Odawara Auto-Machine Mfg (TSE:7314) - Share price, News & Analysis

7314 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

7314 Stock Overview

Odawara Auto-Machine Mfg. Co., Ltd. designs, manufactures, and sells bus and railway fare collecting equipment.

Rewards

PE ratio (5.5x) is below the JP market (12.1x)

Earnings grew by 546.7% over the past year

Risk Analysis

Dividend of 2.95% is not well covered by earnings

Does not have a meaningful market cap (¥2B)

Odawara Auto-Machine Mfg Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Odawara Auto-Machine Mfg
Historical stock prices
Current Share Price	JP¥509.00
52 Week High	JP¥577.00
52 Week Low	JP¥463.00
Beta	0.71
1 Month Change	0.79%
3 Month Change	9.46%
1 Year Change	-8.45%
3 Year Change	-36.06%
5 Year Change	-1.55%
Change since IPO	-38.68%

Shareholder Returns

	7314	JP Electronic	JP Market
7D	2.4%	2.0%	0.6%
1Y	-8.5%	1.1%	-2.9%

Return vs Industry: 7314 underperformed the JP Electronic industry which returned 1.1% over the past year.

Return vs Market: 7314 underperformed the JP Market which returned -2.9% over the past year.

Price Volatility

Is 7314's price volatile compared to industry and market?
7314 volatility
7314 Average Weekly Movement	3.7%
Electronic Industry Average Movement	5.0%
Market Average Movement	4.6%
10% most volatile stocks in JP Market	9.2%
10% least volatile stocks in JP Market	2.5%

Stable Share Price: 7314 is not significantly more volatile than the rest of JP stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 7314's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1950	203	Keiji Iriyama	https://www.odawarakiki.com

Odawara Auto-Machine Mfg. Co., Ltd. designs, manufactures, and sells bus and railway fare collecting equipment. The company offers fare boxes, ticket machines, IC card systems, ticket issuing machines, LCD fare indicators, speech synthesis guide devices, IC card systems, data management systems, and bus location systems. It also provides fare boxes and fare indicators for railway vehicles, as well as departure signs and various indicators for stations and platforms.

Odawara Auto-Machine Mfg Fundamentals Summary

How do Odawara Auto-Machine Mfg's earnings and revenue compare to its market cap?
7314 fundamental statistics
Market Cap	JP¥1.59b
Earnings (TTM)	JP¥291.00m
Revenue (TTM)	JP¥4.49b

5.5x

P/E Ratio

0.4x

P/S Ratio

Is 7314 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
7314 income statement (TTM)
Revenue	JP¥4.49b
Cost of Revenue	JP¥2.99b
Gross Profit	JP¥1.50b
Other Expenses	JP¥1.21b
Earnings	JP¥291.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	92.87
Gross Margin	33.42%
Net Profit Margin	6.49%
Debt/Equity Ratio	14.3%

How did 7314 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is Odawara Auto-Machine Mfg undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

5.48x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 7314 (¥509) is trading above our estimate of fair value (¥241.05)

Significantly Below Fair Value: 7314 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 7314 is good value based on its PE Ratio (5.5x) compared to the JP Electronic industry average (11.9x).

PE vs Market: 7314 is good value based on its PE Ratio (5.5x) compared to the JP market (12.1x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 7314's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 7314 is good value based on its PB Ratio (0.4x) compared to the JP Electronic industry average (0.9x).

Future Growth

How is Odawara Auto-Machine Mfg forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.5%

Forecasted Tech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Odawara Auto-Machine Mfg has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Odawara Auto-Machine Mfg performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

43.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 7314 has high quality earnings.

Growing Profit Margin: 7314's current net profit margins (6.5%) are higher than last year (1.2%).

Past Earnings Growth Analysis

Earnings Trend: 7314 has become profitable over the past 5 years, growing earnings by 43.3% per year.

Accelerating Growth: 7314's earnings growth over the past year (546.7%) exceeds its 5-year average (43.3% per year).

Earnings vs Industry: 7314 earnings growth over the past year (546.7%) exceeded the Electronic industry 47.3%.

Return on Equity

High ROE: 7314's Return on Equity (7.3%) is considered low.

Financial Health

How is Odawara Auto-Machine Mfg's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 7314's short term assets (¥4.6B) exceed its short term liabilities (¥1.3B).

Long Term Liabilities: 7314's short term assets (¥4.6B) exceed its long term liabilities (¥587.0M).

Debt to Equity History and Analysis

Debt Level: 7314 has more cash than its total debt.

Reducing Debt: 7314's debt to equity ratio has increased from 2.5% to 14.3% over the past 5 years.

Debt Coverage: 7314's debt is well covered by operating cash flow (23.1%).

Interest Coverage: 7314's interest payments on its debt are well covered by EBIT (411x coverage).

Balance Sheet

Dividend

What is Odawara Auto-Machine Mfg current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.95%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 7314's dividend (2.95%) is higher than the bottom 25% of dividend payers in the JP market (1.62%).

High Dividend: 7314's dividend (2.95%) is low compared to the top 25% of dividend payers in the JP market (3.64%).

Stability and Growth of Payments

Stable Dividend: 7314's dividend payments have been volatile in the past 10 years.

Growing Dividend: 7314's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.1%), 7314's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 7314 is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Tech industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure

CEO

Keiji Iriyama (70 yo)

10.17yrs

Tenure

Mr. Keiji Iriyama has been the President of Odawara Auto-Machine Mfg. Co., Ltd. since March 2012.Mr. Iriyama served as a Manager of Production Management at Odawara Auto-Machine Mfg. Co., Ltd. Department...

Leadership Team

Experienced Management: 7314's management team is seasoned and experienced (8.5 years average tenure).

Board Members

Experienced Board: 7314's board of directors are seasoned and experienced ( 10.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31