Odawara Engineering Co., Ltd. (6149) AI Stock Analysis

• Market Cap: ¥14.03B
• Dividend Yield: 2.12%
• Average Volume (3M): 31.28K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.78
• Revenue Growth: 8.09%
• EPS Growth: 109.84%
• Country: JP
• Employees: 416
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -12.11
• Shares Outstanding: 6,392,736
• 10 Day Avg. Volume: 27,010
• 30 Day Avg. Volume: 31,276
• PEG Ratio: -0.25
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 3.83
• 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: 68 Neutral
• Price Target: ¥2,458.00 ▼(-0.73% Downside)

Odawara Engineering Co., Ltd. has a strong financial foundation with zero debt and solid cash flow management, which significantly supports its overall score. However, the technical analysis indicates bearish momentum, which negatively impacts the stock's short-term outlook. The attractive valuation with a low P/E ratio and decent dividend yield provides some upside potential, balancing the technical weaknesses.

Positive Factors

Strong Balance Sheet

Odawara Engineering's zero-debt position enhances its financial stability, providing flexibility for strategic investments and resilience against economic downturns.

Cash Flow Management

Effective cash flow management ensures Odawara can fund operations and growth initiatives without relying on external financing, supporting long-term sustainability.

Revenue Growth

Consistent revenue growth reflects Odawara's ability to capture market opportunities and adapt to industry demands, supporting long-term business expansion.

Negative Factors

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability if not addressed.

Fluctuating Free Cash Flow

Volatility in free cash flow can affect the company's ability to consistently fund operations and investments, posing a risk to financial stability.

Revenue Drop in 2024

A revenue drop may signal challenges in maintaining growth momentum, requiring strategic adjustments to sustain long-term performance.

Odawara Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Odawara Engineering Co., Ltd. (6149) is a Japanese company specializing in the design and manufacturing of precision machinery and equipment. The company operates primarily in the semiconductor and electronic components sectors, providing advanced automation solutions that enhance production efficiency and reliability. Odawara's core products include high-precision assembly machines, inspection systems, and specialized tools that cater to the needs of various industries, including automotive, electronics, and healthcare.

How the Company Makes Money

Odawara Engineering generates revenue through the sale of its precision machinery and equipment, as well as through maintenance and support services. The company's primary revenue streams include direct sales of machinery to manufacturers in the semiconductor and electronics sectors, which often involve high-value contracts. Additionally, Odawara earns income from service agreements and after-sales support, providing ongoing maintenance and upgrades for its machinery. Strategic partnerships with key players in the semiconductor industry enhance its market presence and contribute to consistent revenue growth. The company also invests in research and development to innovate new products, ensuring it remains competitive and can capture emerging market opportunities.

Odawara Engineering Co., Ltd. Financial Statement Overview

Summary

Odawara Engineering Co., Ltd. demonstrates a stable financial position with strong balance sheet metrics, including zero debt and substantial equity. The income statement shows solid profitability, although recent revenue growth has faced minor setbacks. Cash flow management is robust, supporting operational and strategic initiatives despite some volatility in free cash flow growth.

Income Statement

Odawara Engineering Co., Ltd. has demonstrated moderate revenue growth over the years, with total revenue increasing from 2020 to 2023. The company maintains a solid gross profit margin, although there was a noticeable decline in net profit margin in 2024 compared to previous years. The EBIT and EBITDA margins are healthy, showing the company's ability to generate earnings before interest, taxes, depreciation, and amortization. Despite a drop in revenue in 2024, the overall performance remains stable.

Balance Sheet

The company exhibits a strong balance sheet with no debt as of 2024, enhancing financial stability. The equity ratio is robust, reflecting a high proportion of equity financing. Return on Equity (ROE) has been consistent, indicating efficient utilization of shareholders' funds. The balance sheet's strength is further underscored by substantial cash and cash equivalents, supporting liquidity.

Cash Flow

Odawara Engineering shows strong cash flow management, with consistent positive operating and free cash flows. The free cash flow to net income ratio is favorable, indicating effective conversion of net income into free cash flow. The operating cash flow to net income ratio is strong, demonstrating efficient operations. However, the fluctuation in free cash flow growth rate suggests potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.90B	13.18B	14.70B	14.09B	13.56B	11.21B
Gross Profit	5.63B	3.86B	4.60B	3.46B	3.71B	2.99B
EBITDA	3.20B	1.72B	2.54B	1.52B	1.72B	1.12B
Net Income	1.90B	865.13M	1.53B	801.53M	925.71M	451.34M
Balance Sheet
Total Assets	25.63B	27.91B	26.73B	24.02B	22.78B	23.49B
Cash, Cash Equivalents and Short-Term Investments	9.56B	10.36B	8.14B	7.69B	6.31B	5.95B
Total Debt	36.47M	5.17M	6.75M	3.00B	3.00B	3.05B
Total Liabilities	8.10B	11.47B	11.05B	9.85B	9.28B	10.25B
Stockholders Equity	17.53B	16.44B	15.68B	14.17B	13.51B	13.23B
Cash Flow
Free Cash Flow	0.00	2.48B	3.58B	1.49B	1.03B	524.60M
Operating Cash Flow	0.00	3.29B	3.81B	1.99B	1.34B	1.91B
Investing Cash Flow	0.00	-745.93M	-242.27M	-617.18M	-278.59M	-1.30B
Financing Cash Flow	0.00	-284.98M	-3.14B	-172.86M	-760.17M	2.87B

Odawara Engineering Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2476.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6149, the sentiment is Neutral. The current price of 2476 is above the 20-day moving average (MA) of 2429.15, below the 50-day MA of 2577.74, and above the 200-day MA of 2115.21, indicating a neutral trend. The MACD of -68.96 indicates Negative momentum. The RSI at 45.06 is Neutral, neither overbought nor oversold. The STOCH value of 69.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6149.

Odawara Engineering Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6373	79 Outperform	¥14.64B	12.42	―	1.76%	1.61%	117.39%
6317	78 Outperform	¥16.45B	5.03	―	3.49%	-3.27%	572.42%
6393	71 Outperform	¥12.10B	9.33	―	7.06%	7.96%	43.37%
6149	68 Neutral	¥14.03B	7.69	―	2.12%	8.09%	109.84%
6312	67 Neutral	¥18.00B	11.00	―	1.86%	17.61%	211.04%
6440	66 Neutral	¥12.01B	8.77	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%