Ochi Holdings Co., Ltd. (3166) AI Stock Analysis

• Market Cap: ¥20.44B
• Dividend Yield: 3.75%
• Average Volume (3M): 3.54K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.41
• Revenue Growth: 4.35%
• EPS Growth: -34.05%
• Country: JP
• Employees: 1,624
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 32.81
• Shares Outstanding: 13,610,970
• 10 Day Avg. Volume: 3,900
• 30 Day Avg. Volume: 3,540
• PEG Ratio: -0.33
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 17.61
• 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: 68 Neutral
• Price Target: ¥1,710.00 ▲(23.20% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

The overall stock score of 68 reflects a stable financial performance with consistent revenue growth and a strong balance sheet. However, challenges in net profit margins and cash flow generation pose risks. The technical analysis indicates a neutral outlook, while the valuation is favorable due to a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth & Core Sales

Consistent revenue growth indicates enduring demand for Ochi's construction-materials distribution and a stable customer base. Over a multi-month horizon this supports predictable cash generation, scale benefits across procurement/logistics, and resilience to localized construction demand fluctuations.

Conservative Leverage

Low leverage and an improved equity ratio enhance financial flexibility and reduce refinancing risk. This conservative capital structure supports discretionary investment and weathering cyclical slowdowns in construction activity, preserving liquidity for strategic needs over the coming months.

Stable Gross Margin & Strong OCF Conversion

A steady gross margin shows durable pricing and procurement execution in distribution, while strong operating cash conversion demonstrates effective working-capital and cash collection processes. Together these sustain internal funding capacity for operations and gradual reinvestment.

Negative Factors

Declining Net Profit Margin

Shrinking net margins signal rising operating or non-operating costs that erode bottom-line resilience. Over several months this reduces retained earnings and flexibility to absorb cost shocks, pressuring free cash flow and long-term profitability unless expense or pricing dynamics improve.

Falling Free Cash Flow

A material drop in free cash flow limits capacity to fund capex, dividends, or strategic initiatives from operations. Persisting lower FCF increases reliance on external financing despite low leverage, which can constrain growth initiatives and make the company more vulnerable to future cost or demand shocks.

Weakened Return on Equity

A sharp ROE decline indicates reduced efficiency in converting equity into profits. Over a medium-term horizon this can pressure shareholder returns and make it harder to justify reinvestment levels, potentially limiting long-term value creation unless profitability metrics recover.

Ochi Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Ochi Holdings Co., Ltd. (3166) is a Japanese company primarily engaged in the manufacturing and distribution of a diverse range of industrial and consumer products. The company operates in various sectors including chemicals, plastics, and automotive components. Ochi Holdings focuses on innovation and sustainability, offering products that cater to both domestic and international markets, and has developed a strong reputation for quality and reliability in its offerings.

How the Company Makes Money

Ochi Holdings generates revenue through multiple streams, primarily from the sale of its core products in the industrial and consumer sectors. The company capitalizes on its manufacturing capabilities to produce high-quality materials and components, which are sold to various industries, including automotive and electronics. Additionally, Ochi Holdings may engage in strategic partnerships with other companies to expand its market reach and enhance its product offerings. These collaborations can lead to joint ventures or co-development projects, further contributing to revenue growth. The company's commitment to innovation and efficiency also plays a crucial role in maintaining competitive pricing and attracting a loyal customer base, ultimately driving its earnings.

Ochi Holdings Co., Ltd. Financial Statement Overview

Summary

Ochi Holdings Co., Ltd. shows stable revenue growth and profitability from core operations. However, declining net profit margins and free cash flow indicate potential challenges in cost management and cash generation efficiency. The company's low debt-to-equity ratio and improved equity ratio demonstrate financial stability, though the reduced ROE highlights areas for potential improvement in shareholder returns.

Income Statement

Gross profit margin remained stable at around 13% over the years, indicating consistent profitability from core operations. However, net profit margin showed a declining trend from 3.1% in 2023 to 0.9% in 2025, suggesting challenges in managing overall expenses or other operational efficiencies. Revenue growth was positive, with a moderate increase of 3.3% from 2024 to 2025, though slower compared to previous years.

Balance Sheet

The debt-to-equity ratio remained relatively low around 0.34 in 2025, indicating a conservative leverage position, which is a positive sign of financial stability. ROE decreased from 11.4% in 2023 to 4.4% in 2025, reflecting reduced profitability on equity. The equity ratio improved to 33.5% in 2025, enhancing financial stability by increasing reliance on equity over debt.

