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Odawara Auto-Machine Mfg. Co., Ltd. (JP:7314)
:7314
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Odawara Auto-Machine Mfg. Co., Ltd.
(7314)
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Rating:56Neutral
Price Target:
¥1,200.00
▲(0.17% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by a solid balance sheet with sharply reduced leverage, offset by choppy operating performance and inconsistent cash generation (despite a 2025 rebound). Technical indicators are mixed-to-weak in the intermediate term, and valuation is a headwind due to the high P/E, partially balanced by the dividend yield.
Positive Factors
Stronger balance sheet with sharply reduced leverage
Meaningful debt reduction and a sizeable equity base materially lower financial risk and increase strategic optionality. Over the medium term this supports funding of capex, aftermarket service investments, or selective M&A without over-reliance on external debt, improving resilience through cycles.
Specialized automation and engineering product offering
A focus on tailored automated production systems and related engineering services creates higher barriers to entry and customer stickiness. Structural industry demand for automation supports multi-year sales pipelines, recurring service revenue and potential pricing power versus commodity equipment suppliers.
Return to substantially positive operating and free cash flow
The rebound to strong positive operating and free cash flow improves the firm's ability to self-fund growth, pay dividends, and further reduce leverage. If maintained, this enhances liquidity and lowers refinancing risk, enabling steadier long-term investment in products and services.
Negative Factors
Volatile revenue and operating profit trends
Marked swings in revenue and operating profit reduce visibility into sustainable margins and earnings power. Such volatility complicates capacity planning and investment, and suggests exposure to cyclical end markets, project timing or mix shifts that can impair durable margin improvement.
Inconsistent historical cash generation
Periods of negative operating and free cash flow despite reported profits point to working-capital swings or timing issues that reduce earnings quality. Intermittent cash conversion raises questions about the company’s ability to consistently fund growth or cover obligations without external financing.
Modest scale and low trading liquidity
A relatively small employee base and low average trading volume suggest limited scale versus larger industrial peers, which can constrain R&D, geographic expansion and bidding for large projects. Low liquidity may also hinder access to public capital and reduce analyst coverage over time.
Odawara Auto-Machine Mfg. Co., Ltd. (7314) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.79B
Dividend Yield2.15%
Average Volume (3M)2.35K
Price to Earnings (P/E)39.0
Beta (1Y)0.12
Revenue Growth23.24%
EPS Growth-111.63%
CountryJP
Employees211
SectorIndustrials
Sector Strength72
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)100.07
Shares Outstanding3,201,300
10 Day Avg. Volume2,930
30 Day Avg. Volume2,353
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)0.92
Price to Sales (P/S)0.50
P/FCF Ratio2.69
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Odawara Auto-Machine Mfg. Co., Ltd. Business Overview & Revenue Model
Company DescriptionOdawara 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 MoneyOdawara 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
Balance sheet strength is the key positive (debt fell sharply and equity remained stable), but operating results and cash conversion are uneven. Revenue and operating profit were volatile (notably weaker operating profit in 2025 vs. 2024), and cash flow was negative in 2023–2024 before rebounding strongly in 2025, reducing confidence in consistency.Income Statement
Profitability is positive but inconsistent. Revenue has been volatile (strong rebound in 2024 followed by a decline in 2025), and earnings have swung from a loss in 2022 to profits in 2023–2025. Margins improved materially from the weak 2022 level, but the latest year shows much lower operating profit versus 2024, suggesting pressure from mix, pricing, or costs.56
Neutral
Balance Sheet
Balance sheet strength looks solid, supported by a sizeable equity base. Leverage improved meaningfully in the latest year with total debt falling sharply versus 2024, which reduces financial risk. Total assets also stepped down in 2025, but equity remained stable, indicating the company is not relying heavily on debt to fund operations at present.74
Positive
Cash Flow
Cash generation is uneven. Operating and free cash flow were negative in 2023 and 2024 despite reported profitability, raising questions around working-capital swings or timing effects. The latest year shows a strong rebound to substantially positive operating and free cash flow, but the multi-year volatility lowers confidence in consistency.48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.14B | 7.67B | 6.11B | 3.93B | 4.69B | 3.58B |
| Gross Profit | 1.96B | 1.85B | 2.06B | 1.48B | 1.06B | 1.28B |
| EBITDA | 264.42M | 251.04M | 532.41M | 343.37M | 205.52M | 284.12M |
| Net Income | 26.56M | 96.62M | 293.00M | 191.58M | -42.58M | 99.86M |
Balance Sheet | ||||||
| Total Assets | 6.55B | 7.30B | 9.85B | 7.67B | 5.42B | 6.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 1.49B | 2.55B | 2.32B | 1.92B | 2.20B |
| Total Debt | 1.30B | 1.32B | 3.72B | 2.12B | 564.09M | 959.29M |
| Total Liabilities | 2.66B | 3.14B | 5.71B | 3.73B | 1.68B | 2.12B |
| Stockholders Equity | 3.90B | 4.16B | 4.14B | 3.94B | 3.74B | 3.90B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.42B | -1.28B | -1.10B | 156.42M | -213.10M |
| Operating Cash Flow | 0.00 | 1.45B | -1.14B | -1.05B | 375.02M | 131.99M |
| Investing Cash Flow | 0.00 | -25.66M | -144.49M | -56.32M | -129.60M | -245.39M |
| Financing Cash Flow | 0.00 | -2.48B | 1.52B | 1.51B | -450.64M | 369.88M |
Odawara Auto-Machine Mfg. Co., Ltd. Technical Analysis
Positive
1198.00
Price Trends
1179.97
Positive
1221.74
Negative
1158.88
Positive
Market Momentum
-1.06
Negative
56.67
Neutral
46.77
Neutral
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 1198 is above the 20-day moving average (MA) of 1169.05, above the 50-day MA of 1179.97, and above the 200-day MA of 1158.88, indicating a bullish trend. The MACD of -1.06 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 46.77 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥37.30B | 7.27 | ― | 4.54% | -20.75% | 7.75% | |
70 Neutral | ¥4.21B | 20.15 | ― | 2.03% | 3.24% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ¥23.49B | 43.98 | ― | 1.69% | -2.71% | ― | |
56 Neutral | ¥3.79B | 39.03 | ― | 2.15% | 23.24% | -111.63% | |
50 Neutral | ¥2.28B | -0.84 | ― | 5.27% | 0.34% | ― | |
42 Neutral | ¥3.41B | -15.38 | ― | ― | 4.11% | 33.06% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.