Onex Corporation (5987) AI Stock Analysis

• Market Cap: ¥3.20B
• Dividend Yield: 1.04%
• Average Volume (3M): 2.80K
• Price to Earnings (P/E): 1105.9
• Beta (1Y): 0.17
• Revenue Growth: 1.73%
• EPS Growth: N/A
• Country: JP
• Employees: 247
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -10.82
• Shares Outstanding: 1,660,000
• 10 Day Avg. Volume: 7,860
• 30 Day Avg. Volume: 2,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 60 Neutral
• Price Target: ¥2,123.00 ▲(5.00% Upside)

Onex Corporation's overall stock score is driven by strong financial performance in terms of revenue growth and cash flow management. However, the high P/E ratio suggests overvaluation, and technical indicators show limited bullish momentum. The lack of profitability and low returns on equity further weigh on the score.

Onex Corporation Business Overview & Revenue Model

Company Description

ONEX Corporation provides metal heat treatment, remediation, and processing services in Japan and internationally. The company offers metal heat treatment services, including carburizing, carbonitriding, vacuum, high frequency, bright heat, and aluminum alloy heat treatment. Its metal heat treatment services also consist of quenching and tempering, nitriding, gas nitrocarburizing, shot peening, and PVD coating treatment services, as well as heat treatments for oversized parts. In addition, it provides logistics and information system development services. The company serves industrial machine tools, automobile parts, and construction machinery sectors. The company was formerly known as Oya Netsushori Co., Ltd. and changed its name to ONEX Corporation in July 1991. ONEX Corporation was incorporated in 1951 and is headquartered in Atsugi, Japan.

How the Company Makes Money

Onex Corporation makes money primarily through its private equity investments. The company generates revenue by acquiring businesses, improving their operational efficiencies, and eventually selling them at a profit. Onex also earns management fees and performance incentives from its managed funds. These funds invest in a diversified portfolio of companies, providing a steady stream of income through dividends and capital gains. Additionally, Onex benefits from strategic partnerships and co-investment opportunities with other financial institutions, enhancing its ability to generate returns for its investors.

Onex Corporation Financial Statement Overview

Summary

Onex Corporation shows strong revenue growth and effective cash flow management. However, it 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: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1914.65, above the 50-day MA of 1881.22, and above the 200-day MA of 1967.96, indicating a neutral trend. The MACD of 83.97 indicates Negative momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, 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	¥17.94B	9.90	―	2.88%	2.75%	-9.49%
5603	76 Outperform	¥4.22B	4.31	―	4.79%	0.34%	131.10%
6138	72 Outperform	¥3.09B	8.19	―	2.34%	8.06%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6150	63 Neutral	¥2.69B	12.24	―	2.73%	-17.16%	-47.34%
5994	61 Neutral	¥5.78B	33.47	―	1.48%	1.07%	―
5987	60 Neutral	¥3.20B	1,105.89	―	1.04%	1.73%	―