Organo Corp. (6368) AI Stock Analysis

• Market Cap: ¥506.15B
• Dividend Yield: 1.22%
• Average Volume (3M): 313.31K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.53
• Revenue Growth: 11.42%
• EPS Growth: 36.49%
• Country: JP
• Employees: 2,512
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 79.25
• Shares Outstanding: 46,359,700
• 10 Day Avg. Volume: 175,130
• 30 Day Avg. Volume: 313,310
• 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: ¥11,883.00
• Price Target Upside: 2.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ¥11,766.00 ▲(1.17% Upside)

Organo Corp. demonstrates strong financial performance and bullish technical indicators, contributing positively to the stock score. However, the overbought RSI and modest valuation metrics slightly temper the overall outlook.

Organo Corp. Business Overview & Revenue Model

Company Description

Organo Corp. (6368) is a Japanese company that operates primarily in the water treatment and environmental services sectors. The company specializes in providing comprehensive solutions for water purification, wastewater treatment, and environmental protection. Its core products and services include industrial water treatment systems, ultrapure water production systems, and various chemicals used in water treatment processes. Organo Corp. also engages in the maintenance and management of water treatment facilities, serving a diverse range of industries such as electronics, pharmaceuticals, and chemicals.

How the Company Makes Money

Organo Corp. generates revenue through the sale of water treatment systems and related equipment, as well as through recurring income from maintenance and management services for these systems. The company serves a broad clientele across various industries, providing customized solutions that meet specific industrial requirements. Revenue is also derived from the sale of specialty chemicals used in water purification processes. Additionally, Organo Corp. benefits from strategic partnerships and collaborations with other industry players, enhancing its market reach and technological capabilities. The company's earnings are bolstered by its ability to offer comprehensive service packages and its reputation for reliability and innovation in the water treatment sector.

Organo Corp. Financial Statement Overview

Summary

Organo Corp. exhibits strong financial performance with notable revenue growth and profitability improvements. The balance sheet is solid with prudent leverage management, and cash flow performance is resilient, indicating effective cash generation.

Income Statement

Organo Corp. has shown strong revenue growth, with a consistent increase in total revenue over the years, indicating a positive trajectory. The gross profit margin has improved, reflecting efficient cost management. Notably, the net profit margin has strengthened markedly, showcasing enhanced profitability. EBIT and EBITDA margins have also shown consistent improvement, underscoring robust operational performance.

Balance Sheet

The balance sheet of Organo Corp. reveals a solid equity position, with a favorable equity ratio indicating financial stability. The debt-to-equity ratio is within a reasonable range, suggesting manageable leverage levels. Additionally, the company has shown a strong return on equity, reflecting effective utilization of shareholder funds and solid profitability.

Cash Flow

Organo Corp.'s cash flow statement indicates a strong recovery in operating cash flow, supporting a positive free cash flow trend. The operating cash flow to net income ratio is robust, confirming effective cash conversion. Meanwhile, the free cash flow to net income ratio has improved, signaling efficient capital management despite past fluctuations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.27B	150.36B	132.43B	112.07B	100.64B
Gross Profit	55.18B	43.84B	34.98B	28.51B	26.33B
EBITDA	34.53B	25.88B	17.04B	12.18B	10.79B
Net Income	24.15B	17.31B	11.73B	9.21B	7.07B
Balance Sheet
Total Assets	194.40B	182.70B	164.85B	130.51B	115.01B
Cash, Cash Equivalents and Short-Term Investments	16.75B	17.64B	25.41B	31.49B	22.58B
Total Debt	22.56B	36.47B	33.02B	15.63B	16.00B
Total Liabilities	73.20B	80.56B	78.48B	54.50B	47.65B
Stockholders Equity	120.95B	101.93B	86.17B	75.84B	67.21B
Cash Flow
Free Cash Flow	26.54B	2.08B	-19.99B	7.99B	-5.84B
Operating Cash Flow	28.80B	3.73B	-18.54B	10.79B	-4.58B
Investing Cash Flow	-2.13B	-1.42B	-1.31B	-1.52B	-1.26B
Financing Cash Flow	-20.82B	-641.00M	14.71B	-2.59B	4.93B

Organo Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11630.00
• 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:6368, the sentiment is Positive. The current price of 11630 is above the 20-day moving average (MA) of 11436.00, above the 50-day MA of 10213.20, and above the 200-day MA of 8211.37, indicating a bullish trend. The MACD of 257.79 indicates Positive momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 52.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6368.

Organo Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6368	72 Outperform	¥506.15B	20.19		1.22%	11.42%	36.49%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
KTWIF	―	$3.81B	28.25	6.24%	1.70%	―	―
MTWTF	―	$758.41M	19.09	9.80%	1.62%	―	―
TKUMF	―	$1.21B	19.29	8.81%	3.97%	―	―
893	―	€391.68M	11.82	14.78%	―	―	―
6332	77 Outperform	¥136.21B	15.53		2.31%	7.01%	217.10%

Organo Corp. Corporate Events

Organo Corporation Transfers Shares to Enhance Indonesian Water Treatment Venture

Organo Corporation announced its decision to transfer part of its shareholding in its Indonesian joint venture, PT Lautan Organo Water, to its partner’s subsidiary, PT Lautan Air Indonesia. This move is aimed at boosting the synergy and growth potential of the water treatment business in Indonesia, following slower than expected growth. Organo Corporation will retain a 30% stake in the venture, continuing its involvement in the water treatment sector while optimizing its business portfolio.