Ohara Inc. (5218) AI Stock Analysis

• Market Cap: ¥26.03B
• Dividend Yield: 2.38%
• Average Volume (3M): 44.08K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.03
• Revenue Growth: 3.53%
• EPS Growth: 10.37%
• Country: JP
• Employees: 1,454
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 24.63
• Shares Outstanding: 25,450,000
• 10 Day Avg. Volume: 30,310
• 30 Day Avg. Volume: 44,083
• PEG Ratio: 1.54
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -34.28
• 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: 60 Neutral
• Price Target: ¥1,096.00 ▲(4.98% Upside)

Ohara Inc.'s overall stock score reflects a stable financial position with strong revenue growth and a robust balance sheet. However, bearish technical indicators and liquidity concerns due to cash flow challenges weigh on the score. The valuation is reasonable, but limited upside potential is expected in the near term.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, reflecting the company's ability to expand its market reach and product adoption.

Strong Balance Sheet

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

Product Innovation

Continuous investment in R&D supports product innovation, helping the company meet evolving market needs and maintain competitive advantages.

Negative Factors

Profitability Margin Challenges

Decreasing net profit margins suggest challenges in controlling costs and non-operating expenses, which could affect long-term profitability.

Cash Flow Concerns

Struggles with cash flow generation may lead to liquidity issues, impacting the company's ability to finance operations and growth initiatives.

Liquidity Issues

Lower operational cash generation compared to net income could signal potential liquidity constraints, affecting financial flexibility.

Ohara Inc. Business Overview & Revenue Model

Company Description

Ohara Inc. (5218) is a prominent Japanese company specializing in the production and sale of high-quality glass products and materials. Operating primarily in the advanced materials sector, Ohara is known for its innovative optical glass, ceramic materials, and various glass-based products used in industries such as electronics, optics, and telecommunications. The company focuses on research and development to enhance its product offerings and meet the evolving needs of its global clientele.

How the Company Makes Money

Ohara Inc. generates revenue through the sale of its core products, including optical glass and ceramic materials, which are sold to manufacturers in sectors such as electronics, automotive, and telecommunications. The company's revenue model is primarily driven by direct sales to businesses and manufacturers, as well as partnerships with key players in various industries that require specialized glass products. Additionally, Ohara invests in research and development to innovate and expand its product lines, which helps to attract new clients and retain existing ones. Significant partnerships with technology firms and collaborations in advanced material development also contribute to its earnings by enhancing its market reach and product capabilities.

Ohara Inc. Financial Statement Overview

Summary

Ohara Inc. demonstrates stable revenue growth and a strong balance sheet with low leverage. However, challenges in maintaining profitability margins and generating positive free cash flow could impact liquidity. Continued focus on cost management and cash flow optimization is crucial.

Income Statement

Ohara Inc. has shown consistent revenue growth with a 2.69% increase in the latest year, indicating a positive trajectory. The gross profit margin remains healthy, though slightly declining over the years, suggesting stable cost management. However, the net profit margin has decreased compared to previous years, indicating potential challenges in controlling non-operating expenses or taxes. Overall, the income statement reflects a stable but slightly pressured profitability environment.

Balance Sheet

The company maintains a strong equity base with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity has been stable, reflecting efficient use of equity capital. The equity ratio is robust, showcasing a solid financial structure with a high proportion of equity financing. Overall, the balance sheet is strong, with low leverage and good equity utilization.

Cash Flow

Ohara Inc. has faced challenges in maintaining positive free cash flow, with a significant decline in the latest year. The operating cash flow to net income ratio indicates that cash generation from operations is lower than net income, which could signal potential liquidity issues. Despite this, the company has shown resilience in operating cash flow generation in previous years. Overall, the cash flow statement highlights potential liquidity concerns that need addressing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	28.14B	28.90B	27.91B	28.12B	28.30B	23.52B
Gross Profit	8.71B	8.55B	8.78B	8.95B	9.19B	6.48B
EBITDA	3.89B	4.57B	4.12B	4.18B	4.96B	3.18B
Net Income	1.52B	1.73B	1.57B	1.57B	2.12B	1.46B
Balance Sheet
Total Assets	65.36B	66.88B	65.11B	61.84B	60.68B	53.61B
Cash, Cash Equivalents and Short-Term Investments	13.38B	14.46B	15.16B	14.81B	14.46B	12.97B
Total Debt	6.09B	5.60B	5.86B	6.60B	5.96B	6.07B
Total Liabilities	13.90B	14.54B	14.28B	14.53B	15.42B	13.49B
Stockholders Equity	51.07B	51.93B	50.51B	47.05B	45.02B	39.98B
Cash Flow
Free Cash Flow	0.00	-809.42M	1.07B	136.01M	823.95M	1.09B
Operating Cash Flow	0.00	1.05B	2.74B	1.84B	2.30B	1.94B
Investing Cash Flow	0.00	-854.02M	-2.23B	-2.11B	-1.99B	-780.92M
Financing Cash Flow	0.00	-942.84M	-1.25B	-7.28M	-760.54M	-1.41B

Ohara Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1044.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5218, the sentiment is Negative. The current price of 1044 is below the 20-day moving average (MA) of 1055.35, below the 50-day MA of 1074.16, and below the 200-day MA of 1094.35, indicating a bearish trend. The MACD of -2.88 indicates Negative momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 52.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5218.

Ohara Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6800	79 Outperform	¥50.96B	17.08	―	2.20%	4.75%	164.54%
6677	78 Outperform	¥34.93B	12.66	―	4.25%	13.45%	19.19%
6785	76 Outperform	¥35.97B	12.61	10.77%	3.56%	17.56%	14.00%
6787	74 Outperform	¥327.05B	18.13	―	0.76%	15.02%	46.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5218	60 Neutral	¥26.03B	15.05	3.48%	2.38%	3.53%	10.37%
5216	54 Neutral	¥9.73B	-25.66	―	―	119.98%	-5.60%