Organo Corp. (6368) AI Stock Analysis

• Market Cap: ¥347.84B
• Dividend Yield: 2.11%
• Average Volume (3M): 173.54K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.53
• Revenue Growth: 8.59%
• EPS Growth: 39.41%
• Country: JP
• Employees: 2,512
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 221.56
• Shares Outstanding: 46,359,700
• 10 Day Avg. Volume: 138,870
• 30 Day Avg. Volume: 173,543
• PEG Ratio: 2.73
• Price to Book (P/B): 2.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 75 Outperform
• Price Target: ¥8,798.00 ▲(16.84%Upside)

Organo Corp.'s strong financial performance and reasonable valuation are key strengths, indicating a solid investment potential. Positive technical momentum supports the outlook, though overbought signals suggest caution in the near term.

Organo Corp. Business Overview & Revenue Model

Company Description

Organo Corporation operates as a water treatment engineering company in Japan and internationally. The company operates through two segments, Water Treatment Engineering Business Unit and Performance Products Business Unit. It offers pure water systems, such as reverse osmosis (RO) systems, regenerative automatic and manual pure water systems, electric regeneration pure water systems, desktop-type pure water systems, cabinet-type pure water systems, electrode ionization high-purity water systems, cartridge water purifiers, and two-stage RO systems; ultrapure water systems, including desktop and cabinet-type ultrapure water systems, and final polishing unit; and other equipment comprising alkaline electrolyzed water production equipment, homogenizers, electro conductivity meters, resistivity meters, and ion exchange filters. The company also provides water, wastewater, and RO water treatment chemicals; industrial filters consisting of micro filter, sanitary, polypropylene, and plastic housings, as well as micro, RO wound, PF cartridge, capsule, and PF carbon; and commercial water purifiers. In addition, it offers ultrapure and multi-functional water production systems, wastewater treatment systems, valuable resource recovery systems, and organic solvent refining systems for the electronics industry; water supply and sewage treatment facilities; purified water production and supply systems, UF water production and supply systems, and water for injection production and supply systems, as well as pharmaceutical water system consulting services; condensate filter, condensate demineralizer, reactor water cleanup, fuel pool cleanup, makeup water, and waste water treatment systems; and sugar refining systems and equipment. The company was formerly known as Japan Organo Co., Ltd. and changed its name to Organo Corporation in 1966. Organo Corporation was incorporated in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Organo Corp. generates revenue through the sale and service of its water treatment systems and chemical products. Its key revenue streams include the installation and maintenance of water purification and wastewater treatment systems for industrial clients, as well as the sale of specialized chemical products used in these processes. The company also engages in long-term service contracts with municipal and environmental clients, providing ongoing system maintenance and operational support. Additionally, strategic partnerships with other industrial firms and government entities enhance its market reach and contribute to sustained earnings.

Organo Corp. Financial Statement Overview

Summary

Organo Corp. showcases strong financial health with substantial revenue and profit growth, particularly in the TTM period. The company's effective cost management and operational efficiency contribute to high profitability margins. While the balance sheet reflects stability and prudent leverage, the cash flow analysis suggests potential liquidity concerns. Continued focus on improving cash flow management will be crucial to sustaining financial strength.

Income Statement

Organo Corp. demonstrates robust revenue growth, with a TTM increase of 6.29% from the previous annual report. Gross profit margin improved to 32.1% TTM, indicating effective cost management. Net profit margin TTM is strong at 13.16%, reflecting profitability improvements. EBIT and EBITDA margins also show healthy trends at 17.58% and 19.15% respectively, underscoring operational efficiency.

Balance Sheet

The company maintains a solid equity base with a debt-to-equity ratio of 0.30, suggesting prudent leverage use. Return on Equity (ROE) is strong at 19.22% TTM, pointing to effective use of equity capital. The equity ratio stands at 59.05%, indicating a stable balance sheet with a significant portion of assets funded by equity. However, the reduction in cash reserves is notable.

Cash Flow

Cash flow performance shows volatility, with TTM figures unavailable for comprehensive analysis. The operating cash flow and free cash flow figures from previous periods indicate fluctuating liquidity. The lack of current period cash flow data poses a risk, highlighting the need for improved cash flow stability and transparency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
159.82B	150.36B	132.43B	112.07B	100.64B	96.52B
	Gross Profit
51.31B	43.84B	34.98B	28.51B	26.33B	27.28B
	EBIT
28.10B	22.54B	15.21B	10.85B	9.58B	9.91B
	EBITDA
30.61B	25.88B	17.04B	12.18B	10.79B	11.18B
	Net Income Common Stockholders
21.03B	17.31B	11.73B	9.21B	7.07B	7.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.84B	17.64B	25.41B	31.49B	22.58B	25.52B
	Total Assets
185.24B	182.70B	164.85B	130.51B	115.01B	101.45B
	Total Debt
33.14B	36.47B	33.02B	15.63B	16.00B	9.74B
	Net Debt
18.30B	18.82B	17.46B	-4.57B	3.20B	-4.03B
	Total Liabilities
75.59B	80.56B	78.48B	54.50B	47.65B	40.59B
	Stockholders Equity
109.42B	101.93B	86.17B	75.84B	67.21B	60.72B
Cash Flow		Free Cash Flow
0.00	2.08B	-19.99B	7.99B	-5.84B	7.58B
	Operating Cash Flow
0.00	3.73B	-18.54B	10.79B	-4.58B	8.55B
	Investing Cash Flow
0.00	-1.42B	-1.31B	-1.52B	-1.26B	-1.01B
	Financing Cash Flow
0.00	-641.00M	14.71B	-2.59B	4.93B	-5.01B

Organo Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7530.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6368, the sentiment is Neutral. The current price of 7530 is below the 20-day moving average (MA) of 7677.50, above the 50-day MA of 6881.53, and above the 200-day MA of 7329.23, indicating a neutral trend. The MACD of 190.44 indicates Positive momentum. The RSI at 54.70 is Neutral, neither overbought nor oversold. The STOCH value of 16.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6368.

Organo Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6368	75 Outperform	¥347.84B	14.43		2.11%	8.59%	39.41%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
KTWIF		$4.09B	30.92	6.03%	1.67%	―	―
MTWTF		$532.23M	14.05	8.79%	2.29%	―	―
TKUMF		$1.08B	14.70	9.36%	3.48%	―	―
893		€283.10M	9.11	13.39%	3.65%	―	―
6332	76 Outperform	¥86.98B	13.25		3.80%	12.10%	148.39%

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.