Onamba Co (5816) AI Stock Analysis

• Market Cap: ¥20.17B
• Dividend Yield: 2.5%
• Average Volume (3M): 25.98K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.78
• Revenue Growth: -2.24%
• EPS Growth: -26.59%
• Country: JP
• Employees: 3,739
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 12,558,251
• 10 Day Avg. Volume: 13,060
• 30 Day Avg. Volume: 25,983
• PEG Ratio: -0.26
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 46.75
• 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: 78 Outperform
• Price Target: ¥1,900.00 ▲(71.95% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial stability (low leverage and improved profitability) offset by recent earnings and cash-flow volatility. Technicals are a key positive with a strong uptrend and positive momentum, while valuation is supportive with a moderate P/E and decent dividend yield.

Positive Factors

Conservative balance sheet

A low debt/equity (~0.10 in 2024) and steadily growing equity provide durable financial flexibility. This reduces refinancing and interest-rate risk, supports investment or dividend choices during downturns, and underpins resilience for multi-month operational planning.

Improved profitability trend

Material margin improvement over the 2020–2024 period indicates better cost control and pricing power. Sustained mid-single-digit margins expand internal cash generation potential and create a stronger base for reinvestment or margin resilience across business cycles.

Sticky custom manufacturing model

A high-mix, customer-specific wiring harness and engineering services model fosters long-term supplier relationships and switching frictions. Integration into customers’ procurement cycles creates recurring orders and structural revenue durability in industrial and infrastructure end markets.

Negative Factors

Stalled revenue growth

A plateauing top line limits the company’s ability to leverage fixed costs and scale operating improvements. Without a consistent revenue expansion catalyst, margin gains may be harder to sustain and the firm’s capacity to fund growth initiatives organically is constrained.

Volatile cash generation

Significant FCF variability and weakened cash conversion reduce predictable internal funding for capex, R&D, or dividends. Variable working capital and episodic cash drops increase reliance on balance-sheet flexibility and raise the execution risk of multi-quarter investments.

Earnings volatility

Large swings in net income and EPS undermine forecasting and capital-allocation confidence. Persistent earnings volatility signals exposure to cyclical demand or one-off items, making multi-quarter planning, stakeholder communication, and reinvestment decisions more challenging.

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

Improved profitability versus earlier years and a conservative balance sheet support stability, but recent results show stalled revenue growth, a sharp drop in net income in 2025 vs. 2024, and weakening/volatile free cash flow with weaker cash conversion.

Income Statement

Revenue has expanded materially since 2020, but growth has flattened recently (2024 ~flat; 2025 modestly down vs. 2024). Profitability improved meaningfully from 2020–2024 (net margin rose to ~6.2% in 2024 from ~1.7% in 2020), showing better operating efficiency. The key weakness is earnings volatility: net income fell sharply in 2025 versus 2024, suggesting margins and/or non-operating items can swing meaningfully.

Balance Sheet

Leverage looks conservative with low debt relative to equity (about 0.10 in 2024, down from higher levels in prior years), and equity has grown steadily across the period, supporting balance-sheet resilience. Returns on equity have generally been solid (mid-to-high single digits to ~10%+ in several years). The main drawback is that profitability/returns are not consistently rising year over year, which can limit the balance sheet’s ability to compound value at a faster pace.

Cash Flow

Cash generation is mixed. Operating cash flow has been positive in most years and was strong in 2023, but it weakened in 2024 and again in 2025, and free cash flow dropped sharply in 2024 with only a partial rebound in 2025. Cash conversion is a concern: in 2024 free cash flow was only ~35% of net income, and the business has shown periods (e.g., 2021) where free cash flow turned negative, indicating higher variability in working capital and/or investment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.60B	44.44B	44.80B	44.76B	43.64B	36.95B
Gross Profit	8.83B	9.15B	8.45B	8.57B	8.09B	6.26B
EBITDA	3.20B	3.64B	5.07B	3.54B	3.53B	2.07B
Net Income	1.46B	1.51B	2.78B	1.98B	2.13B	1.02B
Balance Sheet
Total Assets	38.16B	42.05B	39.88B	37.08B	36.87B	32.94B
Cash, Cash Equivalents and Short-Term Investments	6.37B	7.23B	7.34B	6.50B	5.18B	4.37B
Total Debt	2.19B	2.55B	2.62B	3.36B	4.74B	3.95B
Total Liabilities	12.14B	13.64B	13.29B	13.61B	15.69B	14.65B
Stockholders Equity	25.41B	27.76B	26.13B	22.92B	20.59B	17.82B
Cash Flow
Free Cash Flow	0.00	378.02M	810.07M	3.49B	675.21M	-549.08M
Operating Cash Flow	0.00	1.81B	2.32B	4.45B	1.36B	180.59M
Investing Cash Flow	0.00	-1.52B	24.51M	-1.02B	-1.07B	-883.74M
Financing Cash Flow	0.00	-737.23M	-1.81B	-2.51B	359.18M	-601.86M

Onamba Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1105.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1636.10, below the 50-day MA of 1532.60, and below the 200-day MA of 1218.05, indicating a bullish trend. The MACD of 60.50 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 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
6643	81 Outperform	¥30.32B	6.42	―	3.12%	6.60%	0.27%
5816	78 Outperform	¥20.17B	11.67	6.87%	2.50%	-2.24%	-26.59%
5819	75 Outperform	¥13.65B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.29B	12.37	―	0.91%	5.28%	18.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥51.58B	195.39	―	5.01%	-32.74%	-117.06%
6943	51 Neutral	¥4.25B	7.18	―	1.79%	-10.43%	-368.47%