Ohmori Co., Ltd. (1844) AI Stock Analysis

• Market Cap: ¥10.95B
• Dividend Yield: 2.74%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.12
• Revenue Growth: 4.36%
• EPS Growth: 17.63%
• Country: JP
• Employees: 136
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 5.34
• Shares Outstanding: 18,735,209
• 10 Day Avg. Volume: 1,111,660
• 30 Day Avg. Volume: 1,638,593
• PEG Ratio: 0.82
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.47
• P/FCF Ratio: -9.09
• 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: 61 Neutral
• Price Target: ¥599.00 ▲(37.70% Upside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by solid profitability and a reasonably strong balance sheet, offset by weak cash flow (negative operating and free cash flows). Technicals add some support via positive momentum, but overbought RSI/Stoch readings temper the outlook. Valuation is moderate-to-high with only a modest dividend yield.

Positive Factors

Improving profitability

Sustained margin improvement indicates effective cost management and pricing power in core textile and apparel operations. Higher gross and net margins increase internal cash generation potential (if converted), support reinvestment in product innovation and sustainability, and provide a durable buffer against input-cost volatility over the medium term.

Healthy capital structure

A near-50% equity ratio and moderate leverage give the company balance-sheet resilience, lowering solvency risk and preserving borrowing capacity for strategic investments or partnerships. Improved ROE shows more effective use of equity, supporting long-term financial stability and ability to sustain operations through industry cycles.

Consistent top-line and EPS growth

Repeated revenue and EPS expansion reflect steady demand for the company's mix of traditional and contemporary textile products and successful margin capture. Persistent growth trends support scale economies, merchant relationships, and justify continued product and sustainability investments that can sustain competitive positioning over multiple quarters.

Negative Factors

Negative operating & free cash flow

Chronic negative operating and free cash flows signal weak cash conversion of earnings. Over months this constrains capital for capex, inventory, and marketing, increases reliance on external financing, and elevates liquidity and refinancing risk—hindering the company’s ability to execute long-term growth or weather downturns.

Rising total debt level

An uptick in total debt raises fixed interest and principal obligations. With limited cash generation, incremental leverage reduces financial flexibility, heightens refinancing and interest-rate exposure, and can crowd out strategic spending—making sustained investment in innovation and international expansion harder over the medium term.

Modest operating margins

Operating margins are modest for a quality-focused textile manufacturer, limiting the company’s ability to absorb cost shocks and fund growth internally. Without efficiency gains or higher-margin product shifts, these margins may restrain free cash flow improvement and competitive reinvestment over the next several quarters.

Ohmori Co., Ltd. Business Overview & Revenue Model

Company Description

Ohmori Co., Ltd., established in 1844, is a prominent player in the manufacturing sector specializing in traditional Japanese textiles and contemporary fashion. The company operates primarily in the textile and apparel industry, focusing on high-quality fabrics and garments that blend traditional craftsmanship with modern design. Ohmori Co., Ltd. is known for its commitment to sustainability and innovation, producing a range of products that cater to both domestic and international markets.

How the Company Makes Money

Ohmori Co., Ltd. generates revenue through multiple streams, primarily from the sale of its textile products and ready-to-wear clothing lines. The company capitalizes on its reputation for quality and craftsmanship, allowing it to command premium pricing in the market. Key revenue streams include wholesale distribution to retail partners, direct sales through e-commerce platforms, and collaborations with fashion designers for exclusive collections. Additionally, Ohmori Co., Ltd. has established significant partnerships with various brands and retailers, enhancing its market reach and driving sales growth. The company also invests in product innovation and sustainability initiatives, which attract a growing segment of environmentally conscious consumers, further contributing to its earnings.

Ohmori Co., Ltd. Financial Statement Overview

Summary

Income statement trends are solid (revenue up 1.4% with improved gross and net margins), and the balance sheet looks reasonably strong (49.43% equity ratio, moderate 0.72 debt-to-equity). The main drag is cash flow: negative operating and free cash flows and a negative operating cash flow to net income ratio raise liquidity and financial flexibility concerns.

Income Statement

Ohmori Co., Ltd. has demonstrated consistent revenue growth, with a 1.4% increase in the latest year. The gross profit margin improved to 20.97%, indicating efficient cost management. The net profit margin also rose to 8.04%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, at 12.18% and 13.12% respectively, suggest room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy equity ratio of 49.43%, indicating a strong equity base. The debt-to-equity ratio stands at 0.72, reflecting moderate leverage. Return on equity improved to 8.71%, showcasing effective utilization of equity. However, the total debt level has increased, which could pose a risk if not managed properly.

Cash Flow

Ohmori Co., Ltd. faces challenges with negative operating and free cash flows, indicating cash management issues. The free cash flow growth rate is negative, highlighting potential liquidity concerns. The operating cash flow to net income ratio is negative, suggesting cash flow generation issues relative to net income.

Breakdown	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	6.44B	5.98B	6.05B	5.24B	4.95B
Gross Profit	1.35B	1.19B	1.01B	877.41M	931.50M
EBITDA	845.00M	702.30M	530.13M	443.87M	433.43M
Net Income	518.00M	414.33M	293.24M	254.91M	243.24M
Balance Sheet
Total Assets	12.04B	11.93B	11.41B	9.54B	8.85B
Cash, Cash Equivalents and Short-Term Investments	2.51B	3.45B	2.40B	2.66B	2.35B
Total Debt	4.31B	4.00B	4.36B	3.24B	3.34B
Total Liabilities	6.09B	6.31B	6.26B	5.06B	4.55B
Stockholders Equity	5.95B	5.62B	5.14B	4.48B	4.30B
Cash Flow
Free Cash Flow	-1.04B	1.41B	-2.09B	452.57M	280.81M
Operating Cash Flow	-871.00M	1.48B	-1.95B	504.04M	334.12M
Investing Cash Flow	-193.00M	-135.33M	174.70M	-4.48M	-150.18M
Financing Cash Flow	122.00M	-296.43M	1.48B	-203.95M	-244.45M

Ohmori Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 435.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1844, the sentiment is Negative. The current price of 435 is below the 20-day moving average (MA) of 603.95, below the 50-day MA of 577.32, and below the 200-day MA of 599.13, indicating a neutral trend. The MACD of -5.90 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 32.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1844.

Ohmori Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1807	71 Outperform	¥12.71B	12.02	―	4.39%	2.65%	45.12%
1768	70 Outperform	¥12.30B	10.64	―	2.16%	24.11%	1644.12%
1853	68 Neutral	¥11.46B	13.42	―	4.35%	-7.40%	60.55%
1433	65 Neutral	¥12.43B	19.34	―	2.00%	-5.00%	77.99%
1848	64 Neutral	¥11.54B	4.48	―	2.33%	7.66%	562.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	61 Neutral	¥10.95B	22.00	―	2.74%	4.36%	17.63%