Otake Corporation (7434) AI Stock Analysis

• Market Cap: ¥7.74B
• Dividend Yield: 1.95%
• Average Volume (3M): 1.80K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.31
• Revenue Growth: 9.13%
• EPS Growth: 20.84%
• Country: JP
• Employees: 227
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 46.03
• Shares Outstanding: 4,284,500
• 10 Day Avg. Volume: 2,170
• 30 Day Avg. Volume: 1,796
• PEG Ratio: 0.69
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 9.31
• 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: 79 Outperform
• Price Target: ¥2,088.00 ▲(7.13% Upside)

Otake Corporation's strong financial performance, characterized by consistent revenue growth and stable profitability, is the primary driver of its stock score. The technical analysis supports a positive outlook with bullish momentum and no significant overbought conditions. The attractive valuation further enhances the stock's appeal, making it a potentially undervalued opportunity in the construction materials industry.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial stability and expansion potential.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial flexibility, reduces risk, and supports sustainable growth and investment opportunities.

Profitability

Stable profitability margins reflect effective cost control and pricing strategies, ensuring the company can maintain its competitive edge and invest in future growth.

Negative Factors

Debt Increase

An increase in debt, even if slight, can impact financial flexibility and requires careful management to prevent potential strain on cash flows.

Cash Conversion Efficiency

Improving cash conversion efficiency is crucial for maximizing liquidity and ensuring that profits are effectively translated into cash, supporting operational needs and investment.

Free Cash Flow Conversion

Enhancing free cash flow conversion is essential for funding growth initiatives and maintaining financial health, as it ensures that earnings are effectively converted into cash.

Otake Corporation Business Overview & Revenue Model

Company Description

Otake Corporation engages in sale of plumbing, housing, and air conditioning equipment. It offers valves, fittings, pipes, meters and gauges, support hardware products, housing equipment supplies, and plumbing machine tools. The company also provides polyurea and mouse shield products. Its products are used in chemical and industrial sectors, as well as the production activities of factories and plants comprising supplying heavy oils and energy, cooling and cleaning water, transporting beverages and chemicals during manufacturing processes, and exhausting steam and gas. The company was formerly known as Otake Shoten Co., Ltd. and changed its name to Otake Corporation in 1988. Otake Corporation was founded in 1946 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Otake Corporation generates revenue through the sale of its precision equipment and machinery to various industries, particularly in the semiconductor and electronics sectors. Key revenue streams include direct sales of machinery, maintenance services, and after-sales support. The company also benefits from strategic partnerships with technology firms and manufacturers, which enhance its market reach and product offerings. Additionally, Otake may engage in research and development collaborations that can lead to new innovations and market opportunities, further contributing to its earnings.

Otake Corporation Financial Statement Overview

Summary

Otake Corporation exhibits strong financial health with consistent revenue growth, stable profitability, and a solid balance sheet. The company maintains low leverage, reducing financial risk. While cash flow metrics show positive trends, there is potential for further improvement in cash conversion efficiency.

Income Statement

Otake Corporation has demonstrated consistent revenue growth over the past few years, with a notable increase in total revenue from 2024 to 2025. The gross profit margin and net profit margin have shown stability, indicating efficient cost management. The EBIT and EBITDA margins are healthy, reflecting strong operational performance. Overall, the income statement reflects a robust growth trajectory and profitability.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio indicating minimal leverage and financial risk. The return on equity is solid, showing effective use of shareholder funds to generate profits. The equity ratio is healthy, suggesting a stable financial structure. However, the slight increase in total debt from 2024 to 2025 warrants monitoring.

Cash Flow

Otake Corporation's cash flow statement shows a positive trend in free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is reasonable, suggesting efficient cash conversion from profits. However, the free cash flow to net income ratio indicates room for improvement in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.84B	32.99B	31.25B	29.28B	26.62B	23.92B
Gross Profit	2.44B	4.75B	4.35B	4.08B	3.63B	3.00B
EBITDA	694.46M	1.40B	1.24B	1.24B	908.13M	882.26M
Net Income	439.63M	855.07M	774.82M	822.35M	530.42M	517.39M
Balance Sheet
Total Assets	26.06B	26.06B	24.53B	23.21B	21.03B	19.76B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.73B	2.65B	1.92B	2.14B	1.39B
Total Debt	71.50M	71.50M	90.50M	0.00	0.00	0.00
Total Liabilities	10.68B	10.68B	9.60B	9.24B	8.13B	7.26B
Stockholders Equity	15.39B	15.39B	14.92B	13.98B	12.91B	12.50B
Cash Flow
Free Cash Flow	0.00	745.04M	1.15B	-27.77M	874.75M	-663.40M
Operating Cash Flow	0.00	983.89M	1.54B	335.93M	926.36M	-614.35M
Investing Cash Flow	0.00	-534.49M	-767.70M	-493.43M	-77.99M	250.78M
Financing Cash Flow	0.00	-399.31M	-41.58M	-69.43M	-91.22M	-91.22M

Otake Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1949.00
• 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:7434, the sentiment is Positive. The current price of 1949 is above the 20-day moving average (MA) of 1913.00, above the 50-day MA of 1857.40, and above the 200-day MA of 1790.37, indicating a bullish trend. The MACD of 27.82 indicates Negative momentum. The RSI at 75.98 is Negative, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7434.

Otake Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7434	79 Outperform	¥7.74B	8.61	―	1.95%	9.13%	20.84%
7635	76 Outperform	¥9.09B	15.25	―	2.34%	2.11%	9.56%
5282	74 Outperform	¥13.17B	15.10	―	3.21%	5.83%	-16.54%
7461	73 Outperform	¥7.43B	5.90	―	3.20%	9.49%	37.09%
8104	72 Outperform	¥9.36B	14.24	―	2.93%	1.56%	-29.40%
5268	69 Neutral	¥13.86B	64.92	―	1.24%	-2.82%	-44.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%