Conservative Balance SheetLow leverage and a conservatively positioned balance sheet provide durable financial flexibility. This reduces default risk, supports capital allocation choices (capex, dividends, or M&A), and allows the firm to withstand cyclical industry downturns without immediate refinancing pressure.

Consistent ProfitabilitySustained positive operating margins indicate an established business model and pricing or cost structure that generates recurring profit. Even modest, steady margins support reinvestment and signal operational competence, making earnings less binary across economic cycles.

Equity Growth And Steady ROEGradual equity growth combined with consistent high-single-digit ROE shows the company has historically deployed capital to generate returns. This suggests a track record of shareholder capital preservation and modest value creation, underpinning long-term solvency.

Bears Say

Negative TTM Free Cash FlowA shift to negative trailing free cash flow and weak operating cash relative to earnings is a structural red flag. Persistently poor cash conversion limits funding for growth, raises refinancing risk, and constrains the company’s ability to sustain dividends or opportunistic investments.

Stalled Revenue And Margin SoftnessA decline in trailing revenue alongside compressed gross/operating/net margins indicates weaker demand, pricing pressure, or rising costs. Continued stagnation reduces operating leverage and growth optionality, making it harder to improve profitability without structural changes.

Rising Total Debt (trend)An uptick in absolute debt, even from a low base, is concerning given weakening cash generation. If higher borrowings fund operations or capex without restoring cash flow, financial flexibility and credit profile could weaken, reducing resilience over the medium term.

5939 FAQ

What was Otani Kogyo Co., Ltd.’s price range in the past 12 months?

Otani Kogyo Co., Ltd. lowest stock price was ¥4800.00 and its highest was ¥10630.00 in the past 12 months.

What is Otani Kogyo Co., Ltd.’s market cap?

Otani Kogyo Co., Ltd.’s market cap is ¥7.00B.

When is Otani Kogyo Co., Ltd.’s upcoming earnings report date?

Otani Kogyo Co., Ltd.’s upcoming earnings report date is May 19, 2026 which is in 81 days.

How were Otani Kogyo Co., Ltd.’s earnings last quarter?

Otani Kogyo Co., Ltd. released its earnings results on Feb 10, 2026. The company reported ¥144.46 earnings per share for the quarter, beating the consensus estimate of N/A by ¥144.46.

Is Otani Kogyo Co., Ltd. overvalued?

According to Wall Street analysts Otani Kogyo Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Otani Kogyo Co., Ltd. pay dividends?

Otani Kogyo Co., Ltd. pays a Annually dividend of ¥30 which represents an annual dividend yield of 0.55%. See more information on Otani Kogyo Co., Ltd. dividends here

What is Otani Kogyo Co., Ltd.’s EPS estimate?

Otani Kogyo Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Otani Kogyo Co., Ltd. have?

Otani Kogyo Co., Ltd. has 780,000 shares outstanding.

What happened to Otani Kogyo Co., Ltd.’s price movement after its last earnings report?

Otani Kogyo Co., Ltd. reported an EPS of ¥144.46 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.633%.

Which hedge fund is a major shareholder of Otani Kogyo Co., Ltd.?

Currently, no hedge funds are holding shares in JP:5939

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Otani Kogyo Co., Ltd.

Otani Kogyo Co., Ltd. (5939) is a Japanese company primarily engaged in the manufacturing and sales of various types of industrial equipment and materials. The company specializes in the production of high-quality steel pipes, valves, and fittings used across multiple sectors, including construction, infrastructure, and energy. Otani Kogyo is known for its innovation in product design and commitment to quality, serving a diverse clientele both domestically and internationally.