Oval (7727) AI Stock Analysis

• Market Cap: ¥17.95B
• Dividend Yield: 3.19%
• Average Volume (3M): 126.69K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.05
• Revenue Growth: 5.48%
• EPS Growth: 24.30%
• Country: JP
• Employees: 698
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 16.52
• Shares Outstanding: 26,180,000
• 10 Day Avg. Volume: 182,970
• 30 Day Avg. Volume: 126,686
• PEG Ratio: -1.37
• 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: 81 Outperform
• Price Target: ¥926.00 ▲(43.57% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven primarily by strong financial performance (growth, improving margins, and solid cash generation), supported by an established uptrend in the technicals. A low P/E with a reasonable dividend yield further strengthens the overall profile, with the key risk being the noted increase in liabilities and some cash flow variability.

Positive Factors

Consistent revenue growth

A multi-year upward revenue trajectory indicates durable demand and market penetration. Persistent top-line growth supports scale efficiencies, funds reinvestment and reduces reliance on one-off items, making underlying earnings expansion more sustainable over the medium term.

Improving margins and profitability

Rising gross and net margins and expanding EBIT/EBITDA margins reflect lasting operational improvements and pricing or cost advantages. Sustained margin expansion enhances cash flow conversion and resilience to input cost swings, strengthening long-term earnings power.

Strong operating and free cash flow

Robust operating and growing free cash flow indicate efficient capital expenditure management and high cash conversion. This underpins capacity for dividends, buybacks, debt reduction or organic investment, providing durable financial flexibility over multiple quarters.

Negative Factors

Slight increase in total liabilities

A rising liability base, even from low leverage, can erode balance sheet resilience if growth in obligations outpaces cash generation. Over months this can increase refinancing or interest exposure, reducing optionality for strategic investments or defensive actions.

Volatility in investing and financing cash flows

Irregular investing and financing flows point to episodic capital deployment or funding shifts (M&A, buybacks, debt moves). Such variability complicates forecasting and can pressure liquidity or free cash flow consistency, raising execution risk for multi-quarter plans.

Limited disclosed guidance or corporate catalysts

Absence of disclosed corporate events and missing forward guidance reduces visibility into strategic moves or catalysts. Over a medium horizon this limits clarity on growth drivers and may hinder assessment of management's roadmap for sustaining current momentum.

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

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Oval Financial Statement Overview

Summary

Strong financial profile overall: solid revenue growth and improving profitability (income statement score 85), healthy capital structure with low leverage (balance sheet score 78), and robust operating/free cash flow generation (cash flow score 82). Main watch-out is slightly rising liabilities and some volatility in investing/financing cash flows.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.42B	15.05B	14.35B	13.31B	11.14B	10.34B
Gross Profit	6.55B	6.14B	5.96B	5.28B	4.09B	3.64B
EBITDA	2.40B	2.02B	2.04B	1.83B	884.52M	461.07M
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	724.97M	243.08M	782.40M	-51.98M
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: Neutral
• Last Price: 645.00
• 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:7727, the sentiment is Neutral. The current price of 645 is below the 20-day moving average (MA) of 844.15, below the 50-day MA of 773.36, and above the 200-day MA of 610.35, indicating a neutral trend. The MACD of 13.70 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 30.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7727.

Oval Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7727	81 Outperform	¥17.95B	9.49	―	3.19%	5.48%	24.30%
5819	75 Outperform	¥12.70B	10.63	―	3.02%	3.43%	3.75%
6637	72 Outperform	¥53.74B	12.37	―	0.91%	5.28%	18.38%
6804	72 Outperform	¥139.49B	3.86	8.07%	2.64%	79.29%	35.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6905	59 Neutral	¥49.52B	195.39	―	5.01%	-32.74%	-117.06%

Oval Corporate Events

OVAL Lifts Nine-Month Profit, Raises Dividend but Sees Full-Year Earnings Dip

OVAL Corporation reported consolidated net sales of ¥11.14 billion for the nine months ended December 31, 2025, up 4.0% year on year, with operating profit jumping 34.6% to ¥1.44 billion and profit attributable to owners of parent rising 25.3% to ¥952 million. Earnings per share increased to ¥43.47, while the equity ratio remained robust at 63.6%, indicating improved profitability despite a slight decrease in total assets and net assets compared with the previous fiscal year-end.

The company maintained its dividend stance, having paid ¥10 per share at the second quarter and forecasting a full-year dividend of ¥20 per share, higher than the previous year’s ¥16. For the full fiscal year ending March 31, 2026, OVAL projects modest net sales growth to ¥15.5 billion and higher ordinary profit, but expects a 10.7% decline in full-year profit attributable to owners of parent to ¥920 million, suggesting rising costs or other profit pressures even as top-line performance and dividends remain steady.

The most recent analyst rating on (JP:7727) stock is a Buy with a Yen881.00 price target. To see the full list of analyst forecasts on Oval stock, see the JP:7727 Stock Forecast page.