OM2 Network Co., Ltd. (7614) AI Stock Analysis

• Market Cap: ¥10.31B
• Dividend Yield: 2.21%
• Average Volume (3M): 28.91K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.35
• Revenue Growth: 5.62%
• EPS Growth: -21.92%
• Country: JP
• Employees: 715
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 24.77
• Shares Outstanding: 7,335,634
• 10 Day Avg. Volume: 81,380
• 30 Day Avg. Volume: 28,913
• PEG Ratio: -0.49
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 10.58
• 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: 71 Outperform
• Price Target: ¥1,675.00 ▲(8.91% Upside)

OM2 Network Co., Ltd. scores well due to its strong financial performance and reasonable valuation. The company's robust balance sheet and consistent revenue growth are significant strengths. Technical analysis presents a mixed picture, with some bullish indicators but overall uncertainty. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and growth opportunities.

Cash Generation Ability

Positive free cash flow generation supports operational needs and strategic initiatives, ensuring the company can sustain growth and manage unforeseen expenses.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin may indicate rising costs or inefficiencies, which could impact profitability if not addressed.

Free Cash Flow Growth Decline

A decline in free cash flow growth could limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Return on Equity Decrease

A decrease in return on equity may suggest less efficient use of capital, potentially impacting investor confidence and future capital raising.

OM2 Network Co., Ltd. Business Overview & Revenue Model

Company Description

OM2 Network Co., Ltd. (7614) is a technology company specializing in telecommunications and network solutions. The company operates primarily in the telecommunications sector, providing a range of services including network infrastructure development, data communication services, and digital transformation solutions. OM2 Network focuses on enhancing connectivity and communication efficiency for businesses and organizations, offering products that cater to both traditional and emerging technologies in the digital landscape.

How the Company Makes Money

OM2 Network Co., Ltd. generates revenue through multiple streams, primarily from the sale of telecommunications infrastructure and services. Key revenue sources include the installation and maintenance of network systems for clients, subscription fees for ongoing data services, and consulting services related to digital transformation projects. Additionally, the company may engage in partnerships with other technology firms to co-develop products or services, enhancing its market reach and driving sales. Strategic alliances with telecommunications providers can also lead to joint ventures or bundled service offerings, contributing significantly to its earnings.

OM2 Network Co., Ltd. Financial Statement Overview

Summary

OM2 Network Co., Ltd. exhibits a strong financial position with consistent revenue growth and efficient cost management. The balance sheet is solid, with low leverage and high equity. While cash flow generation is positive, there is room for improvement in free cash flow growth. Overall, the company is well-positioned in the food distribution industry, but attention to net profit margins and cash flow management could enhance financial performance further.

Income Statement

OM2 Network Co., Ltd. has shown consistent revenue growth over the years, with a slight dip in EBIT and EBITDA margins in the latest year. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has decreased, suggesting potential challenges in controlling non-operating expenses or taxes.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The equity ratio is high, reflecting a strong capital structure. Return on equity has slightly decreased, which may suggest a need for more efficient use of equity capital.

Cash Flow

OM2 Network Co., Ltd. has demonstrated positive free cash flow, although there is a decline in free cash flow growth rate. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The decrease in free cash flow to net income ratio suggests potential increases in capital expenditures or other cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.15B	32.78B	32.11B	31.54B	29.72B	29.58B
Gross Profit	13.32B	12.65B	12.67B	12.08B	11.05B	11.40B
EBITDA	1.77B	2.07B	2.37B	1.79B	2.03B	1.72B
Net Income	987.17M	1.10B	1.34B	886.76M	972.58M	689.08M
Balance Sheet
Total Assets	22.64B	22.06B	20.16B	19.18B	18.26B	17.79B
Cash, Cash Equivalents and Short-Term Investments	10.72B	9.74B	11.97B	11.05B	9.62B	9.07B
Total Debt	911.24M	507.00M	54.56M	190.68M	315.06M	100.00M
Total Liabilities	5.21B	4.83B	3.72B	3.82B	3.63B	3.98B
Stockholders Equity	17.43B	17.24B	16.44B	15.36B	14.63B	13.82B
Cash Flow
Free Cash Flow	0.00	886.00M	1.31B	1.69B	710.06M	902.83M
Operating Cash Flow	0.00	1.27B	1.65B	1.85B	973.02M	1.22B
Investing Cash Flow	0.00	-2.44B	-438.77M	171.34M	-516.01M	-280.75M
Financing Cash Flow	0.00	-1.08B	-297.61M	-285.74M	-10.04M	-82.72M

OM2 Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1538.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7614, the sentiment is Neutral. The current price of 1538 is below the 20-day moving average (MA) of 1622.20, below the 50-day MA of 1553.22, and above the 200-day MA of 1492.42, indicating a neutral trend. The MACD of 20.20 indicates Positive momentum. The RSI at 44.72 is Neutral, neither overbought nor oversold. The STOCH value of 6.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7614.

OM2 Network Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7614	71 Outperform	¥10.31B	10.34	―	2.21%	5.62%	-21.92%
3160	71 Outperform	¥8.88B	19.78	―	2.32%	4.62%	-29.55%
7538	69 Neutral	¥4.74B	4.37	―	1.65%	4.32%	24.60%
8030	68 Neutral	¥13.84B	5.17	―	3.16%	5.19%	11.04%
7114	67 Neutral	¥3.98B	42.27	―	―	10.69%	-59.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥7.92B	22.34	―	1.01%	6.26%	67.81%