Optoelectronics Co., Ltd. (6664) AI Stock Analysis

• Market Cap: ¥1.99B
• Dividend Yield: N/A
• Average Volume (3M): 35.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 5.29%
• EPS Growth: 47.66%
• Country: JP
• Employees: 174
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -8.38
• Shares Outstanding: 6,578,000
• 10 Day Avg. Volume: 13,540
• 30 Day Avg. Volume: 35,336
• PEG Ratio: 0.12
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -3.36
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ¥348.00 ▲(8.07% Upside)

The overall stock score is primarily influenced by the company's financial performance challenges, including declining revenue and profitability issues. Technical analysis provides a more positive outlook with strong upward momentum, but valuation concerns due to negative earnings and lack of dividends weigh heavily on the score.

Positive Factors

Market Diversification

Diversification across multiple sectors reduces dependency on a single market, providing resilience against sector-specific downturns.

Research and Development

Continuous R&D investment fosters innovation, enabling the company to stay competitive and tap into emerging markets.

Stable Revenue Streams

Long-term contracts ensure consistent revenue, enhancing financial stability and supporting strategic planning.

Negative Factors

Declining Revenue

Declining revenue trends indicate potential market share loss or weakening demand, challenging future growth prospects.

Profitability Challenges

Negative profit margins highlight operational inefficiencies and cost management issues, impacting long-term profitability.

Leverage Risk

High leverage increases financial risk, potentially limiting flexibility in capital allocation and increasing vulnerability to interest rate changes.

Optoelectronics Co., Ltd. Business Overview & Revenue Model

Company Description

Optoelectronics Co., Ltd. (6664) specializes in the design, development, and manufacturing of optoelectronic components and systems. The company operates in various sectors including telecommunications, consumer electronics, and industrial applications, providing core products such as light-emitting diodes (LEDs), photodetectors, and laser components. With a focus on innovation and quality, Optoelectronics aims to enhance the performance of optical communication systems and various electronic devices.

How the Company Makes Money

Optoelectronics Co., Ltd. generates revenue primarily through the sale of its optoelectronic components and systems to a diverse range of industries. The company's key revenue streams include the direct sale of products like LEDs and photodetectors to manufacturers in telecommunications and consumer electronics sectors. Additionally, Optoelectronics benefits from long-term contracts and partnerships with major tech firms, which provide a stable income base. The company also invests in research and development to create advanced technologies, enabling it to tap into emerging markets and applications, thus contributing to its overall earnings.

Optoelectronics Co., Ltd. Financial Statement Overview

Summary

Optoelectronics Co., Ltd. faces several financial challenges, including declining revenue and consistent net losses impacting profitability. The company maintains a leveraged balance sheet, posing financial risk. Cash flow generation is weak, indicating liquidity concerns. The company needs to improve operational efficiency and financial stability to enhance its financial health.

Income Statement

Optoelectronics Co., Ltd. has faced declining revenue over recent years, with a 7.8% decrease from 2023 to 2024. The net profit margin is negative, and EBIT and EBITDA margins are also negative, indicating profitability challenges. However, gross profit margins are relatively stable, showing some operational efficiency.

Balance Sheet

The company has a relatively high debt-to-equity ratio, reflecting financial leverage risk. However, the equity ratio is moderate, indicating a balanced capital structure. Return on equity has turned negative due to consecutive net losses, which highlights concerns about profitability and shareholder value.

Cash Flow

Free cash flow has shown improvement but remains negative. Operating cash flow has increased but is still negative, indicating liquidity issues. The company's ability to generate cash from operations is weak compared to its net income, reflecting cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.55B	6.34B	6.88B	7.21B	8.32B	6.55B
Gross Profit	2.45B	2.48B	2.85B	3.00B	3.61B	2.57B
EBITDA	-258.47M	-392.62M	-305.37M	371.55M	735.15M	-1.11B
Net Income	-398.61M	-672.02M	-815.29M	-47.54M	448.20M	-1.25B
Balance Sheet
Total Assets	12.17B	13.51B	15.56B	15.16B	12.77B	12.47B
Cash, Cash Equivalents and Short-Term Investments	3.99B	5.06B	6.54B	6.65B	5.84B	4.41B
Total Debt	5.46B	6.83B	7.85B	6.56B	6.10B	6.22B
Total Liabilities	7.18B	8.61B	10.00B	9.27B	7.72B	8.17B
Stockholders Equity	4.99B	4.90B	5.57B	5.89B	5.05B	4.30B
Cash Flow
Free Cash Flow	0.00	-425.04M	-1.70B	-209.99M	1.33B	-341.75M
Operating Cash Flow	0.00	-251.33M	-1.49B	-123.26M	1.37B	-66.87M
Investing Cash Flow	0.00	-21.16M	-337.80M	-250.56M	-239.12M	-274.87M
Financing Cash Flow	0.00	-1.02B	1.30B	453.71M	-119.38M	-215.55M

Optoelectronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 322.00
• 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:6664, the sentiment is Positive. The current price of 322 is above the 20-day moving average (MA) of 316.00, above the 50-day MA of 288.94, and above the 200-day MA of 271.56, indicating a bullish trend. The MACD of 15.00 indicates Positive momentum. The RSI at 52.19 is Neutral, neither overbought nor oversold. The STOCH value of 9.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6664.

Optoelectronics Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6928	74 Outperform	¥15.50B	19.21	―	3.07%	9.64%	163.46%
6969	68 Neutral	¥2.67B	4.52	―	―	16.21%	3915.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6664	53 Neutral	¥1.99B	-4.63	―	―	5.29%	47.66%
6867	52 Neutral	¥2.24B	27.94	―	2.96%	-0.26%	―
6663	50 Neutral	¥1.52B	-14.50	―	1.18%	-7.80%	-4418.51%
6775	45 Neutral	¥1.56B	-7.74	―	―	10.78%	26.78%