Oi Electric Co., Ltd. (6822) AI Stock Analysis

• Market Cap: ¥4.83B
• Dividend Yield: 0.44%
• Average Volume (3M): 11.33K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.59
• Revenue Growth: 4.93%
• EPS Growth: 23.92%
• Country: JP
• Employees: 983
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 106.82
• Shares Outstanding: 1,470,000
• 10 Day Avg. Volume: 3,820
• 30 Day Avg. Volume: 11,333
• PEG Ratio: 0.09
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 1.57
• 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: 64 Neutral
• Price Target: ¥3,729.00 ▼(-6.89% Downside)

Oi Electric's strong financial performance and attractive valuation are offset by bearish technical indicators. The company's solid cash flow and profitability are positive, but the current market momentum suggests caution. Investors should monitor technical trends closely while considering the stock's undervaluation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Cash Flow Management

Robust cash flow management ensures operational efficiency and provides the company with the flexibility to invest in growth opportunities.

Profitability

Strong profitability margins reflect efficient cost management and the ability to generate profits, enhancing shareholder value over time.

Negative Factors

Debt Reliance

High debt reliance could pose risks to financial stability, especially if leverage increases, potentially impacting the company's long-term viability.

EBIT Margin

A lower EBIT margin indicates potential inefficiencies in operations, which could affect profitability if not addressed over time.

Equity Ratio

A low equity ratio suggests that the company is more leveraged, which could limit its ability to secure additional financing or weather economic downturns.

Oi Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Oi Electric Co., Ltd. (6822) is a leading company in the electronics and electrical equipment sector, specializing in the design, manufacture, and distribution of innovative electrical solutions. The company focuses on various segments, including renewable energy, smart home technology, and industrial automation, providing a range of products such as electric motors, control systems, and energy management solutions.

How the Company Makes Money

Oi Electric Co., Ltd. generates revenue primarily through the sale of its electrical products and solutions to both commercial and residential customers. The company has established key revenue streams from its core product lines, including electric motors and automation systems, which are utilized in various industries such as manufacturing, construction, and home automation. Additionally, Oi Electric has formed strategic partnerships with other technology firms to enhance its product offerings and expand its market presence, contributing to its earnings through collaborative projects and shared innovations. The company also benefits from recurring revenue through service contracts and maintenance agreements for its installed systems.

Oi Electric Co., Ltd. Financial Statement Overview

Summary

Oi Electric demonstrates solid financial health with positive revenue growth, profitability, and strong cash flow management. However, there is a potential risk due to higher debt reliance.

Income Statement

Oi Electric has shown a positive trajectory in revenue growth with a recent increase of 3.3% from the previous year. The company maintains a healthy gross profit margin of 19.9% and a net profit margin of 3.6%, indicating profitability. However, the EBIT margin at 5.1% suggests room for operational improvements. The EBITDA margin of 7.2% reflects positive earnings before significant expenses.

Balance Sheet

The balance sheet displays a stable financial position with a debt-to-equity ratio of 0.78, which is manageable. The return on equity stands at 14.9%, reflecting strong shareholder returns. However, an equity ratio of 29.8% indicates a relatively high reliance on debt compared to equity, suggesting potential risks if leverage increases.

Cash Flow

Oi Electric shows a robust cash flow position with a free cash flow growth rate of 89.1%, indicating strong liquidity and operational efficiency. The operating cash flow to net income ratio of 2.6 highlights effective cash generation from operations. Moreover, the free cash flow to net income ratio of 2.3 underscores the company's ability to generate cash beyond earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.40B	29.05B	28.12B	22.93B	24.74B	29.41B
Gross Profit	6.11B	5.77B	5.38B	4.04B	3.45B	4.93B
EBITDA	2.46B	2.08B	1.32B	59.89M	-405.56M	804.05M
Net Income	1.35B	1.05B	759.51M	-811.86M	-1.02B	139.65M
Balance Sheet
Total Assets	22.74B	23.65B	23.88B	21.63B	21.80B	22.42B
Cash, Cash Equivalents and Short-Term Investments	3.88B	3.88B	2.88B	2.12B	3.55B	3.02B
Total Debt	4.96B	5.53B	6.58B	7.15B	6.78B	4.01B
Total Liabilities	13.75B	14.76B	15.89B	15.05B	14.39B	13.97B
Stockholders Equity	7.17B	7.05B	6.33B	5.10B	6.03B	7.16B
Cash Flow
Free Cash Flow	0.00	2.37B	1.25B	-1.93B	-2.06B	-1.76B
Operating Cash Flow	0.00	2.78B	1.64B	-1.52B	-1.10B	-1.11B
Investing Cash Flow	0.00	-493.26M	-277.88M	-276.20M	-1.07B	-611.56M
Financing Cash Flow	0.00	-1.28B	-604.03M	367.89M	2.70B	2.41B

Oi Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4005.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6822, the sentiment is Neutral. The current price of 4005 is above the 20-day moving average (MA) of 3830.00, above the 50-day MA of 3986.71, and above the 200-day MA of 3142.19, indicating a neutral trend. The MACD of -148.21 indicates Positive momentum. The RSI at 39.73 is Neutral, neither overbought nor oversold. The STOCH value of 58.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6822.

Oi Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	64 Neutral	¥4.83B	3.71	―	0.44%	4.93%	23.92%
6778	63 Neutral	¥5.63B	40.92	―	3.29%	-4.92%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6696	54 Neutral	¥1.75B	92.42	―	―	41.44%	―
6771	53 Neutral	¥3.80B	9.35	―	2.00%	13.56%	―
6522	46 Neutral	¥2.74B	-14.33	―	―	5.57%	56.29%
6634	42 Neutral	¥4.37B	―	―	―	165.52%	17.61%