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

• Market Cap: ¥58.27B
• Dividend Yield: 2.83%
• Average Volume (3M): 62.49K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.62
• Revenue Growth: 8.28%
• EPS Growth: 0.70%
• Country: JP
• Employees: 1,891
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 82.49
• Shares Outstanding: 12,414,870
• 10 Day Avg. Volume: 65,200
• 30 Day Avg. Volume: 62,490
• PEG Ratio: 6.45
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -11.13
• 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): 451.5
• Revenue Forecast (FY): ¥87.80B

• Rating: 67 Neutral
• Price Target: ¥5,414.00 ▲(11.17% Upside)

The overall stock score of 67 reflects strong financial performance and reasonable valuation, offset by bearish technical indicators. The company's solid balance sheet and attractive dividend yield are key strengths, while liquidity challenges and weak market momentum present risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth opportunities.

Profitability

Sustained profitability margins reflect efficient cost management and competitive pricing power, ensuring long-term financial health.

Negative Factors

Cash Flow Challenges

Negative free cash flow can strain liquidity and limit the company's ability to invest in growth initiatives, potentially impacting future operations.

EBIT Margin Decline

A declining EBIT margin may indicate rising operational costs or pricing pressures, which could affect long-term profitability if not addressed.

Capital Expenditure Impact

High capital expenditures can lead to cash flow constraints, limiting the company's ability to respond to market opportunities and invest in innovation.

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

Okura Industrial Co., Ltd. demonstrates solid financial performance with stable revenue growth and profitability. The balance sheet is strong with low leverage and effective equity utilization. However, the cash flow statement shows negative free cash flow due to high capital expenditures, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.34B	81.19B	78.86B	77.26B	88.42B	80.96B
Gross Profit	16.68B	15.17B	14.89B	13.32B	14.51B	13.24B
EBITDA	10.47B	9.97B	9.87B	8.02B	9.63B	9.02B
Net Income	4.49B	4.36B	4.32B	3.79B	3.42B	2.87B
Balance Sheet
Total Assets	102.16B	103.01B	100.27B	90.23B	85.87B	82.65B
Cash, Cash Equivalents and Short-Term Investments	9.86B	8.95B	7.81B	8.45B	9.77B	9.18B
Total Debt	5.90B	6.12B	5.14B	2.38B	3.31B	5.63B
Total Liabilities	40.84B	40.94B	39.41B	34.65B	33.35B	33.56B
Stockholders Equity	61.28B	62.04B	60.84B	55.57B	52.50B	49.07B
Cash Flow
Free Cash Flow	0.00	-3.24B	1.27B	-1.42B	2.85B	4.89B
Operating Cash Flow	0.00	5.83B	8.40B	3.70B	6.34B	9.30B
Investing Cash Flow	0.00	-5.71B	-7.90B	-3.31B	-2.76B	-4.36B
Financing Cash Flow	0.00	948.00M	-1.19B	-1.77B	-3.04B	-3.34B

Okura Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4870.00
• 50DMA: Negative
• 100DMA: Negative
• 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 4870 is above the 20-day moving average (MA) of 4860.50, below the 50-day MA of 5056.90, and above the 200-day MA of 4495.96, indicating a neutral trend. The MACD of -55.30 indicates Negative momentum. The RSI at 46.79 is Neutral, neither overbought nor oversold. The STOCH value of 56.76 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
4362	77 Outperform	¥63.28B	13.85	―	2.95%	3.03%	28.27%
4078	70 Outperform	¥52.00B	7.99	―	4.39%	-1.09%	―
4094	70 Outperform	¥46.13B	19.51	―	3.79%	8.54%	6.93%
4008	68 Neutral	¥73.61B	11.90	―	3.75%	-0.68%	-9.93%
4221	67 Neutral	¥58.27B	12.94	―	2.83%	8.28%	0.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4047	57 Neutral	¥59.11B	30.77	―	1.60%	1.20%	―

Okura Industrial Co., Ltd. Corporate Events

Okura Industrial Reports Strong Nine-Month Financial Performance

Okura Industrial Co., Ltd. reported a notable increase in net sales and operating profit for the nine months ending September 30, 2025, with net sales rising by 8.2% and operating profit increasing by 47.3% compared to the previous year. Despite the growth in sales and profits, the profit attributable to owners slightly decreased by 0.8%. Additionally, the company announced a special dividend, reflecting its strong financial performance and commitment to shareholder returns.