Okamoto Glass Co., Ltd. (7746) AI Stock Analysis

• Market Cap: ¥3.61B
• Dividend Yield: N/A
• Average Volume (3M): 526.50K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 1.02
• Revenue Growth: 14.87%
• EPS Growth: 50.18%
• Country: JP
• Employees: 232
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 8.24
• Shares Outstanding: 23,305,544
• 10 Day Avg. Volume: 594,820
• 30 Day Avg. Volume: 526,500
• PEG Ratio: -2.64
• Price to Book (P/B): 2.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 47 Neutral
• Price Target: ―

Okamoto Glass Co., Ltd. exhibits weaknesses in financial performance, particularly concerning profitability and cash flow, along with a heavy reliance on debt. Technical analysis shows a bearish trend, contributing to near-term caution. Additionally, the stock's high valuation relative to earnings poses a risk for investors. Improvements in profitability and cash flow management are crucial for enhancing the company's financial stability and stock performance.

Okamoto Glass Co., Ltd. Business Overview & Revenue Model

Company Description

Okamoto Glass Co., Ltd. (7746) is a Japanese company primarily engaged in the manufacturing and sale of specialty glass products. The company operates in sectors including automotive, electronics, and architectural glass, providing advanced glass solutions tailored to various industrial applications. Its core products include glass for head-up displays (HUDs) in vehicles, high-performance glass for electronic devices, and durable, aesthetically-pleasing glass for building exteriors and interiors.

How the Company Makes Money

Okamoto Glass Co., Ltd. generates revenue through the sale of its specialty glass products to various industries. The company's key revenue streams include supplying glass components for automotive head-up displays, which have become increasingly popular in modern vehicles for enhancing driving safety and convenience. Additionally, Okamoto Glass provides customized glass solutions for electronics manufacturers, contributing to the growth of its electronics segment. The architectural glass sector also adds to the company's earnings, as it offers innovative and high-quality glass products for construction projects. Okamoto Glass's revenue model is supported by its ability to deliver technologically advanced glass solutions, leveraging its expertise and reputation in the industry. Strategic partnerships and a focus on research and development further enhance its competitive edge and financial performance.

Okamoto Glass Co., Ltd. Financial Statement Overview

Summary

Okamoto Glass Co., Ltd. faces challenges in profitability and cash flow management, coupled with a heavily leveraged balance sheet. While the company shows potential with a solid gross profit margin, it must focus on improving net margins and cash flow stability to enhance financial health. The high debt level is a risk factor that needs addressing to ensure long-term sustainability.

Income Statement

Okamoto Glass Co., Ltd. shows a mixed performance on its income statement. The Gross Profit Margin for TTM is 31.35%, indicating a healthy ability to cover operating costs. However, the Net Profit Margin is relatively low at 0.96%, suggesting challenges in converting revenue into profit. Revenue has fluctuated over recent years, with a slight decline in 2024 compared to previous years. EBITDA Margin for TTM stands at 7.48%, which is modest. The company needs to improve profitability and stabilize revenue growth.

Balance Sheet

The company's balance sheet reflects high leverage with a Debt-to-Equity Ratio of 3.63 for TTM, indicating potential financial risk. The Return on Equity (ROE) for TTM is low at 2.81%, which points to inefficiency in generating returns on shareholders' investments. The Equity Ratio is 19.08%, highlighting a heavy reliance on debt financing. Strengthening the equity base and reducing debt could stabilize the financial structure.

Cash Flow

The cash flow situation is concerning, with zero Free Cash Flow reported for TTM, indicating cash constraints. The Operating Cash Flow to Net Income Ratio is not calculable due to zero operating cash flow in TTM. Historical data shows fluctuating free cash flow, with a significant drop in recent years. Improving operating cash flow generation is essential to enhance financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.72B	4.58B	4.89B	5.07B	4.41B	5.49B
	Gross Profit
1.48B	1.46B	1.48B	1.55B	784.48M	1.51B
	EBIT
40.98M	61.87M	133.14M	225.29M	-506.57M	36.00M
	EBITDA
352.79M	575.65M	540.43M	321.13M	-419.98M	296.15M
	Net Income Common Stockholders
45.06M	101.94M	214.98M	-87.77M	-858.10M	-190.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.93B	1.68B	1.54B	1.66B	2.33B	1.08B
	Total Assets
8.41B	7.99B	7.59B	7.67B	8.03B	7.48B
	Total Debt
5.83B	5.29B	5.06B	5.35B	5.70B	4.19B
	Net Debt
3.90B	3.62B	3.52B	3.69B	3.37B	3.11B
	Total Liabilities
6.81B	6.29B	6.06B	6.38B	6.74B	5.39B
	Stockholders Equity
1.60B	1.69B	1.53B	1.29B	1.29B	2.10B
Cash Flow		Free Cash Flow
0.00	-233.85M	108.51M	281.31M	-132.39M	366.00M
	Operating Cash Flow
0.00	337.82M	423.63M	373.77M	-6.66M	572.00M
	Investing Cash Flow
0.00	-473.78M	-256.37M	-713.87M	-131.90M	-406.00M
	Financing Cash Flow
0.00	220.89M	-288.50M	-339.46M	1.37B	191.00M

Okamoto Glass Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 166.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7746, the sentiment is Positive. The current price of 166 is above the 20-day moving average (MA) of 154.25, above the 50-day MA of 159.16, and above the 200-day MA of 154.82, indicating a bullish trend. The MACD of 2.54 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7746.

Okamoto Glass Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5204	70 Outperform	¥10.08B	3.26		2.68%	-3.26%	-34.54%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
5201	58 Neutral	¥889.54B	―	-4.41%	4.66%	1.96%	-399.31%
5210	57 Neutral	¥24.36B	8.79		5.65%	3.54%	-75.55%
5214	57 Neutral	$272.58B	24.02	-0.56%	3.57%	3.02%	48.28%
5202	49 Neutral	$37.52B	―	-11.92%	―	4.92%	-199.09%
7746	47 Neutral	¥3.61B	40.53		―	14.87%	50.18%