OZU Corporation (7487) AI Stock Analysis

OZU Corporation

(TSE/TYO:7487)

Select Model

Rating:58Neutral

Price Target:JPY 1,992.00▲(7.73% Upside)

Action:reiterated

Date:10/11/26

The overall score of 58 reflects a company with a strong, low-risk financial foundation that is offset by extremely overbought technical conditions. The primary strength is the pristine balance sheet and robust cash flow, which provide stability. However, the stock's technical indicators are flashing a severe warning, with an RSI above 83, suggesting a high probability of a near-term price correction. The moderate valuation does little to sway the score in either direction. The most significant factor weighing on the score is the technical risk, which tempers the positive financial profile.

Positive Factors

Conservative Balance SheetOZU’s low leverage and substantial equity base provide financial flexibility for inventory, logistics, and customer support without relying heavily on debt. This reduces balance-sheet risk and leaves the company better positioned to withstand demand fluctuations or fund measured growth.

Negative Factors

Limited Revenue MomentumLimited top-line momentum suggests OZU has not yet established a strong growth trajectory across its paper distribution markets. Without faster volume expansion or broader customer demand, the company may have less operating leverage and fewer opportunities to compound earnings over the medium term.

OZU Corporation (7487) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 15.56B
Dividend Yield: 1.62%
Average Volume (3M): 4,976
Price to Earnings (P/E): 20.7
Beta (1Y): 0.08
Revenue Growth: 6.98%
EPS Growth: 93.72%
Country: Japan
Employees: 245
Sector: General
Sector Strength: 55
Industry: Paper, Lumber & Forest Products

OZU Corporation Business Overview & Revenue Model

Company Description

Ozu Corporation's primary activities encompass the global procurement, production, distribution, and export of specialized nonwoven fabrics. These advanced materials are utilized across diverse sectors such as electronics, medical applications, the b...

How the Company Makes Money

OZU Corporation primarily makes money by selling paper and paper-related products through a distribution/trading model. Revenue is generated when the company sources paper and related materials from manufacturers and resells them to business customer...

OZU Corporation Financial Statement Overview

Summary

Financial performance is solid, driven by a very strong balance sheet (Score 85) with minimal debt and growing equity, and healthy cash flow generation (Score 72). The income statement (Score 58) shows improving revenue growth and margins, but profitability remains modest and volatile, tempering the overall financial picture.

Income Statement

58Neutral

Balance Sheet

85Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	11.03B	10.74B	10.22B	10.13B	10.37B	10.55B
Gross Profit	3.73B	3.48B	3.23B	3.13B	3.07B	3.13B
EBITDA	1.13B	946.31M	796.16M	886.97M	845.36M	1.05B
Net Income	750.16M	610.62M	408.85M	546.35M	383.94M	557.33M
Balance Sheet
Total Assets	26.66B	25.59B	26.41B	24.74B	24.63B	22.55B
Cash, Cash Equivalents and Short-Term Investments	9.79B	9.62B	8.36B	7.44B	7.48B	7.07B
Total Debt	2.55B	2.57B	2.57B	2.57B	2.57B	2.57B
Total Liabilities	6.85B	6.41B	7.19B	6.53B	6.61B	6.00B
Stockholders Equity	19.69B	19.07B	19.13B	18.13B	18.01B	16.54B
Cash Flow
Free Cash Flow	965.79M	965.79M	642.38M	85.30M	591.36M	710.82M
Operating Cash Flow	1.05B	1.05B	849.05M	530.98M	815.11M	893.88M
Investing Cash Flow	364.35M	364.35M	316.20M	-403.82M	-223.68M	-211.42M
Financing Cash Flow	-209.82M	-209.82M	-210.00M	-209.60M	-192.94M	-246.82M

OZU Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price1849.00

Price Trends

50DMA1842.22Positive

100DMA1803.69Positive

200DMA1816.31Positive

Market Momentum

MACD1.88Positive

RSI42.40Neutral

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7487, the sentiment is Positive. The current price of 1849.00 is below the 20-day moving average (MA) of 1874.95, above the 50-day MA of 1842.22, and above the 200-day MA of 1816.31, indicating a neutral trend. The MACD of 1.88 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7487.

OZU Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7487 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3708	68Neutral	JPY 77.80B	16.04	―	3.71%	-0.03%	30.67%
JP:3877	65Neutral	JPY 27.52B	8.61	―	5.34%	0.40%	167.42%
JP:3865	62Neutral	JPY 132.28B	20.45	2.61%	3.11%	-5.23%	-55.21%
JP:3878	59Neutral	JPY 8.84B	6.95	―	1.72%	7.74%	82.31%
JP:7487	58Neutral	JPY 15.51B	20.74	―	1.62%	6.98%	93.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:3864	54Neutral	JPY 54.59B	10.01	5.78%	1.79%	-8.09%	76.25%

* General Sector Average

Performance Comparison

JP:7487 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7487	OZU Corporation	1849.00	163.92	9.73%
JP:3864	Mitsubishi Paper Mills	1228.00	639.39	108.63%
JP:3865	Hokuetsu Corporation	836.00	15.25	1.86%
JP:3708	Tokushu Tokai Paper Co., Ltd.	2127.00	710.16	50.12%
JP:3877	Chuetsu Pulp & Paper Co., Ltd.	2061.00	487.75	31.00%
JP:3878	Tomoegawa Corporation	874.00	106.36	13.86%

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: Oct 11, 2026

OZU Corporation AI Stock Analysis