Ohmura Shigyo Co., Ltd. (3953) AI Stock Analysis

• Market Cap: ¥3.05B
• Dividend Yield: 6.31%
• Average Volume (3M): 2.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 2.07%
• EPS Growth: -145.09%
• Country: JP
• Employees: 211
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 22.70
• Shares Outstanding: 3,561,676
• 10 Day Avg. Volume: 3,580
• 30 Day Avg. Volume: 2,493
• PEG Ratio: 0.18
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -12.63
• 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: 63 Neutral
• Price Target: ¥930.00 ▲(17.87% Upside)
• Action: Reiterated Date: 06/26/25
• Date: Action: Reiterated 06/26/25

Ohmura Shigyo's overall score is driven by its financial stability and attractive dividend yield, but it is weighed down by negative profitability and cash flow challenges in 2025. The technical analysis suggests a bearish outlook with no clear upward momentum.

Positive Factors

Balance Sheet Strength

A very high equity ratio and minimal leverage provide durable financial stability, allowing the company to absorb demand shocks and fund investments internally. This balance-sheet strength supports long-term resilience, lower refinancing risk, and flexibility for strategic initiatives or capital returns.

Revenue Growth & Gross Margin

Steady top-line growth alongside a healthy gross margin suggests the core packaging business retains cost or pricing advantages. That combination supports a margin floor and the ability to scale operating leverage over time, underpinning sustainable revenue expansion and potential improvement in operating profits.

Attractive Dividend Yield

A high dividend yield, paired with low leverage, signals disciplined capital allocation and an income-oriented return profile that can attract long-term investors. When supported by a strong equity base, such payouts can be a durable component of shareholder return if cash generation stabilizes.

Negative Factors

Negative Cash Flow

Negative operating cash flow and free cash flow indicate the company is failing to convert sales into sustainable cash. Over months, this restricts reinvestment, increases reliance on external funding, and threatens the ability to maintain dividends or pursue growth without altering operations or financing strategy.

Return on Equity Decline

A negative ROE reflects that shareholder capital is not generating positive returns, undermining investor confidence. If losses persist, retained earnings will be depleted despite a strong equity ratio, reducing the company's ability to justify dividends or attract new equity investment long term.

Compressed Operating Margins

Declining EBIT and negative net margins point to weakening operational efficiency or insufficient pricing power. Sustained margin compression will erode free cash flow and limit capacity for capital expenditure, R&D, or marketing, making it harder to restore profitability without structural changes.

Ohmura Shigyo Co., Ltd. Business Overview & Revenue Model

Company Description

Ohmura Shigyo Co.,Ltd. manufactures and sells cardboard products in Japan. It offers sheets, cases, cardboard pallets, and label products, as well as secondary materials. The company was founded in 1965 and is headquartered in Chigasaki, Japan.

How the Company Makes Money

Ohmura Shigyo Co., Ltd. generates revenue through the sale of its electronic components and materials to a diverse clientele, including manufacturers in the consumer electronics, automotive, and industrial sectors. The company operates on a B2B revenue model, where it supplies high-quality components to original equipment manufacturers (OEMs) and other businesses that require reliable electronic parts for their products. Key revenue streams include direct sales, long-term contracts with major clients, and customized solutions tailored to specific industry needs. Additionally, strategic partnerships with technology firms and participation in industry trade shows help enhance the company's market presence and drive sales growth, contributing significantly to its earnings.

Ohmura Shigyo Co., Ltd. Financial Statement Overview

Summary

Ohmura Shigyo has shown revenue growth but faces challenges in profitability and cash flow. While maintaining financial stability with low leverage, the negative net income and cash flow issues in 2025 raise concerns about future profitability and cash management.

Income Statement

Ohmura Shigyo has shown a steady revenue growth over the years, with a 3.52% increase from 2024 to 2025. However, the company's net income has turned negative in 2025, with a net profit margin of -1.85%, indicating challenges in profitability. Gross profit margins remain healthy at approximately 25.17% for 2025, suggesting good cost management. EBIT margin decreased to 4.65%, highlighting a concern in operational efficiency.

Balance Sheet

The company maintains a solid equity base with a strong equity ratio of 70.97% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.05, demonstrating minimal leverage and reduced financial risk. However, the return on equity (ROE) turned negative in 2025 due to the net loss, impacting shareholder returns.

Cash Flow

Cash flow from operations turned negative in 2025, leading to a negative free cash flow and a free cash flow to net income ratio that indicates inefficiency in converting earnings into cash. The operating cash flow to net income ratio is also negative, reflecting challenges in cash generation relative to net income losses.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.98B	5.94B	5.74B	5.42B	4.98B	4.80B
Gross Profit	1.52B	1.54B	1.54B	1.41B	1.39B	1.37B
EBITDA	197.79M	179.89M	563.97M	298.99M	389.12M	419.48M
Net Income	-90.47M	-109.79M	248.58M	26.29M	130.26M	163.80M
Balance Sheet
Total Assets	6.99B	6.88B	7.75B	7.27B	7.75B	7.51B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.76B	3.15B	2.81B	3.46B	3.38B
Total Debt	247.77M	227.05M	288.00M	122.55M	135.19M	39.82M
Total Liabilities	2.23B	2.00B	2.66B	2.42B	2.21B	2.03B
Stockholders Equity	4.75B	4.88B	5.09B	4.85B	5.55B	5.47B
Cash Flow
Free Cash Flow	0.00	-223.41M	416.95M	89.69M	145.76M	-197.28M
Operating Cash Flow	0.00	-148.54M	633.87M	318.98M	328.34M	148.48M
Investing Cash Flow	0.00	-82.62M	-213.83M	-225.74M	-177.84M	-344.70M
Financing Cash Flow	0.00	-157.21M	-79.13M	-746.24M	-67.54M	-85.24M

Ohmura Shigyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 789.00
• 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:3953, the sentiment is Positive. The current price of 789 is below the 20-day moving average (MA) of 841.65, below the 50-day MA of 821.46, and below the 200-day MA of 799.46, indicating a bullish trend. The MACD of 14.98 indicates Negative momentum. The RSI at 74.68 is Negative, neither overbought nor oversold. The STOCH value of 83.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3953.

Ohmura Shigyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5901	79 Outperform	¥549.06B	13.65	6.55%	2.71%	-0.06%	137.47%
3954	76 Outperform	¥13.94B	11.03	―	1.20%	6.42%	-6.32%
3950	76 Outperform	¥78.67B	12.49	―	6.64%	2.85%	-9.13%
7864	70 Outperform	¥157.69B	7.06	10.46%	2.35%	4.56%	49.23%
3951	70 Outperform	¥19.56B	13.58	―	4.39%	5.06%	-15.22%
3953	63 Neutral	¥3.05B	-46.10	―	6.31%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%