Okura Industrial Co., Ltd. (4221) AI Stock Analysis

• Market Cap: ¥62.03B
• Dividend Yield: 2.81%
• Average Volume (3M): 62.49K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.63
• Revenue Growth: 8.28%
• EPS Growth: 0.70%
• Country: JP
• Employees: 1,891
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 29.89
• Shares Outstanding: 12,414,870
• 10 Day Avg. Volume: 65,200
• 30 Day Avg. Volume: 62,490
• PEG Ratio: -1.84
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 19.97
• 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): 442.6
• Revenue Forecast (FY): ¥89.80B

• Rating: 73 Outperform
• Price Target: ¥5,580.00 ▲(14.70% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by solid financial quality (low leverage and steady profitability) tempered by inconsistent free cash flow. Technicals are supportive with price above key moving averages and positive MACD, while valuation appears reasonable with a mid-teens P/E and a ~2.7% dividend yield.

Positive Factors

Conservative balance sheet

Low leverage and rising equity give the company durable financial flexibility. That conservatism reduces refinancing and solvency risk during cycles, supports continued capex or targeted investments, and preserves operational stability across 2–6 month planning horizons.

Steady margins and improving revenue

Consistent gross margins in the high-teens and positive net margins indicate resilient core profitability. Coupled with recovering revenue momentum into 2025, this supports predictable operating cash generation and planning, making earnings less dependent on short-term demand swings.

Value‑add specialty film & processing model

A business mix that includes specialty/functional films and converting services creates higher-margin, stickier revenue streams. Value‑add processing differentiates the company from commodity producers, supports customer relationships and margin durability versus plain resin sales.

Negative Factors

Volatile free cash flow

Irregular free cash flow from capex or working capital swings complicates capital allocation and shareholder returns. Volatility reduces confidence in sustainable dividends or buybacks, and limits the ability to steadily deleverage or fund strategic investments without external financing.

Modest returns; asset growth outpacing returns

ROE near mid-single digits signals only modest capital efficiency. With assets growing faster than returns, future investments risk diluting profitability unless the company lifts margins or accelerates higher-return product mix shifts, pressuring long‑term shareholder value.

Earnings sensitivity to resin input costs and pricing

Heavy exposure to petrochemical/resin input cost variability creates structural margin risk. If the company cannot fully pass through raw material spikes, earnings will remain lumpy. This sensitivity undermines medium-term margin predictability and requires active pricing or product mix management.

Okura Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Okura Industrial Co., Ltd. manufactures and sells polyethylene and polypropylene products in Japan. It offers automotive films, drum interior films, adhesives for metal parts, tray food films, livestock packaging films, shrink films for food packaging, liquid filling films, laminated films for food, commercial transport films, wrapping films, mail order films, logistics films, liquid transport films, functional garbage bags, flexographic printing related films, laminate-related films, environmentally friendly products, base films for packaging, phase difference films/polarizing plate protection films, self-adhesive protective films, optical films, OA equipment parts, and parts adhesives. The company also provides curing films, architectural films, films for laminating steel plates, films for integrated packaging, particle boards, soil insulation films, soil temperature rise suppression films, pest repellent films, color scheme films, antibacterial agricultural films, biodegradable films, stretch films for grass, house films, liquid fertilizer filling films, environment friendly films, films of tunnels, sanitary materials and daily necessities films, clean films, thermoplastic polyurethane elastomer films, embossed films, and endo barriers. It serves automobile, food, medical/pharmaceutical, general packaging, optics/information electronics, architecture, agriculture, and livingware industries. The company was formerly known as Shikoku Industry Co., Ltd. and changed its name to Okura Industrial Co., Ltd. in November 1955. Okura Industrial Co., Ltd. was incorporated in 1947 and is headquartered in Marugame, Japan.

How the Company Makes Money

Okura Industrial Co., Ltd. generates revenue primarily through the sale of its industrial equipment and systems. The company's revenue model is centered around direct sales to businesses in various industries, as well as offering customized solutions that cater to specific client needs. Key revenue streams include the sale of conveyor systems, automated storage and retrieval systems, and related services such as installation and maintenance. Additionally, Okura may benefit from long-term contracts and partnerships with major corporations, which provide a steady stream of income. The company's emphasis on innovation and technological advancements helps it maintain competitiveness in the market, further contributing to its earnings.

Okura Industrial Co., Ltd. Financial Statement Overview

Summary

Steady profitability with gross margin in the high-teens and consistently positive net margin, plus improving revenue momentum into 2025. Strength is a conservative balance sheet with low leverage and rising equity, but free cash flow is volatile (including negative years), reducing cash-return visibility.

