OAT Agrio Co., Ltd. (4979) AI Stock Analysis

• Market Cap: ¥26.11B
• Dividend Yield: 3.82%
• Average Volume (3M): 32.11K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.81
• Revenue Growth: 8.02%
• EPS Growth: 42.17%
• Country: JP
• Employees: 601
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 38.25
• Shares Outstanding: 11,072,000
• 10 Day Avg. Volume: 42,160
• 30 Day Avg. Volume: 32,113
• PEG Ratio: 0.66
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 4.83
• 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): 316
• Revenue Forecast (FY): ¥17.50B

• Rating: 80 Outperform
• Price Target: ¥2,630.00 ▲(16.68% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance (growth, improving leverage, and strong recent cash flow) and supportive technical momentum (price above major moving averages with positive MACD). Valuation is a notable positive with a low P/E and moderate dividend yield, partially offset by some margin/cash-flow variability and slightly stretched momentum readings.

Positive Factors

Cash generation

Sustained improvement in operating and free cash flow over 2024–2025 indicates stronger cash conversion of earnings and higher internal funding capacity. Durable cash generation supports reinvestment in R&D/registrations, dividend policy, and reduces reliance on external financing during multi-year product cycles.

Balance sheet repair

Material reduction in debt alongside a sharp rise in equity has strengthened the capital base and reduced financial risk. Lower leverage enhances flexibility to fund regulatory approvals, overseas registrations, and M&A, and improves resilience to cyclical agricultural demand and weather-driven revenue swings.

Revenue & profitability trend

Consistent multi-year revenue growth with healthy gross and operating margins reflects a strong product portfolio and market position in crop protection. Sustainable margins and sales growth indicate enduring demand and pricing power in core agrochemical products across domestic and export channels.

Negative Factors

Margin variability

Year-to-year margin swings and limited operating leverage raise questions about pricing resilience and cost control across product lines. Persistent variability can weaken earnings predictability and constrain reinvestment planning, especially as input costs, formulation mix, or competitive pricing shift over agricultural cycles.

Earlier cash volatility & data gaps

Although cash flow strengthened recently, prior volatility and missing 2025 coverage metrics limit confidence in sustainability. Structural seasonality, timing of receivables from distributors, or episodic working-capital swings could reintroduce cash stress, affecting long-term investment and payout consistency.

Regulatory & cyclical exposure

Business is inherently tied to regulatory approvals and agricultural cycles; new registrations or restrictions materially affect addressable markets. Weather-driven planting decisions and pest/disease incidence create durable demand variability risk, constraining long-term revenue visibility and requiring ongoing R&D and compliance spend.

OAT Agrio Co., Ltd. Business Overview & Revenue Model

Company Description

OAT Agrio Co., Ltd. researches, develops, manufactures, and sells agrochemicals and fertilizers in Japan. The company offers plant protection products and biostimulants. It is also involved in the drug discovery, biological evaluation, formulation development, and pesticide registration activities. The company was formerly known as Otsuka Chemical Co., Ltd. and changed its name to OAT Agrio Co., Ltd. in 2014. OAT Agrio Co., Ltd. was founded in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

OAT Agrio Co., Ltd. generates revenue primarily through the sale of its crop protection products, fertilizers, and agricultural chemicals. The company’s revenue model is based on the direct sale of these products to farmers, agricultural distributors, and retailers. Key revenue streams include product sales, licensing of proprietary technologies, and partnerships with agricultural cooperatives and organizations. Significant partnerships with research institutions also contribute to the development of innovative products, enhancing the company's market position and driving sales. Additionally, OAT Agrio may engage in export activities to expand its market reach, further bolstering its income.

OAT Agrio Co., Ltd. Financial Statement Overview

Summary

Steady multi-year revenue growth with generally healthy profitability and a strong rebound in operating/free cash flow in 2024–2025. Balance sheet strength has improved as debt declined and equity rose, but margins have shown year-to-year variability and earlier cash flow was uneven.

