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

• Market Cap: ¥2.85B
• Dividend Yield: 6.31%
• Average Volume (3M): 2.49K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.33
• 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: -12.62
• 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

Strong balance sheet and low leverage

A ~71% equity ratio and minimal leverage provide durable financial flexibility, reducing insolvency risk and interest burden. This supports capital allocation for dividends, selective capex, and the ability to withstand cyclical pressures over the next several months without needing immediate external financing.

Steady revenue growth with healthy gross margins

Consistent top-line growth combined with ~25% gross margins shows persistent demand and effective direct cost control. This structural mix gives management room to restore operating leverage and convert higher sales into profits if operating expenses stabilize, supporting medium-term recovery prospects.

Attractive dividend yield for income investors

A 6.74% yield, when paired with the strong equity base and low leverage, suggests the company can maintain payouts longer than peers under similar stress. If operating cash flow recovers, this yield becomes a durable shareholder return feature appealing to income-oriented holders over the coming months.

Negative Factors

Negative net income and ROE decline

A negative net income and ROE erosion signal that the business is currently failing to convert operating results into shareholder returns. Persisting losses will deplete retained earnings, limit reinvestment capacity, and pressure dividend sustainability unless margins or volumes improve materially.

Operating cash flow turned negative

Negative operating cash flow undermines the company's ability to self-fund operations, capex, and dividends. Over the medium term this raises liquidity and financing risk, potentially forcing reliance on debt or equity issuance that would erode financial flexibility and shareholder returns.

Declining operating efficiency (EBIT margin)

A falling EBIT margin reduces the buffer to absorb cost shocks and compresses the pathway from gross profit to net earnings. Sustained lower operating efficiency makes profit recovery dependent on either higher volumes or meaningful cost restructuring, both of which can take multiple quarters to realize.

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	1.56B	1.50B	1.51B	1.38B	1.35B	1.33B
EBITDA	494.70M	481.53M	546.72M	446.84M	429.29M	436.08M
Net Income	-90.41M	-109.79M	248.58M	26.29M	130.26M	163.80M
Balance Sheet
Total Assets	6.99B	6.89B	7.76B	7.28B	7.76B	7.52B
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	277.94M	106.07M	126.64M	34.94M
Total Liabilities	2.23B	2.01B	2.67B	2.43B	2.22B	2.05B
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: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 828.80, below the 50-day MA of 827.08, and below the 200-day MA of 803.50, indicating a neutral trend. The MACD of -6.68 indicates Positive momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 84.33 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	¥496.44B	10.13	6.90%	2.71%	-0.06%	137.47%
3954	76 Outperform	¥13.65B	8.51	―	1.20%	6.42%	-6.32%
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%
3951	70 Outperform	¥19.05B	21.58	―	4.39%	5.06%	-15.22%
3953	63 Neutral	¥2.85B	8.69	―	6.31%	2.07%	-145.09%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%