Okamoto Industries, Inc. (5122) AI Stock Analysis

• Market Cap: ¥94.10B
• Dividend Yield: 2.25%
• Average Volume (3M): 10.99K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.44
• Revenue Growth: -1.95%
• EPS Growth: -1.37%
• Country: JP
• Employees: 2,775
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 85.15
• Shares Outstanding: 17,699,368
• 10 Day Avg. Volume: 10,500
• 30 Day Avg. Volume: 10,990
• PEG Ratio: -1.50
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 26.30
• 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: 71 Outperform
• Price Target: ¥6,133.00 ▲(12.12% Upside)

Okamoto Industries, Inc. shows strong financial performance with a robust balance sheet and consistent revenue growth, which are the most significant factors contributing to the score. Technical analysis indicates a neutral market sentiment, while valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Balance sheet strength

A very strong equity ratio (64.7%) and minimal leverage provide durable financial flexibility. Large cash reserves lower refinancing and liquidity risk, enabling steady funding for R&D, capex, dividends or opportunistic M&A without stressing operations over the medium term.

Stable revenue and gross margins

A ~4.1% CAGR across 2020–2025 and a sustained gross margin near 22% point to consistent demand and disciplined cost control in automotive, electronics and healthcare end markets. These structural trends support predictable operating leverage and reinvestment capacity over coming quarters.

Cash generation capability

Operating cash flow consistently exceeding net income and positive free cash flow demonstrate real cash generation from core operations. That cash base supports ongoing capex and working capital needs, funds shareholder returns and lowers dependence on external financing during cycles.

Negative Factors

Net margin erosion

A gradual decline in net profit margin suggests rising cost pressures or constrained pricing power against input-cost inflation. Even modest margin erosion reduces retained earnings and investment capacity over time, increasing sensitivity to future cost shocks and limiting strategic flexibility.

Free cash flow volatility

Fluctuating free cash flow tied to variable capital spending complicates financial planning and consistency of returns. If capex remains lumpy, management may face trade-offs between funding growth projects and maintaining steady dividends or buybacks, raising execution risk.

Recent revenue and EPS softness

Negative recent revenue and EPS growth indicate near-term top- and bottom-line pressure. If these declines reflect structural demand weakness in key end markets like automotive or electronics, sustaining long-term growth and margin recovery could require strategic adjustments and tighter cost control.

Okamoto Industries, Inc. Business Overview & Revenue Model

Company Description

Okamoto Industries, Inc. manufactures and sells industrial and household products in Japan and internationally. The company's industrial products include plastic films; wallpaper for housing, decorative films, moldable ABS and acrylic sheets, and synthetic leather for furniture; automotive materials; agricultural films/work materials; and food wrapping films, dehydrant/absorbent sheets, gloves, and other food sanitation materials. It also provides adhesive tape and rubber bands; flexible container bags; medical/welfare products comprising wound dressing materials, medical gloves, autoclaves, masks, and other sanitary materials; and industrial products, such as cleanroom gloves, adhesive mats for entrances, partition films, safety shoes, and other products. In addition, the company offers household products consisting of condoms/lubricants, heat patches/heating pads/hot water bags, health goods, portable sanitary products, and gloves; dehumidifiers, cockroach control products, and cleaning agents for living spaces; absorbent/dehydrant sheets, food wrapping films, and sheets for cooking; boots, short boots, and safety shoes for working or outdoor activities; and rainwear for rainy days, as well as windbreakers for use at workplaces. Further, it engages in the solar power generation business. The company was founded in 1934 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Okamoto Industries generates revenue through multiple key streams, primarily by selling its manufactured products to various industries. Its core revenue comes from the sale of rubber sheets and plastic films, which are essential for applications in automotive parts, electronic devices, and industrial equipment. The company also benefits from long-term contracts with major clients, ensuring a consistent flow of orders. Additionally, Okamoto engages in collaborations and partnerships with other firms to co-develop new materials and technologies, further enhancing its market reach and profitability. The combination of high-quality production, strategic partnerships, and a focus on innovation positions Okamoto to capitalize on growing market demands, thus driving its earnings.

