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

• Market Cap: ¥18.63B
• Dividend Yield: 3.8%
• Average Volume (3M): 3.53K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.42
• Revenue Growth: 4.35%
• EPS Growth: -34.05%
• Country: JP
• Employees: 1,624
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 16.45
• Shares Outstanding: 13,610,970
• 10 Day Avg. Volume: 4,060
• 30 Day Avg. Volume: 3,526
• 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: ¥1,511.00 ▲(8.86% Upside)

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

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Financial Stability

A low debt-to-equity ratio suggests conservative financial management, providing flexibility for future investments and resilience against downturns.

Equity Ratio Improvement

An improved equity ratio enhances financial stability by increasing reliance on equity over debt, reducing risk and supporting sustainable growth.

Negative Factors

Declining Net Profit Margin

Decreasing net profit margins indicate challenges in cost management or operational efficiency, potentially impacting long-term profitability.

Reduced ROE

A declining ROE reflects reduced profitability on equity, suggesting inefficiencies in generating returns for shareholders, which may affect investor confidence.

Declining Free Cash Flow

A decline in free cash flow can limit the company's ability to invest in growth opportunities or service debt, posing a risk to financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• STOCH: Neutral

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 1418.95, below the 50-day MA of 1403.78, and above the 200-day MA of 1367.33, indicating a bullish trend. The MACD of 7.76 indicates Negative momentum. The RSI at 65.26 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, 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
9976	72 Outperform	¥5.58B	11.98	―	3.88%	4.17%	10.59%
3166	68 Neutral	¥18.63B	17.31	―	3.80%	4.35%	-34.05%
7516	67 Neutral	¥123.80B	8.22	―	2.92%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8208	61 Neutral	―	―	―	―	-3.21%	56.44%
9903	55 Neutral	¥5.92B	12.25	―	2.33%	-1.54%	―
7450	48 Neutral	¥10.67B	-5.05	―	0.50%	-0.60%	-386.40%

Ochi Holdings Co., Ltd. Corporate Events

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.