OUG Holdings Inc. (8041) AI Stock Analysis

• Market Cap: ¥23.76B
• Dividend Yield: 2.46%
• Average Volume (3M): 5.48K
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.44
• 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: ¥4,878.00 ▲(24.44% 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

Revenue Growth Trend

Consistent revenue growth near 5% year-over-year indicates durable demand for the company's restaurant offerings and steady top-line expansion. This provides a larger base to absorb fixed costs, supports reinvestment in stores and systems, and improves prospects for sustained operating leverage over months to years.

Stable Gross Margin

A stable gross margin around 9% reflects ongoing cost control and pricing discipline in the food-service model. Sustained gross margin stability supports predictable contribution to overheads, underpins incremental profitability as revenue grows, and signals operational processes that can endure across economic cycles.

Moderate Leverage & Improving ROE

A moderate D/E near 0.7 with ROE rising to 12.7% suggests the company is using leverage effectively without excessive risk. The capital structure and improving capital returns give management room to invest or pursue growth while retaining resilience to shocks, aiding multi-quarter strategic planning and execution.

Negative Factors

Declining Free Cash Flow

A roughly 27% drop in free cash flow and FCF/net income of 0.23 indicate weaker cash conversion and less distributable cash. Persistent cash strain reduces ability to fund operations, service debt, or invest organically, raising execution risk unless FCF recovers or capex is optimized over the coming quarters.

Low Operating Margins

Very low EBIT and EBITDA margins leave limited buffer against cost inflation or sales declines. Structural low operating profitability constrains free cash generation and reinvestment capacity, making the business more sensitive to commodity, labor, or rent cost shocks over multi-month horizons.

Earnings Volatility

A large negative EPS growth rate (~-49%) signals profit volatility or one-off pressures undermining earnings quality. Persistent or repeated EPS declines harm investor confidence, restrict strategic flexibility, and may indicate underlying margin or cost issues that need multi-quarter remediation to restore stable earnings.

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

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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	92.52B	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	24.54B	26.05B	26.79B	25.66B	22.84B
Total Liabilities	60.66B	54.71B	61.53B	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: Neutral

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 4485.25, below the 50-day MA of 4255.30, and below the 200-day MA of 3935.05, indicating a neutral trend. The MACD of 7.96 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, 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
1379	75 Outperform	¥60.44B	4.62	―	2.44%	5.74%	76.28%
8041	72 Outperform	¥23.76B	2.52	―	2.46%	5.27%	9.51%
2003	71 Outperform	¥65.20B	13.32	―	3.98%	1.21%	-14.59%
2292	70 Neutral	¥92.32B	7.70	―	3.59%	4.55%	79.33%
2938	63 Neutral	¥57.88B	22.47	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1380	57 Neutral	¥4.45B	18.10	―	1.00%	9.52%	―