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

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Odawara Auto-Machine Mfg. Co., Ltd.

(TSE/TYO:7314)

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Rating:64Neutral

Price Target:JPY 1,447.00▲(10.46% Upside)

Action:reiterated

Date:10/13/26

The overall score of 64 reflects a company with a strong financial foundation and positive market momentum, offset by significant profitability challenges and a high valuation. The primary strengths are a robust, deleveraged balance sheet and bullish technical trends. The main risks are the sharp contraction in profit margins and a high P/E ratio, which make the stock vulnerable if earnings do not recover.

Positive Factors

Balance Sheet StrengthMeaningful debt reduction alongside stable equity strengthens financial resilience and reduces reliance on borrowing to fund operations. This gives the company greater flexibility to manage industrial-cycle volatility, support customer projects, and maintain investment capacity over the next several quarters.

Negative Factors

Revenue VolatilityLarge year-to-year revenue swings make the company’s earnings base less predictable and indicate sensitivity to the timing of industrial equipment projects. A renewed decline can weaken operating leverage, complicate resource planning, and reduce visibility into sustainable growth over coming quarters.

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

Market Cap: JPY 4.22B
Dividend Yield: 3.02%
Average Volume (3M): 1,591
Price to Earnings (P/E): 32.7
Beta (1Y): 0.18
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

Financial performance is mixed. The balance sheet is strong (Score 78) with significantly reduced debt and a healthy equity base. Cash flow improved dramatically (Score 62), turning positive. However, the income statement is weak (Score 48) due to severe margin compression and a 67% drop in net income, despite revenue growth. The overall financial health is supported by a solid foundation but weighed down by profitability concerns.

Income Statement

48Neutral

Balance Sheet

78Positive

Cash Flow

62Positive

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 SentimentNeutral

Last Price1310.00

Price Trends

50DMA1333.04Negative

100DMA1293.48Positive

200DMA1227.27Positive

Market Momentum

MACD-2.65Positive

RSI37.08Neutral

STOCH10.85Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7314, the sentiment is Neutral. The current price of 1310.00 is below the 20-day moving average (MA) of 1337.55, below the 50-day MA of 1333.04, and above the 200-day MA of 1227.27, indicating a neutral trend. The MACD of -2.65 indicates Positive momentum. The RSI at 37.08 is Neutral, neither overbought nor oversold. The STOCH value of 10.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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:6418	81Outperform	JPY 43.20B	11.18	―	2.95%	19.26%	-23.39%
JP:6448	74Outperform	JPY 1.12T	10.23	14.22%	2.41%	7.97%	106.89%
JP:7752	68Neutral	JPY 959.82B	11.21	7.50%	2.44%	5.20%	44.17%
JP:7314	64Neutral	JPY 4.28B	32.65	―	3.02%	-31.60%	333.40%
JP:4901	63Neutral	JPY 4.30T	0.39	7.20%	2.01%	7.46%	-3.13%
JP:4902	60Neutral	JPY 282.17B	12.12	4.73%	2.75%	4.51%	―
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.	1310.00	28.91	2.26%
JP:7752	RICOH CO	1719.00	391.26	29.47%
JP:6448	Brother Industries	4560.00	1634.20	55.86%
JP:4901	FUJIFILM Holdings Corp	3615.00	384.92	11.92%
JP:4902	Konica Minolta	581.10	-38.25	-6.18%
JP:6418	Japan Cash Machine Co., Ltd.	1458.00	512.79	54.25%

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: Nov 07, 2026

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