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

• Market Cap: ¥11.27B
• Dividend Yield: N/A
• Average Volume (3M): 9.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -9.50%
• EPS Growth: -170.30%
• Country: JP
• Employees: 232
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -3.74
• Shares Outstanding: 29,121,544
• 10 Day Avg. Volume: 5,272,790
• 30 Day Avg. Volume: 9,312,303
• PEG Ratio: -3.52
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -10.53
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ¥399.00 ▲(24.69% Upside)

The overall stock score for Okamoto Glass Co., Ltd. is driven primarily by its mixed financial performance and positive technical indicators. The company's high leverage and inconsistent profitability are significant concerns, impacting its financial performance score. However, the stock's current bullish momentum provides a positive outlook in the short term. The negative P/E ratio and lack of dividend yield weigh down the valuation score, indicating potential risks for long-term investors.

Positive Factors

Innovative Product Offerings

The company's focus on innovative glass solutions positions it well to meet diverse industry needs, enhancing its competitive edge and market adaptability.

Strategic Partnerships

Partnerships with key industry players expand market access and strengthen revenue streams, supporting long-term growth and stability.

Operational Efficiency

Improved margins suggest enhanced operational efficiency, which can lead to better profitability and financial performance over time.

Negative Factors

High Leverage

High leverage increases financial risk and can limit flexibility, potentially affecting the company's ability to invest in growth opportunities.

Inconsistent Cash Flow

Inconsistent cash flow generation can hinder the company's ability to fund operations and growth initiatives, impacting long-term sustainability.

Declining Revenue Growth

Declining revenue growth may indicate challenges in market demand or competitiveness, which could affect future profitability and market position.

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

Company Description

Okamoto Glass Co., Ltd. manufactures and sells special-purpose glass for industrial use and multi-layer film evaporation products. The company operates through Optical Business, Lighting Business, Functional Thin Film and Glass Business, and Other segments. The Optical Business segment manufactures and sells fly-eye lenses and reflectors for digital cinema projectors. The Lighting Business segment manufactures and sells glass for automobile headlights, fog lights; and glass products for general lighting. The Functional Thin Film and Glass Business segment manufactures and sells durable silver mirrors; and decorative vapor deposition on glass containers, LCD displays, and glass powder. It also produces door glass for washing machines and dental mirrors. In addition, the company offers glass materials, glass molded items, optical/functional coating products, glass ball/ oceanic spacecraft products, and glass powder related products. Its products are used in mobility, display, telecommunication, sensor/IOT, medical, illumination, energy, and infrastructure/residence applications. Okamoto Glass Co., Ltd. was founded in 1928 and is headquartered in Kashiwa, Japan.

How the Company Makes Money

Okamoto Glass Co., Ltd. generates revenue through multiple key streams. The company earns money primarily by selling its glass products to various industries, including construction and automotive sectors, where demand for high-performance and durable glass is significant. Revenue is also generated from custom glass solutions and services tailored to meet specific client needs. Additionally, strategic partnerships with construction firms and automotive manufacturers enhance its market reach and contribute to steady revenue growth. Factors such as technological advancements, efficient production processes, and a strong brand reputation further bolster the company's earnings potential.

Okamoto Glass Co., Ltd. Financial Statement Overview

Summary

Okamoto Glass Co., Ltd. presents a mixed financial picture. While there are signs of operational improvement and stabilization in some areas, the company faces challenges with profitability consistency, high leverage, and cash flow management. Addressing these issues is crucial for long-term financial health and growth.

Income Statement

Okamoto Glass Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin is relatively stable, but the net profit margin has been inconsistent, with a notable net loss in 2022. Revenue growth has been fluctuating, with a recent decline. The EBIT and EBITDA margins have shown improvement after a dip in 2021, indicating a partial recovery in operational efficiency.

Balance Sheet

The company's balance sheet reflects high leverage, with a high debt-to-equity ratio. The return on equity has been volatile, showing periods of negative returns. The equity ratio is relatively low, indicating high reliance on debt financing. These factors suggest potential financial risk, though the company has maintained a consistent asset base.

Cash Flow

Okamoto Glass Co., Ltd.'s cash flow statement indicates challenges in generating free cash flow, with inconsistent free cash flow growth and negative free cash flow in recent years. The operating cash flow to net income ratio suggests that operating cash flows are adequate but not translating into consistent net income. The company needs to improve its cash flow management to enhance financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.58B	4.69B	4.58B	4.89B	5.07B	4.41B
Gross Profit	1.45B	1.50B	1.46B	1.48B	1.55B	784.48M
EBITDA	318.75M	486.33M	575.65M	540.43M	321.13M	-419.98M
Net Income	-18.93M	89.01M	101.94M	214.98M	-87.77M	-858.10M
Balance Sheet
Total Assets	8.65B	8.68B	7.99B	7.59B	7.67B	8.03B
Cash, Cash Equivalents and Short-Term Investments	1.88B	1.81B	1.68B	1.54B	1.66B	2.33B
Total Debt	5.96B	5.93B	5.29B	5.06B	5.35B	5.70B
Total Liabilities	6.86B	6.88B	6.29B	6.06B	6.38B	6.74B
Stockholders Equity	1.78B	1.80B	1.69B	1.53B	1.29B	1.29B
Cash Flow
Free Cash Flow	0.00	-380.09M	-233.85M	108.51M	281.31M	-132.39M
Operating Cash Flow	0.00	370.12M	337.82M	423.63M	373.77M	-6.66M
Investing Cash Flow	0.00	-846.87M	-473.78M	-256.37M	-713.87M	-131.90M
Financing Cash Flow	0.00	617.91M	220.89M	-288.50M	-339.46M	1.37B

Okamoto Glass Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 320.00
• 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:7746, the sentiment is Neutral. The current price of 320 is below the 20-day moving average (MA) of 357.00, above the 50-day MA of 311.62, and above the 200-day MA of 206.16, indicating a neutral trend. The MACD of 3.61 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7713	71 Outperform	¥10.64B	11.22	―	2.79%	3.32%	63.26%
5218	68 Neutral	¥27.64B	18.13	3.13%	2.20%	2.28%	28.07%
7908	63 Neutral	¥12.21B	11.84	―	3.20%	0.30%	4.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5214	61 Neutral	$431.99B	-400.67	-0.30%	2.13%	1.90%	-105.45%
7746	60 Neutral	¥11.27B	-481.16	―	―	-9.50%	-170.30%
5216	46 Neutral	¥7.28B	-26.36	―	―	119.98%	-5.60%