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

• Market Cap: ¥3.65B
• Dividend Yield: 2.15%
• Average Volume (3M): 2.35K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.15
• Revenue Growth: 23.24%
• EPS Growth: -111.63%
• Country: JP
• Employees: 211
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 100.07
• Shares Outstanding: 3,201,300
• 10 Day Avg. Volume: 2,930
• 30 Day Avg. Volume: 2,353
• PEG Ratio: -0.59
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 2.69
• 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: 56 Neutral
• Price Target: ¥1,200.00 ▲(0.17% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 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. 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

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.

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.

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.

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	1.03B	1.25B
EBITDA	247.84M	251.04M	522.14M	334.47M	193.49M	303.09M
Net Income	26.84M	96.62M	293.40M	191.58M	-42.58M	99.86M
Balance Sheet
Total Assets	6.55B	7.30B	9.89B	7.73B	5.45B	6.05B
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	5.75B	3.79B	1.71B	2.15B
Stockholders Equity	3.90B	4.16B	4.14B	3.94B	3.74B	3.90B
Cash Flow
Free Cash Flow	0.00	1.42B	-1.25B	-1.09B	181.04M	-184.90M
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

• Technical Analysis Sentiment: Negative
• Last Price: 1198.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7314, the sentiment is Negative. The current price of 1198 is above the 20-day moving average (MA) of 1154.00, above the 50-day MA of 1159.86, and above the 200-day MA of 1170.17, indicating a bearish trend. The MACD of -7.44 indicates Positive momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 34.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥31.57B	4.13	―	4.54%	-20.75%	7.75%
6448	76 Outperform	¥747.84B	8.32	7.77%	3.16%	4.30%	78.29%
7752	71 Outperform	¥773.38B	8.78	6.04%	2.78%	4.46%	70.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
4901	58 Neutral	¥3.55T	13.78	7.81%	2.07%	5.39%	12.69%
7314	56 Neutral	¥3.65B	2.99	―	2.15%	23.24%	-111.63%
4902	47 Neutral	¥245.72B	-71.33	-12.69%	0.71%	-11.22%	-731.07%