Onoken Co., Ltd. (7414) AI Stock Analysis

• Market Cap: ¥34.96B
• Dividend Yield: 4.9%
• Average Volume (3M): 58.44K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.64
• Revenue Growth: -7.06%
• EPS Growth: -31.96%
• Country: JP
• Employees: 1,017
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 17.63
• Shares Outstanding: 25,123,913
• 10 Day Avg. Volume: 61,650
• 30 Day Avg. Volume: 58,443
• PEG Ratio: -0.48
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -4.08
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,490.00 ▲(6.89% Upside)

The overall stock score is driven by a strong valuation due to a low P/E ratio and high dividend yield, making it attractive for value and income investors. However, financial performance challenges, particularly in cash flow management and profitability, along with weak technical indicators, weigh down the score.

Positive Factors

Stable Gross Margins

Stable gross margins indicate effective cost management, which supports long-term profitability despite revenue fluctuations.

Long-term Contracts

Long-term contracts provide a stable revenue stream, enhancing financial predictability and customer retention.

Market Position

Strong partnerships bolster market position, expanding reach and supporting sustained sales growth in competitive sectors.

Negative Factors

Declining Net Profitability

Decreasing net profitability may indicate rising costs or inefficiencies, potentially impacting long-term financial health.

Negative Free Cash Flow

Negative free cash flow limits the company's ability to reinvest, reduce debt, or distribute dividends, affecting financial flexibility.

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder strategic planning and investment, challenging long-term business expansion.

Onoken Co., Ltd. Business Overview & Revenue Model

Company Description

Onoken Co., Ltd. (7414) is a Japanese company primarily engaged in the manufacture and sale of electronic components and related products. Operating in sectors such as consumer electronics, automotive, and industrial equipment, Onoken specializes in providing high-quality components that enhance the functionality and efficiency of electronic devices. The company's core products include connectors, sensors, and various circuit components, catering to both domestic and international markets.

How the Company Makes Money

Onoken Co., Ltd. generates revenue through a multifaceted business model that includes the direct sale of its electronic components to manufacturers in various industries. The company capitalizes on long-term contracts with key clients, ensuring a stable revenue stream through ongoing supply agreements. In addition to product sales, Onoken benefits from providing customized solutions and technical support services, which not only enhance customer loyalty but also allow for premium pricing on specialized products. Significant partnerships with major electronics and automotive companies further bolster its market position, contributing to increased sales volumes and expanding its reach into new markets.

Onoken Co., Ltd. Financial Statement Overview

Summary

Onoken Co., Ltd. shows stable gross margins but faces challenges with declining net profitability and inconsistent revenue growth. The balance sheet indicates moderate leverage and stable equity levels, though debt reliance poses potential risks. Cash flow analysis reveals liquidity challenges with negative free cash flow, necessitating improved cash management strategies.

Income Statement

The income statement of Onoken Co., Ltd. shows a mixed performance. The gross profit margin for the latest year is approximately 9.94%, indicating efficient production cost management. However, the net profit margin decreased to about 1.8%, reflecting increased expenses or lower operational efficiencies. Revenue growth has been inconsistent, with a notable decline in the latest year compared to previous years. The EBIT and EBITDA margins stand at 2.51% and 4.02%, respectively, suggesting moderate operational profitability. Despite challenges, the company maintains stable gross margins.

Balance Sheet

Onoken Co., Ltd.'s balance sheet reflects moderate financial stability. The debt-to-equity ratio is approximately 0.58, which is manageable but indicates reliance on debt financing. The return on equity (ROE) is around 5.02%, showing modest returns to shareholders. The equity ratio is approximately 47.85%, suggesting a balanced capital structure but highlighting potential risk if liabilities grow. Overall, the company maintains adequate equity levels, but increasing debt could pose challenges.

