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

• Market Cap: ¥1.66B
• Dividend Yield: N/A
• Average Volume (3M): 15.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -3.03%
• EPS Growth: 46.85%
• Country: JP
• Employees: 82
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -22.62
• 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: ¥244.00 ▲(0.00% Upside)
• Action: Upgraded Date: 12/13/25
• Date: Action: Upgraded 12/13/25

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

The company recorded positive net income in 2025 after prior losses, indicating an operational inflection. Sustained profitability can rebuild retained earnings, reduce reliance on external financing, and provide resources for reinvestment or deleveraging if margins and cash conversion follow.

Recent revenue growth

Reported revenue growth (~1.17) signals improving top-line momentum versus prior declines. If sustained, rising revenues can spread fixed costs, support margin recovery, and improve scale economics—critical for a manufacturer in a low-margin industry to regain durable profitability.

Lower market volatility (Beta)

A beta below 1 (~0.69) indicates lower sensitivity to market swings, providing more predictable earnings and lower external financing stress. For a company with cash constraints, lower systematic volatility aids planning, reduces refinancing risk, and supports steadier operational execution.

Negative Factors

High financial leverage

A debt-to-equity ratio above 3.9 denotes substantial leverage that elevates interest and refinancing burdens. High leverage restricts strategic flexibility, increases default and covenant risks, and can force asset sales or cutbacks, undermining long-term investment and recovery prospects.

Negative operating and free cash flow

Persistent negative operating and free cash flows signal weak cash generation and liquidity stress. Inability to convert accounting profits into cash forces dependence on debt or equity raises, limits capacity to fund capex and inventory, and heightens solvency risk over the medium term.

Low margins and volatile revenue

Volatile top-line and persistently low EBIT/EBITDA margins point to operational inefficiencies and weak pricing power. Low margins reduce resilience to input cost shocks, limit reinvestment capacity, and make sustained profitability fragile without structural improvements in cost or product mix.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 251.85, below the 50-day MA of 249.66, and below the 200-day MA of 274.04, indicating a neutral trend. The MACD of 0.98 indicates Positive momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 13.14 is Positive, 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
3104	75 Outperform	¥121.70B	24.35	―	1.79%	10.76%	54.82%
3109	72 Outperform	¥14.45B	9.97	―	4.80%	4.49%	26.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3600	59 Neutral	¥2.37B	-20.91	―	3.12%	-1.83%	16.87%
3202	57 Neutral	¥4.33B	53.38	―	2.63%	-3.01%	-65.96%
3409	48 Neutral	¥3.43B	-39.11	―	―	16.33%	75.48%
3111	43 Neutral	¥1.66B	-2.77	―	―	-3.03%	46.85%