Otake Corporation (7434) AI Stock Analysis

• Market Cap: ¥7.07B
• Dividend Yield: 2.07%
• Average Volume (3M): 1.17K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.32
• Revenue Growth: 5.57%
• EPS Growth: 11.77%
• Country: JP
• Employees: 227
• Sector: Industrials
• Sector Strength: 79
• Industry: Construction Materials
• EPS (TTM): 67.24
• Shares Outstanding: 4,284,500
• 10 Day Avg. Volume: 420
• 30 Day Avg. Volume: 1,166
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ―

Otake Corporation's stock benefits from strong financial performance, characterized by solid revenue growth and financial stability. However, the technical analysis indicates a bearish trend, which dampens the overall outlook. The valuation metrics suggest the stock is undervalued, providing a margin of safety for investors seeking value and income.

Otake Corporation Business Overview & Revenue Model

Company Description

Otake Corporation (7434) is a Japan-based company primarily engaged in the wholesale of electrical materials and equipment. The company offers a wide range of products including electrical cables, lighting fixtures, and related components. Otake serves various sectors such as construction, manufacturing, and infrastructure, providing essential materials and solutions that support electrical installations and operations.

How the Company Makes Money

Otake Corporation generates revenue through the wholesale distribution of electrical materials and equipment. The company's key revenue streams include the sale of electrical cables, lighting fixtures, and other related components to a diverse customer base comprising construction companies, manufacturers, and infrastructure developers. Otake's earnings are driven by its ability to leverage long-standing relationships with suppliers and customers, ensuring a steady supply of high-quality products. Additionally, the company may engage in strategic partnerships that enhance its product offerings or market reach, contributing further to its revenue streams.

Otake Corporation Financial Statement Overview

Summary

Otake Corporation exhibits strong financial health with consistent revenue growth, robust equity, and significant free cash flow improvements. The company shows efficient operational management and low leverage, positioning it well for future growth. Despite a slight dip in net profit margin, the overall financial trajectory remains positive.

Income Statement

Otake Corporation demonstrates strong revenue growth with a 6.7% increase from 2023 to 2024 and consistent growth in prior years. The gross profit margin improved to 13.9% in 2024, indicating efficient cost management. The net profit margin slightly decreased to 2.5%, but remains stable. EBIT and EBITDA margins of 2.9% and 4.0% respectively, suggest solid operational efficiency.

Balance Sheet

The company maintains a robust equity position, with an equity ratio of 60.8% in 2024, reflecting financial stability. The debt-to-equity ratio is very low at 0.006, indicating minimal leverage. ROE remains healthy at 5.2%, showcasing effective use of equity to generate profits.

Cash Flow

Strong cash flow performance is evidenced by a substantial free cash flow growth, turning positive to 1,147 million JPY in 2024. The operating cash flow to net income ratio of 1.99 suggests efficient cash generation relative to reported earnings. The company maintains a prudent approach to capital expenditures, supporting its solid cash flow position.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	31.25B	29.28B	26.62B	23.92B	25.31B
Gross Profit	4.35B	4.08B	3.63B	3.00B	3.13B
EBITDA	1.24B	1.24B	908.13M	419.84M	1.02B
Net Income	774.82M	822.35M	530.42M	517.39M	610.88M
Balance Sheet
Total Assets	24.53B	23.21B	21.03B	19.76B	19.32B
Cash, Cash Equivalents and Short-Term Investments	2.65B	1.92B	2.14B	1.39B	1.84B
Total Debt	90.50M	0.00	0.00	0.00	0.00
Total Liabilities	9.60B	9.24B	8.13B	7.26B	7.20B
Stockholders Equity	14.92B	13.98B	12.91B	12.50B	12.12B
Cash Flow
Free Cash Flow	1.15B	-27.77M	874.75M	-663.40M	-128.03M
Operating Cash Flow	1.54B	335.93M	926.36M	-614.35M	262.20M
Investing Cash Flow	-767.70M	-493.43M	-77.99M	250.78M	340.23M
Financing Cash Flow	-41.58M	-69.43M	-91.22M	-91.22M	-193.58M

Otake Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1766.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7434, the sentiment is Neutral. The current price of 1766 is below the 20-day moving average (MA) of 1776.45, above the 50-day MA of 1743.38, and below the 200-day MA of 1780.54, indicating a neutral trend. The MACD of 6.93 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7434.

Otake Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8058	80 Outperform	$12.46T	15.93	8.85%	3.13%	-7.01%	-17.06%
8031	79 Outperform	$9.38T	11.69	10.69%	3.02%	0.76%	-22.37%
8002	78 Outperform	$5.51T	10.60	14.30%	2.90%	8.52%	10.16%
8001	77 Outperform	$11.92T	12.32	17.06%	2.41%	2.83%	22.27%
8061	75 Outperform	¥66.03B	11.84		3.82%	12.01%	-23.10%
Sector *	71 Outperform	¥269.83B	15.10	8.31%	2.77%	6.08%	11.04%
7434	70 Outperform	¥7.07B	8.23		2.07%	5.57%	11.77%