OM2 Network Co., Ltd. (7614) AI Stock Analysis

• Market Cap: ¥10.10B
• Dividend Yield: 2.27%
• Average Volume (3M): 2.68K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.23
• Revenue Growth: 5.62%
• EPS Growth: -21.92%
• Country: JP
• Employees: 715
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 24.77
• Shares Outstanding: 7,335,634
• 10 Day Avg. Volume: 3,880
• 30 Day Avg. Volume: 2,683
• PEG Ratio: -0.49
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 10.58
• 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: 74 Outperform
• Price Target: ¥1,677.00 ▲(11.21% Upside)

OM2 Network Co., Ltd. demonstrates strong financial stability with consistent revenue growth and efficient cost management. The valuation is attractive, with a low P/E ratio and a solid dividend yield. Technical indicators suggest a neutral to slightly bearish short-term outlook, but the positive MACD indicates potential underlying strength. The absence of earnings call data and corporate events limits further insights.

OM2 Network Co., Ltd. Business Overview & Revenue Model

Company Description

OM2 Network Co., Ltd. (7614) operates in the telecommunications and technology sector, specializing in providing innovative networking solutions and services. The company focuses on developing advanced communication technologies, including data transmission, network infrastructure, and cloud services. OM2 Network aims to enhance connectivity and improve operational efficiency for businesses across various industries.

How the Company Makes Money

OM2 Network generates revenue primarily through the sale of networking equipment, software solutions, and managed services. The company has a diversified revenue model that includes direct sales to enterprise clients, subscription-based services for cloud and data management, and maintenance contracts for existing infrastructure. Key revenue streams come from partnerships with technology providers and telecommunications companies, which allow OM2 Network to offer comprehensive solutions tailored to customer needs. Additionally, the company benefits from government contracts and grants that support technological advancements in communication infrastructure.

OM2 Network Co., Ltd. Financial Statement Overview

Summary

OM2 Network Co., Ltd. exhibits a strong financial position with consistent revenue growth and efficient cost management. The balance sheet is solid, with low leverage and high equity. While cash flow generation is positive, there is room for improvement in free cash flow growth. Overall, the company is well-positioned in the food distribution industry, but attention to net profit margins and cash flow management could enhance financial performance further.

Income Statement

OM2 Network Co., Ltd. has shown consistent revenue growth over the years, with a slight dip in EBIT and EBITDA margins in the latest year. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin has decreased, suggesting potential challenges in controlling non-operating expenses or taxes.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio, indicating financial stability and low leverage risk. The equity ratio is high, reflecting a strong capital structure. Return on equity has slightly decreased, which may suggest a need for more efficient use of equity capital.

Cash Flow

OM2 Network Co., Ltd. has demonstrated positive free cash flow, although there is a decline in free cash flow growth rate. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The decrease in free cash flow to net income ratio suggests potential increases in capital expenditures or other cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.15B	32.78B	32.11B	31.54B	29.72B	29.58B
Gross Profit	13.32B	12.65B	12.67B	12.08B	11.05B	11.40B
EBITDA	1.77B	2.07B	2.37B	1.79B	2.03B	1.72B
Net Income	987.17M	1.10B	1.34B	886.76M	972.58M	689.08M
Balance Sheet
Total Assets	22.64B	22.06B	20.16B	19.18B	18.26B	17.79B
Cash, Cash Equivalents and Short-Term Investments	10.72B	9.74B	11.97B	11.05B	9.62B	9.07B
Total Debt	911.24M	507.00M	54.56M	190.68M	315.06M	100.00M
Total Liabilities	5.21B	4.83B	3.72B	3.82B	3.63B	3.98B
Stockholders Equity	17.43B	17.24B	16.44B	15.36B	14.63B	13.82B
Cash Flow
Free Cash Flow	0.00	886.00M	1.31B	1.69B	710.06M	902.83M
Operating Cash Flow	0.00	1.27B	1.65B	1.85B	973.02M	1.22B
Investing Cash Flow	0.00	-2.44B	-438.77M	171.34M	-516.01M	-280.75M
Financing Cash Flow	0.00	-1.08B	-297.61M	-285.74M	-10.04M	-82.72M

OM2 Network Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1508.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7614, the sentiment is Negative. The current price of 1508 is below the 20-day moving average (MA) of 1508.30, above the 50-day MA of 1505.50, and above the 200-day MA of 1470.85, indicating a neutral trend. The MACD of 2.89 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 28.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7614.

OM2 Network Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7614	74 Outperform	¥10.10B	10.13	―	2.27%	5.62%	-21.92%
3160	71 Outperform	¥8.90B	19.81	―	2.33%	4.62%	-29.55%
7538	69 Neutral	¥4.58B	4.22	―	1.69%	2.56%	16.26%
8030	68 Neutral	¥13.98B	5.15	―	3.14%	7.29%	10.64%
7114	67 Neutral	¥4.10B	43.45	―	―	8.54%	-59.20%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
8039	61 Neutral	¥7.87B	22.22	―	1.00%	5.89%	82.20%