OAT Agrio Co., Ltd. (4979) AI Stock Analysis

• Market Cap: ¥23.86B
• Dividend Yield: 3.87%
• Average Volume (3M): 12.91K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.74
• Revenue Growth: 10.55%
• EPS Growth: 31.08%
• Country: JP
• Employees: 601
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 82.44
• Shares Outstanding: 11,072,000
• 10 Day Avg. Volume: 15,370
• 30 Day Avg. Volume: 12,910
• PEG Ratio: -0.67
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 6.27
• 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: 75 Outperform
• Price Target: ¥2,571.00 ▲(14.06% Upside)

OAT Agrio Co., Ltd. has a strong financial foundation with consistent revenue growth and improved balance sheet stability. The valuation is attractive, with a low P/E ratio and a high dividend yield, making it appealing for value and income investors. However, technical indicators suggest a neutral to slightly bearish short-term outlook, which tempers the overall score.

OAT Agrio Co., Ltd. Business Overview & Revenue Model

Company Description

OAT Agrio Co., Ltd. (4979) is a prominent player in the agricultural sector, specializing in the development and distribution of crop protection products, fertilizers, and agricultural chemicals. The company focuses on enhancing agricultural productivity and sustainability through innovative solutions that cater to the needs of farmers and agricultural professionals. With a commitment to research and development, OAT Agrio aims to provide effective and environmentally friendly products that support the growth of crops while addressing pest and disease challenges.

How the Company Makes Money

OAT Agrio Co., Ltd. generates revenue primarily through the sale of its crop protection products, fertilizers, and agricultural chemicals. The company’s revenue model is based on the direct sale of these products to farmers, agricultural distributors, and retailers. Key revenue streams include product sales, licensing of proprietary technologies, and partnerships with agricultural cooperatives and organizations. Significant partnerships with research institutions also contribute to the development of innovative products, enhancing the company's market position and driving sales. Additionally, OAT Agrio may engage in export activities to expand its market reach, further bolstering its income.

OAT Agrio Co., Ltd. Financial Statement Overview

Summary

OAT Agrio Co., Ltd. demonstrates a robust financial position with consistent revenue growth and strong margins. The company has effectively reduced leverage, enhancing its balance sheet stability. Cash flow generation remains robust, although some fluctuations suggest potential volatility. Overall, the financial health is strong, with room for improvement in profitability and operational efficiency.

Income Statement

OAT Agrio Co., Ltd. has shown consistent revenue growth over the years, with a notable increase from ¥20.3 billion in 2020 to ¥29.8 billion in 2024. The Gross Profit Margin remains strong at approximately 48.5% for 2024, indicating efficient cost management. However, there is a decline in both EBIT and Net Income from 2023 to 2024, which suggests some pressure on operational efficiency and profitability despite the revenue growth.

Balance Sheet

The company's Debt-to-Equity Ratio has improved from 2.49 in 2020 to 0.69 in 2024, reflecting a reduction in leverage and a strong equity position. The Return on Equity (ROE) for 2024 is approximately 13.0%, which is healthy but has decreased from previous years, suggesting a slight dip in generating income from shareholders' equity. The Equity Ratio has improved over the years, indicating increased financial stability.

Cash Flow

OAT Agrio's Operating Cash Flow to Net Income Ratio remains strong at around 1.81 in 2024, showing efficient cash generation relative to net income. The Free Cash Flow has significantly increased over the years, with a remarkable growth rate from 2023 to 2024. However, the notable fluctuation in free cash flow growth rates over the years highlights potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.28B	29.77B	28.99B	26.96B	22.66B	20.29B
Gross Profit	15.36B	14.44B	13.95B	12.66B	10.69B	9.46B
EBITDA	5.30B	4.97B	5.67B	5.04B	3.86B	2.97B
Net Income	2.28B	2.08B	2.49B	2.26B	1.46B	837.00M
Balance Sheet
Total Assets	37.04B	34.66B	34.00B	31.01B	28.32B	28.85B
Cash, Cash Equivalents and Short-Term Investments	5.62B	4.94B	4.06B	3.61B	3.65B	3.74B
Total Debt	11.32B	10.97B	12.30B	11.82B	12.13B	15.23B
Total Liabilities	18.88B	17.56B	19.13B	19.06B	19.20B	21.22B
Stockholders Equity	17.03B	15.95B	13.89B	11.03B	8.30B	6.88B
Cash Flow
Free Cash Flow	0.00	3.28B	1.27B	1.01B	3.20B	1.65B
Operating Cash Flow	0.00	3.76B	1.79B	1.42B	3.60B	1.94B
Investing Cash Flow	0.00	-555.00M	-585.00M	-569.00M	221.00M	-258.00M
Financing Cash Flow	0.00	-2.48B	-1.05B	-1.03B	-3.94B	-1.34B

OAT Agrio Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2254.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4979, the sentiment is Negative. The current price of 2254 is below the 20-day moving average (MA) of 2294.45, below the 50-day MA of 2392.02, and above the 200-day MA of 2117.44, indicating a neutral trend. The MACD of -46.95 indicates Positive momentum. The RSI at 32.20 is Neutral, neither overbought nor oversold. The STOCH value of 15.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4979.

OAT Agrio Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4979	―	¥23.86B	9.77	―	3.87%	10.55%	31.08%
4992	―	¥41.54B	9.67	―	2.22%	4.66%	19.39%
4031	―	¥8.66B	15.55	―	2.07%	1.61%	―
4996	―	¥85.32B	8.37	―	4.99%	4.08%	-40.10%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%