Okamoto Industries, Inc. Financial Statement Overview

Summary

Okamoto Industries, Inc. has demonstrated steady revenue growth and maintains a healthy gross profit margin. The balance sheet is robust with a strong equity base and low leverage, indicating financial stability. However, there is a slight decline in net profit margin and fluctuating free cash flow, suggesting some pressure on profitability and cash management.

Income Statement

Okamoto Industries, Inc. has demonstrated a steady revenue growth over the years, with a compound annual growth rate of approximately 4.1% from 2020 to 2025. The gross profit margin remains healthy, averaging around 22%, indicating efficient cost management. However, the net profit margin has slightly declined from 6.3% in 2020 to 6.1% in 2025, reflecting some pressure on bottom-line profitability. The EBIT and EBITDA margins have shown resilience, although EBIT has faced slight fluctuations.

Balance Sheet

The company's balance sheet is robust with a strong equity base, as evidenced by an increasing equity ratio reaching 64.7% in 2025. The debt-to-equity ratio has consistently remained low, at about 0.035, indicating prudent financial leverage. Return on Equity (ROE) has been stable around 7%, reflecting efficient use of shareholders' equity. The high levels of cash and cash equivalents further strengthen the company's financial position.

Cash Flow

Okamoto Industries has shown fluctuating free cash flow due to varying capital expenditures, but maintains positive free cash flow. The operating cash flow to net income ratio has been over 1x, indicating healthy cash generation relative to net income. However, the decline in free cash flow from 2024 to 2025 may indicate potential challenges in managing capital investments versus cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.97B	109.11B	106.12B	99.08B	89.58B	86.36B
Gross Profit	22.30B	23.91B	24.47B	21.32B	21.56B	22.85B
EBITDA	10.08B	12.15B	12.19B	10.10B	10.13B	10.74B
Net Income	4.94B	6.67B	7.39B	4.89B	5.58B	5.70B
Balance Sheet
Total Assets	145.78B	146.52B	143.86B	127.18B	117.56B	112.07B
Cash, Cash Equivalents and Short-Term Investments	35.89B	41.34B	39.87B	34.22B	33.45B	29.69B
Total Debt	3.33B	3.34B	3.35B	3.42B	3.70B	3.72B
Total Liabilities	52.36B	51.67B	52.28B	48.08B	42.65B	41.76B
Stockholders Equity	93.32B	94.74B	88.66B	75.99B	71.96B	67.52B
Cash Flow
Free Cash Flow	0.00	3.35B	7.29B	4.53B	8.04B	5.50B
Operating Cash Flow	0.00	7.24B	12.96B	8.32B	10.64B	8.18B
Investing Cash Flow	0.00	-2.00B	-5.95B	-2.89B	-3.75B	-3.24B
Financing Cash Flow	0.00	-5.44B	-2.54B	-5.61B	-3.83B	-2.24B

Okamoto Industries, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5470.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5122, the sentiment is Positive. The current price of 5470 is below the 20-day moving average (MA) of 5594.00, below the 50-day MA of 5491.60, and above the 200-day MA of 5138.29, indicating a neutral trend. The MACD of 39.11 indicates Positive momentum. The RSI at 46.33 is Neutral, neither overbought nor oversold. The STOCH value of 14.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5122.

Okamoto Industries, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4975	76 Outperform	¥140.23B	16.66	―	1.58%	11.77%	27.55%
4028	74 Outperform	¥117.11B	8.41	―	4.15%	1.16%	167.89%
4099	72 Outperform	¥191.83B	22.24	―	1.81%	-0.52%	5.18%
5122	71 Outperform	¥94.10B	16.86	―	2.25%	-1.95%	-1.37%
4008	68 Neutral	¥74.03B	11.96	―	3.74%	-0.68%	-9.93%
5199	64 Neutral	¥2.56B	9.21	―	4.05%	-4.09%	59.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Okamoto Industries, Inc. Corporate Events

