ORO Co. Ltd. (3983) AI Stock Analysis

• Market Cap: ¥31.14B
• Dividend Yield: 1.48%
• Average Volume (3M): 62.97K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.82
• Revenue Growth: 5.48%
• EPS Growth: 5.36%
• Country: JP
• Employees: 546
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 30.57
• Shares Outstanding: 15,949,053
• 10 Day Avg. Volume: 75,140
• 30 Day Avg. Volume: 62,970
• PEG Ratio: 1.55
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 5.23
• P/FCF Ratio: 17.03
• 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): 119.3
• Revenue Forecast (FY): ¥8.30B

• Rating: 65 Neutral
• Price Target: ¥2,212.00 ▲(10.77% Upside)

ORO Co. Ltd. demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in its score. However, technical analysis indicates bearish momentum and oversold conditions, which negatively impact the stock score. The valuation is reasonable but not compelling enough to offset the technical weaknesses.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for ORO's products and services, supporting long-term business expansion and market presence.

Financial Stability

Low leverage enhances financial flexibility, reducing risk and supporting sustainable growth and investment in innovation.

Profitability

Strong margins reflect efficient cost management and pricing power, contributing to robust profitability and competitive advantage.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may hinder the company's ability to invest in growth opportunities and manage financial obligations effectively.

Net Income Decline

A decline in net income could indicate challenges in maintaining profit growth, potentially impacting future earnings and shareholder returns.

Equity Decrease

A decrease in equity could signal potential financial strain or reduced investor confidence, affecting long-term capital structure stability.

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

ORO Co. Ltd. exhibits strong financial health with robust revenue growth and profitability. The company's low leverage and effective equity utilization further enhance its financial stability. While cash flow management is generally effective, the recent decline in free cash flow growth suggests potential areas for improvement.

Income Statement

ORO Co. Ltd. demonstrates strong revenue growth with a TTM increase of 19.5%. The company maintains healthy margins, with a gross profit margin of 66.6% and a net profit margin of 24.6% in the TTM. EBIT and EBITDA margins are also robust at 34.8% and 39.3%, respectively. These metrics indicate efficient cost management and strong profitability. However, the slight decline in net income from the previous year suggests potential challenges in maintaining profit growth.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.028, indicating minimal leverage and financial risk. The return on equity is strong at 19.9%, showcasing effective use of equity to generate profits. The equity ratio stands at 75.8%, highlighting a solid capital structure. However, the slight decrease in stockholders' equity from the previous year may warrant monitoring.

Cash Flow

Operating cash flow remains strong, with a high coverage ratio of 0.96, indicating efficient cash generation relative to net income. Free cash flow to net income ratio is also healthy at 0.98, suggesting effective cash management. However, the negative free cash flow growth rate of -11.6% in the TTM is a concern, indicating potential challenges in sustaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.98B	7.90B	7.03B	6.21B	5.51B	4.88B
Gross Profit	5.28B	5.28B	4.67B	3.99B	3.32B	3.10B
EBITDA	2.98B	3.08B	2.95B	2.67B	2.33B	1.84B
Net Income	1.83B	2.07B	1.84B	1.62B	1.42B	1.20B
Balance Sheet
Total Assets	12.99B	13.59B	12.37B	11.05B	9.35B	8.61B
Cash, Cash Equivalents and Short-Term Investments	9.04B	9.90B	8.71B	6.83B	5.91B	6.29B
Total Debt	696.20M	335.83M	415.53M	479.15M	596.75M	743.87M
Total Liabilities	3.14B	3.31B	3.49B	3.71B	3.44B	1.39B
Stockholders Equity	9.85B	10.28B	8.88B	7.33B	5.91B	6.33B
Cash Flow
Free Cash Flow	2.07B	2.42B	2.42B	1.40B	2.06B	945.40M
Operating Cash Flow	2.10B	2.49B	2.52B	1.60B	2.09B	1.17B
Investing Cash Flow	-176.58M	-163.78M	-129.76M	-278.49M	-34.89M	-232.34M
Financing Cash Flow	-2.27B	-1.18B	-517.74M	-436.09M	-2.09B	-169.72M

ORO Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1997.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3983, the sentiment is Negative. The current price of 1997 is below the 20-day moving average (MA) of 2166.15, below the 50-day MA of 2371.04, and below the 200-day MA of 2616.49, indicating a bearish trend. The MACD of -114.79 indicates Positive momentum. The RSI at 27.52 is Positive, neither overbought nor oversold. The STOCH value of 13.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥89.58B	98.45	―	0.14%	50.53%	227.57%
5038	74 Outperform	¥41.67B	41.93	―	0.44%	31.05%	46.12%
4323	72 Outperform	¥52.85B	20.35	―	1.64%	13.48%	35.63%
3983	65 Neutral	¥31.14B	16.66	―	1.48%	5.48%	5.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4165	60 Neutral	¥33.71B	30.36	―	―	21.87%	240.10%
4375	52 Neutral	¥51.33B	-148.60	―	―	29.56%	86.66%

ORO Co. Ltd. Corporate Events

ORO Co., Ltd. Revises 2025 Financial Forecasts Amid Market Challenges

ORO Co., Ltd. has revised its full-year consolidated financial forecasts for 2025, citing weaker than expected performance in its Marketing and Cloud Solutions businesses. The company has lowered its revenue and profit expectations due to a lack of anticipated recovery in advertising budgets and fewer new contract acquisitions than planned. Despite efforts to reduce expenses, the revised forecast reflects a significant decrease in expected profits, impacting stakeholders and potentially affecting the company’s market positioning.

The most recent analyst rating on (JP:3983) stock is a Hold with a Yen2659.00 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 Reports Mixed Financial Results for Nine Months Ending September 2025

ORO Co., Ltd reported its consolidated financial results for the nine months ending September 30, 2025, showing a slight increase in revenue by 3.4% compared to the previous year. However, the company experienced a decline in operating profit, profit before tax, and profit attributable to owners of the parent, indicating challenges in maintaining profitability. The company revised its full-year earnings forecast, reflecting a cautious outlook for the remainder of the fiscal year. Additionally, ORO Co., Ltd completed a share repurchase program, impacting its basic earnings per share.

The most recent analyst rating on (JP:3983) stock is a Hold with a Yen2659.00 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. Completes Treasury Stock Repurchase

ORO Co., Ltd. announced the completion of its treasury stock repurchase program, which was initiated by a Board resolution in May 2025. The company repurchased a total of 348,600 shares, amounting to approximately 999.96 million yen, as part of its strategy to optimize capital structure and enhance shareholder value.

The most recent analyst rating on (JP:3983) stock is a Hold with a Yen2864.00 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. Reports Progress on Treasury Stock Repurchase

ORO Co., Ltd. announced the progress of its treasury stock repurchase, as decided in the Board of Directors meeting on May 14, 2025. By the end of August 2025, the company had repurchased 313,300 shares for a total of 902,931,000 yen, reflecting a strategic move to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:3983) stock is a Hold with a Yen2864.00 price target. To see the full list of analyst forecasts on ORO Co. Ltd. stock, see the JP:3983 Stock Forecast page.