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Otake Corporation (7434) AI Stock Analysis
Otake Corporation
(TSE/TYO:7434)
The overall score of 64 reflects a company with a very strong, low-debt balance sheet and an attractive valuation, offset by significant cash flow weakness. The primary risk is the deeply negative free cash flow, which indicates current spending is unsustainable. The low P/E and solid dividend yield provide a cushion, while technicals show neutral-to-positive momentum.
Otake Corporation (7434) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 6.92B
- Dividend Yield
- 2.27%
- Average Volume (3M)
- 2,015
- Price to Earnings (P/E)
- 7.9
- Beta (1Y)
- 0.27
- Revenue Growth
- 8.06%
- EPS Growth
- 3.55%
- Country
- Japan
- Employees
- 300
- Sector
- General
- Sector Strength
- 55
- Industry
- Industrial - Distribution
Otake Corporation Business Overview & Revenue Model
Company Description
Otake Corporation, based in Nagoya, Japan, is a key distributor of equipment for plumbing, housing, and air conditioning systems. Their comprehensive product line includes essential components like valves, pipes, fittings, meters, gauges, and various...
Otake Corporation Financial Statement Overview
Summary
Financial performance is mixed. The balance sheet is a key strength with very low leverage (D/E 0.057), providing stability. However, the income statement shows thin, low-single-digit margins, and the cash flow statement is a major concern due to deeply negative free cash flow in the TTM period from high capex, creating an unsustainable cash burn.
Income Statement
58NeutralBalance Sheet
82Very PositiveCash Flow
35Negative| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.95B | 35.65B | 32.99B | 31.25B | 29.28B | 26.62B |
| Gross Profit | 5.04B | 5.17B | 4.75B | 4.22B | 3.97B | 3.51B |
| EBITDA | 1.26B | 1.12B | 1.14B | 1.05B | 998.36M | 720.60M |
| Net Income | 918.13M | 878.65M | 855.07M | 774.82M | 822.35M | 530.42M |
Balance Sheet | ||||||
| Total Assets | 30.27B | 31.34B | 26.45B | 24.87B | 23.21B | 21.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.30B | 2.44B | 2.73B | 2.65B | 1.92B | 2.14B |
| Total Debt | 1.60B | 1.52B | 71.50M | 90.50M | 0 | 0 |
| Total Liabilities | 13.20B | 13.87B | 11.06B | 9.94B | 9.24B | 8.13B |
| Stockholders Equity | 17.07B | 17.47B | 15.39B | 14.92B | 13.98B | 12.91B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -1.44B | 745.04M | 1.22B | -5.74M | 874.75M |
| Operating Cash Flow | 0 | 1.39B | 983.89M | 1.54B | 335.93M | 926.36M |
| Investing Cash Flow | 0 | -2.97B | -534.49M | -767.70M | -493.43M | -77.99M |
| Financing Cash Flow | 0 | 1.31B | -399.31M | -41.58M | -69.43M | -91.22M |
Otake Corporation Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7434, the sentiment is Neutral. The current price of 1764.00 is above the 20-day moving average (MA) of 1741.35, below the 50-day MA of 1786.84, and below the 200-day MA of 1828.62, indicating a neutral trend. The MACD of -6.43 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7434.
Otake Corporation Peers Comparison
Overall Rating
JP:528875Outperform
JP:199472Outperform
JP:526870Outperform- JP:743464Neutral
JP:526959Neutral
JP:590050.6Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5288 | 75Outperform | JPY 54.96B | 6.77 | ― | 4.55% | 11.13% | 105.93% |
| JP:1994 | 72Outperform | JPY 5.23B | 6.88 | ― | 3.49% | 0.70% | 982.74% |
| JP:5268 | 70Outperform | JPY 10.43B | 16.76 | ― | 1.77% | 7.46% | 72.19% |
| JP:7434 | 64Neutral | JPY 6.95B | 7.87 | ― | 2.27% | 8.06% | 3.55% |
| JP:5269 | 59Neutral | JPY 19.30B | 21.06 | ― | 2.63% | 0.13% | ― |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:5900 | 51Neutral | JPY 5.00B | 15.21 | ― | 2.32% | 11.32% | 83.46% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7434 | Otake Corporation | 1764.00 | -41.47 | -2.30% | |
| JP:1994 | Takahashi Curtain Wall Corporation | 601.00 | 113.59 | 23.30% | |
| JP:5268 | Asahi Concrete Works Co., Ltd. | 799.00 | -17.63 | -2.16% | |
| JP:5269 | Nippon Concrete Industries Co., Ltd. | 342.00 | 22.50 | 7.04% | |
| JP:5288 | ASIA PILE HOLDINGS Corporation | 1449.00 | 273.87 | 23.31% | |
| JP:5900 | Daiken Co., Ltd. | 844.00 | 46.02 | 5.77% |
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: Oct 29, 2026