Cash Flow

The cash flow statement indicates a challenging liquidity position for Onoken Co., Ltd. The free cash flow remains negative, showing a deteriorating trend with -9.4 billion yen in the latest year, largely due to significant capital expenditures. The operating cash flow to net income ratio is approximately 1.07, indicating decent cash generation relative to profits. However, the negative free cash flow to net income ratio highlights concerns over cash availability for reinvestment or debt reduction. The company needs to improve cash flow management to enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.63B	271.94B	281.93B	262.65B	222.76B	202.82B
Gross Profit	26.26B	27.04B	26.74B	26.09B	27.16B	19.91B
EBITDA	9.98B	10.99B	11.43B	12.87B	14.77B	8.95B
Net Income	4.18B	4.89B	5.76B	7.02B	8.14B	4.51B
Balance Sheet
Total Assets	200.68B	203.53B	208.50B	188.69B	170.47B	144.09B
Cash, Cash Equivalents and Short-Term Investments	5.54B	4.44B	6.69B	2.98B	6.35B	5.13B
Total Debt	55.02B	56.73B	46.76B	36.35B	30.09B	20.17B
Total Liabilities	102.56B	105.25B	112.95B	98.37B	87.19B	70.15B
Stockholders Equity	97.22B	97.39B	94.73B	89.62B	82.63B	73.72B
Cash Flow
Free Cash Flow	0.00	-9.42B	-2.35B	-8.27B	-9.77B	8.87B
Operating Cash Flow	0.00	5.76B	15.94B	-4.39B	-5.14B	14.63B
Investing Cash Flow	0.00	-15.64B	-20.78B	309.00M	-5.04B	-5.66B
Financing Cash Flow	0.00	7.63B	8.66B	4.60B	10.46B	-9.13B

Onoken Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1394.00
• 50DMA: Positive
• 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:7414, the sentiment is Positive. The current price of 1394 is above the 20-day moving average (MA) of 1387.85, above the 50-day MA of 1382.80, and below the 200-day MA of 1397.53, indicating a bullish trend. The MACD of 3.71 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 85.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7414.

Onoken Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5922	81 Outperform	¥18.85B	9.35	―	2.78%	2.63%	-3.96%
5757	71 Outperform	¥32.86B	7.86	―	2.24%	12.79%	-15.37%
3435	70 Neutral	¥10.32B	9.66	―	2.89%	1.82%	-24.39%
7637	69 Neutral	¥25.44B	15.16	―	3.00%	9.16%	-21.26%
7414	66 Neutral	¥34.96B	9.93	―	4.90%	-7.06%	-31.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥20.21B	10.50	―	4.27%	5.12%	―

Onoken Co., Ltd. Corporate Events

Onoken Co., Ltd. Acquires Treasury Shares to Optimize Capital Structure

Onoken Co., Ltd. has announced the acquisition of 108,800 treasury shares valued at approximately 149.8 million yen, conducted through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 450,000 shares, reflecting the company’s efforts to optimize its capital structure and potentially enhance shareholder value.

Onoken Co., Ltd. Announces Strategic Share Buyback Plan

Onoken Co., Ltd. has announced a resolution to acquire 450,000 of its own common shares, representing 1.82% of its outstanding shares, for a total of 500 million yen. This move aims to enhance shareholder returns and improve capital efficiency, reflecting the company’s commitment to flexible capital policies and potentially strengthening its market position.

Onoken Co., Ltd. Revises Earnings Forecast Amid Sluggish Steel Demand

Onoken Co., Ltd. announced a downward revision of its earnings forecast for the fiscal year ending March 31, 2026, due to weaker-than-expected market conditions and sluggish demand for steel products. The company reported a significant decrease in net sales and profits for the six months ended September 30, 2025, compared to its previous forecast. Despite the challenging business environment, Onoken plans to enhance its business performance by developing new bases and installing new processing equipment to secure sales volume and increase profits less affected by market fluctuations.

Onoken Co., Ltd. Reports Decline in Financial Performance for First Half of 2025

Onoken Co., Ltd. reported a significant decline in its financial performance for the six months ending September 30, 2025, with net sales dropping by 9.1% compared to the previous year. The company’s operating profit and ordinary profit also saw substantial decreases of 47.3% and 47.9%, respectively, indicating challenges in maintaining profitability. The forecast for the full fiscal year 2025 anticipates further declines in net sales and profits, suggesting ongoing difficulties in the company’s operations and potentially impacting its market position.