Onex Corporation (5987) AI Stock Analysis

• Market Cap: ¥2.81B
• Dividend Yield: 1.18%
• Average Volume (3M): 710.00
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.16
• Revenue Growth: 2.94%
• EPS Growth: N/A
• Country: JP
• Employees: 247
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 62.24
• Shares Outstanding: 1,660,000
• 10 Day Avg. Volume: 510
• 30 Day Avg. Volume: 710
• PEG Ratio: -10.43
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 5.81
• 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: 59 Neutral
• Price Target: ¥1,790.00 ▼(-11.47% Downside)

Onex Corporation's overall stock score is primarily influenced by its strong financial performance, particularly in revenue growth and cash flow management. However, the stock faces significant challenges in technical analysis, with bearish trends and weak momentum indicators. The valuation suggests the stock may be overvalued, which further impacts the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates Onex's effective acquisition and management strategies, enhancing its market position and long-term business prospects.

Cash Flow Management

Effective cash flow management ensures Onex can fund operations and investments, supporting sustainable growth and financial stability.

Stable Balance Sheet

A stable balance sheet with manageable leverage provides Onex with financial flexibility to pursue strategic investments and withstand economic fluctuations.

Negative Factors

Profitability Challenges

Low profitability metrics indicate operational inefficiencies, which could hinder Onex's ability to generate sustainable returns for shareholders.

Low Return on Equity

A low return on equity reflects challenges in generating shareholder value, potentially impacting investor confidence and long-term growth prospects.

High Valuation Concerns

While not a fundamental factor, high valuation may limit future investment appeal and could reflect market skepticism about Onex's profitability improvements.

Onex Corporation Business Overview & Revenue Model

Company Description

Onex Corporation (5987) is a diversified investment management firm based in Canada, primarily engaged in private equity, credit, and real estate sectors. The company focuses on acquiring and managing a diverse portfolio of businesses across various industries, aiming to create long-term value for its investors. Onex operates through its subsidiaries, including Onex Partners and Onex Credit Partners, and is known for its strategic investments in both established firms and growth-oriented companies.

How the Company Makes Money

Onex Corporation generates revenue through management fees and performance fees from its investment funds, which include private equity funds, credit funds, and real estate investments. The company's primary revenue model relies on the capital raised from institutional and retail investors, which is then deployed into various investment opportunities. Key revenue streams include management fees based on the assets under management (AUM) and performance fees tied to the profitability of the investments made by the funds. Additionally, Onex benefits from realized gains on the sale of portfolio companies and other investment activities. Strategic partnerships with other investment firms and financial institutions enhance its investment capabilities and broaden its reach in the market, contributing to its overall earnings.

Onex Corporation Financial Statement Overview

Summary

Onex Corporation shows strong revenue growth and effective cash flow management, but faces challenges in profitability and returns on equity. The balance sheet is stable with manageable leverage, but operational efficiency needs improvement to enhance profitability and shareholder returns.

Income Statement

Onex Corporation's income statement shows a mixed performance. The company has experienced a significant revenue growth rate of 70.1% in the latest year, indicating strong top-line growth. However, profitability metrics such as EBIT and net profit margins are concerning, with EBIT being negative and net profit margin at a mere 0.06%. This suggests challenges in managing operational costs and achieving profitability despite revenue growth.

Balance Sheet

The balance sheet of Onex Corporation reflects a stable equity position with a debt-to-equity ratio of 0.36, indicating manageable leverage. The equity ratio stands at 60.5%, showing a strong equity base relative to total assets. However, the return on equity is low at 0.06%, suggesting limited returns for shareholders.

Cash Flow

Onex Corporation's cash flow statement indicates robust cash generation, with a high operating cash flow to net income ratio of 241.6%. The free cash flow growth rate is notably high, suggesting effective cash management. However, the free cash flow to net income ratio is 180.9%, indicating that while cash flow is strong, net income remains low.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.05B	5.05B	4.97B	5.37B	5.30B	5.07B
Gross Profit	1.11B	986.95M	1.03B	1.11B	1.09B	972.82M
EBITDA	126.04M	462.87M	523.19M	739.37M	819.78M	361.63M
Net Income	-582.55M	2.89M	-377.47M	221.44M	161.80M	-201.59M
Balance Sheet
Total Assets	8.62B	8.68B	8.89B	9.94B	9.79B	10.18B
Cash, Cash Equivalents and Short-Term Investments	2.78B	2.94B	2.72B	2.54B	2.45B	2.65B
Total Debt	2.01B	1.90B	2.37B	2.75B	2.89B	2.98B
Total Liabilities	3.37B	3.42B	3.61B	4.28B	4.35B	4.85B
Stockholders Equity	5.26B	5.25B	5.28B	5.65B	5.44B	5.34B
Cash Flow
Free Cash Flow	0.00	523.24M	536.64M	302.95M	-66.58M	172.32M
Operating Cash Flow	0.00	698.37M	826.07M	665.08M	416.39M	595.19M
Investing Cash Flow	0.00	97.09M	-222.29M	-375.14M	-462.00M	-410.58M
Financing Cash Flow	0.00	-574.32M	-423.93M	-202.19M	-155.71M	28.42M

Onex Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2022.00
• 50DMA: Negative
• 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:5987, the sentiment is Negative. The current price of 2022 is above the 20-day moving average (MA) of 1785.15, above the 50-day MA of 1853.28, and above the 200-day MA of 1946.18, indicating a bearish trend. The MACD of -49.31 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 10.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5987.

Onex Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5922	81 Outperform	¥18.25B	10.07	―	2.86%	2.63%	-3.96%
5603	76 Outperform	¥4.18B	4.58	―	4.79%	-0.27%	59.50%
5994	69 Neutral	¥8.13B	4.21	―	1.27%	6.41%	―
6138	68 Neutral	¥2.69B	7.48	―	2.80%	3.89%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.76B	12.44	―	2.72%	-17.16%	-47.34%
5987	59 Neutral	¥2.81B	21.99	―	1.18%	2.94%	―