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OM2 Network Co., Ltd. (JP:7614)
:7614
Japanese Market

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

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JP

OM2 Network Co., Ltd.

(7614)

Rating:71Outperform
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. (7614) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionOM2 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 MoneyOM2 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
75
Positive
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
80
Positive
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
70
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue32.78B32.11B31.54B29.72B29.58B
Gross Profit12.65B12.67B12.08B11.05B11.40B
EBITDA1.88B2.37B1.79B2.03B1.72B
Net Income1.10B1.34B886.76M972.58M689.08M
Balance Sheet
Total Assets22.06B20.16B19.18B18.26B17.79B
Cash, Cash Equivalents and Short-Term Investments9.74B11.97B11.05B9.62B9.07B
Total Debt507.00M54.56M190.68M315.06M100.00M
Total Liabilities4.83B3.72B3.82B3.63B3.98B
Stockholders Equity17.24B16.44B15.36B14.63B13.82B
Cash Flow
Free Cash Flow886.00M1.31B1.69B710.06M902.83M
Operating Cash Flow1.27B1.65B1.85B973.02M1.22B
Investing Cash Flow-2.44B-438.77M171.34M-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
Positive
Last Price1497.00
Price Trends
50DMA
1480.00
Positive
100DMA
1454.61
Positive
200DMA
1434.60
Positive
Market Momentum
MACD
1.93
Positive
RSI
48.44
Neutral
STOCH
19.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7614, the sentiment is Positive. The current price of 1497 is below the 20-day moving average (MA) of 1512.45, above the 50-day MA of 1480.00, and above the 200-day MA of 1434.60, indicating a neutral trend. The MACD of 1.93 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7614.

OM2 Network Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥13.84B4.77
3.18%8.95%35.94%
76
Outperform
¥4.17B28.68
8.10%-26.53%
71
Outperform
¥10.15B10.23
2.25%3.37%-28.80%
69
Neutral
¥4.26B3.64
1.81%0.86%17.20%
68
Neutral
¥8.08B7.69
395.45%6.31%101.07%
65
Neutral
$27.29B15.33-4.01%3.21%1.02%-0.84%
57
Neutral
¥7.91B27.40
0.99%6.33%40.40%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7614
OM2 Network Co., Ltd.
1,510.00
-54.38
-3.48%
JP:3160
Oomitsu Co., Ltd.
550.00
-48.93
-8.17%
JP:7114
Foodison,Inc.
907.00
-574.00
-38.76%
JP:7538
Daisui Co., Ltd.
340.00
9.11
2.75%
JP:8030
Chuo Gyorui Co., Ltd.
3,440.00
640.57
22.88%
JP:8039
Tsukiji Uoichiba Company, Limited
3,475.00
105.16
3.12%
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: Apr 25, 2025