Ota Floriculture Auction Co., Ltd. (7555) AI Stock Analysis

• Market Cap: ¥3.80B
• Dividend Yield: 1.61%
• Average Volume (3M): 876.00
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.14
• Revenue Growth: -4.26%
• EPS Growth: -25.43%
• Country: JP
• Employees: 184
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.81
• Shares Outstanding: 5,500,000
• 10 Day Avg. Volume: 760
• 30 Day Avg. Volume: 876
• PEG Ratio: 0.78
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.98
• P/FCF Ratio: -32.61
• 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: 59 Neutral
• Price Target: ¥780.00 ▲(4.42% Upside)

The overall stock score reflects strong financial stability but is tempered by declining revenue and profitability margins. The technical analysis indicates a lack of strong momentum, and the valuation suggests the stock is expensive. These factors collectively result in a moderate score.

Positive Factors

Financial Stability

A low debt-to-equity ratio indicates conservative financial management, providing stability and flexibility to navigate market challenges.

Cash Flow Management

Significant improvement in free cash flow growth enhances the company's ability to invest in growth opportunities and manage financial obligations.

Gross Profit Margin

A stable gross profit margin indicates efficient cost management, supporting long-term profitability despite revenue challenges.

Negative Factors

Revenue Decline

Declining revenue growth may impact the company's ability to sustain operations and invest in future growth, posing a long-term challenge.

Profitability Margins

Reduced net profit margins indicate pressure on profitability, which could affect the company's ability to generate shareholder value over time.

Return on Equity

A decrease in return on equity suggests lower profitability on shareholders' investments, potentially impacting investor confidence and future capital raising.

Ota Floriculture Auction Co., Ltd. Business Overview & Revenue Model

Company Description

Ota Floriculture Auction Co., Ltd. (7555) is a leading auction house specializing in the trade of flowers and ornamental plants. Located in Japan, the company operates within the floriculture sector, providing a platform for growers and buyers to connect and transact. Ota Floriculture Auction Co. facilitates the auctioning of a wide variety of floral products, including cut flowers, potted plants, and seasonal offerings, catering to wholesalers, retailers, and exporters both domestically and internationally.

How the Company Makes Money

Ota Floriculture Auction Co., Ltd. generates revenue primarily through auction fees charged to sellers and buyers involved in the floral transactions. The company takes a commission on each sale made at its auctions, which constitutes a significant portion of its income. Additionally, Ota may earn revenue from ancillary services such as logistics, packaging, and marketing support for the growers. Strategic partnerships with local and international florists, growers, and retailers also enhance its market reach and create additional revenue opportunities. The company's reputation as a reliable auctioneer and its extensive network in the floriculture market contribute to its financial performance.

Ota Floriculture Auction Co., Ltd. Financial Statement Overview

Summary

Ota Floriculture Auction Co., Ltd. demonstrates strong cost management and financial stability, with a robust gross profit margin and low leverage. However, declining revenue and profitability, coupled with weak cash flow growth, present challenges.

Income Statement

Ota Floriculture Auction Co., Ltd. shows a strong gross profit margin of 77.7% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 4.9% from 5.7% in the previous year, reflecting reduced profitability. The revenue growth rate is negative, suggesting a decline in sales. Despite these challenges, the company maintains a reasonable EBIT and EBITDA margin, demonstrating operational efficiency.

Balance Sheet

The company has a low debt-to-equity ratio of 0.06 in the TTM, indicating strong financial stability and low leverage. Return on equity is modest at 3.6%, suggesting moderate profitability for shareholders. The equity ratio is healthy, reflecting a strong capital structure. Overall, the balance sheet shows financial stability with low risk.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow growth, which is concerning. The operating cash flow to net income ratio is low at 0.18, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is relatively healthy at 0.32, suggesting some ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.74B	3.86B	4.14B	4.29B	3.93B	23.92B
Gross Profit	2.84B	2.81B	2.98B	3.07B	2.75B	2.38B
EBITDA	437.00M	597.61M	550.37M	690.46M	513.60M	300.11M
Net Income	126.88M	221.68M	182.22M	306.13M	173.44M	-6.51M
Balance Sheet
Total Assets	7.86B	8.39B	9.24B	8.81B	8.81B	8.91B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.75B	2.20B	1.68B	1.59B	1.60B
Total Debt	242.00M	440.97M	716.70M	992.70M	1.32B	1.66B
Total Liabilities	2.74B	3.19B	4.20B	3.88B	4.12B	4.35B
Stockholders Equity	5.13B	5.20B	5.04B	4.93B	4.69B	4.57B
Cash Flow
Free Cash Flow	129.19M	-115.90M	905.40M	515.14M	347.44M	157.61M
Operating Cash Flow	312.47M	71.55M	1.03B	641.11M	450.19M	214.74M
Investing Cash Flow	-358.42M	-250.47M	-122.16M	-61.90M	-66.84M	-29.08M
Financing Cash Flow	-365.14M	-376.88M	-366.72M	-400.66M	-391.58M	-391.80M

Ota Floriculture Auction Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 747.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7555, the sentiment is Negative. The current price of 747 is above the 20-day moving average (MA) of 746.90, below the 50-day MA of 747.08, and above the 200-day MA of 744.97, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 24.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7555.

Ota Floriculture Auction Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1383	62 Neutral	¥5.02B	102.92	―	0.32%	2.94%	19.68%
7443	61 Neutral	¥3.96B	20.14	―	0.95%	5.88%	16.27%
7555	59 Neutral	¥3.80B	29.75	―	1.61%	-4.26%	-25.43%
1380	57 Neutral	¥4.17B	43.37	―	1.00%	9.52%	―
1382	53 Neutral	¥1.37B	400.70	―	2.77%	-2.80%	-62.18%