Odawara Auto-Machine Mfg. Co., Ltd. (7314) AI Stock Analysis

• Market Cap: ¥4.15B
• Dividend Yield: 2.16%
• Average Volume (3M): 2.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: 23.24%
• EPS Growth: -111.63%
• Country: JP
• Employees: 211
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): -14.24
• Shares Outstanding: 3,201,300
• 10 Day Avg. Volume: 2,930
• 30 Day Avg. Volume: 2,353
• PEG Ratio: 0.26
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -3.05
• 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: 66 Neutral
• Price Target: ¥1,306.00 ▲(0.62% Upside)

The stock's overall score reflects strong technical momentum and reasonable valuation, offset by concerns over cash flow management. The company's robust revenue growth and stable profitability margins are positive, but liquidity risks due to negative cash flow trends need addressing.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and demand for the company's products, supporting long-term business sustainability.

Stable Profitability Margins

Stable profitability margins suggest effective cost control and pricing strategies, which are crucial for maintaining competitive advantage.

Equity Utilization

Effective equity utilization reflects management's ability to generate returns on investments, contributing to shareholder value over time.

Negative Factors

Negative Cash Flow

Negative cash flow can strain liquidity and limit the company's ability to invest in growth opportunities, posing risks to financial stability.

Operating Cash Flow Efficiency

Inefficient cash generation from operations could hinder the company's ability to fund operations and growth internally, affecting long-term viability.

Limited Net Profit Margin

A limited net profit margin indicates challenges in translating revenue into profit, which may impact the company's ability to reinvest in its business.

Odawara Auto-Machine Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Odawara Auto-Machine Mfg. Co., Ltd. designs, manufactures, and sells bus and railway fare collecting equipment. The company offers fare boxes, payment terminals, IC card systems, thermal ticket machines, liquid crystal fare indicators, speech synthesis guidance devices, fare adjustment machines, data management systems, voice packet transceivers, bus location systems, LED railway indicators, and departure signs. It also offers system development, engineering, and software design services; and imports, exports, and sells system and equipment. Odawara Auto-Machine Mfg. Co., Ltd. was founded in 1950 and is headquartered in Odawara, Japan.

How the Company Makes Money

Odawara Auto-Machine Mfg. Co., Ltd. generates revenue primarily through the sale of its machinery and automation solutions to various industries, particularly the automotive sector. The company earns revenue from both direct sales of its products and ongoing service contracts for maintenance and support. Key revenue streams include the sale of precision manufacturing machines, custom automation solutions, and aftermarket services. Additionally, the company may benefit from strategic partnerships with major automotive manufacturers and industry players, which can lead to bulk orders and long-term contracts, further enhancing its earnings potential.

Odawara Auto-Machine Mfg. Co., Ltd. Financial Statement Overview

Summary

Odawara Auto-Machine Mfg. Co., Ltd. exhibits strong revenue growth and stable profitability margins. However, the negative cash flow and declining operating cash flow are concerning, indicating potential liquidity risks despite moderate leverage and effective equity utilization.

Income Statement

The company shows a significant increase in total revenue from 2023 to 2024, with a revenue growth rate of 55.46%. Gross profit margin is stable at 33.78% in 2024, reflecting efficient cost management. However, the net profit margin of 4.79% suggests limited profitability. EBIT and EBITDA margins, at 6.38% and 8.52% respectively, indicate moderate operating efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with an equity ratio of 41.99%. The debt-to-equity ratio of 0.90 in 2024 suggests moderate leverage. Return on equity is healthy at 7.08%, indicating effective utilization of equity to generate profits. Overall, the company demonstrates financial stability with controlled leverage.

Cash Flow

The negative free cash flow of -¥1,247,000,000 in 2024 and declining operating cash flow raise concerns. The free cash flow growth rate is negative, indicating potential cash constraints. Operating cash flow to net income ratio is -3.89, showing inefficiency in cash generation from operations. The company faces challenges in cash flow management, impacting its liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.14B	6.11B	3.93B	4.69B	3.58B	4.78B
Gross Profit	1.96B	2.06B	1.48B	1.06B	1.28B	1.25B
EBITDA	264.42M	532.41M	343.37M	205.52M	284.12M	327.42M
Net Income	26.56M	293.00M	191.58M	-42.58M	99.86M	132.78M
Balance Sheet
Total Assets	6.55B	9.85B	7.67B	5.42B	6.02B	5.76B
Cash, Cash Equivalents and Short-Term Investments	1.82B	2.55B	2.32B	1.92B	2.20B	1.92B
Total Debt	1.30B	3.72B	2.12B	564.09M	959.29M	542.77M
Total Liabilities	2.66B	5.71B	3.73B	1.68B	2.12B	1.92B
Stockholders Equity	3.90B	4.14B	3.94B	3.74B	3.90B	3.84B
Cash Flow
Free Cash Flow	0.00	-1.28B	-1.10B	156.42M	-213.10M	-2.96M
Operating Cash Flow	0.00	-1.14B	-1.05B	375.02M	131.99M	32.97M
Investing Cash Flow	0.00	-144.49M	-56.32M	-129.60M	-245.39M	-29.95M
Financing Cash Flow	0.00	1.52B	1.51B	-450.64M	369.88M	-1.24B

Odawara Auto-Machine Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1298.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7314, the sentiment is Positive. The current price of 1298 is above the 20-day moving average (MA) of 1296.65, below the 50-day MA of 1302.88, and above the 200-day MA of 1140.58, indicating a neutral trend. The MACD of -2.29 indicates Negative momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 90.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7314.

Odawara Auto-Machine Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6418	71 Outperform	¥29.61B	5.86	―	4.61%	-20.75%	7.75%
7975	70 Neutral	¥4.20B	10.46	―	2.02%	3.24%	―
7314	66 Neutral	¥4.15B	-44.63	―	2.16%	23.24%	-111.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7957	61 Neutral	¥2.29B	4.05	―	5.28%	0.34%	―
7962	58 Neutral	¥23.80B	68.34	―	1.67%	-2.71%	―
7992	50 Neutral	¥3.23B	-2.97	―	―	4.11%	33.06%