Cash Flow

Free cash flow decreased by 23.1% from 2024 to 2025, indicating potential challenges in generating cash from operations. The operating cash flow to net income ratio was strong at 1.80 in 2025, suggesting efficient conversion of net income to cash. However, the declining free cash flow trend could pose a risk to future investments or debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	117.31B	117.08B	113.37B	115.61B	111.88B	101.84B
Gross Profit	15.75B	15.39B	15.55B	15.62B	15.09B	13.08B
EBITDA	2.89B	3.27B	4.46B	4.83B	5.71B	3.80B
Net Income	971.00M	1.04B	2.09B	2.48B	3.45B	1.79B
Balance Sheet
Total Assets	69.18B	70.04B	66.34B	64.53B	62.83B	56.91B
Cash, Cash Equivalents and Short-Term Investments	16.49B	15.56B	14.60B	14.15B	12.20B	10.73B
Total Debt	7.41B	8.09B	6.37B	6.19B	5.37B	6.15B
Total Liabilities	45.61B	46.51B	42.99B	42.98B	43.02B	39.76B
Stockholders Equity	23.53B	23.50B	23.32B	21.53B	19.77B	17.11B
Cash Flow
Free Cash Flow	0.00	996.00M	1.29B	1.66B	2.95B	1.83B
Operating Cash Flow	0.00	1.88B	3.38B	1.86B	3.43B	2.19B
Investing Cash Flow	0.00	-1.22B	-1.54B	364.00M	-532.00M	877.00M
Financing Cash Flow	0.00	-278.00M	-1.29B	-376.00M	-1.45B	-541.00M

Ochi Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1388.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3166, the sentiment is Positive. The current price of 1388 is below the 20-day moving average (MA) of 1512.65, below the 50-day MA of 1484.86, and below the 200-day MA of 1407.79, indicating a bullish trend. The MACD of 20.09 indicates Negative momentum. The RSI at 77.55 is Negative, neither overbought nor oversold. The STOCH value of 97.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3166.

Ochi Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3050	73 Outperform	¥237.24B	13.40	―	2.83%	1.49%	-21.76%
3166	68 Neutral	¥20.44B	16.86	―	3.75%	4.35%	-34.05%
3191	68 Neutral	¥130.76B	13.24	―	3.43%	0.73%	-9.78%
8218	67 Neutral	¥180.34B	11.94	―	1.58%	1.69%	3.90%
7516	67 Neutral	¥133.70B	8.90	―	2.85%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2790	55 Neutral	¥65.41B	99.65	0.41%	2.78%	-6.21%	-29.75%

Ochi Holdings Co., Ltd. Corporate Events

Ochi Holdings Lifts Nine-Month Profit, Affirms Stable Dividend and Growth Outlook

Ochi Holdings Co., Ltd. reported consolidated net sales of ¥90.1 billion for the nine months ended December 31, 2025, a 2.7% increase year on year, with operating profit up 2.1% to ¥1.0 billion and ordinary profit rising 4.3% to ¥1.4 billion. Profit attributable to owners of parent jumped 19.2% to ¥972 million, boosting basic earnings per share to ¥74.70 and lifting the equity ratio modestly to 33.9% as total assets edged up to ¥71.1 billion.

The company maintained its dividend policy, paying an interim ¥27 per share and forecasting a full-year total of ¥54 per share, unchanged from the prior year. For the full fiscal year ending March 31, 2026, Ochi Holdings projects net sales of ¥125.0 billion and double-digit profit growth, with operating profit expected to rise 15.6% and profit attributable to owners of parent to increase 15.3%, signaling management’s confidence in continued earnings expansion and stable shareholder returns.

The most recent analyst rating on (JP:3166) stock is a Hold with a Yen1598.00 price target. To see the full list of analyst forecasts on Ochi Holdings Co., Ltd. stock, see the JP:3166 Stock Forecast page.

Ochi Holdings Reports Increased Profits and Positive Outlook for 2025

Ochi Holdings Co., Ltd. reported a 2.7% increase in net sales for the six months ending September 30, 2025, compared to the previous year. Despite a slight decline in operating profit, the company saw a 6.6% rise in profit attributable to owners of the parent, indicating improved profitability. The introduction of the Board Benefit Trust and Trust-type Employee Shareholding Incentive Plan reflects the company’s commitment to aligning employee and shareholder interests, potentially enhancing long-term value. The financial results forecast for the fiscal year ending March 31, 2026, anticipates further growth in net sales and profits, suggesting a positive outlook for stakeholders.

The most recent analyst rating on (JP:3166) stock is a Hold with a Yen1511.00 price target. To see the full list of analyst forecasts on Ochi Holdings Co., Ltd. stock, see the JP:3166 Stock Forecast page.