OUG Holdings Inc. (8041) AI Stock Analysis

• Market Cap: ¥25.01B
• Dividend Yield: 2.46%
• Average Volume (3M): 5.48K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.43
• Revenue Growth: 5.27%
• EPS Growth: 9.51%
• Country: JP
• Employees: 1,327
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 387.02
• Shares Outstanding: 5,562,292
• 10 Day Avg. Volume: 3,470
• 30 Day Avg. Volume: 5,483
• PEG Ratio: 0.15
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 17.01
• 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: ¥4,895.00 ▲(24.87% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

The overall stock score is primarily driven by strong valuation metrics, with a low P/E ratio and attractive dividend yield suggesting potential undervaluation. Financial performance is solid, with revenue growth and profitability improvements, though cash flow challenges remain. Technical analysis presents mixed signals, with the stock trading below key moving averages but neutral RSI and high stochastic values.

Positive Factors

Consistent revenue growth

Sustained revenue growth near 5% indicates ongoing demand for the company's restaurant operations and supports scale advantages. Coupled with a stable gross margin, this trend provides a durable revenue base to fund reinvestment and incremental profit improvement over the coming months.

Improved return on equity

A ROE of 12.73% signals management is extracting higher returns from shareholder capital, which reflects operational improvements or better capital allocation. This enhances long-term shareholder value potential and indicates disciplined reinvestment or margin recovery.

Moderate leverage and stable capital structure

A debt-to-equity ratio below 1.0 and a near-40% equity ratio represent moderate leverage that supports growth without excessive solvency risk. This balance gives the company financing flexibility for strategic investments while maintaining resilience to cyclical pressures.

Negative Factors

Declining free cash flow

A steep FCF decline reduces internal funding for dividends, deleveraging, or organic expansion. With operating cash flow to net income at 0.60 and FCF/net income at 0.23, the company has less cash conversion buffer; persistent weakness would constrain strategic flexibility and increase reliance on external financing.

Thin operating and net margins

Very low EBIT/EBITDA and net margins leave limited room to absorb cost inflation or invest for growth without diluting returns. Structural margin thinness reduces free cash generation potential and heightens vulnerability to input cost swings or competitive pricing pressure over the medium term.

Earnings contraction / EPS volatility

A near-50% decline in EPS signals meaningful earnings volatility that can stem from margin pressure, nonrecurring items, or operational inefficiencies. Persistent EPS weakness undermines earnings predictability and complicates capital allocation, investor confidence, and long-term planning.

OUG Holdings Inc. Business Overview & Revenue Model

Company Description

OUG Holdings Inc., through its subsidiaries, engages in the wholesale of marine products in Japan. The company distributes marine products primarily to wholesalers; and mass retailers, such as supermarkets, restaurants, food and beverage shops, and processing companies. It also manufactures and sells fishery-related products; processes and sells fresh and frozen salmon-based fish, sushi and rice balls, and cut vegetables; and engages in sorting of marine and processed chilled products, as well as aquaculture business. In addition, the company is involved in the insurance agency and leasing businesses. The company was formerly known as Osaka Uoichiba Co., Ltd. and changed its name to OUG Holdings Inc. in October 2006. OUG Holdings Inc. was founded in 1946 and is headquartered in Osaka, Japan.

How the Company Makes Money

OUG Holdings Inc. generates revenue through multiple streams, primarily from its investments in subsidiary companies and joint ventures across its diversified sectors. The company earns income from real estate ventures through rental income and property sales, while its manufacturing operations contribute to revenue through the production and sale of goods. Additionally, OUG Holdings may engage in strategic partnerships that enhance its market reach and operational capabilities, allowing for increased sales and profitability. The company's focus on long-term investments ensures a steady flow of income from its portfolio, contributing significantly to its overall earnings.

OUG Holdings Inc. Financial Statement Overview

Summary

OUG Holdings Inc. demonstrates solid revenue growth and profitability improvements, backed by stable margins. The balance sheet shows adequate financial health with manageable debt levels. However, cash flow challenges persist, necessitating strategic focus on enhancing liquidity and operational cash efficiency. Overall, the company maintains a strong financial position with potential for further improvements.

Income Statement

OUG Holdings Inc. has shown positive revenue growth with a current revenue increase of 5.06% compared to the previous year. The gross profit margin has remained stable around 8.96%, indicating efficient cost management. The net profit margin improved to 1.29% from 1.09% due to higher net income, showcasing enhanced profitability. However, the EBIT and EBITDA margins, at 1.46% and 2.20% respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet reflects a debt-to-equity ratio of 0.69, indicating a moderate level of leverage. The return on equity improved to 12.73%, showing effective utilization of equity. The equity ratio is 39.39%, providing a stable capital structure. However, the total debt remains significant, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a 26.73% decline in free cash flow due to increased capital expenditures. The operating cash flow to net income ratio is 0.60, indicating moderate cash conversion efficiency. The free cash flow to net income ratio of 0.23 suggests less cash available for distribution or reinvestment, requiring focus on improving cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	352.83B	350.09B	333.20B	325.02B	298.57B	298.31B
Gross Profit	32.27B	31.35B	28.21B	28.47B	26.86B	21.88B
EBITDA	8.47B	7.69B	4.93B	5.62B	3.52B	2.88B
Net Income	5.02B	4.53B	3.62B	3.08B	1.34B	1.14B
Balance Sheet
Total Assets	96.57B	90.27B	91.15B	81.99B	78.74B	72.73B
Cash, Cash Equivalents and Short-Term Investments	2.78B	2.79B	2.43B	2.74B	2.60B	2.07B
Total Debt	29.01B	24.52B	26.05B	26.79B	25.66B	22.83B
Total Liabilities	60.66B	54.71B	60.16B	56.06B	54.90B	49.59B
Stockholders Equity	35.90B	35.55B	30.99B	25.93B	23.84B	23.14B
Cash Flow
Free Cash Flow	0.00	1.02B	1.39B	-366.00M	-1.72B	1.62B
Operating Cash Flow	0.00	2.72B	2.01B	682.00M	-602.00M	2.57B
Investing Cash Flow	0.00	-417.00M	-1.20B	-936.00M	-1.35B	-1.10B
Financing Cash Flow	0.00	-1.94B	-1.11B	399.00M	2.48B	-1.55B

OUG Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3920.00
• 50DMA: Positive
• 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:8041, the sentiment is Neutral. The current price of 3920 is below the 20-day moving average (MA) of 4443.25, below the 50-day MA of 4145.70, and above the 200-day MA of 3864.57, indicating a neutral trend. The MACD of 101.36 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8041.

OUG Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1384	78 Outperform	¥25.97B	6.45	―	2.45%	21.60%	116.17%
8041	72 Outperform	¥25.01B	2.52	―	2.46%	5.27%	9.51%
1381	68 Neutral	¥20.95B	10.14	―	2.81%	5.47%	44.78%
9955	65 Neutral	¥37.13B	14.63	―	0.72%	-2.02%	103.08%
2938	63 Neutral	¥60.23B	22.47	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2874	56 Neutral	¥86.60B	15.38	―	1.86%	4.41%	-41.71%