Ohishi Sangyo Co., Ltd. (3943) AI Stock Analysis

• Market Cap: ¥12.26B
• Dividend Yield: 4.54%
• Average Volume (3M): 4.15K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.49
• Revenue Growth: 4.38%
• EPS Growth: -12.68%
• Country: JP
• Employees: 579
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 24.20
• Shares Outstanding: 9,328,000
• 10 Day Avg. Volume: 5,120
• 30 Day Avg. Volume: 4,146
• PEG Ratio: -0.99
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 25.20
• 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: 78 Outperform
• Price Target: ¥1,648.00 ▲(26.48% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Ohishi Sangyo Co., Ltd. demonstrates strong financial performance with robust revenue growth and a solid balance sheet. The stock's technical indicators show positive momentum, and its valuation is attractive with a reasonable P/E ratio and a high dividend yield. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Sustained Revenue Growth

Reported year-over-year revenue growth supports durable demand for the company’s packaging products and indicates expanding market penetration. Sustained top-line growth underpins capacity to invest in operations, maintain margin levels, and fund dividends over the medium term.

Very Low Financial Leverage

Extremely low leverage and a high equity ratio provide financial flexibility to withstand cyclical downturns, fund capital expenditure, and pursue strategic investments without straining liquidity, reducing refinancing and solvency risk over the coming months.

Strong Operating Cash Conversion

Operating cash generation materially exceeds reported net income, showing good cash conversion from operations. This supports sustainable working capital funding, dividend capacity and capital expenditure ability even if accounting earnings fluctuate.

Negative Factors

Declining Free Cash Flow

A near-double-digit fall in free cash flow signals weakening ability to convert revenue into discretionary cash. If trends continue, this could constrain reinvestment, dividend sustainability and leave less buffer for unexpected cost increases or strategic investments.

Pressure on Profitability Margins

Declining net and operating margins suggest rising cost pressures or margin compression in the packaging market. Persistent margin erosion would reduce internal cash generation and limit the company’s ability to restore profitability without pricing power or cost structural fixes.

Significant EPS Volatility

A large negative EPS growth rate indicates earnings volatility or one-off impacts that have materially reduced reported profits. Continued EPS weakness risks investor confidence and may reflect structural demand or cost issues that hamper sustained earnings recovery.

Ohishi Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Ohishi Sangyo Co., Ltd. (3943) is a Japan-based company primarily engaged in the manufacturing and distribution of various industrial chemicals and materials. The company operates in sectors such as chemical production, materials science, and environmental solutions. Ohishi Sangyo's core products include specialty chemicals, functional materials, and eco-friendly solutions designed for a range of industries, including pharmaceuticals, electronics, and manufacturing.

How the Company Makes Money

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Ohishi Sangyo Co., Ltd. Financial Statement Overview

Summary

Ohishi Sangyo Co., Ltd. exhibits a generally positive financial performance with strong revenue growth and stable profit margins. The balance sheet is solid, characterized by low leverage and substantial equity. Cash flow generation is decent, although recent declines in free cash flow warrant attention. The company is well-positioned in its industry, but should focus on enhancing profitability and cash flow efficiency.

Income Statement

Ohishi Sangyo Co., Ltd. demonstrates strong revenue growth, with a 6.93% increase in 2025 compared to 2024. The gross profit margin remains healthy at 18.42%, although the net profit margin slightly declined to 4.02%. The EBIT and EBITDA margins are relatively stable, indicating operational efficiency. However, a dip in EBIT and EBITDA margins over the years suggests potential cost pressures.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.03, showcasing financial stability and low leverage. The return on equity is decent at 5.06%, and the equity ratio is strong at 69.91%, reflecting a solid equity base. Overall, the balance sheet shows strength with minimal financial risk.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow, with a decline of 10.88% from the previous year. The operating cash flow to net income ratio is healthy at 2.29, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.46, which is moderately strong but suggests room for improvement in free cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.71B	23.48B	21.96B	21.79B	19.75B	18.60B
Gross Profit	4.45B	4.20B	4.09B	4.14B	4.25B	4.09B
EBITDA	2.03B	1.91B	1.97B	1.88B	2.00B	1.90B
Net Income	835.00M	944.00M	1.06B	903.00M	1.06B	946.46M
Balance Sheet
Total Assets	26.65B	26.69B	26.07B	25.54B	24.21B	22.49B
Cash, Cash Equivalents and Short-Term Investments	6.88B	7.44B	7.41B	7.54B	7.74B	7.05B
Total Debt	940.00M	641.00M	702.00M	1.08B	1.31B	1.09B
Total Liabilities	8.02B	7.97B	8.33B	8.99B	8.48B	7.76B
Stockholders Equity	18.57B	18.66B	17.68B	16.50B	15.68B	14.70B
Cash Flow
Free Cash Flow	0.00	433.00M	592.00M	183.00M	1.05B	1.31B
Operating Cash Flow	0.00	2.16B	1.86B	1.24B	1.75B	1.68B
Investing Cash Flow	0.00	-1.77B	-1.35B	-1.12B	-642.03M	-416.22M
Financing Cash Flow	0.00	-388.00M	-642.00M	-333.00M	-337.03M	-336.83M

Ohishi Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1303.00
• 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:3943, the sentiment is Neutral. The current price of 1303 is below the 20-day moving average (MA) of 1453.00, below the 50-day MA of 1435.78, and below the 200-day MA of 1307.85, indicating a neutral trend. The MACD of 0.65 indicates Positive momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 54.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3943.

Ohishi Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5901	79 Outperform	¥496.44B	10.13	6.90%	2.71%	-0.06%	137.47%
3943	78 Outperform	¥12.26B	14.44	―	4.54%	4.38%	-12.68%
7917	77 Outperform	¥100.64B	7.99	7.53%	3.01%	5.44%	45.99%
3950	76 Outperform	¥78.14B	12.05	―	6.64%	2.85%	-9.13%
7864	70 Outperform	¥145.80B	4.25	10.46%	2.35%	4.56%	49.23%
4248	66 Neutral	¥10.99B	13.29	―	4.20%	-5.73%	20.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%