Okamoto Industries Reports No Share Buybacks to Date Under Approved Repurchase Program

Okamoto Industries, Inc. reported that it did not repurchase any of its own common shares during the period from December 1 to December 31, 2025, resulting in a total repurchase amount of zero yen for that month. This update comes under a previously authorized share buyback program, approved by the board on November 7, 2025, which permits repurchases of up to 190,000 shares, or 1.11% of outstanding shares, for a maximum of 1 billion yen through September 30, 2026; as of December 31, 2025, no shares had yet been acquired under this authorization, indicating that the capital allocation move remains entirely unused so far and leaving future buyback activity as a potential lever for shareholder returns and balance sheet management.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5602.00 price target. To see the full list of analyst forecasts on Okamoto Industries, Inc. stock, see the JP:5122 Stock Forecast page.

Okamoto Industries Reports No Share Repurchase Activity

Okamoto Industries, Inc. announced that it has not repurchased any of its own shares during the specified period from November 10 to November 30, 2025, despite having a board resolution authorizing the repurchase of up to 190,000 shares. This lack of activity may impact the company’s stock market strategy and investor relations, as the repurchase was intended to manage capital structure and enhance shareholder value.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5602.00 price target. To see the full list of analyst forecasts on Okamoto Industries, Inc. stock, see the JP:5122 Stock Forecast page.

Okamoto Industries Faces Market and Cost Challenges Amid Q2 FY2025

Okamoto Industries, Inc. reported a temporary decrease in condom shipments due to inventory adjustments by some customers. The company is navigating a challenging glove market post-COVID-19, with a focus on semiconductor factory sales. Additionally, Okamoto is dealing with a significant surge in antimony prices due to China’s rare earth regulations, impacting raw material costs. The company is negotiating price adjustments and exploring alternatives to antimony to mitigate these challenges.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5602.00 price target. To see the full list of analyst forecasts on Okamoto Industries, Inc. stock, see the JP:5122 Stock Forecast page.

Okamoto Industries Announces Treasury Share Acquisition Plan

Okamoto Industries, Inc. has announced a decision to acquire up to 190,000 of its own shares, representing 1.11% of the total outstanding shares, with a maximum acquisition cost of ¥1 billion. This move is aimed at enhancing shareholder returns, improving capital efficiency, and allowing for a more flexible capital policy, potentially impacting the company’s financial strategy and shareholder value positively.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5602.00 price target. To see the full list of analyst forecasts on Okamoto Industries, Inc. stock, see the JP:5122 Stock Forecast page.

Okamoto Industries Announces Consistent Interim Dividend Payout

Okamoto Industries has announced an interim dividend of ¥60 per share for the fiscal year ending March 31, 2026, consistent with the previous year. This decision aligns with their policy of providing stable dividends while considering performance-linked factors, reflecting their commitment to shareholder returns.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5602.00 price target. To see the full list of analyst forecasts on Okamoto Industries, Inc. stock, see the JP:5122 Stock Forecast page.

Okamoto Industries Reports Better-Than-Expected Financial Results for H1 2025

Okamoto Industries, Inc. announced a positive variance between its forecasted and actual financial results for the six months ending September 30, 2025. The company attributed this to a weaker Japanese yen and improved productivity, which led to higher net sales and operating income in both its industrial and consumer goods segments. Despite the favorable results, the company has not revised its full-year forecast due to uncertainties such as the Chinese economic slowdown and fluctuating foreign exchange rates.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5602.00 price target. To see the full list of analyst forecasts on Okamoto Industries, Inc. stock, see the JP:5122 Stock Forecast page.

Okamoto Industries Reports Decline in Financial Performance for First Half of 2025

Okamoto Industries, Inc. reported a decline in its consolidated financial results for the six months ended September 30, 2025. The company experienced a decrease in net sales, operating income, and profit attributable to owners of the parent compared to the same period in the previous fiscal year, reflecting challenges in maintaining its financial performance.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5602.00 price target. To see the full list of analyst forecasts on Okamoto Industries, Inc. stock, see the JP:5122 Stock Forecast page.