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

• Market Cap: ¥4.03B
• Dividend Yield: 2.23%
• Average Volume (3M): 3.61K
• Price to Earnings (P/E): 136.8
• Beta (1Y): 0.17
• Revenue Growth: 62.76%
• EPS Growth: -94.53%
• Country: JP
• Employees: 211
• Sector: Industrials
• Sector Strength: 76
• Industry: Business Equipment & Supplies
• EPS (TTM): -76.94
• Shares Outstanding: 3,201,300
• 10 Day Avg. Volume: 4,620
• 30 Day Avg. Volume: 3,606
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,306.00
• Price Target Upside: 3.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥1,306.00 ▲(3.73% 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.

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

Company Description

Odawara Auto-Machine Mfg. Co., Ltd. (7314) is a manufacturing company based in Japan specializing in the production of automotive components. The company operates in the industrial sector, focusing primarily on the design, development, and manufacturing of precision parts and systems for automotive applications. With a commitment to innovation and quality, Odawara Auto-Machine Mfg. Co., Ltd. serves a range of clients in the automotive industry, contributing to advancements in vehicle performance and efficiency.

How the Company Makes Money

Odawara Auto-Machine Mfg. Co., Ltd. generates revenue through the manufacturing and sale of automotive components to various automobile manufacturers and suppliers. The company's key revenue streams include the sale of precision-engineered parts and systems that are integral to vehicle performance and efficiency. These components are sold under long-term contracts and partnerships with major automotive companies, providing a stable and recurring income. Additionally, the company's focus on innovation and quality allows it to maintain competitive pricing and secure a strong market position, contributing to its overall profitability.

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

Summary

While Odawara Auto-Machine Mfg. Co., Ltd. shows strong revenue growth and stable profitability margins, its negative cash flow position is a significant concern. The company's moderate leverage and effective equity utilization provide some stability, but the cash flow issues threaten liquidity and may hinder future growth.

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

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

• Technical Analysis Sentiment: Positive
• Last Price: 1259.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1259 is above the 20-day moving average (MA) of 1191.25, above the 50-day MA of 1102.24, and above the 200-day MA of 1103.47, indicating a bullish trend. The MACD of 44.67 indicates Negative momentum. The RSI at 74.19 is Negative, neither overbought nor oversold. The STOCH value of 86.96 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
7957	73 Outperform	¥2.37B	5.68		5.00%	9.24%	―
7975	70 Neutral	¥3.95B	10.44		2.15%	4.21%	―
6418	69 Neutral	¥29.49B	14.39		3.99%	-0.01%	-56.62%
7314	66 Neutral	¥4.03B	136.83		2.23%	62.76%	-94.53%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
7962	52 Neutral	¥23.83B	55.51		1.68%	0.22%	―
7992	44 Neutral	¥3.97B	―		―	4.61%	33.80%