Onamba Co (5816) AI Stock Analysis

• Market Cap: ¥17.83B
• Dividend Yield: 2.53%
• Average Volume (3M): 65.08K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.83
• Revenue Growth: -2.24%
• EPS Growth: -26.59%
• Country: JP
• Employees: 3,739
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 22.95
• Shares Outstanding: 12,558,251
• 10 Day Avg. Volume: 24,330
• 30 Day Avg. Volume: 65,076
• PEG Ratio: 0.11
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 15.31
• 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: 79 Outperform
• Price Target: ¥1,546.00 ▲(39.91% Upside)

Onamba Co's overall stock score of 79 reflects its strong technical momentum and solid financial performance. The company's attractive valuation further supports the positive outlook. While cash flow efficiency poses a challenge, the low debt levels and strong equity base mitigate financial risks.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates reduced financial risk and strong financial health, providing stability and flexibility for future investments.

Profitability Improvement

Improved net profit margins reflect effective cost management and enhanced profitability, which can support sustainable growth and shareholder value.

Solid Capital Structure

A high equity ratio indicates a strong capital structure, reducing reliance on debt and enhancing financial stability, which is beneficial for long-term growth.

Negative Factors

Declining Revenue Growth

Minimal revenue growth suggests potential challenges in market expansion and product demand, which could impact future earnings and competitive positioning.

Cash Flow Challenges

Declining free cash flow growth indicates potential issues in cash generation, which may affect the company's ability to fund operations and investments.

Earnings Conversion Efficiency

Reduced efficiency in converting earnings into cash flow could limit financial flexibility, affecting the company's ability to respond to market opportunities.

Onamba Co Business Overview & Revenue Model

Company Description

Onamba Co (5816) is a Japanese company primarily engaged in the food and beverage sector, specializing in the production of high-quality sauces and seasonings. The company is known for its innovative approach to traditional flavors, catering to both domestic and international markets. Onamba Co focuses on enhancing culinary experiences through its diverse product range, which includes soy sauces, cooking sauces, and condiments, aimed at both individual consumers and the food service industry.

How the Company Makes Money

Onamba Co generates revenue through the sale of its food products, particularly its sauces and seasonings, which are distributed through various channels including supermarkets, restaurants, and online platforms. The company employs a multi-channel distribution strategy to reach a broad consumer base, ensuring that its products are accessible to both retail and commercial customers. Key revenue streams include direct sales to retailers, bulk sales to food service operators, and export sales to international markets. Additionally, Onamba Co may engage in partnerships with food distributors and culinary institutions to enhance its market presence and drive sales. The company's focus on quality and innovation, along with strategic marketing initiatives, contribute significantly to its earnings.

Onamba Co Financial Statement Overview

Summary

Onamba Co's financial statements depict a stable financial position with strong profitability and a solid balance sheet. The company demonstrates effective cost management, leading to robust margins and improved returns on equity. Despite challenges in cash flow conversion, Onamba Co remains financially sound with low debt levels and a strong equity base.

Income Statement

Onamba Co's income statement exhibits stable revenue growth and strong profit margins. The gross profit margin for 2024 is 18.86%, reflecting efficient production cost management. Net profit margin increased from 4.44% in 2023 to 6.21% in 2024, indicating improved profitability. EBIT margin decreased slightly to 4.89% in 2024, but EBITDA margin remained robust at 7.03%. The revenue growth rate is modest at 0.10% from 2023 to 2024, suggesting stable demand.

Balance Sheet

The balance sheet of Onamba Co demonstrates strong financial health. The debt-to-equity ratio improved from 0.15 in 2023 to 0.10 in 2024, indicating low leverage and reduced financial risk. Return on equity increased from 8.66% to 10.65%, showcasing enhanced shareholder returns. The equity ratio stands at 65.54% in 2024, reflecting a solid capital structure with ample equity backing.

Cash Flow

Cash flow analysis reveals mixed results for Onamba Co. The free cash flow growth rate significantly declined from 2023 to 2024, indicating potential challenges in cash generation despite positive free cash flow. The operating cash flow to net income ratio decreased to 0.83, suggesting less efficiency in converting earnings into cash flow. However, the company maintains a positive free cash flow to net income ratio of 0.29, reflecting adequate cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.60B	44.80B	44.76B	43.64B	36.95B	31.39B
Gross Profit	8.83B	8.45B	8.57B	8.09B	6.26B	5.47B
EBITDA	3.20B	5.07B	3.54B	3.53B	2.07B	1.50B
Net Income	1.46B	2.78B	1.98B	2.13B	1.02B	524.39M
Balance Sheet
Total Assets	38.16B	39.88B	37.08B	36.87B	32.94B	27.90B
Cash, Cash Equivalents and Short-Term Investments	6.37B	7.34B	6.50B	5.18B	4.37B	5.38B
Total Debt	2.19B	2.62B	3.36B	4.74B	3.95B	3.97B
Total Liabilities	12.14B	13.29B	13.61B	15.69B	14.65B	11.82B
Stockholders Equity	25.41B	26.13B	22.92B	20.59B	17.82B	15.43B
Cash Flow
Free Cash Flow	0.00	810.07M	3.49B	675.21M	-549.08M	1.71B
Operating Cash Flow	0.00	2.32B	4.45B	1.36B	180.59M	2.29B
Investing Cash Flow	0.00	24.51M	-1.02B	-1.07B	-883.74M	-774.01M
Financing Cash Flow	0.00	-1.81B	-2.51B	359.18M	-601.86M	105.86M

Onamba Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5816, the sentiment is Positive. The current price of 1105 is below the 20-day moving average (MA) of 1391.10, below the 50-day MA of 1210.54, and above the 200-day MA of 1035.03, indicating a bullish trend. The MACD of 82.33 indicates Positive momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 47.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5816.

Onamba Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5816	79 Outperform	¥17.83B	9.93	6.87%	2.53%	-2.24%	-26.59%
6994	79 Outperform	¥20.09B	11.36	―	2.46%	5.15%	480.70%
5819	77 Outperform	¥12.51B	10.51	―	2.96%	3.43%	3.75%
7711	72 Outperform	¥45.00B	53.87	―	0.53%	10.13%	24.53%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.29B	33.54	―	4.56%	-11.74%	-84.61%
6955	55 Neutral	€12.77B	41.86	1.83%	―	-7.38%	-39.84%