Okamoto Industries, Inc. (5122) AI Stock Analysis

• Market Cap: ¥87.43B
• Dividend Yield: 2.36%
• Average Volume (3M): 10.99K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.43
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥5,602.00 ▲(1.85% 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

Strong Balance Sheet

A strong balance sheet with low leverage and high equity ratio enhances financial stability, providing resilience against economic fluctuations and the ability to invest in growth opportunities.

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and potential for continued expansion.

Cash Generation

Healthy cash generation supports operational flexibility and the ability to fund investments and dividends, enhancing shareholder value over time.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow can constrain the company's ability to invest in growth opportunities and manage financial obligations, potentially impacting long-term financial health.

Earnings Pressure

Declining profit margins may indicate rising costs or competitive pressures, which could affect profitability and limit the company's ability to reinvest in its business.

EPS Decline

A significant decline in EPS growth can signal challenges in maintaining profitability, potentially affecting investor confidence and the company's ability to attract capital.

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: 5500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 5500 is above the 20-day moving average (MA) of 5281.50, above the 50-day MA of 5168.64, and above the 200-day MA of 5038.16, indicating a bullish trend. The MACD of 87.46 indicates Negative momentum. The RSI at 67.30 is Neutral, neither overbought nor oversold. The STOCH value of 83.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4975	77 Outperform	¥112.68B	14.21	―	1.73%	11.77%	27.55%
4028	74 Outperform	¥106.40B	7.64	―	4.71%	1.16%	167.89%
5122	71 Outperform	¥87.43B	17.94	―	2.36%	-1.95%	-1.37%
4008	68 Neutral	¥65.88B	14.08	―	3.77%	-0.68%	-9.93%
5199	64 Neutral	¥2.56B	11.59	―	4.00%	-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 Progress on Share Repurchase Program

Okamoto Industries, Inc. announced the progress of its share repurchase program, acquiring 81,000 common shares for 412,271,000 yen from August 1 to August 31, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 280,000 shares, reflecting 1.61% of the total outstanding shares, by September 30, 2025, with a maximum budget of 1.5 billion yen. The repurchase is aimed at enhancing shareholder value and optimizing capital structure, with a cumulative total of 243,100 shares acquired as of August 31, 2025.

The most recent analyst rating on (JP:5122) stock is a Buy with a Yen5398.00 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 Executive Leadership Changes

Okamoto Industries, Inc. announced a change in its executive leadership with the resignation of Masaru Okamoto from his role as Representative Director and Senior Managing Executive Officer due to personal reasons. Kunihiko Okamoto will continue as the sole Representative Director, and Akira Tsuge has been appointed as Executive Officer, reflecting a strategic shift in the company’s leadership structure.

Okamoto Industries Updates on Share Repurchase Progress

Okamoto Industries announced the status of its share repurchase program, revealing that no shares were repurchased between July 1 and July 31, 2025, due to a silent period. The company had previously resolved to repurchase up to 280,000 shares by September 30, 2025, and has so far acquired 162,100 shares, amounting to 819,575,000 yen. This ongoing repurchase strategy reflects Okamoto’s commitment to optimizing its capital structure and potentially enhancing shareholder value.