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

• Market Cap: ¥20.48B
• Dividend Yield: 3.75%
• Average Volume (3M): 3.54K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.39
• 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: ¥1,713.00 ▲(23.41% 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

Efficient conversion of earnings to cash

A high operating-cash-to-net-income ratio shows the business reliably turns accounting profits into cash, supporting dividends, working-capital needs and selective investments. Sustained cash conversion is a structural strength for distributors with inventory and receivable cycles.

Conservative leverage and stronger equity base

A low debt-to-equity ratio and a rising equity ratio indicate financial conservatism and greater balance-sheet resilience. This reduces refinancing risk in downturns, preserves borrowing capacity for capex or M&A, and underpins long-term stability in a cyclical industry like construction distribution.

Stable revenue growth and gross margin

Consistent top-line growth and a stable gross margin point to durable demand for building-materials distribution and controlled procurement/pricing. This supports predictable core profitability and cash generation over the medium term, aiding planning and reinvestment despite cyclical construction cycles.

Negative Factors

Declining return on equity

A sharp fall in ROE reflects lower efficiency in converting equity into profits, driven by margin compression or operational inefficiency. Over the medium term this undermines shareholder value creation and may necessitate strategy changes to restore capital returns.

Significant decrease in free cash flow

A meaningful drop in free cash flow reduces headroom for capital expenditure, debt reduction, or dividend sustainability. Persistent FCF erosion can force trade-offs between investment and payouts, increasing vulnerability to cyclical downturns in construction demand.

Falling net profit margins

A multi-year decline in net margin signals pressure on overall profitability after operating costs, interest and taxes. If structural (cost inflation, weaker pricing, or mix shift), it erodes retained earnings and limits ability to fund growth or maintain shareholder returns without operational fixes.

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 makes money mainly through its operating subsidiaries by selling and distributing construction and housing-related materials to professional customers, generating revenue from product sales (typically on a wholesale/distribution basis) and associated logistics/supply services embedded in those transactions. Earnings are driven by sales volume, product mix, gross margin on distributed materials, and efficiency in procurement and delivery across its distribution network. Specific details on segment-level revenue streams, major customer categories, or named strategic partnerships were not available in the provided context; null.

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	15.91B	15.39B	14.84B	14.99B	14.57B	12.61B
EBITDA	2.57B	2.62B	3.22B	3.88B	3.94B	2.87B
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	42.97B	43.02B	39.75B
Stockholders Equity	23.53B	23.50B	23.32B	21.53B	19.77B	17.11B
Cash Flow
Free Cash Flow	0.00	996.00M	1.34B	1.72B	3.05B	2.02B
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: Positive
• 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 1573.15, below the 50-day MA of 1527.62, and below the 200-day MA of 1427.55, indicating a neutral trend. The MACD of 14.08 indicates Positive momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 52.58 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
3050	73 Outperform	¥223.65B	16.88	―	2.83%	1.49%	-21.76%
3166	68 Neutral	¥20.48B	11.06	―	3.75%	4.35%	-34.05%
3191	68 Neutral	¥125.92B	8.26	―	3.43%	0.73%	-9.78%
8218	67 Neutral	¥174.93B	11.31	―	1.58%	1.69%	3.90%
7516	67 Neutral	¥131.66B	12.62	―	2.85%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2790	55 Neutral	¥63.47B	19.77	0.36%	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.