OZU Corporation (7487) AI Stock Analysis

• Market Cap: ¥14.32B
• Dividend Yield: 1.44%
• Average Volume (3M): 6.34K
• Price to Earnings (P/E): 37.1
• Beta (1Y): 0.10
• Revenue Growth: 1.30%
• EPS Growth: -33.10%
• Country: JP
• Employees: 289
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 19.52
• Shares Outstanding: 8,435,225
• 10 Day Avg. Volume: 5,070
• 30 Day Avg. Volume: 6,343
• PEG Ratio: -1.35
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 21.92
• 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: 56 Neutral
• Price Target: ¥1,718.00 ▼(-1.32% Downside)

OZU Corporation's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces financial challenges with declining revenues and profitability pressures, but maintains a strong balance sheet. Technical indicators suggest a stable outlook with slight upward momentum. The high P/E ratio indicates a relatively expensive valuation, which is a concern given the financial performance.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability, enabling OZU to withstand operational challenges and invest in growth opportunities.

Diverse Revenue Streams

Diverse revenue streams from multiple sectors reduce dependency on a single market, enhancing resilience and potential for growth in emerging technologies.

Innovative Product Focus

A focus on innovative technologies positions OZU well to capitalize on trends in electric vehicles and smart technologies, driving long-term growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth indicates challenges in market expansion and competitive pressures, potentially impacting long-term profitability and market position.

Profitability Pressures

Sustained pressure on profitability margins can hinder OZU's ability to reinvest in the business and compete effectively, affecting long-term financial health.

Inconsistent Cash Flow

Volatile cash flow growth can lead to challenges in funding operations and strategic initiatives, limiting OZU's ability to capitalize on growth opportunities.

OZU Corporation Business Overview & Revenue Model

Company Description

OZU Corporation (7487) is a diversified company based in Japan, primarily engaged in the manufacturing and sale of precision machinery and industrial equipment. The company operates across several sectors, including automation, robotics, and information technology, providing solutions that cater to a wide range of industries such as automotive, electronics, and manufacturing. OZU Corporation is known for its innovative products that enhance operational efficiency and productivity for its clients.

How the Company Makes Money

OZU Corporation generates revenue through multiple key streams, primarily from the sale of its precision machinery and industrial equipment. The company has established a strong foothold in the automation and robotics sectors, where it offers both standard and customized solutions for various industrial applications. Additionally, OZU Corporation benefits from service contracts and maintenance agreements for its products, which provide recurring revenue. The company also engages in strategic partnerships with other technology firms to enhance its product offerings, increasing its market reach and driving additional sales. Factors contributing to its earnings include a growing demand for automation in manufacturing, investments in research and development to innovate new technologies, and a strong customer base across diverse industries.

OZU Corporation Financial Statement Overview

Summary

OZU Corporation faces a challenging financial landscape with declining revenues and profitability pressures. However, the company maintains a strong balance sheet with low leverage, providing a cushion against operational difficulties. Cash flow management shows some positive signs but remains inconsistent.

Income Statement

OZU Corporation's income statement reveals a challenging environment with declining revenue growth rates over the past years, including a significant drop in the most recent period. The gross profit margin has remained relatively stable, but the net profit margin has been under pressure, reflecting reduced profitability. The EBIT and EBITDA margins have also shown a downward trend, indicating operational challenges.

Balance Sheet

The balance sheet of OZU Corporation shows a strong equity base with a low debt-to-equity ratio, indicating financial stability. The return on equity has been modest, reflecting the company's ability to generate returns on shareholders' investments. The equity ratio is healthy, suggesting a solid financial foundation with a significant portion of assets financed by equity.

Cash Flow

Cash flow analysis indicates mixed results. While operating cash flow has improved, the free cash flow growth rate has been volatile, with a recent positive spike. The operating cash flow to net income ratio is reasonable, but the free cash flow to net income ratio has shown fluctuations, suggesting potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.23B	10.22B	10.13B	10.37B	10.55B	33.92B
Gross Profit	3.34B	3.31B	3.20B	3.14B	3.21B	5.66B
EBITDA	1.03B	950.68M	1.11B	988.97M	1.17B	1.34B
Net Income	457.04M	408.85M	546.35M	383.94M	557.33M	724.17M
Balance Sheet
Total Assets	24.94B	26.41B	24.74B	24.63B	22.55B	22.31B
Cash, Cash Equivalents and Short-Term Investments	7.38B	8.36B	7.44B	7.48B	7.07B	6.62B
Total Debt	2.55B	2.57B	2.57B	2.57B	2.57B	2.62B
Total Liabilities	6.50B	7.19B	6.53B	6.61B	6.00B	6.32B
Stockholders Equity	18.35B	19.13B	18.13B	18.01B	16.54B	15.98B
Cash Flow
Free Cash Flow	0.00	636.98M	77.27M	589.31M	686.13M	1.00B
Operating Cash Flow	0.00	849.05M	530.98M	815.11M	893.88M	1.32B
Investing Cash Flow	0.00	316.20M	-403.82M	-223.68M	-211.42M	3.11B
Financing Cash Flow	0.00	-210.00M	-209.60M	-192.94M	-246.82M	-375.95M

OZU Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1741.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7487, the sentiment is Positive. The current price of 1741 is above the 20-day moving average (MA) of 1722.40, above the 50-day MA of 1708.58, and above the 200-day MA of 1699.65, indicating a bullish trend. The MACD of 9.78 indicates Negative momentum. The RSI at 71.06 is Negative, neither overbought nor oversold. The STOCH value of 49.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7487.

OZU Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8032	75 Outperform	¥110.78B	33.03	―	3.68%	4.06%	-73.92%
3708	71 Outperform	¥55.32B	14.52	―	2.76%	6.26%	-11.38%
3878	64 Neutral	¥7.91B	11.35	―	1.99%	-0.17%	-37.01%
9274	64 Neutral	¥49.41B	6.76	―	4.62%	-0.37%	-19.68%
3877	62 Neutral	¥22.16B	18.56	―	4.33%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
7487	56 Neutral	¥14.32B	37.10	―	1.44%	1.30%	-33.10%