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

• Market Cap: ¥5.36B
• Dividend Yield: N/A
• Average Volume (3M): 4.42K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.61
• Revenue Growth: 1.33%
• EPS Growth: 13.09%
• Country: JP
• Employees: 983
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): 50.52
• Shares Outstanding: 1,470,000
• 10 Day Avg. Volume: 5,000
• 30 Day Avg. Volume: 4,420
• 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: ¥4,086.00
• Price Target Upside: -0.83% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 82 Outperform
• Price Target: ¥4,086.00 ▼(-0.83% Downside)

Oi Electric's stock score is driven primarily by its strong valuation, indicating undervaluation and potential for growth. The robust technical indicators further support a positive outlook, with bullish momentum suggesting continued upward movement. Solid financial performance underpins this, although the reliance on debt requires monitoring. The absence of dividend yield and earnings call data were non-factors in this assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term stability and expansion.

Cash Flow Management

Robust cash flow management ensures liquidity and supports strategic investments, enhancing the company's ability to sustain growth and manage debts.

Product Innovation

Continuous investment in R&D fosters innovation, maintaining competitive advantage and adapting to industry changes, crucial for long-term success.

Negative Factors

High Debt Reliance

High debt reliance can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Operational Efficiency

Lower operational efficiency may hinder profitability and competitiveness, necessitating improvements to enhance margins and reduce costs.

Leverage Risks

While current leverage is manageable, further increases could strain financial stability and limit strategic flexibility, affecting long-term growth.

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

Company Description

Oi Electric Co., Ltd. (6822) is a Japanese company primarily engaged in the manufacturing and distribution of electrical and electronic components. The company focuses on providing high-quality products such as connectors, relays, and various industrial automation devices. It caters to a diverse range of industries, including automotive, telecommunications, and consumer electronics, emphasizing innovation and reliability in its offerings.

How the Company Makes Money

Oi Electric Co., Ltd. generates revenue through the sale of its electrical and electronic components. The company's key revenue streams include the production and distribution of connectors and relays, which are essential in various industrial applications. It also earns income by supplying components for the automotive and telecommunications industries, where its products are integral to the functioning of various systems. Strategic partnerships with major manufacturers and consistent demand for high-quality components contribute significantly to the company's earnings. Additionally, Oi Electric Co., Ltd. invests in research and development to innovate and expand its product line, ensuring a competitive edge in the market.

Oi Electric Co., Ltd. Financial Statement Overview

Summary

Oi Electric demonstrates solid financial health with positive revenue growth, profitability, and strong cash flow management. While the company shows an effective use of debt, there remains a potential risk due to higher debt reliance. Continual focus on improving operational efficiency and managing leverage will be crucial for sustaining future growth and stability.

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	29.05B	29.05B	28.12B	22.93B	24.74B	29.41B
Gross Profit	5.77B	5.77B	5.38B	4.04B	3.45B	4.93B
EBITDA	2.08B	2.08B	1.32B	59.89M	-405.56M	804.05M
Net Income	1.05B	1.05B	759.51M	-811.86M	-1.02B	139.65M
Balance Sheet
Total Assets	23.65B	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	5.53B	5.53B	6.58B	7.15B	6.78B	4.01B
Total Liabilities	14.76B	14.76B	15.89B	15.05B	14.39B	13.97B
Stockholders Equity	7.05B	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: Positive
• Last Price: 4120.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6822, the sentiment is Positive. The current price of 4120 is above the 20-day moving average (MA) of 3899.25, above the 50-day MA of 3574.90, and above the 200-day MA of 2643.64, indicating a bullish trend. The MACD of 158.86 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 63.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	82 Outperform	¥5.36B	4.02		―	1.33%	13.09%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
6778	55 Neutral	¥6.25B	45.44		3.15%	-4.92%	―
6634	51 Neutral	¥5.85B	―		―	229.77%	0.22%
6696	51 Neutral	¥2.09B	110.24		―	41.44%	―
6771	49 Neutral	¥3.78B	29.94		2.04%	0.35%	―
6522	46 Neutral	¥3.21B	―		―	8.28%	79.19%