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

• Market Cap: ¥1.65B
• Dividend Yield: N/A
• Average Volume (3M): 15.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• 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: ¥239.00 ▼(-2.05% 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

Return to profitability (positive net income in 2025)

Recording positive net income after consecutive losses signals a potential operational inflection. Durable impact: it provides a foundation for rebuilding retained earnings, supports creditor confidence, and creates a pathway to fund restructuring or reinvestment if margins and cash conversion continue to improve.

Slight improvement in equity ratio

A modest improvement in the equity ratio reduces the firm's relative reliance on creditors and slightly strengthens solvency. Over months, higher equity buffers can improve access to financing on better terms and lessen default risk, supporting longer-term operational stability if the trend persists.

Strong EPS growth rate

Material EPS growth implies earnings per share are recovering faster than headline revenue, which can indicate efficiency gains or cost control. Durable benefit: rising EPS improves ability to service debt, retain earnings, and demonstrate turnaround progress to stakeholders if accompanied by cash flow improvement.

Negative Factors

Very high leverage (debt-to-equity > 3.9)

Excessive leverage materially raises interest burdens and default risk and constrains strategic flexibility. Over a multi-month horizon, high debt limits the company's ability to invest, respond to shocks, or refinance cheaply, making any recovery fragile unless leverage meaningfully declines.

Consistently negative operating and free cash flow

Persistent negative operating and free cash flow undermines liquidity and forces dependence on external financing. Structurally, this limits the firm's capacity to service debt, fund capex, or sustain operations without ongoing capital injections, making earnings improvements less durable.

Volatile, declining revenue and pressured margins

Ongoing revenue volatility and low EBIT/EBITDA margins suggest weak demand or competitive pressures and operational inefficiency. Over months, without stable top-line growth or margin expansion, profitability gains may be transient and insufficient to restore long-term cash generation and financial health.

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. faces significant financial challenges, with high leverage and negative cash flows. Despite a positive net income in 2025, revenue growth is volatile, and margins are low, indicating operational inefficiencies and financial risk.

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: 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 Negative. The current price of 244 is below the 20-day moving average (MA) of 249.10, below the 50-day MA of 249.74, and below the 200-day MA of 278.48, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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
3201	74 Outperform	¥112.97B	13.90	―	2.66%	7.56%	-17.12%
3109	72 Outperform	¥13.27B	14.27	―	4.80%	4.49%	26.84%
3577	69 Neutral	¥3.24B	9.87	―	2.77%	6.31%	33.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3111	43 Neutral	¥1.65B	-3.34	―	―	-3.03%	46.85%
3598	43 Neutral	¥2.42B	30.42	―	1.78%	-4.17%	9.23%