O-WELL CORPORATION (7670) AI Stock Analysis

• Market Cap: ¥12.66B
• Dividend Yield: 4.15%
• Average Volume (3M): 5.91K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.55
• Revenue Growth: -5.07%
• EPS Growth: 13.98%
• Country: JP
• Employees: 637
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 44.32
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥1,386.00 ▲(30.39% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven primarily by solid underlying financial performance (profitability and balance sheet strength) and very attractive valuation (low P/E with a meaningful dividend). This is partially offset by technicals showing an extended, potentially overheated move (RSI/Stoch elevated), which raises near-term reversal risk despite the clear uptrend.

Positive Factors

Income statement quality

O-WELL's stable gross margins and improving net and operating margins indicate durable cost control and operational leverage. Sustained margin improvement supports reinvestment in R&D and distribution, bolstering long-term profitability resilience against input or pricing pressures.

Strong balance sheet / manageable leverage

A favorable debt-to-equity profile and improving ROE give O-WELL financial flexibility to fund capex, acquisitions or weather downturns without forcing dilutive financing. This structural balance-sheet strength supports sustained strategy execution and downside protection.

Operating cash generation

Strong conversion of earnings into operating cash provides an enduring source to support working capital, dividends and R&D. Reliable cash generation reduces dependence on external financing and underpins long-term investment even when free cash flow is episodically weak.

Negative Factors

Recent revenue contraction

A reported ~98% decline in the revenue growth metric signals a material recent drop in sales that undermines scale economics and distributor relationships. If this decline persists, it could pressure margins, cash generation and the company's ability to sustain R&D and market initiatives over months.

Volatile free cash flow

Inconsistent free cash flow, including negative periods, reduces predictability of internal funding for product development and dividends. Volatile FCF elevates refinancing and operational risk and can force reliance on debt or equity at unfavorable times, weakening long-term financial flexibility.

Slight asset base contraction

A modest decrease in total assets may reflect reduced investment or asset sales, which can constrain capacity expansion and slow scaling of new products. Over time, a shrinking asset base can limit revenue recovery and constrain the company's ability to expand manufacturing or distribution reach.

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

Income statement is solid (stable gross margin, improving net margin and operating efficiency), balance sheet is healthy with manageable leverage and improving ROE, but cash flow quality is mixed due to volatile/occasionally negative free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1063.00
• 50DMA: Positive
• 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:7670, the sentiment is Positive. The current price of 1063 is below the 20-day moving average (MA) of 1223.25, below the 50-day MA of 1136.72, and above the 200-day MA of 997.14, indicating a bullish trend. The MACD of 34.09 indicates Positive momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 68.88 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	¥10.83B	8.44	―	3.79%	6.83%	41.94%
7670	72 Outperform	¥12.66B	6.87	―	4.15%	-5.07%	13.98%
6554	69 Neutral	¥9.90B	10.30	―	3.90%	13.59%	52.99%
3420	67 Neutral	¥12.69B	13.70	―	3.28%	3.06%	5.71%
3353	67 Neutral	¥10.54B	10.62	―	3.51%	16.73%	-16.51%
3512	67 Neutral	¥15.57B	31.07	―	2.41%	-4.23%	-5.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%