Income Statement

Revenue has grown steadily from 2020 to 2025 (including a strong rebound after the 2020 decline), with 2025 annual revenue up to 31.95B. Profitability is solid: gross profit has expanded alongside sales, and 2024 margins were healthy (gross margin ~48.5%, operating margin ~10.5%, net margin ~7.0%). The key weakness is some profit variability: 2023 showed stronger margins than 2024, and 2025 net income increased but operating profit did not expand meaningfully versus 2024, implying modest margin pressure and less consistent operating leverage.

Balance Sheet

The balance sheet is improving, with debt trending down from 2020–2025 (15.23B to 9.17B) while equity has risen strongly (6.88B to 18.81B), reducing leverage and strengthening the capital base. Asset growth is also steady. A remaining watch item is that leverage was meaningfully higher earlier in the period (e.g., debt-to-equity above 1x in 2020–2022), and 2025 leverage/return ratios are not provided, limiting visibility into the most recent year’s capital efficiency.

Cash Flow

Cash generation strengthened materially in the last two years: operating cash flow rose from 1.79B (2023) to 3.76B (2024) and 4.90B (2025), and free cash flow increased to 3.28B (2024) and 4.51B (2025). Free cash flow has generally tracked earnings well (free cash flow was ~71%–89% of net income in 2020–2024), supporting earnings quality. The main weakness is volatility earlier in the period (notably weak 2022–2023 operating cash flow) and the absence of coverage/quality ratios for 2025, which would help confirm sustainability of the step-up.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	31.28B	31.95B	29.77B	28.99B	26.96B	22.66B
Gross Profit	15.36B	15.37B	14.44B	13.95B	12.66B	10.69B
EBITDA	5.30B	5.37B	4.97B	5.67B	5.04B	3.86B
Net Income	2.28B	2.33B	2.08B	2.49B	2.26B	1.46B
Balance Sheet
Total Assets	37.04B	37.31B	34.66B	34.00B	31.01B	28.32B
Cash, Cash Equivalents and Short-Term Investments	5.62B	5.38B	4.94B	4.06B	3.61B	3.65B
Total Debt	11.32B	9.17B	10.97B	12.30B	11.82B	12.13B
Total Liabilities	18.88B	17.35B	17.56B	19.13B	19.06B	19.20B
Stockholders Equity	17.03B	18.81B	15.95B	13.89B	11.03B	8.30B
Cash Flow
Free Cash Flow	0.00	4.51B	3.28B	1.27B	1.01B	3.20B
Operating Cash Flow	0.00	4.90B	3.76B	1.79B	1.42B	3.60B
Investing Cash Flow	0.00	-1.25B	-555.00M	-585.00M	-569.00M	221.00M
Financing Cash Flow	0.00	-3.33B	-2.48B	-1.05B	-1.03B	-3.94B

OAT Agrio Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2254.00
• 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:4979, the sentiment is Positive. The current price of 2254 is below the 20-day moving average (MA) of 2261.05, above the 50-day MA of 2201.29, and above the 200-day MA of 2203.59, indicating a bullish trend. The MACD of 63.34 indicates Negative momentum. The RSI at 68.08 is Neutral, neither overbought nor oversold. The STOCH value of 77.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4979.

OAT Agrio Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4992	82 Outperform	¥46.19B	11.06	―	2.86%	4.66%	19.39%
4979	80 Outperform	¥26.11B	10.43	―	3.82%	8.02%	42.17%
4997	69 Neutral	¥85.88B	20.16	―	2.35%	6.95%	8.85%
4996	64 Neutral	¥91.82B	20.17	―	3.41%	5.84%	-67.78%
4998	64 Neutral	¥19.51B	10.63	―	1.93%	3.25%	67.44%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4968	61 Neutral	¥30.87B	18.07	―	4.27%	5.72%	28.92%