ORO Co. Ltd. (3983) AI Stock Analysis

• Market Cap: ¥32.45B
• Dividend Yield: 1.45%
• Average Volume (3M): 62.97K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.84
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,525.00 ▲(21.51% Upside)

ORO Co. Ltd. has a strong financial foundation with consistent growth and profitability, which is the most significant factor in its overall score. The technical analysis indicates a bearish trend, which slightly dampens the outlook. The valuation is fair, supporting a moderate investment case.

Positive Factors

Balance Sheet Strength

Very low leverage and a high equity base give ORO durable financial resilience. This reduces refinancing risk, supports steady capital allocation to R&D and capex, and preserves flexibility to pursue strategic opportunities or weather industry downturns over the next several quarters.

Profitability & Margins

High gross and net margins indicate structural cost advantages and pricing power in component markets. Sustained margins drive strong internal cash generation, enabling reinvestment, dividends, and competitive differentiation, supporting long-term returns even if top-line growth moderates.

R&D-led Product & Contract Position

Deep R&D expertise underpins a steady pipeline of semiconductors, sensors and ICs, helping preserve technology leadership. Combined with long-term contracts and partnerships (CompanyMoneySource), R&D strength supports durable customer relationships and recurring revenue streams.

Negative Factors

Free Cash Flow Trend

A persistent decline in FCF growth can erode the company's ability to self-fund R&D, capex, or shareholder returns without raising external capital. Even with current cash conversion ratios near parity, a continued negative FCF trend would constrain strategic flexibility over the medium term.

Slowing Revenue Growth

Revenue expansion has slowed to low single digits, suggesting market saturation or stronger competition. With high margins already priced into operations, sustained weak top-line growth could limit leverage on operating profits and slow long-term EPS and free cash flow acceleration.

Customer Concentration / Cyclical Exposure

Dependence on major clients and end markets like automotive and telecom creates concentration and cyclicality risk. Demand swings or contract renegotiations in these sectors could materially affect revenues; this structural exposure raises revenue volatility over multiple cycles.

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. demonstrates strong financial health with consistent revenue and profit growth, efficient operations, and a stable balance sheet. The low Debt-to-Equity Ratio and high ROE indicate effective financial management. However, the recent dip in free cash flow growth warrants attention.

Income Statement

ORO Co. Ltd. demonstrates strong financial performance with consistent revenue growth and robust profit margins. The TTM data shows a Gross Profit Margin of 66.18% and a Net Profit Margin of 22.97%, indicating effective cost management and profitability. The Revenue Growth Rate of 1.49% in the TTM period suggests steady growth, although slightly lower than previous years. EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a low Debt-to-Equity Ratio of 0.07, indicating low financial leverage and reduced risk. The Return on Equity (ROE) is strong at 18.41%, showcasing effective use of shareholder funds to generate profits. The Equity Ratio of 76.72% highlights a strong equity base, providing financial stability.

Cash Flow

Cash flow analysis reveals a slight decline in Free Cash Flow Growth Rate at -4.56% in the TTM period, which could be a concern if it persists. However, the Operating Cash Flow to Net Income Ratio of 0.84 and Free Cash Flow to Net Income Ratio of 0.99 indicate that the company is generating sufficient cash relative to its net income, supporting its operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.09B	7.90B	7.03B	6.21B	5.51B	4.88B
Gross Profit	5.33B	5.28B	4.67B	3.99B	3.32B	3.10B
EBITDA	2.99B	3.08B	2.95B	2.67B	2.33B	1.84B
Net Income	1.93B	2.07B	1.84B	1.62B	1.42B	1.20B
Balance Sheet
Total Assets	12.62B	13.59B	12.37B	11.05B	9.35B	8.61B
Cash, Cash Equivalents and Short-Term Investments	9.05B	9.90B	8.71B	6.83B	5.91B	6.29B
Total Debt	678.73M	335.83M	415.53M	479.15M	596.75M	743.87M
Total Liabilities	2.94B	3.31B	3.49B	3.71B	3.44B	1.39B
Stockholders Equity	9.68B	10.28B	8.88B	7.33B	5.91B	6.33B
Cash Flow
Free Cash Flow	1.97B	2.42B	2.42B	1.40B	2.06B	945.40M
Operating Cash Flow	2.00B	2.49B	2.52B	1.60B	2.09B	1.17B
Investing Cash Flow	-174.12M	-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: 2078.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 2078 is below the 20-day moving average (MA) of 2186.50, below the 50-day MA of 2086.79, and below the 200-day MA of 2482.34, indicating a neutral trend. The MACD of -0.44 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.96 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	73 Outperform	¥74.65B	62.96	―	0.20%	50.53%	227.57%
4323	73 Outperform	¥60.16B	20.83	―	1.50%	13.48%	35.63%
5038	73 Outperform	¥38.14B	35.66	―	0.47%	31.05%	46.12%
3983	70 Outperform	¥32.45B	17.37	―	1.45%	5.48%	5.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4165	59 Neutral	¥31.51B	28.31	―	―	21.87%	240.21%
4375	52 Neutral	¥47.70B	-191.31	―	―	29.56%	86.66%

ORO Co. Ltd. Corporate Events

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.

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.