Omikenshi Co., Ltd. (3111) AI Stock Analysis

• Market Cap: ¥1.80B
• Dividend Yield: N/A
• Average Volume (3M): 15.72K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.65
• Revenue Growth: -3.03%
• EPS Growth: 46.85%
• Country: JP
• Employees: 82
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -35.71
• Shares Outstanding: 6,602,459
• 10 Day Avg. Volume: 18,160
• 30 Day Avg. Volume: 15,720
• PEG Ratio: -0.06
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -1.38
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: ¥246.00 ▼(-5.75% Downside)

Omikenshi Co., Ltd. is currently facing significant financial and technical challenges. The high leverage and negative cash flows are major concerns, compounded by bearish technical indicators and a negative P/E ratio. These factors collectively suggest a high-risk investment with limited near-term upside potential.

Positive Factors

Product Innovation

Omikenshi's emphasis on innovation in textile production positions it to develop new products and applications, potentially driving long-term growth and competitive advantage in the specialty fibers market.

Market Diversification

Omikenshi's diversified revenue streams from both domestic and international markets help mitigate risks associated with regional economic fluctuations, supporting stable long-term growth.

Net Income Recovery

The return to positive net income indicates potential for improved profitability, suggesting that Omikenshi may be overcoming past operational challenges and setting a foundation for future financial stability.

Negative Factors

High Leverage

The high leverage ratio indicates significant financial risk, as substantial liabilities may limit Omikenshi's financial flexibility and increase vulnerability to economic downturns.

Cash Flow Challenges

Ongoing negative free cash flow suggests difficulties in converting profits into cash, which could strain liquidity and hinder Omikenshi's ability to invest in growth opportunities or weather financial challenges.

Operational Inefficiencies

Persistently low margins reflect operational inefficiencies, which may impede Omikenshi's ability to improve profitability and compete effectively in the textiles industry over the long term.

Omikenshi Co., Ltd. Business Overview & Revenue Model

Company Description

Omikenshi Co., Ltd. (3111) is a Japanese company specializing in the manufacturing and sale of high-quality paper products. The company operates primarily in the paper and pulp sector, focusing on producing a wide range of paper types including specialty papers for various industries, packaging materials, and environmentally friendly products. Omikenshi is known for its commitment to sustainability and innovation, offering products that meet the diverse needs of its clients worldwide.

How the Company Makes Money

Omikenshi Co., Ltd. generates revenue primarily through the sale of its paper products to various industries, including printing, packaging, and specialty applications. The company's revenue model is built on a combination of direct sales to businesses, long-term contracts with major clients, and partnerships with distributors that facilitate wider market reach. Key revenue streams include sales of specialty papers, packaging materials, and eco-friendly paper products, which are increasingly in demand due to rising environmental awareness. Additionally, Omikenshi benefits from strategic collaborations with other companies that enhance its product offerings and market penetration, contributing to its overall earnings.

Omikenshi Co., Ltd. Financial Statement Overview

Summary

Omikenshi Co., Ltd. is navigating a tough financial landscape characterized by operational inefficiencies and high leverage. While there are early signs of recovery in net income, significant improvements in revenue growth, margins, and cash flow management are needed to enhance financial health and reduce risk exposure.

Income Statement

Omikenshi Co., Ltd. has shown some signs of recovery with a positive net income in 2025 after consecutive losses, indicating potential for future profitability. However, the revenue growth rate has been volatile and negative in recent years, and margins remain pressured, with low EBIT and EBITDA margins reflecting operational challenges.

Balance Sheet

The company's balance sheet shows high leverage with a debt-to-equity ratio above 3.9, indicative of significant financial risk. While the equity ratio has improved slightly, the low return on equity highlights ongoing profitability issues. The company's financial stability is a concern, given the substantial liabilities relative to equity.

Cash Flow

Omikenshi Co., Ltd. continues to face cash flow challenges, with consistently negative free cash flow and operating cash flow over recent years. The negative free cash flow growth rate and unfavorable cash flow ratios reflect struggles in converting profits into cash, posing a risk to liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.23B	3.41B	3.03B	3.12B	3.98B	6.79B
Gross Profit	1.28B	1.39B	1.24B	1.21B	1.41B	1.56B
EBITDA	674.00M	657.00M	-3.36B	-1.29B	222.00M	1.57B
Net Income	316.00M	300.00M	-2.42B	-1.11B	-375.00M	1.04B
Balance Sheet
Total Assets	15.32B	15.82B	18.23B	19.72B	22.38B	23.33B
Cash, Cash Equivalents and Short-Term Investments	564.00M	937.00M	739.00M	1.54B	3.10B	2.97B
Total Debt	7.16B	7.44B	10.10B	9.79B	10.45B	11.16B
Total Liabilities	13.50B	13.90B	16.61B	17.16B	18.58B	19.14B
Stockholders Equity	1.82B	1.92B	1.61B	2.56B	3.80B	4.19B
Cash Flow
Free Cash Flow	0.00	-1.45B	-1.92B	-1.53B	-1.41B	-1.94B
Operating Cash Flow	0.00	-517.00M	-1.40B	-1.42B	-1.24B	-1.60B
Investing Cash Flow	0.00	3.39B	287.00M	466.00M	2.07B	4.54B
Financing Cash Flow	0.00	-2.68B	295.00M	-719.00M	-707.00M	-792.00M

Omikenshi Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 261.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3111, the sentiment is Negative. The current price of 261 is above the 20-day moving average (MA) of 260.80, below the 50-day MA of 270.70, and below the 200-day MA of 289.27, indicating a bearish trend. The MACD of -4.87 indicates Negative momentum. The RSI at 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3111.

Omikenshi Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3109	72 Outperform	¥12.77B	13.73	―	4.89%	4.49%	26.84%
3201	72 Outperform	¥103.64B	14.41	―	2.60%	7.56%	-17.12%
3577	69 Neutral	¥2.90B	9.34	―	2.81%	6.31%	33.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3598	43 Neutral	¥2.41B	30.24	―	1.69%	-4.17%	9.23%
3111	39 Underperform	¥1.80B	5.70	―	―	-3.03%	46.85%