Income Statement

Profitability is steady-to-improving: gross margin has held in the high-teens (about 17%–19%) and net margin has been consistently positive (about 4%–5% in recent years). Revenue growth recovered after a 2022 decline, with modest growth in 2023–2024 and a stronger pickup in 2025. The key weakness is that operating profitability has not moved in a straight line (EBIT margin dipped meaningfully in 2022 and again versus 2023), suggesting some sensitivity to costs and pricing.

Balance Sheet

The balance sheet looks conservative: leverage is low with debt-to-equity around ~4%–11% (2021–2024), and equity has steadily increased over time. Returns on equity are stable around ~6%–7%, indicating consistent (though not high) profitability on the capital base. The main drawback is that asset growth has outpaced return expansion, so the company is strong on stability but not generating standout returns.

Cash Flow

Cash generation is mixed. Operating cash flow is generally positive and improved in 2025, but free cash flow has been volatile, swinging from strong positives (2020, 2021) to negatives (2022, 2024) and back to positive in 2023 and 2025—suggesting uneven capital spending or working-capital swings. This variability reduces visibility on how much cash the business can reliably return to shareholders or use for debt reduction.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.34B	86.66B	81.19B	78.86B	77.26B	88.42B
Gross Profit	16.68B	17.30B	15.17B	14.89B	13.32B	14.51B
EBITDA	10.47B	11.22B	9.97B	9.87B	8.02B	9.63B
Net Income	4.49B	3.81B	4.36B	4.32B	3.79B	3.42B
Balance Sheet
Total Assets	102.16B	103.04B	103.01B	100.27B	90.23B	85.87B
Cash, Cash Equivalents and Short-Term Investments	9.86B	7.98B	8.95B	7.81B	8.45B	9.77B
Total Debt	5.90B	6.73B	6.12B	5.14B	2.38B	3.31B
Total Liabilities	40.84B	39.91B	40.94B	39.41B	34.65B	33.35B
Stockholders Equity	61.28B	63.10B	62.04B	60.84B	55.57B	52.50B
Cash Flow
Free Cash Flow	0.00	2.77B	-3.24B	1.27B	-1.42B	2.85B
Operating Cash Flow	0.00	9.90B	5.83B	8.40B	3.70B	6.34B
Investing Cash Flow	0.00	-7.97B	-5.71B	-7.90B	-3.31B	-2.76B
Financing Cash Flow	0.00	-2.91B	948.00M	-1.19B	-1.77B	-3.04B

Okura Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4865.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4221, the sentiment is Positive. The current price of 4865 is below the 20-day moving average (MA) of 5018.75, below the 50-day MA of 4898.38, and above the 200-day MA of 4703.70, indicating a bullish trend. The MACD of 76.48 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4221.

Okura Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4633	77 Outperform	¥135.02B	11.39	―	3.72%	5.40%	14.80%
4116	76 Outperform	¥90.26B	12.64	―	3.04%	1.57%	-33.97%
4619	75 Outperform	¥53.65B	9.57	―	5.04%	-3.21%	27.18%
4611	74 Outperform	¥41.90B	5.50	―	3.70%	14.83%	51.42%
4221	73 Outperform	¥62.03B	15.63	―	2.81%	8.28%	0.70%
4112	67 Neutral	¥38.66B	16.63	―	2.37%	-11.70%	-54.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Okura Industrial Co., Ltd. Corporate Events

Okura Industrial Revamps Board to Bolster Sustainability and Governance Focus

Okura Industrial Co., Ltd. has announced planned changes to its board of directors, subject to approval at the 106th Annual General Meeting of Shareholders on March 24, 2026, and a subsequent board meeting. The reshuffle underscores a strategic emphasis on sustainability, corporate governance and internal controls within the group’s management structure.

Miho Kondo, a long-serving executive with experience in legal, intellectual property and environmental management, will be promoted to Director and Senior Operating Officer overseeing general affairs, human resources, sustainability promotion, quality assurance and DX promotion, and will chair the Sustainability Committee. In addition, industry veteran Yoshimi Yamaguchi from Nihon Kogyo Co., Ltd. will join as an outside director and Audit and Supervisory Committee member, while outside directors Toshio Baba and Shin Saito are slated to retire, signaling continuity with refreshed oversight for stakeholders.

The most recent analyst rating on (JP:4221) stock is a Hold with a Yen5240.00 price target. To see the full list of analyst forecasts on Okura Industrial Co., Ltd. stock, see the JP:4221 Stock Forecast page.

