported a 5.2% year-on-year increase in consolidated revenue to ¥8.3 billion for the fiscal year ended December 31, 2025, while operating profit fell 2.6% and profit attributable to owners of the parent declined 8.5%, reflecting pressure on margins despite top-line growth. The company maintained a solid financial position with an equity ratio above 75% and operating cash flow of ¥2.0 billion, while rewarding shareholders by raising the annual dividend from ¥35 to ¥50 per share and forecasting double-digit growth in revenue and profit for 2026, alongside a maintained ¥50 total dividend split between interim and year-end payments.

Looking ahead to the fiscal year ending December 31, 2026, ORO projects revenue of ¥9.57 billion and a 13.2% rise in profit attributable to owners of the parent to ¥2.15 billion, signaling confidence in business expansion despite recent earnings softness. The firm’s commitment to higher shareholder returns, combined with stable cash generation and no changes in consolidation scope or accounting policies, suggests a strategy focused on balancing growth investments with capital efficiency and an increasingly shareholder-friendly stance.

The most recent analyst rating on (JP:3983) stock is a Buy with a Yen2525.00 price target. To see the full list of analyst forecasts on ORO Co. Ltd. stock, see the JP:3983 Stock Forecast page.

ORO’s ZAC Cloud Licenses Climb to 353,000 in December 2025

In its December 2025 monthly disclosure, ORO Co., Ltd. reported that active ZAC cloud solution licenses rose to 353,000, up from 346,800 in November, reflecting continued expansion of its installed base. The company saw a sharp increase in newly acquired licenses in December, alongside modest additional licenses from existing customers and higher cancellations, indicating solid demand momentum for its flagship cloud service while also highlighting some churn as the business scales.

The most recent analyst rating on (JP:3983) stock is a Buy with a Yen2410.00 price target. To see the full list of analyst forecasts on ORO Co. Ltd. stock, see the JP:3983 Stock Forecast page.