Odawara Auto-Machine Mfg. Co., Ltd. (7314) AI Stock Analysis

Odawara Auto-Machine Mfg. Co., Ltd.

(TSE/TYO:7314)

Select Model

Rating:60Neutral

Price Target:JPY 1,353.00▼(-0.15% Downside)

Action:reiterated

Date:08/06/26

The score is driven primarily by a solid balance sheet (notably reduced leverage) but held back by uneven operating performance and historically inconsistent cash generation. Technicals are supportive with the stock in an uptrend, while valuation is the main risk due to a very high P/E despite a moderate dividend yield.

Positive Factors

Balance Sheet StrengthA sizeable equity base and sharply reduced debt strengthen financial resilience and lower dependence on borrowed funding. This gives the company more flexibility to manage project cycles, absorb operating volatility, and support ongoing investment without relying heavily on leverage.

Negative Factors

Revenue ContractionThe sharp revenue decline after the 2024 rebound highlights substantial variability in demand or project deliveries. For a project-based machinery supplier, uneven top-line performance can make capacity planning, resource allocation, and sustained earnings growth less predictable over coming quarters.

Odawara Auto-Machine Mfg. Co., Ltd. (7314) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.32B
Dividend Yield: 2.95%
Average Volume (3M): 1,586
Price to Earnings (P/E): 33.8
Beta (1Y): 0.22
Revenue Growth: -31.60%
EPS Growth: 333.40%
Country: Japan
Employees: 224
Sector: General
Sector Strength: 55
Industry: Business Equipment & Supplies

Odawara Auto-Machine Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Founded in 1950 and based in Odawara, Japan, Odawara Auto-Machine Mfg. Co., Ltd. specializes in creating, producing, and distributing advanced fare collection systems for both bus and railway transportation. Their comprehensive range of products incl...

How the Company Makes Money

The company primarily makes money by selling industrial machinery and production equipment to business customers (B2B), typically as project-based deliveries of made-to-order systems. Revenue is generated from (1) equipment sales for new production l...

Odawara Auto-Machine Mfg. Co., Ltd. Financial Statement Overview

Summary

Financials are mixed. Balance sheet strength is a key positive (solid equity base and sharply lower debt), but operating results and cash conversion have been volatile (revenue swings, lower operating profit in the latest year vs. 2024, and uneven multi-year operating/free cash flow despite a 2025 rebound).

Income Statement

56Neutral

Balance Sheet

74Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.57B	7.67B	6.11B	3.93B	4.69B	3.58B
Gross Profit	1.86B	1.85B	2.06B	1.48B	1.03B	1.25B
EBITDA	274.11M	251.04M	522.14M	334.47M	193.49M	303.09M
Net Income	128.11M	96.62M	293.40M	191.58M	-42.58M	99.86M
Balance Sheet
Total Assets	6.41B	7.30B	9.89B	7.73B	5.45B	6.05B
Cash, Cash Equivalents and Short-Term Investments	2.17B	1.49B	2.55B	2.32B	1.92B	2.20B
Total Debt	1.64B	1.32B	3.72B	2.12B	564.09M	959.29M
Total Liabilities	2.54B	3.14B	5.75B	3.79B	1.71B	2.15B
Stockholders Equity	3.87B	4.16B	4.14B	3.94B	3.74B	3.90B
Cash Flow
Free Cash Flow	0	1.42B	-1.25B	-1.09B	181.04M	-184.90M
Operating Cash Flow	0	1.45B	-1.14B	-1.05B	375.02M	131.99M
Investing Cash Flow	0	-25.66M	-144.49M	-56.32M	-129.60M	-245.39M
Financing Cash Flow	0	-2.48B	1.52B	1.51B	-450.64M	369.88M

Odawara Auto-Machine Mfg. Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1355.00

Price Trends

50DMA1327.90Positive

100DMA1277.84Positive

200DMA1219.19Positive

Market Momentum

MACD4.21Positive

RSI57.81Neutral

STOCH66.03Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7314, the sentiment is Positive. The current price of 1355.00 is above the 20-day moving average (MA) of 1347.55, above the 50-day MA of 1327.90, and above the 200-day MA of 1219.19, indicating a bullish trend. The MACD of 4.21 indicates Positive momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 66.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7314.

Odawara Auto-Machine Mfg. Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7314 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6448	80Outperform	JPY 1.14T	10.92	14.00%	2.16%	6.72%	116.46%
JP:6418	77Outperform	JPY 37.03B	5.46	―	3.45%	-3.11%	227.14%
JP:7752	75Outperform	JPY 1.03T	12.40	7.30%	2.32%	4.85%	76.75%
JP:4902	67Neutral	JPY 328.40B	10.68	5.85%	2.41%	0.20%	―
JP:4901	60Neutral	JPY 4.19T	16.20	6.97%	2.07%	7.44%	2.56%
JP:7314	60Neutral	JPY 4.38B	33.77	―	2.95%	-31.60%	333.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7314 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7314	Odawara Auto-Machine Mfg. Co., Ltd.	1355.00	88.46	6.98%
JP:7752	RICOH CO	1812.50	525.11	40.79%
JP:6448	Brother Industries	4625.00	2067.36	80.83%
JP:4901	FUJIFILM Holdings Corp	3503.00	4.15	0.12%
JP:4902	Konica Minolta	664.90	148.63	28.79%
JP:6418	Japan Cash Machine Co., Ltd.	1248.00	284.49	29.53%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026

Odawara Auto-Machine Mfg. Co., Ltd. AI Stock Analysis