Otake Corporation (7434) AI Stock Analysis

• Market Cap: ¥7.15B
• Dividend Yield: 2.06%
• Average Volume (3M): 693.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.32
• Revenue Growth: 5.57%
• EPS Growth: 11.85%
• Country: JP
• Employees: 227
• Sector: Industrials
• Sector Strength: 71
• Industry: Construction Materials
• EPS (TTM): 67.24
• Shares Outstanding: 4,284,500
• 10 Day Avg. Volume: 970
• 30 Day Avg. Volume: 693
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,041.00
• Price Target Upside: 13.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,041.00 ▲(13.39% Upside)

Otake Corporation's stock is well-positioned due to its strong financial performance, characterized by consistent revenue growth and stable profitability. The technical analysis supports a positive price trend, and the stock's valuation suggests it is undervalued, offering a good entry point for investors. The absence of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability

Stable profitability margins reflect effective cost control and pricing strategies, ensuring sustained earnings and competitive advantage.

Negative Factors

Cash Conversion Efficiency

Inefficient cash conversion can limit liquidity and restrict the company's ability to reinvest in growth or manage financial obligations effectively.

Debt Increase

An increase in debt, even if slight, could signal potential future financial strain if not managed properly, impacting long-term financial health.

Free Cash Flow Conversion

Weak free cash flow conversion may hinder the company's ability to fund operations, pay dividends, or invest in growth, affecting long-term sustainability.

Otake Corporation Business Overview & Revenue Model

Company Description

Otake Corporation (7434) is a Japanese company primarily engaged in the manufacturing and sale of food products, with a strong focus on traditional Japanese cuisine. The company operates in several sectors, including processed foods, seasonings, and food services. Otake is particularly known for its high-quality dashi (Japanese soup stock), sauces, and other condiments, which are integral to Japanese cooking. The company also ventures into export markets, promoting its products globally to cater to the growing demand for authentic Japanese flavors.

How the Company Makes Money

Otake Corporation generates revenue through multiple streams, primarily from the sale of its food products, including dashi, sauces, and seasonings. The company markets its products to both domestic and international customers, leveraging partnerships with retailers, wholesalers, and food service providers. Additionally, Otake has established collaborations with various restaurants and culinary institutions to promote its offerings, further enhancing its market presence. The company's focus on high-quality ingredients and traditional production methods allows it to command premium pricing, contributing significantly to its profitability.

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

Otake Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1800 is above the 20-day moving average (MA) of 1788.50, above the 50-day MA of 1770.16, and above the 200-day MA of 1777.81, indicating a bullish trend. The MACD of 8.74 indicates Positive momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 67.54 is Neutral, 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
5282	81 Outperform	¥10.95B	14.48		3.14%	-1.67%	-38.73%
7434	78 Outperform	¥7.15B	8.32		2.06%	5.57%	11.85%
7635	73 Outperform	¥6.84B	10.52		3.14%	2.66%	53.66%
8104	73 Outperform	¥8.90B	11.54		3.04%	0.70%	5.27%
7461	69 Neutral	¥7.33B	6.19		3.20%	7.37%	27.54%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
5268	62 Neutral	¥13.67B	37.58		1.35%	-0.66%	-11.08%