Okura Industrial Revamps Board to Bolster Sustainability and Governance Focus

Okura Industrial Co., Ltd. has announced planned changes to its board of directors, subject to approval at the 106th Annual General Meeting of Shareholders on March 24, 2026, and a subsequent board meeting. The reshuffle underscores a strategic emphasis on sustainability, corporate governance and internal controls within the group’s management structure.

Miho Kondo, a long-serving executive with experience in legal, intellectual property and environmental management, will be promoted to Director and Senior Operating Officer overseeing general affairs, human resources, sustainability promotion, quality assurance and DX promotion, and will chair the Sustainability Committee. In addition, industry veteran Yoshimi Yamaguchi from Nihon Kogyo Co., Ltd. will join as an outside director and Audit and Supervisory Committee member, while outside directors Toshio Baba and Shin Saito are slated to retire, signaling continuity with refreshed oversight for stakeholders.

The most recent analyst rating on (JP:4221) stock is a Hold with a Yen5240.00 price target. To see the full list of analyst forecasts on Okura Industrial Co., Ltd. stock, see the JP:4221 Stock Forecast page.

Okura Industrial Lifts Sales and Dividends Despite Profit Dip, Flags Further Growth for 2026

Okura Industrial Co., Ltd. reported consolidated net sales of ¥86.66 billion for the fiscal year ended December 31, 2025, up 6.7% year on year, with operating profit surging 35.5% to ¥6.19 billion and ordinary profit rising 25.8% to ¥6.43 billion, although profit attributable to owners of the parent declined 12.5% to ¥3.82 billion. The company strengthened its financial base with total assets of ¥103.04 billion, an equity ratio of 61.2%, robust operating cash flow of ¥9.90 billion, and an increased annual dividend of ¥195 per share, including special dividends, while forecasting further growth in 2026 with double‑digit sales expansion, higher earnings, and the impact of bringing Okura BM Works Co., Ltd. into the consolidation scope.

Net assets rose to ¥63.13 billion and net assets per share improved to ¥5,585.83, reflecting incremental balance sheet reinforcement despite a lower return on equity of 6.1% and a dip in basic earnings per share to ¥335.29. Management is signaling shareholder‑friendly capital allocation through a higher forecast dividend of ¥220 per share for 2026 and a payout ratio expected to remain elevated, while guiding for 13.1% growth in net sales to ¥98 billion and a 12.7% increase in profit attributable to owners of the parent to ¥4.30 billion, positioning the group for continued moderate profit growth in the coming fiscal year.

The most recent analyst rating on (JP:4221) stock is a Hold with a Yen5240.00 price target. To see the full list of analyst forecasts on Okura Industrial Co., Ltd. stock, see the JP:4221 Stock Forecast page.

Okura Industrial Raises Dividend Target as Medium-Term Plan Progresses

Okura Industrial Co., Ltd. has revised its dividend policy for the period covered by its Medium-term Management Plan ending in 2027, signaling a stronger commitment to shareholder returns. While maintaining its basic approach of stable dividends and a target dividend payout ratio of at least 30%, the company will now aim for a higher consolidated dividend on equity ratio of 4.0% during this period, up from the previously planned 3.5%, through a combination of ordinary and special dividends.

The decision follows an increased likelihood of achieving the goals of the Medium-term Management Plan, prompting management to enhance distributions to investors. The new policy will be applied to the fiscal years ending December 31, 2026, and December 31, 2027, and underscores Okura Industrial’s confidence in its earnings outlook and capacity to support more generous capital returns without compromising preparation for future business development.

The most recent analyst rating on (JP:4221) stock is a Hold with a Yen5240.00 price target. To see the full list of analyst forecasts on Okura Industrial Co., Ltd. stock, see the JP:4221 Stock Forecast page.

Okura Industrial Co., Ltd. Acquires FUJIKO Co., Ltd. to Boost Functional Materials Sector

Okura Industrial Co., Ltd. has announced its decision to acquire all shares of FUJIKO Co., Ltd., making it a consolidated subsidiary. This strategic acquisition aims to integrate Okura’s film manufacturing technology with FUJIKO’s processing expertise, establishing a vertically integrated development and production system. This move is expected to accelerate business expansion in the growing field of functional materials for manufacturing processes, enhancing Okura’s market position and offering potential growth opportunities for stakeholders.

The most recent analyst rating on (JP:4221) stock is a Hold with a Yen5414.00 price target. To see the full list of analyst forecasts on Okura Industrial Co., Ltd. stock, see the JP:4221 Stock Forecast page.