OZU Corporation (7487) AI Stock Analysis

• Market Cap: ¥15.49B
• Dividend Yield: 1.42%
• Average Volume (3M): 6.34K
• Price to Earnings (P/E): 19.1
• 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): 22.77
• 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: 21.73
• 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: 56 Neutral
• Price Target: ¥1,915.00 ▲(7.58% Upside)
• Action: Reiterated Date: 09/02/25
• Date: Action: Reiterated 09/02/25

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 / low leverage

A strong equity base and low debt-to-equity ratio give OZU durable financial flexibility: it can fund capex, withstand cyclical demand in paper/lumber end markets, and pursue strategic investments without excessive refinancing risk, supporting multi-quarter resilience.

Stable gross profit margin

Relatively stable gross margins point to a resilient cost structure or pricing power in core products. That stability helps preserve operating profits even when revenue fluctuates, supporting longer-term margin sustainability and competitive positioning in commodity-sensitive segments.

Improving operating cash flow; recent FCF spike

An improvement in operating cash flow and a recent free cash flow uptick indicate OZU can convert business activity into cash when conditions align. This enhances ability to fund investments, reduce leverage, or maintain returns to shareholders over coming quarters.

Negative Factors

Declining revenue growth

Sustained declines in revenue reduce scale and limit the company's ability to spread fixed costs, invest in new product lines, or defend market share. Over multiple quarters this trend can erode competitive position and force margin trade-offs or strategic retrenching.

Pressure on net and operating margins

Downward trends in EBIT/EBITDA and net margins suggest rising cost pressures or weaker pricing power. Persistent margin compression reduces free cash generation and returns on capital, constraining reinvestment and making it harder to sustain competitive advantages over time.

Volatile free cash flow conversion

Inconsistent conversion of earnings into free cash flow complicates capital allocation and heightens funding risk for capex or dividends. Even with a strong balance sheet, ongoing FCF volatility reduces predictability of investments and limits strategic flexibility over several quarters.

OZU Corporation Business Overview & Revenue Model

Company Description

Ozu Corporation imports, processes, sells, and exports nonwoven fabrics for electronics, medical use, cosmetics, and industrial materials in Japan and internationally. It also offers paper and paper products. The company was founded in 1653 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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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	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	10.31B	10.22B	10.13B	10.37B	10.55B	33.92B
Gross Profit	3.26B	3.23B	3.13B	3.07B	3.13B	5.55B
EBITDA	718.86M	796.16M	886.97M	845.36M	1.05B	1.37B
Net Income	386.84M	408.85M	546.35M	383.94M	557.33M	724.17M
Balance Sheet
Total Assets	26.71B	26.41B	24.74B	24.63B	22.55B	22.31B
Cash, Cash Equivalents and Short-Term Investments	8.13B	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	7.26B	7.19B	6.53B	6.61B	6.00B	6.32B
Stockholders Equity	19.35B	19.13B	18.13B	18.01B	16.54B	15.98B
Cash Flow
Free Cash Flow	0.00	642.38M	85.30M	591.36M	710.82M	1.18B
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: Neutral
• Last Price: 1780.00
• 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:7487, the sentiment is Neutral. The current price of 1780 is below the 20-day moving average (MA) of 1851.45, below the 50-day MA of 1827.32, and above the 200-day MA of 1726.36, indicating a neutral trend. The MACD of 5.64 indicates Positive momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 69.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7487.

OZU Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3708	71 Outperform	¥60.26B	8.00	―	2.67%	6.26%	-11.38%
3865	66 Neutral	¥160.83B	9.24	3.97%	2.71%	-0.03%	120.35%
3878	64 Neutral	¥8.53B	7.60	―	1.90%	-0.17%	-37.01%
3877	62 Neutral	¥25.19B	47.50	―	3.72%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3864	59 Neutral	¥36.14B	-9.37	-0.13%	2.31%	-10.04%	43.13%
7487	56 Neutral	¥15.49B	19.12	―	1.42%	1.30%	-33.10%