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

JP:7614

OM2 Network Co., Ltd.

(TSE/TYO:7614)

Select Model
Rating:71Outperform
Price Target:JPY 1,691.00â–²(9.10% Upside)
Action:reiterated
Date:08/04/26

OM2 Network earns a respectable score driven primarily by its attractive valuation and a highly resilient balance sheet that generates reliable free cash flow. However, the score is weighed down by bearish technical trends across all major moving averages and a recent contraction in operational profit margins.

Positive Factors
Conservative Balance SheetVery low leverage and rising equity provide financial resilience and flexibility. This reduces balance-sheet risk, supports continued investment, and should help the company withstand operating pressure without relying heavily on external financing.
Negative Factors
Margin CompressionRecent margin deterioration suggests higher costs, weaker pricing power, or an unfavorable sales mix. If sustained, it could limit earnings growth despite rising revenue and weaken the company’s ability to convert demand into durable profitability.

OM2 Network Co., Ltd. (7614) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:7614+6.17%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 10.43B
Dividend Yield
2.30%
Average Volume (3M)
3,036
Price to Earnings (P/E)
9.8
Beta (1Y)
0.33
Revenue Growth
4.43%
EPS Growth
8.28%
Country
Japan
Employees
753
Sector
General
Sector Strength
55
Industry
Grocery Stores

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

Company Description

OM2 Network Co.,Ltd. retails meat and prepared food products in Japan. The company is involved in the meat processing activities; meat product retail; food products retail; as well as offers private label products, such as sauce, hotpot soup, and oth...

How the Company Makes Money

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OM2 Network Co., Ltd. Financial Statement Overview

Summary

OM2 Network demonstrates a highly stable financial profile with minimal leverage and robust cash flow generation. While top-line revenue is steady and the balance sheet is exceptionally secure, recent net income margin compression and low return on equity prevent a higher score.

Income Statement

68Positive

Balance Sheet

85Very Positive

Cash Flow

80Positive
Financial statement breakdown
BreakdownTTMJan 2026Jan 2025Jan 2024Jan 2023Jan 2022
Income Statement
Total Revenue35.66B35.37B32.78B32.11B31.54B29.72B
Gross Profit14.18B14.04B12.65B12.67B12.08B11.05B
EBITDA1.97B1.94B2.07B2.37B1.79B2.03B
Net Income1.07B944.25M1.10B1.34B886.76M972.58M
Balance Sheet
Total Assets23.51B23.38B22.06B20.24B19.18B18.26B
Cash, Cash Equivalents and Short-Term Investments11.49B10.91B9.74B11.97B11.05B9.62B
Total Debt719.81M814.86M507.13M54.56M190.68M315.06M
Total Liabilities5.16B5.27B4.83B3.80B3.82B3.63B
Stockholders Equity18.35B18.11B17.24B16.44B15.36B14.63B
Cash Flow
Free Cash Flow01.12B884.81M1.32B1.69B710.50M
Operating Cash Flow01.47B1.27B1.65B1.85B973.02M
Investing Cash Flow0-315.20M-2.44B-438.77M171.34M-516.01M
Financing Cash Flow070.12M-1.08B-297.61M-285.74M-10.04M

OM2 Network Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price1550.00

Price Trends

50DMA1545.84Positive
100DMA1543.28Positive
200DMA1552.05Negative

Market Momentum

MACD3.74Negative
RSI49.79Neutral
STOCH57.31Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7614, the sentiment is Neutral. The current price of 1550.00 is above the 20-day moving average (MA) of 1549.50, above the 50-day MA of 1545.84, and below the 200-day MA of 1552.05, indicating a neutral trend. The MACD of 3.74 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 57.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7614.

OM2 Network Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7614 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7481JP:748182OutperformJPY 22.81B7.36―4.24%6.56%5.65%
JP:7614JP:761471OutperformJPY 10.53B9.75―2.30%4.43%8.28%
JP:3182JP:318266NeutralJPY 58.38B11.32―1.22%-5.22%27.32%
JP:8030JP:803066NeutralJPY 14.76B5.02―3.25%5.82%8.33%
JP:8039JP:803956NeutralJPY 8.26B22.41―0.95%11.17%3.95%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-20%0%20%JP:7614JP:3182JP:7481JP:8030JP:8039Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7614 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7614OM2 Network Co., Ltd.1550.0091.006.24%
JP:3182Oisix ra daichi, Inc.1645.00-57.26-3.36%
JP:7481OIE SANGYO Co., Ltd.2508.00409.8019.53%
JP:8030Chuo Gyorui Co., Ltd.3625.00224.646.61%
JP:8039Tsukiji Uoichiba Company, Limited3660.00170.954.90%
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 04, 2026