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Okamoto Industries, Inc. (JP:5122)
:5122
Japanese Market
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Okamoto Industries, Inc. (5122) AI Stock Analysis

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JP:5122

Okamoto Industries, Inc.

(5122)

Rating:71Outperform
Price Target:
¥5,398.00
▲(7.53%Upside)
Okamoto Industries, Inc. shows strong financial performance with a solid balance sheet and reasonable valuation. However, technical indicators suggest a cautious approach due to bearish momentum and price levels below key moving averages. The lack of earnings call insights and corporate events results in a balanced, yet moderate overall score.

Okamoto Industries, Inc. (5122) vs. iShares MSCI Japan ETF (EWJ)

Okamoto Industries, Inc. Business Overview & Revenue Model

Company DescriptionOkamoto Industries, Inc. (5122) is a Japanese manufacturing company specializing in the production of high-quality rubber and plastic products. The company operates in multiple sectors, including the production of condoms, industrial materials, and household products. Okamoto is renowned for its innovative approach to product development and its commitment to quality, which has established it as a leader in the condom manufacturing industry, particularly in the Asian market.
How the Company Makes MoneyOkamoto Industries, Inc. generates revenue through the sale of its diverse product lines, primarily focusing on condoms and industrial products. The company's condom segment is a major revenue driver, capitalizing on both domestic and international markets where there is a growing demand for high-quality contraceptive products. In addition to consumer goods, Okamoto produces and sells industrial materials, such as rubber and plastic components, which are used in various sectors including automotive and construction. The company also benefits from strategic partnerships and distribution agreements that enhance its market reach and product accessibility. These combined revenue streams, supported by a strong brand reputation and continuous product innovation, contribute significantly to the company's 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 strong equity and low leverage, contributing to financial stability. However, there are slight pressures on net profit margins and fluctuations in free cash flow.
Income Statement
78
Positive
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
85
Very Positive
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
72
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue109.11B106.12B99.08B89.58B86.36B
Gross Profit23.91B24.47B21.32B21.56B22.85B
EBITDA12.15B12.19B9.36B9.97B11.12B
Net Income6.67B7.39B4.89B5.58B5.70B
Balance Sheet
Total Assets146.52B143.86B127.18B117.56B112.07B
Cash, Cash Equivalents and Short-Term Investments41.34B39.87B34.22B33.45B29.69B
Total Debt3.34B3.35B3.42B3.70B3.72B
Total Liabilities51.67B52.28B48.08B42.65B41.76B
Stockholders Equity94.74B88.66B75.99B71.96B67.52B
Cash Flow
Free Cash Flow3.35B7.29B4.53B8.04B5.50B
Operating Cash Flow6.94B12.96B8.32B10.64B8.18B
Investing Cash Flow-2.00B-5.95B-2.89B-3.75B-3.24B
Financing Cash Flow-5.44B-2.54B-5.61B-3.83B-2.24B

Okamoto Industries, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5020.00
Price Trends
50DMA
4961.20
Positive
100DMA
5022.10
Positive
200DMA
5158.44
Negative
Market Momentum
MACD
20.13
Negative
RSI
62.75
Neutral
STOCH
82.07
Negative
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 5020 is above the 20-day moving average (MA) of 4864.00, above the 50-day MA of 4961.20, and below the 200-day MA of 5158.44, indicating a neutral trend. The MACD of 20.13 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.07 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥87.36B11.82
2.16%14.07%37.11%
74
Outperform
¥87.42B9.95
3.88%4.87%5.07%
71
Outperform
¥87.09B13.28
2.37%2.81%-8.76%
69
Neutral
¥62.29B10.01
4.43%3.21%-2.40%
65
Neutral
¥2.41B8.08
4.08%-4.12%2.97%
44
Neutral
AU$1.49B-6.14-41.46%4.16%-2.94%-41.86%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5122
Okamoto Industries, Inc.
5,090.00
240.67
4.96%
JP:4008
Sumitomo Seika Chemicals Co., Ltd.
4,510.00
-455.82
-9.18%
JP:4028
ISHIHARA SANGYO KAISHA, LTD.
2,197.00
757.67
52.64%
JP:4975
JCU CORPORATION
3,585.00
-38.93
-1.07%
JP:5199
Fuji Latex Co., Ltd.
1,912.00
119.94
6.69%

Okamoto Industries, Inc. Corporate Events

Okamoto Industries Completes Restricted Stock Compensation Disposal
Jul 25, 2025

Okamoto Industries, Inc. announced the completion of payment procedures for the disposal of treasury shares as restricted stock compensation. This move, involving the disposal of 10,387 common shares at a price of 4,880 yen per share, aims to incentivize key company personnel, potentially impacting the company’s operational dynamics and aligning management interests with shareholder value.

Okamoto Industries Updates on Share Repurchase Progress
Jul 2, 2025

Okamoto Industries, Inc. announced the progress of its share repurchase program, revealing that it has repurchased 84,400 common shares for a total of 420,136,500 yen between June 1 and June 30, 2025. This is part of a larger plan approved by the Board of Directors to repurchase up to 280,000 shares, equivalent to 1.61% of the total outstanding shares, by September 30, 2025, with a maximum allocation of 1.5 billion yen. The repurchase is aimed at enhancing shareholder value and optimizing capital structure.

