Onamba Co (5816) AI Stock Analysis

• Market Cap: ¥13.43B
• Dividend Yield: 3.36%
• Average Volume (3M): 15.24K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.79
• Revenue Growth: -2.47%
• EPS Growth: -47.71%
• 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: 16,360
• 30 Day Avg. Volume: 15,243
• 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: ¥1,147.15
• Price Target Upside: 4.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥1,147.00 ▲(4.08% Upside)

Onamba Co's stock score is driven primarily by its strong valuation, suggesting it's undervalued with a low P/E ratio and solid dividend yield. The financial performance supports the stock's stability with strong profitability and a healthy balance sheet. Technical analysis confirms bullish momentum, though caution is advised due to approaching overbought RSI levels.

Onamba Co Business Overview & Revenue Model

Company Description

Onamba Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of electric wires, cables, and harnesses. Its products cater to various sectors, including the automotive, electronics, and industrial equipment industries. The company is known for its high-quality wire harnesses that are integral components in vehicles and electronic devices, ensuring efficient power distribution and signal transmission.

How the Company Makes Money

Onamba Co., Ltd. generates revenue through the production and sale of its core products: electric wires, cables, and wire harnesses. A significant portion of its income is derived from supplying these components to the automotive industry, where wire harnesses are essential for vehicle electrical systems. The company also serves the electronics sector, providing specialized cables and harnesses for consumer electronics and industrial equipment. Onamba Co. maintains strategic partnerships with various manufacturers and suppliers, ensuring a steady demand for its products and contributing to its financial performance.

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. Continued focus on cash flow efficiency will be crucial for sustaining growth.

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: 1102.00
• 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 1102 is above the 20-day moving average (MA) of 1082.45, above the 50-day MA of 1050.58, and above the 200-day MA of 986.25, indicating a bullish trend. The MACD of 15.56 indicates Positive momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 72.19 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
6994	80 Outperform	¥17.32B	9.79	―	2.86%	3.59%	249.94%
5816	80 Outperform	¥13.43B	9.22	5.73%	3.36%	-2.47%	-47.71%
5819	77 Outperform	¥12.45B	10.63	―	3.02%	-1.60%	0.69%
7711	68 Neutral	¥31.62B	37.85	―	0.52%	17.04%	25.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥12.94B	117.78	―	4.34%	-17.49%	-96.33%
6955	57 Neutral	€13.32B	31.39	2.69%	―	-2.68%	74.69%