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

• Market Cap: ¥10.08B
• Dividend Yield: 2.27%
• Average Volume (3M): 2.47K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.22
• Revenue Growth: 3.37%
• EPS Growth: -28.80%
• Country: JP
• Employees: 715
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Food Distribution
• EPS (TTM): 35.93
• Shares Outstanding: 7,335,634
• 10 Day Avg. Volume: 2,040
• 30 Day Avg. Volume: 2,473
• PEG Ratio: -1.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 71 Outperform
• Price Target: ―

OM2 Network Co., Ltd. holds a solid position in the food distribution industry with strong financial performance and attractive valuation metrics. Despite neutral technical indicators, the company's low leverage and undervalued stock contribute positively to its overall appeal. The absence of notable corporate events or earnings call insights leaves the score primarily driven by financial and valuation factors.

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

Company Description

OM2 Network Co., Ltd. (7614) is a Japanese company operating in the IT services sector. The company specializes in providing comprehensive network solutions, including IT infrastructure management, system integration, and software development services. OM2 Network Co., Ltd. caters to a diverse range of industries, offering tailor-made solutions to enhance operational efficiency and technological capabilities.

How the Company Makes Money

OM2 Network Co., Ltd. generates revenue through a variety of IT-related services. Its primary revenue streams include IT infrastructure management, where the company provides maintenance and support for corporate IT systems, and system integration services, which involve designing and implementing technology solutions tailored to client needs. Additionally, the company earns from software development services, where it creates custom software solutions for businesses. OM2 Network Co., Ltd. may also have partnerships with technology vendors and other IT service providers that contribute to its revenue, although specific partnerships are not detailed.

OM2 Network Co., Ltd. Financial Statement Overview

Summary

OM2 Network Co., Ltd. showcases robust financial performance with consistent revenue growth and stable margins. The balance sheet is strong with low leverage, enhancing financial stability. Despite healthy cash flow generation, a decline in free cash flow growth presents potential areas for improvement.

Income Statement

OM2 Network has shown consistent revenue growth over the years, with a recent increase from ¥31.54 billion to ¥32.78 billion. Gross profit margins have been stable, around 38.5%, indicating strong cost management. However, the net profit margin has slightly decreased from 4.2% to 3.4% due to a drop in net income. The EBIT and EBITDA margins have also shown slight variations but remain healthy, suggesting operational efficiency.

Balance Sheet

The company's balance sheet is robust with a strong equity position, as evidenced by a high equity ratio of approximately 78%. The debt-to-equity ratio is very low at 0.03, indicating minimal leverage and financial risk. Return on equity is solid at 6.4%, reflecting efficient use of shareholder funds. Overall, the balance sheet indicates strong financial stability and low risk.

Cash Flow

The company's cash flow position is generally strong, with a healthy free cash flow to net income ratio of 0.81, indicating good conversion of profits into cash. However, the free cash flow has decreased compared to previous years, which might impact future investments. The operating cash flow to net income ratio is slightly above 1, showing adequate cash generation relative to earnings.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.78B	32.11B	31.54B	29.72B	29.58B
Gross Profit	12.65B	12.67B	12.08B	11.05B	11.40B
EBITDA	1.88B	2.37B	1.79B	2.03B	1.72B
Net Income	1.10B	1.34B	886.76M	972.58M	689.08M
Balance Sheet
Total Assets	22.06B	20.16B	19.18B	18.26B	17.79B
Cash, Cash Equivalents and Short-Term Investments	9.74B	11.97B	11.05B	9.62B	9.07B
Total Debt	507.00M	54.56M	190.68M	315.06M	100.00M
Total Liabilities	4.83B	3.72B	3.82B	3.63B	3.98B
Stockholders Equity	17.24B	16.44B	15.36B	14.63B	13.82B
Cash Flow
Free Cash Flow	886.00M	1.31B	1.69B	710.06M	902.83M
Operating Cash Flow	1.27B	1.65B	1.85B	973.02M	1.22B
Investing Cash Flow	-2.44B	-438.77M	171.34M	-516.01M	-280.75M
Financing Cash Flow	-1.08B	-297.61M	-285.74M	-10.04M	-82.72M

OM2 Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1500.00
• 50DMA: Negative
• 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:7614, the sentiment is Neutral. The current price of 1500 is below the 20-day moving average (MA) of 1501.40, below the 50-day MA of 1500.58, and above the 200-day MA of 1439.38, indicating a neutral trend. The MACD of 2.30 indicates Positive momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.48 is Neutral, 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
8030	74 Outperform	¥14.50B	5.00		3.03%	8.95%	35.94%
7114	72 Outperform	¥4.19B	28.84		―	8.10%	-26.53%
7614	71 Outperform	¥10.08B	10.17		2.27%	3.37%	-28.80%
7538	69 Neutral	¥4.45B	3.80		1.80%	0.86%	17.20%
3160	68 Neutral	¥8.27B	15.80		2.49%	6.31%	101.07%
8039	57 Neutral	¥7.68B	26.62		1.02%	6.33%	40.40%
Sector *	50 Neutral	AU$2.21B	-0.09	-14.39%	10.51%	7.38%	-60.19%