Ohara Inc. (5218) AI Stock Analysis

• Market Cap: ¥27.15B
• Dividend Yield: 2.38%
• Average Volume (3M): 44.08K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.02
• Revenue Growth: 3.53%
• EPS Growth: 10.37%
• Country: JP
• Employees: 1,454
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 14.06
• 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: -34.29
• 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: ¥1,236.00 ▲(18.39% Upside)
• Action: Reiterated Date: 12/19/25
• Date: Action: Reiterated 12/19/25

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

Specialty product niche

Ohara’s focus on high-performance specialty optical glass serves precision optics in electronics and industrial equipment. This niche requires technical know‑how and qualified manufacturing, creating durable customer relationships, higher switching costs and structural demand from electronics and industrial markets.

Strong balance sheet

A strong equity base and low leverage give Ohara financial flexibility to fund capital expenditure, R&D and cyclical downturns without heavy refinancing. This structural conservatism supports long-term investment in specialized manufacturing capabilities and reduces default and liquidity risks.

Consistent revenue and healthy gross margins

Steady top‑line growth alongside a healthy gross margin indicates persistent demand and effective cost control at the production level. Over months, this supports capacity utilization and reinvestment in product development, underpinning sustainable operating performance despite modest growth rates.

Negative Factors

Weak free cash flow conversion

A material decline in free cash flow and weakened cash conversion limits Ohara’s ability to fund capex, dividends or absorb shocks without using reserves. Persistently weak FCF can force reliance on the balance sheet or external financing, constraining strategic investment and returning cash to shareholders.

Declining net profit margin

A falling net profit margin reduces retained earnings and the cash available for reinvestment. If driven by rising non‑operating costs, taxes or SG&A, the erosion can persistently depress returns on equity and limit funding for R&D or capacity expansion, weakening long‑term competitiveness.

Gross margin compression risk

Even a modest downward trend in gross margin signals potential input cost or pricing pressure for a specialty glass maker. Continued compression would erode operating leverage and margin sustainability, narrowing the buffer against cyclical downturns and making investment in high‑precision production more costly.

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

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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	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	28.90B	27.91B	28.12B	28.30B	23.52B
Gross Profit	8.47B	8.73B	8.91B	9.15B	6.46B
EBITDA	3.24B	3.67B	3.70B	4.38B	2.65B
Net Income	1.73B	1.57B	1.57B	2.12B	1.46B
Balance Sheet
Total Assets	66.88B	65.11B	61.84B	60.68B	53.61B
Cash, Cash Equivalents and Short-Term Investments	14.46B	15.16B	14.81B	14.46B	12.97B
Total Debt	5.60B	5.86B	6.60B	5.96B	6.07B
Total Liabilities	14.54B	14.28B	14.53B	15.42B	13.49B
Stockholders Equity	51.93B	50.51B	47.05B	45.02B	39.98B
Cash Flow
Free Cash Flow	-809.42M	1.12B	183.03M	897.82M	1.14B
Operating Cash Flow	1.05B	2.74B	1.84B	2.30B	1.94B
Investing Cash Flow	-854.02M	-2.23B	-2.11B	-1.99B	-780.92M
Financing Cash Flow	-942.84M	-1.25B	-7.28M	-760.54M	-1.41B

Ohara Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1044.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 1149.75, below the 50-day MA of 1109.40, and below the 200-day MA of 1115.89, indicating a neutral trend. The MACD of 6.78 indicates Positive momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 74.59 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
6951	78 Outperform	¥303.25B	8.42	―	2.04%	-0.69%	-29.88%
6965	74 Outperform	¥589.35B	44.29	4.03%	2.25%	3.97%	-41.76%
5214	74 Outperform	$510.85B	16.10	6.30%	2.16%	1.90%	-105.45%
7746	64 Neutral	¥31.38B	-133.36	―	―	-9.50%	-170.30%
6728	62 Neutral	¥451.71B	19.19	5.63%	2.35%	-9.06%	-35.95%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5218	60 Neutral	¥27.15B	19.00	3.48%	2.38%	3.53%	10.37%