O-WELL CORPORATION (7670) AI Stock Analysis

• Market Cap: ¥11.22B
• Dividend Yield: 4.15%
• Average Volume (3M): 5.91K
• Price to Earnings (P/E): 6.0
• 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): 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: ¥1,220.00 ▲(14.77% 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

Margin Sustainability

Stable gross margins alongside improving net margins indicate durable cost control and pricing power. Over the next several quarters this supports sustained profitability, better internal cash generation, and resilience to cyclical revenue swings without relying heavily on external financing.

Balance Sheet Strength

Manageable leverage and an improving return on equity point to effective capital allocation and financial flexibility. A healthy equity ratio provides capacity for investment, M&A or maintaining distributions while limiting refinancing risk in stressed markets.

Operating Cash Generation

Strong operating cash relative to reported profits signals earnings quality and steady cash conversion. This recurring cash generation supports capex, working capital and shareholder distributions, bolstering the company's ability to fund strategic initiatives without overreliance on debt.

Negative Factors

Free Cash Flow Volatility

Volatile or occasionally negative free cash flow undermines sustained investment and dividend reliability. Periodic FCF shortfalls could force pauses in growth initiatives, asset sales or additional borrowing, reducing strategic optionality and increasing financing risk over the medium term.

Recent Revenue Weakness

A recent top-line decline weakens growth momentum and may signal demand softness or competitive pressure. Even with margin improvement, persistent revenue weakness can limit scalability, squeeze margins if fixed costs remain, and constrain long-term earnings expansion.

Slight Asset Contraction

A shrinking asset base can reflect reduced investment, asset disposals or slowed capacity expansion. Over time this may limit the company’s ability to grow revenue and respond to market opportunities, and could indicate a conservative or constrained capital strategy.

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

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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	23.55B	24.36B
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: Neutral
• Last Price: 1063.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7670, the sentiment is Neutral. The current price of 1063 is below the 20-day moving average (MA) of 1157.65, below the 50-day MA of 1151.68, and above the 200-day MA of 1013.69, indicating a neutral trend. The MACD of -22.78 indicates Positive momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7670.

O-WELL CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7670	72 Outperform	¥11.22B	5.99	―	4.15%	-5.07%	13.98%
7119	69 Neutral	¥17.97B	4.12	―	2.71%	2.13%	135.50%
3353	67 Neutral	¥9.89B	9.17	―	3.51%	16.73%	-16.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7066	60 Neutral	¥4.03B	11.71	―	3.64%	-1.69%	-18.95%
6838	52 Neutral	¥11.03B	1.66	―	0.72%	―	―
5856	45 Neutral	¥3.27B	-7.08	―	―	-52.40%	-321.23%