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

• Market Cap: ¥1.64B
• Dividend Yield: N/A
• Average Volume (3M): 15.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ¥240.00 ▼(-1.64% Downside)

Omikenshi Co., Ltd. has a challenging financial situation with high leverage and negative cash flows, which significantly impacts its overall stock score. The technical analysis suggests potential overbought conditions, but the stock remains in a bearish trend. Poor valuation metrics further weigh down the score.

Positive Factors

Sustainable & specialty product portfolio

Omikenshi's focus on specialty papers and eco-friendly products aligns with long-term regulatory and corporate sustainability trends. This product differentiation supports sticky customer relationships, potential pricing premiums, and market resilience over multiple quarters.

Stable revenue channels via contracts and distributors

Long-term contracts and distributor partnerships provide recurring revenue and broader market access, reducing short-term volatility from spot sales. This structural sales backbone supports predictability in cash flows and order visibility across 2-6 months.

Return to profitability in 2025

A move back to net income and strong EPS growth suggests operational fixes or revenue mix improvements. Sustained profitability would improve internal capital generation, enabling debt reduction or reinvestment if maintained beyond a single reporting period.

Negative Factors

Very high leverage

A debt-to-equity ratio above 3.9 signals substantial leverage that constrains financial flexibility. High interest and principal obligations increase solvency risk, limit ability to fund capex or innovation, and heighten refinancing risk over the medium term.

Persistent negative cash flows

Ongoing negative operating and free cash flow undermines the company's ability to service debt and invest in growth without external financing. This structural cash deficit raises liquidity risk and can force dilution or costly borrowing if unresolved.

Volatile revenue growth and weak margins

Inconsistent top-line growth and low margins point to limited pricing power and operational inefficiencies. Over time this reduces resilience to input-cost shocks and limits free cash generation, hampering sustained profitability and competitive positioning.

Omikenshi Co., Ltd. Business Overview & Revenue Model

Company Description

Omikenshi Co., Ltd. engages in the manufacture, processing, and sale of rayon steple fiber and spinning yarn in Japan. The company also offers knitted, woven, and nonwoven fabric products; various towels and sleeping products; and various foods and beverages. In addition, it is involved in the software development, as well as in the sale of basic cosmetics. The company was incorporated in 1917 and is headquartered in Osaka, Japan.

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: Positive
• Last Price: 244.00
• 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 Positive. The current price of 244 is below the 20-day moving average (MA) of 247.45, below the 50-day MA of 254.52, and below the 200-day MA of 281.52, indicating a neutral trend. The MACD of -1.94 indicates Negative momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥13.58B	14.60	―	4.80%	4.49%	26.84%
3201	72 Outperform	¥114.57B	16.45	―	2.66%	7.56%	-17.12%
3577	69 Neutral	¥3.13B	9.53	―	2.77%	6.31%	33.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3111	43 Neutral	¥1.64B	-3.34	―	―	-3.03%	46.85%
3598	43 Neutral	¥2.42B	30.42	―	1.78%	-4.17%	9.23%