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Ota Floriculture Auction Co., Ltd. (JP:7555)
:7555
Japanese Market

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

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JP:7555

Ota Floriculture Auction Co., Ltd.

(7555)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
¥779.00
▲(4.28% Upside)
Action:ReiteratedDate:02/19/26
The score is driven by a strong, low-leverage balance sheet, but pressured by declining TTM revenue, margin compression, and uneven cash-flow conversion. Technicals are largely neutral, while valuation is the main headwind due to a high P/E and only moderate dividend yield.
Positive Factors
Conservative balance sheet / very low leverage
Very low debt relative to equity materially reduces refinancing and solvency risk, giving the company durable financial flexibility. This supports capital allocation for operations, facility upkeep and occasional investments without stressing cash flow during cyclical softness in floriculture volumes.
Negative Factors
Sustained revenue decline
A multi-period decline in revenues erodes scale benefits of the auction marketplace and weakens pricing power with buyers and sellers. Persisting top-line contraction reduces operating leverage and limits the company's ability to recover fixed costs, pressuring medium-term profitability and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low leverage
Very low debt relative to equity materially reduces refinancing and solvency risk, giving the company durable financial flexibility. This supports capital allocation for operations, facility upkeep and occasional investments without stressing cash flow during cyclical softness in floriculture volumes.
Read all positive factors

Ota Floriculture Auction Co., Ltd. (7555) vs. iShares MSCI Japan ETF (EWJ)

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 ...
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 significan...

Ota Floriculture Auction Co., Ltd. Financial Statement Overview

Summary
Financials are stable but not strong: revenue declined in the TTM (-13.4%) and margins compressed (TTM net margin ~3.4% vs higher prior years). The balance sheet is a key positive with very low leverage (~0.05x debt/equity), while cash-flow quality is mixed with uneven conversion (TTM FCF ~0.41x net income) despite positive TTM free cash flow.
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
55
Neutral
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue3.74B3.86B4.14B4.29B3.93B23.92B
Gross Profit2.70B2.81B2.72B2.80B2.49B2.11B
EBITDA382.75M518.00M484.03M570.35M491.03M258.33M
Net Income114.88M221.68M182.22M306.13M173.44M-6.51M
Balance Sheet
Total Assets8.96B8.39B9.24B8.81B8.81B8.91B
Cash, Cash Equivalents and Short-Term Investments1.74B1.75B2.30B1.76B1.59B1.60B
Total Debt185.00M440.97M716.70M992.70M1.32B1.66B
Total Liabilities3.76B3.19B4.20B3.88B4.12B4.35B
Stockholders Equity5.19B5.20B5.04B4.93B4.69B4.57B
Cash Flow
Free Cash Flow215.19M-115.90M942.77M520.44M397.29M184.34M
Operating Cash Flow286.47M71.55M1.03B641.11M450.19M214.74M
Investing Cash Flow-216.42M-250.47M-122.16M-61.90M-66.84M-29.08M
Financing Cash Flow-363.14M-376.88M-366.72M-400.66M-391.58M-391.80M

Ota Floriculture Auction Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price747.00
Price Trends
50DMA
739.89
Positive
100DMA
738.29
Positive
200DMA
737.54
Positive
Market Momentum
MACD
2.35
Negative
RSI
56.25
Neutral
STOCH
42.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7555, the sentiment is Positive. The current price of 747 is above the 20-day moving average (MA) of 743.68, above the 50-day MA of 739.89, and above the 200-day MA of 737.54, indicating a bullish trend. The MACD of 2.35 indicates Negative momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 42.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7555.

Ota Floriculture Auction Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥24.92B6.452.45%21.60%116.17%
69
Neutral
¥179.56B27.331.65%4.90%-19.32%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
58
Neutral
¥3.81B14.661.61%-4.26%-25.43%
56
Neutral
¥97.41B15.381.86%4.41%-41.71%
49
Neutral
¥5.42B-5.550.32%2.94%19.68%
42
Neutral
¥4.29B18.101.00%9.52%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7555
Ota Floriculture Auction Co., Ltd.
744.00
19.59
2.70%
JP:1377
Sakata Seed Corporation
4,270.00
1,016.06
31.23%
JP:1380
Akikawa Foods & Farms Co., Ltd.
1,020.00
69.80
7.35%
JP:1383
Berg Earth Co., Ltd.
3,330.00
100.89
3.12%
JP:1384
Hokuryo Co., Ltd.
2,857.00
1,414.68
98.08%
JP:2874
YOKOREI CO. LTD.
1,662.00
830.34
99.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 19, 2026