Oval (7727) AI Stock Analysis

• Market Cap: ¥14.45B
• Dividend Yield: 3.19%
• Average Volume (3M): 126.69K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.04
• Revenue Growth: 5.48%
• EPS Growth: 24.30%
• Country: JP
• Employees: 698
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 11.20
• Shares Outstanding: 26,180,000
• 10 Day Avg. Volume: 182,970
• 30 Day Avg. Volume: 126,686
• PEG Ratio: -1.36
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 7.36
• 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: ¥634.00 ▼(-1.71% Downside)

Oval's strong financial performance, characterized by robust revenue growth and profitability, is the primary driver of its stock score. The valuation is attractive with a low P/E ratio and a solid dividend yield, enhancing its appeal. However, technical indicators suggest caution due to short-term bearish trends, which slightly temper the overall score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, supporting long-term business expansion.

Profitability Improvements

Improving profit margins suggest efficient operations and cost management, enhancing the company's ability to reinvest in growth.

Strong Cash Flow

Robust free cash flow growth enhances financial flexibility, allowing for strategic investments and debt reduction.

Negative Factors

Increasing Liabilities

Rising liabilities may strain financial resources, potentially impacting the company's ability to invest in future growth.

Cash Flow Fluctuations

Volatile cash flows can create uncertainty in financial planning, affecting the company's ability to maintain consistent operations.

Debt Management

While current leverage is prudent, any increase in debt levels could limit financial flexibility and increase risk.

Oval Business Overview & Revenue Model

Company Description

OVAL Corporation manufactures and sells various flowmeters, metrological control equipment and related systems, measuring devices, and environmental control related instruments in Japan and internationally. Its flowmeters include positive displacement, coriolis, vortex, ultrasonic, turbine, and thermal mass flowmeters for energy saving; and electronic instruments comprise totalizers, batch controllers, flow computers, SU series electronic instruments, and other electronic instruments. The company also provides peripherals and related instruments, such as strainers, air eliminators, flow-straighteners, pneumatic valve actuators, divertors, automatic valves, vent tanks, and other auxiliary instruments, as well as flow calibration and other systems. OVAL Corporation was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Oval generates revenue through several key streams, primarily by charging fees for premium features on its platform, including advanced investment services and personalized financial advice. The company may also earn money through partnerships with financial institutions, allowing them to offer tailored products to Oval's user base. Additionally, Oval could generate revenue through transaction fees associated with investment trades and account management services, as well as through interest earned on users' deposits in savings accounts. The strategic collaborations with banks and other fintech companies further enhance its market reach and contribute significantly to its earnings.

Oval Financial Statement Overview

Summary

Oval's financial performance is strong, with robust revenue growth and improved profitability. The balance sheet is stable with a low debt-to-equity ratio, and cash flow management is effective, though attention to increasing liabilities and cash flow fluctuations is necessary.

Income Statement

Oval has demonstrated robust revenue growth with a consistent upward trajectory from 2021 to 2025. The gross profit margin has remained strong, indicating efficient cost management. The net profit margin has improved significantly, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, contributing to the company's overall financial health.

Balance Sheet

The company's balance sheet reflects a stable financial position with a healthy equity ratio, indicating a strong capital structure. The debt-to-equity ratio is low, suggesting prudent leverage management. Return on equity has improved, showcasing effective use of shareholders' funds. However, the total liabilities have increased slightly, which could pose a risk if not managed carefully.

Cash Flow

Oval's cash flow statement reveals strong operating cash flow generation, supporting its net income effectively. The free cash flow has grown significantly, indicating efficient capital expenditure management. The operating cash flow to net income ratio is favorable, highlighting the company's ability to convert earnings into cash. However, fluctuations in investing and financing cash flows suggest potential volatility in future cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.42B	15.05B	14.35B	13.31B	11.14B	10.34B
Gross Profit	6.55B	6.13B	5.95B	5.28B	4.08B	3.63B
EBITDA	2.38B	2.07B	2.16B	1.77B	1.14B	750.46M
Net Income	1.24B	1.03B	1.10B	649.19M	286.04M	28.94M
Balance Sheet
Total Assets	23.87B	24.49B	23.45B	22.37B	21.69B	22.13B
Cash, Cash Equivalents and Short-Term Investments	4.18B	4.17B	3.39B	3.19B	3.46B	3.78B
Total Debt	1.52B	1.64B	1.87B	2.20B	2.49B	3.81B
Total Liabilities	7.57B	8.17B	8.09B	8.08B	8.17B	9.05B
Stockholders Equity	15.87B	15.87B	14.91B	13.87B	13.15B	12.74B
Cash Flow
Free Cash Flow	0.00	1.26B	718.61M	207.54M	746.77M	-89.16M
Operating Cash Flow	0.00	1.99B	1.00B	617.45M	1.23B	824.06M
Investing Cash Flow	0.00	-844.97M	-172.20M	-379.68M	-113.23M	-981.28M
Financing Cash Flow	0.00	-606.64M	-683.46M	-574.51M	-1.53B	1.27B

Oval Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 645.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7727, the sentiment is Positive. The current price of 645 is above the 20-day moving average (MA) of 614.80, above the 50-day MA of 606.90, and above the 200-day MA of 519.19, indicating a bullish trend. The MACD of 12.45 indicates Negative momentum. The RSI at 67.69 is Neutral, neither overbought nor oversold. The STOCH value of 91.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7727.

Oval Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5819	81 Outperform	¥12.51B	10.60	―	3.02%	3.43%	3.75%
7727	72 Outperform	¥14.45B	11.93	―	3.19%	5.48%	24.30%
6668	71 Outperform	¥11.49B	6.84	―	1.66%	12.23%	65.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6882	61 Neutral	¥14.64B	38.91	―	4.42%	-11.74%	-84.61%
7711	61 Neutral	¥37.05B	51.92	―	0.67%	10.13%	24.53%

Oval Corporate Events

Oval Corporation Reports Strong Financial Performance for H1 2025

Oval Corporation reported a positive financial performance for the six months ending September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s strategic initiatives have resulted in a 3.4% rise in net sales and significant growth in operating and ordinary profits, reflecting its strong market positioning and operational efficiency.

The most recent analyst rating on (JP:7727) stock is a Buy with a Yen706.00 price target. To see the full list of analyst forecasts on Oval stock, see the JP:7727 Stock Forecast page.