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

• Market Cap: ¥10.06B
• Dividend Yield: 2.28%
• Average Volume (3M): 3.83K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.22
• Revenue Growth: 3.37%
• EPS Growth: -28.80%
• Country: JP
• Employees: 715
• Sector: Consumer Defensive
• Sector Strength: 67
• Industry: Food Distribution
• EPS (TTM): 35.93
• Shares Outstanding: 7,335,634
• 10 Day Avg. Volume: 6,070
• 30 Day Avg. Volume: 3,826
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥1,652.00
• Price Target Upside: 10.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥1,652.00 ▲(10.50% Upside)

OM2 Network Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust balance sheet and consistent revenue growth are significant strengths. However, technical indicators suggest short-term bearish momentum, which slightly offsets the overall score. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Company Description

OM2 Network Co., Ltd. (7614) operates in the telecommunications and technology sector, specializing in providing innovative networking solutions and services. The company focuses on developing advanced communication technologies, including data transmission, network infrastructure, and cloud services. OM2 Network aims to enhance connectivity and improve operational efficiency for businesses across various industries.

How the Company Makes Money

OM2 Network generates revenue primarily through the sale of networking equipment, software solutions, and managed services. The company has a diversified revenue model that includes direct sales to enterprise clients, subscription-based services for cloud and data management, and maintenance contracts for existing infrastructure. Key revenue streams come from partnerships with technology providers and telecommunications companies, which allow OM2 Network to offer comprehensive solutions tailored to customer needs. Additionally, the company benefits from government contracts and grants that support technological advancements in communication infrastructure.

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: Negative
• Last Price: 1495.00
• 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 Negative. The current price of 1495 is below the 20-day moving average (MA) of 1503.40, below the 50-day MA of 1505.82, and above the 200-day MA of 1445.73, indicating a neutral trend. The MACD of -3.27 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	81 Outperform	¥14.76B	5.44		3.01%	7.29%	10.64%
7614	71 Outperform	¥10.06B	10.15		2.28%	3.37%	-28.80%
7538	69 Neutral	¥4.52B	4.16		1.78%	2.56%	16.26%
3160	68 Neutral	¥8.52B	16.28		2.41%	6.21%	-31.20%
Sector *	63 Neutral	$21.01B	14.53	-7.26%	3.13%	3.36%	-7.91%
7114	61 Neutral	¥4.14B	26.56		―	8.10%	-26.53%
8039	60 Neutral	¥8.12B	22.92		0.99%	6.33%	40.40%