O-WELL CORPORATION (7670) AI Stock Analysis

• Market Cap: ¥11.07B
• Dividend Yield: 4.15%
• Average Volume (3M): 5.91K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.60
• Revenue Growth: -5.07%
• EPS Growth: 13.98%
• Country: JP
• Employees: 637
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 18.79
• Shares Outstanding: 10,500,000
• 10 Day Avg. Volume: 5,080
• 30 Day Avg. Volume: 5,910
• PEG Ratio: 0.34
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 20.94
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,050.00 ▼(-3.23% Downside)

O-WELL CORPORATION's stock score is primarily driven by its strong valuation, with a low P/E ratio and attractive dividend yield. The company's solid financial performance, despite some cash flow volatility, also supports the score. Technical analysis indicates a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Business Model Strength

The diversified revenue streams from B2C and B2B markets, including direct sales and partnerships, provide resilience and growth potential.

Balance Sheet Health

A strong balance sheet with manageable leverage and improving return on equity indicates financial stability and effective capital use.

Profitability

Improving net profit margins reflect enhanced profitability and efficient cost management, supporting long-term financial health.

Negative Factors

Revenue Growth Decline

A recent decline in revenue growth may indicate challenges in market expansion or product adoption, impacting future growth prospects.

Cash Flow Volatility

Inconsistent free cash flow growth and periods of negative cash flow can strain financial flexibility and impact long-term investments.

Asset Decrease

A decrease in total assets may signal potential issues in asset management or investment, affecting the company's growth capacity.

O-WELL CORPORATION Business Overview & Revenue Model

Company Description

O-Well Corporation supplies industrial materials and services in Japan and internationally. It offers paint and coating materials; coating equipment; pollution control equipment; metallic surface treatment agents; coating equipment; painting and coating devices/tools; pollution control equipment; special equipment; and measuring devices. It also provides chemical and other material products; electronics products, including semiconductor-related, electrical and electronic mechanical components, RFID-related, sensors, and others; and LED lighting products, as well as involved in design/supervision of carious incidental construction works. The company was formerly known as Ohmiya Kogyo Co.,Ltd. and changed its name to O-Well Corporation in 1992. O-Well Corporation was incorporated in 1943 and is headquartered in Osaka, Japan.

How the Company Makes Money

O-WELL CORPORATION generates revenue through multiple key streams. The primary source of income is from the sale of health and wellness products, including dietary supplements and health gadgets, which are marketed directly to consumers through both online and brick-and-mortar retail channels. Additionally, the company partners with healthcare institutions to provide wellness programs and products, which creates a significant B2B revenue stream. O-WELL CORPORATION also benefits from strategic partnerships with distributors and health professionals, enhancing its market reach and driving sales. Furthermore, the company may leverage recurring revenue through subscription models for health monitoring services, ensuring consistent cash flow.

O-WELL CORPORATION Financial Statement Overview

Summary

O-WELL CORPORATION exhibits a robust financial position with steady income growth and a strong balance sheet. While there are some concerns regarding cash flow volatility, the company has shown resilience in improving profitability and maintaining a healthy capital structure.

Income Statement

O-WELL CORPORATION has demonstrated a solid performance in its income statement. The gross profit margin has been relatively stable, indicating efficient cost management. The net profit margin has shown improvement over the years, reflecting enhanced profitability. Revenue growth has been positive, although there was a slight decline in the most recent year. EBIT and EBITDA margins have improved, showcasing better operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a favorable debt-to-equity ratio indicating manageable leverage. The return on equity has been improving, suggesting effective use of shareholder funds. The equity ratio is healthy, showing a solid capital structure. However, the total assets have slightly decreased, which could be a point of concern.

Cash Flow

Cash flow analysis reveals a mixed picture. The operating cash flow to net income ratio is strong, indicating good cash generation relative to profits. However, free cash flow growth has been inconsistent, with some periods of negative free cash flow. The free cash flow to net income ratio is positive, but the volatility in cash flows could pose a risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.37B	69.42B	71.05B	64.33B	56.95B	54.62B
Gross Profit	9.15B	9.13B	8.68B	8.09B	7.12B	6.77B
EBITDA	1.74B	2.96B	2.58B	1.29B	724.00M	931.00M
Net Income	1.80B	1.78B	1.53B	650.00M	261.00M	398.00M
Balance Sheet
Total Assets	43.56B	45.82B	48.42B	45.47B	41.65B	44.56B
Cash, Cash Equivalents and Short-Term Investments	5.72B	6.54B	6.39B	4.36B	4.42B	6.07B
Total Debt	3.87B	3.76B	4.63B	4.36B	4.44B	4.29B
Total Liabilities	22.20B	24.28B	27.42B	26.15B	23.56B	24.37B
Stockholders Equity	21.19B	21.37B	20.85B	19.16B	17.96B	20.08B
Cash Flow
Free Cash Flow	0.00	471.00M	1.63B	224.00M	-1.58B	1.32B
Operating Cash Flow	0.00	624.00M	1.92B	563.00M	-1.18B	1.68B
Investing Cash Flow	0.00	1.04B	178.00M	-319.00M	-338.00M	164.00M
Financing Cash Flow	0.00	-1.57B	-121.00M	-332.00M	-205.00M	-238.00M

O-WELL CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1085.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7670, the sentiment is Positive. The current price of 1085 is above the 20-day moving average (MA) of 1035.70, above the 50-day MA of 1004.30, and above the 200-day MA of 944.61, indicating a bullish trend. The MACD of 22.71 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 67.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7670.

O-WELL CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7795	73 Outperform	¥8.95B	7.54	―	3.79%	6.83%	41.94%
3512	73 Outperform	¥12.27B	27.93	―	2.41%	-4.23%	-5.96%
7670	71 Outperform	¥11.07B	6.17	―	4.15%	-5.07%	13.98%
6554	69 Neutral	¥10.42B	11.17	―	3.90%	13.59%	52.99%
3420	67 Neutral	¥11.23B	10.05	―	3.28%	3.06%	5.71%
3353	67 Neutral	¥9.84B	9.82	―	3.51%	16.73%	-16.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%