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

• Market Cap: ¥11.25B
• Dividend Yield: 2.74%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.09
• Revenue Growth: 4.36%
• EPS Growth: 17.63%
• Country: JP
• Employees: 136
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 13.06
• Shares Outstanding: 18,735,209
• 10 Day Avg. Volume: 1,111,660
• 30 Day Avg. Volume: 1,638,593
• PEG Ratio: 0.80
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -8.90
• 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: 62 Neutral
• Price Target: ¥747.00 ▲(71.72% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily supported by improving profitability and a solid balance sheet, but is materially held back by negative operating/free cash flows. Technicals are moderately positive due to price strength above key moving averages, while valuation is a drag given the higher P/E and modest dividend yield.

Positive Factors

Margin improvement

Sustained improvement in gross and net margins indicates stronger pricing power and tighter cost control in production and sourcing. For a textile/apparel manufacturer, higher margins create durable buffer versus input cost swings, supporting reinvestment in product, sustainability and long-term competitiveness.

Solid equity base & moderate leverage

A near-50% equity ratio and moderate D/E provide structural solvency, giving the company capacity to fund working capital, capex, or weather demand shocks without immediate refinancing. This balance sheet mix supports long-term strategic moves and reduces bankruptcy risk over a 2–6 month horizon.

Top-line and earnings growth

Above-trend revenue and earnings-per-share growth point to sustained demand for the firm’s products and improving profitability leverage. Durable top-line expansion combined with EPS growth provides a multi-quarter runway for margin expansion, capacity investments, and stronger competitive positioning.

Negative Factors

Negative cash generation

Persistent negative operating and free cash flows create a structural liquidity constraint that weakens internal funding for inventory, capex, and growth initiatives. Over months, this increases reliance on external financing and raises execution risk for product innovation and supply-chain improvements.

Rising total debt

An increasing absolute debt load, even with moderate D/E, compounds risk when cash generation is weak. Higher debt raises interest and refinancing exposure, which can constrain strategic flexibility and elevate vulnerability to cost shocks or slower seasonal sales over a multi-month horizon.

Moderate operating margins

EBIT/EBITDA margins at low-teens indicate limited operational efficiency for a manufacturer. Structural margin constraints reduce the company’s ability to absorb raw-material cost inflation and invest in higher-margin channels, putting long-term profit scalability and competitive differentiation at risk.

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 strength (Score 75) shows improving gross and net margins alongside modest revenue growth, and the balance sheet is solid (Score 70) with a healthy equity ratio and moderate leverage. However, cash flow is a key weakness (Score 50) due to negative operating and free cash flows, which lowers overall financial quality and flexibility.

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	1.34B	1.18B	1.01B	869.15M	920.44M
EBITDA	845.47M	686.55M	500.59M	410.32M	412.90M
Net Income	518.58M	414.33M	293.24M	254.91M	243.24M
Balance Sheet
Total Assets	12.08B	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	6.13B	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	-871.23M	1.48B	-1.95B	504.04M	334.12M
Investing Cash Flow	-193.67M	-135.33M	174.70M	-4.48M	-150.18M
Financing Cash Flow	122.72M	-296.43M	1.48B	-203.95M	-244.45M

Ohmori Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 435.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 435 is below the 20-day moving average (MA) of 582.20, below the 50-day MA of 603.68, and below the 200-day MA of 619.67, indicating a neutral trend. The MACD of 8.31 indicates Negative momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 51.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥11.94B	8.32	―	4.39%	2.65%	45.12%
1853	68 Neutral	¥11.04B	9.54	―	4.35%	-7.40%	60.55%
1768	66 Neutral	¥10.54B	6.31	―	2.16%	24.11%	1644.12%
1433	64 Neutral	¥10.82B	14.46	―	2.00%	-5.00%	77.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1844	62 Neutral	¥11.25B	11.79	―	2.74%	4.36%	17.63%
1848	46 Neutral	¥10.19B	190.24	―	2.33%	7.66%	562.50%