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Odawara Auto-Machine Mfg. Co., Ltd. (JP:7314)
:7314
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Odawara Auto-Machine Mfg. Co., Ltd.
(7314)
Select Model
Select Model
Rating:66Neutral
Price Target:
¥1,306.00
▲(0.08% 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. (7314) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.17B
Dividend Yield2.15%
Average Volume (3M)2.35K
Price to Earnings (P/E)―
Beta (1Y)0.05
Revenue Growth23.24%
EPS Growth-111.63%
CountryJP
Employees211
SectorIndustrials
Sector Strength72
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)-14.24
Shares Outstanding3,201,300
10 Day Avg. Volume2,930
30 Day Avg. Volume2,353
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.95
Price to Sales (P/S)0.64
P/FCF Ratio-3.05
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
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.65
Positive
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.70
Positive
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.40
Negative
| 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
Neutral
1305.00
Price Trends
1303.24
Negative
1235.52
Positive
1124.30
Positive
Market Momentum
2.22
Positive
47.06
Neutral
21.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7314, the sentiment is Neutral. The current price of 1305 is below the 20-day moving average (MA) of 1308.95, above the 50-day MA of 1303.24, and above the 200-day MA of 1124.30, indicating a neutral trend. The MACD of 2.22 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥30.32B | 6.00 | ― | 4.00% | -20.75% | 7.75% | |
70 Neutral | ¥4.19B | 10.43 | ― | 2.05% | 3.24% | ― | |
66 Neutral | ¥4.17B | ― | ― | 2.15% | 23.24% | -111.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥2.25B | 5.34 | ― | 5.21% | 0.34% | ― | |
58 Neutral | ¥24.12B | 69.24 | ― | 1.65% | -2.71% | ― | |
40 Neutral | ¥3.02B | ― | ― | ― | 4.11% | 33.06% |
* Industrials Sector Average
JP:7314
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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.