ORO Co. Ltd. (3983) AI Stock Analysis

• Market Cap: ¥38.02B
• Dividend Yield: 1.22%
• Average Volume (3M): 44.65K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.90
• Revenue Growth: 5.39%
• EPS Growth: -6.71%
• Country: JP
• Employees: 546
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 21.73
• Shares Outstanding: 15,949,053
• 10 Day Avg. Volume: 37,730
• 30 Day Avg. Volume: 44,650
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,864.00
• Price Target Upside: 16.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥2,864.00 ▲(16.42% Upside)

ORO Co. Ltd. shows strong financial performance with robust revenue growth and profitability, which is a significant positive factor. However, the technical analysis indicates bearish momentum, which is a major concern. The valuation is moderate, offering limited upside potential. Overall, the stock is positioned well financially but faces technical challenges.

ORO Co. Ltd. Business Overview & Revenue Model

Company Description

oRo Co., Ltd. provides cloud and digital transformation solutions. The company's Cloud Solutions business develops and delivers ZAC, a cloud ERP designed for the intellectual service industry; and Reforma PSA, a cloud based PSA that automates back office operations for the intellectual service industry, as well as offers system solutions, IT infrastructure, business process outsourcing services, etc. Its Marketing Communication business offers SEMrush, a digital marketing suite. This division is also involved in digital strategy planning support and promotion, strategy planning marketing support, and planning and executing marketing communication internationally, as well as business support solutions for inbound, outbound, test marketing, and online trading. oRo Co., Ltd. was incorporated in 1999 and is headquartered in Tokyo, Japan.

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 excellent profitability margins and effective balance sheet management. The company's consistent revenue growth and robust cash flow generation underpin its competitive position in the software application industry. While there are slight contractions in certain cash flow metrics, the overall 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	7.98B	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: 2460.00
• 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 Negative. The current price of 2460 is below the 20-day moving average (MA) of 2553.90, below the 50-day MA of 2746.02, and below the 200-day MA of 2636.02, indicating a bearish trend. The MACD of -75.31 indicates Negative momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 42.55 is Neutral, 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	¥86.83B	95.44	―	0.13%	34.06%	95.20%
4323	76 Outperform	¥54.93B	21.15	―	1.71%	12.01%	16.50%
5038	74 Outperform	¥41.48B	41.75	―	0.44%	28.85%	40.37%
3983	63 Neutral	¥38.02B	21.53	―	1.22%	5.39%	-6.71%
4165	62 Neutral	¥39.30B	33.93	―	―	22.92%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4375	55 Neutral	¥50.94B	―	―	―	27.79%	84.27%

ORO Co. Ltd. Corporate Events

ORO Co., Ltd. Updates on Treasury Stock Repurchase Progress

ORO Co., Ltd. has announced the progress of its treasury stock repurchase program, which was decided at a Board of Directors meeting on May 14, 2025. As of July 31, 2025, the company has repurchased a total of 210,600 shares at a cost of 598,325,300 yen, with the repurchase period set to continue until November 30, 2025. This move is part of a broader strategy to manage its capital structure, potentially enhancing shareholder value.

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.