Okamoto Industries Announces Treasury Share Disposal for Stock Compensation
Jun 26, 2025

Okamoto Industries, Inc. has announced the disposal of treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors, executive officers, and managerial employees. This move is intended to enhance sustainable corporate value and promote value sharing with shareholders, impacting the company’s operations by aligning management’s interests with those of stakeholders.

Okamoto Industries Advances Share Repurchase Program
Jun 2, 2025

Okamoto Industries, Inc. has announced the progress of its share repurchase program, acquiring 50,800 common shares for a total of 261,049,500 yen between May 1 and May 31, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 280,000 shares, aiming to enhance shareholder value and optimize capital structure.

Okamoto Industries Eyes Global Expansion and Strategic Investments
Jun 2, 2025

Okamoto Industries, Inc. has outlined its strategic plans for growth in its recent financial results briefing. The company aims to expand its condom market share in Europe and the US by leveraging its thinness technology, despite the challenges of obtaining regulatory approvals. Additionally, Okamoto is focusing on improving manufacturing efficiency and expanding its recycling business. The company is also addressing market challenges in automotive interior materials and gloves, with a focus on high-end products and strategic investments to boost asset efficiency and stock prices.

Okamoto Industries Revises 2025 Financial Results Due to Calculation Errors
May 27, 2025

Okamoto Industries, Inc. has announced corrections to its financial results for the fiscal year ended March 2025 due to errors identified in the disclosed content. The corrections involve a miscalculation related to investment securities, affecting capital surplus and treasury stock, with the revised numerical data now submitted.

Okamoto Industries Considers Lowering Investment Unit to Boost Stock Market Participation
May 13, 2025

Okamoto Industries, Inc. is considering a reduction in its investment unit to encourage greater participation from individual investors and enhance stock liquidity. The company plans to monitor market trends and other relevant factors to determine the feasibility of this strategic move, which could impact shareholder composition and market dynamics.

Okamoto Industries Evaluates Board Effectiveness, Plans Governance Enhancements
May 13, 2025

Okamoto Industries, Inc. has completed an evaluation of its Board of Directors’ effectiveness for fiscal year 2024. The assessment revealed that the board is functioning well overall, with improvements noted in discussions regarding director skill matrices and remuneration systems. However, the company identified areas for further development, such as expanding discussions on long-term strategies and enhancing director training. Moving forward, Okamoto aims to strengthen its corporate governance framework and increase corporate value.

Okamoto Industries Updates Takeover Response Policies
May 13, 2025

Okamoto Industries, Inc. has announced the continuation and update of its Takeover Response Policies, initially introduced in 2007, to protect corporate value and shareholder interests. The updated plan, which includes revisions to definitions and terms, will be presented for shareholder approval at the upcoming Annual General Meeting, with no substantive changes proposed.

Okamoto Industries Announces Retirement of Treasury Stock
May 13, 2025

Okamoto Industries, Inc. announced the retirement of 200,000 shares of its treasury stock, representing 1.11% of its issued shares, as resolved by its Board of Directors. This move is expected to streamline the company’s capital structure and potentially enhance shareholder value by reducing the number of outstanding shares.

Okamoto Industries Introduces Restricted Stock Plan for Managers
May 13, 2025

Okamoto Industries, Inc. has announced the introduction of a restricted stock compensation plan for its managerial employees. This plan aims to incentivize managers by aligning their interests with shareholders and promoting sustainable corporate value growth. The plan involves allocating restricted stock to eligible managers, with specific terms and conditions regarding the holding and transfer of these shares. This move is expected to enhance value sharing with shareholders and support the company’s long-term strategic goals.

Okamoto Industries Announces Leadership Restructuring
May 13, 2025

Okamoto Industries, Inc. has announced a series of appointments and retirements within its board of directors and executive officers, effective following the 129th Annual General Meeting of Shareholders in June 2025. These changes include the reappointment of key figures such as Kunihiko Okamoto as CEO and the introduction of new directors like Yuri Sugano, who will serve as an independent director. The restructuring is expected to strengthen the company’s leadership and strategic direction, potentially impacting its operational efficiency and market competitiveness.

Okamoto Industries Reports Extraordinary Gains and Losses for FY 2025
May 13, 2025

Okamoto Industries, Inc. reported extraordinary financial results for the fiscal year ending March 31, 2025, with gains from the sale of investment securities amounting to 1,221 million yen and losses due to impairment of fixed assets totaling 1,065 million yen. These extraordinary gains and losses have been incorporated into the company’s consolidated financial results, reflecting both strategic asset management and challenges in certain product areas.

Okamoto Industries Reports Decline in Annual Profits Amid Strategic Expansion
May 13, 2025

Okamoto Industries, Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a decrease in profit attributable to owners of the parent by 13.3% compared to the previous year. Despite the decline in profits, the company has made strategic moves, such as the consolidation of Okamoto Manufacturing Wuhan Co., Ltd., indicating a focus on expanding its operational footprint in the international market.

Okamoto Industries Halts Share Repurchase During Silent Period
May 1, 2025

Okamoto Industries, Inc. announced that it did not repurchase any of its own shares from April 1 to April 30, 2025, as part of its ongoing share buyback program. The company cited a ‘silent period’ as the reason for refraining from purchasing shares during this time, impacting the progress of the buyback plan initially set to acquire up to 280,000 shares by September 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025