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

• Market Cap: ¥54.34B
• Dividend Yield: 3.28%
• Average Volume (3M): 35.75K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.65
• Revenue Growth: 8.13%
• EPS Growth: 5.35%
• Country: JP
• Employees: 1,891
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 114.39
• Shares Outstanding: 12,414,870
• 10 Day Avg. Volume: 42,390
• 30 Day Avg. Volume: 35,746
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥4,950.00
• Price Target Upside: 8.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥4,950.00 ▲(8.32% Upside)

The stock's overall score is driven primarily by strong technical analysis and attractive valuation. Financially, the company is stable with strong profitability and low leverage, though cash flow challenges need attention. The stock's upward momentum and low valuation ratios make it appealing despite liquidity concerns.

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

Company Description

Okura Industrial Co., Ltd. (4221) is a Japanese company that specializes in the development, manufacturing, and sale of chemical products. The company operates in sectors such as industrial chemicals, electronics materials, and functional materials. Its core products include adhesives, polymer products, and chemical intermediates that are used in a variety of industries, including automotive, construction, and electronics.

How the Company Makes Money

Okura Industrial Co., Ltd. generates revenue primarily through the sale of its chemical products. The company has multiple revenue streams, including industrial chemicals used in manufacturing processes, electronics materials for the technology sector, and functional materials that enhance product performance in various applications. Okura Industrial may also engage in strategic partnerships and collaborations to enhance its market reach and technological capabilities. Additionally, the company focuses on research and development to innovate and improve its product offerings, which can lead to increased sales and market share.

Okura Industrial Co., Ltd. Financial Statement Overview

Summary

Okura Industrial Co., Ltd. shows solid financial performance with strong revenue growth and profitability. The balance sheet is robust with low leverage and effective equity utilization. The main concern is the cash flow, where increased capital expenditures have resulted in negative free cash flow, indicating potential liquidity challenges.

Income Statement

The company has maintained a stable gross profit margin and a healthy net profit margin over the years. The revenue growth rate has shown consistent improvement, with a notable increase from 2022 to 2023. However, there was a slight decline in EBIT margin from 2021 to 2024, indicating potential pressure on operational efficiency. Overall, the income statement reflects steady growth and profitability.

Balance Sheet

The balance sheet shows strong financial health with a low debt-to-equity ratio, indicating prudent financial management. The return on equity is commendable, showcasing effective use of equity to generate profits. The equity ratio is robust, reflecting a solid financial foundation. The company's leverage is well-managed, minimizing potential financial risks.

Cash Flow

The cash flow statement reveals some fluctuations, with negative free cash flow in recent years due to higher capital expenditures. There is a strong operating cash flow to net income ratio, indicating efficient cash generation relative to profits. However, the free cash flow to net income ratio is negative, suggesting potential challenges in maintaining liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.19B	78.86B	77.26B	88.42B	80.96B
Gross Profit	15.17B	14.89B	13.32B	14.51B	13.24B
EBITDA	9.97B	9.87B	8.02B	9.63B	9.12B
Net Income	4.36B	4.32B	3.79B	3.42B	2.87B
Balance Sheet
Total Assets	103.01B	100.27B	90.23B	85.87B	82.65B
Cash, Cash Equivalents and Short-Term Investments	8.95B	7.81B	8.45B	9.77B	9.18B
Total Debt	6.12B	5.14B	2.38B	3.31B	5.63B
Total Liabilities	40.94B	39.41B	34.65B	33.35B	33.56B
Stockholders Equity	62.04B	60.84B	55.57B	52.50B	49.07B
Cash Flow
Free Cash Flow	-3.24B	1.27B	-1.42B	2.85B	4.89B
Operating Cash Flow	5.83B	8.40B	3.70B	6.34B	9.30B
Investing Cash Flow	-5.71B	-7.90B	-3.31B	-2.76B	-4.36B
Financing Cash Flow	948.00M	-1.19B	-1.77B	-3.04B	-3.34B

Okura Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4570.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4570 is above the 20-day moving average (MA) of 4400.25, above the 50-day MA of 4288.51, and above the 200-day MA of 3546.60, indicating a bullish trend. The MACD of 102.87 indicates Negative momentum. The RSI at 63.28 is Neutral, neither overbought nor oversold. The STOCH value of 45.96 is Neutral, 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
4221	81 Outperform	¥54.34B	11.79		3.28%	8.13%	5.35%
4094	79 Outperform	¥46.63B	19.72		3.12%	11.94%	17.08%
4362	77 Outperform	¥67.06B	15.53		2.62%	5.45%	25.48%
4078	73 Outperform	¥48.05B	9.47		4.74%	0.10%	―
Sector *	70 Outperform	¥179.24B	11.25	5.69%	3.09%	2.75%	-12.76%
4008	69 Neutral	¥63.25B	13.52		4.37%	0.32%	-43.10%
4047	61 Neutral	¥46.48B	17.78		1.83%	-2.91%	―

Okura Industrial Co., Ltd. Corporate Events

Okura Industrial Reports Strong Financial Growth in First Half of 2025

Okura Industrial Co., Ltd. reported a significant increase in its financial performance for the first half of 2025, with net sales rising by 10.5% and operating profit surging by 51.9% compared to the same period in the previous year. The company also announced a special dividend, reflecting its robust financial health and commitment to shareholder returns, while forecasting continued growth for the full fiscal year.

Okura Industrial Completes Share Repurchase Program

Okura Industrial Co., Ltd. announced the completion of its share repurchase program, acquiring 38,400 common shares at a cost of 165,068,997 yen through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy initiated by the Board of Directors to acquire up to 1,200,000 shares, aiming to enhance shareholder value and optimize capital structure.

Okura Industrial Co., Ltd. Announces Share Buyback

Okura Industrial Co., Ltd. has announced the acquisition of 53,700 of its own common shares, valued at approximately 220.6 million yen, through market purchases on the Tokyo Stock Exchange during May 2025. This move is part of a broader strategy resolved by the Board of Directors to acquire up to 1.2 million shares, aiming to enhance shareholder value and optimize capital structure.