OSAKA Titanium Technologies Co., Ltd. (5726) AI Stock Analysis

• Market Cap: ¥82.83B
• Dividend Yield: 1.38%
• Average Volume (3M): 2.36M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.15
• Revenue Growth: -3.56%
• EPS Growth: -30.17%
• Country: JP
• Employees: 687
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 63.06
• Shares Outstanding: 36,800,000
• 10 Day Avg. Volume: 1,507,240
• 30 Day Avg. Volume: 2,358,350
• PEG Ratio: -0.37
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 1.36
• P/FCF Ratio: -1.24K
• 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: 69 Neutral
• Price Target: ¥2,370.00 ▲(26.00% Upside)

The score is primarily driven by solid but not fully consistent financial performance: improving revenue and operating margins are offset by weak cash conversion, negative recent free cash flow, and relatively high leverage. Valuation is supportive with a low P/E and a modest dividend yield, while technicals are mixed with negative MACD and stretched momentum signals tempering near-term outlook.

Positive Factors

Improved Gross Margin

A materially higher gross margin in 2025 indicates better production efficiency or pricing power in titanium products. Sustained gross margin expansion supports long-term profitability, provides buffer against raw material swings, and funds reinvestment in capacity or R&D.

Stronger Return on Equity

An improved ROE and sizeable equity base suggest management is generating solid returns on shareholder capital. Over months, higher ROE can enhance internal funding capacity, reduce reliance on external capital, and signal effective capital allocation despite industry cyclicality.

Diversified End Markets

Serving aerospace, medical and industrial markets provides structural demand for titanium's light-weight, corrosion-resistant properties. Diverse, higher-value end markets reduce revenue volatility and support durable orderbooks and pricing power over multiple business cycles.

Negative Factors

High Leverage

Elevated debt-to-equity increases financial risk and sensitivity to interest rate moves. Over 2-6 months, high leverage constrains strategic flexibility, raises refinancing risk on capital projects, and can amplify earnings volatility in downturns for a capital-intensive materials producer.

Weak Cash Conversion & FCF

Low operating cash conversion and persistent negative free cash flow limit the firm's ability to self-fund capex, working capital, and dividends. Structurally weak cash generation may force external financing, increasing cost of capital and reducing long-term reinvestment capacity.

Declining Net Margin

A material drop in net margin suggests rising operating or non-operating costs and compresses retained earnings. If persistent, lower net margins erode free cash flow and return metrics, undermining the firm’s ability to invest or withstand cyclical downturns in the metals sector.

OSAKA Titanium Technologies Co., Ltd. Business Overview & Revenue Model

Company Description

OSAKA Titanium technologies Co.,Ltd. manufactures and sells titanium products. The company offers titanium sponges, titanium ingots, titanium tetrachloride, titanium tetrachloride aqueous solutions, and ferro-titanium products; and high-purity titanium, silicon monoxide, and photocatalysts, as well as gas-atomized titanium powder and titanium hydride-dehydride powder. Its products are used in various applications, such as aircraft engine components, power plants, petrochemical and seawater desalination plants, and sheets for heat exchangers used in ships and LNG manufacturing plants; medical parts, packaging materials, negative electrode materials, sintered parts, personal computers, tablets/smartphones, and liquid crystal televisions; digital home appliances; and semiconductors and other materials in the electronics industry. The company was formerly known as Sumitomo Titanium Corporation and changed its name to OSAKA Titanium technologies Co.,Ltd. in 2007. OSAKA Titanium technologies Co.,Ltd. was founded in 1952 and is headquartered in Amagasaki, Japan.

How the Company Makes Money

OSAKA Titanium Technologies generates revenue primarily through the sale of titanium products, including titanium sponge, ingots, and alloys, which are utilized across several industries, notably aerospace and medical. The company's revenue model is based on direct sales to manufacturers and distributors, as well as long-term contracts with major industry players. Key revenue streams include the production and supply of titanium materials for aircraft components, medical implants, and industrial applications. Additionally, the company may benefit from partnerships with other firms in the aerospace and medical sectors, enhancing its market reach and stability in earnings. The demand for lightweight, high-strength materials in aerospace and medical applications further supports the company's profitability.

OSAKA Titanium Technologies Co., Ltd. Financial Statement Overview

Summary

OSAKA Titanium Technologies Co., Ltd. demonstrates a strong recovery pattern with growing revenues and improved operational efficiency. However, the company faces challenges in maintaining consistent profitability and cash flow stability. The balance sheet shows a healthy equity base but is offset by high leverage, posing potential risks.

Income Statement

OSAKA Titanium Technologies Co., Ltd. has shown a solid recovery in its revenue with a consistent growth trajectory, as evidenced by its increasing revenue from 2021 to 2025. The gross profit margin improved significantly in 2025 to 31.08% from previous years, indicating enhanced operational efficiency. However, the net profit margin decreased to 13.65% in 2025 from 17.51% in 2024, suggesting increased expenses or reduced cost management. The EBIT and EBITDA margins also showed positive trends, but there's a need for caution regarding the fluctuating net income figures over the years.

Balance Sheet

The company's balance sheet highlights a stable equity base with a growing stockholders' equity, reaching 42.49% of total assets in 2025. The debt-to-equity ratio remains high at 1.02, reflecting a significant reliance on debt financing, which may pose risks in interest rate hikes or downturns. The return on equity improved to 16.55% in 2025, indicating better utilization of equity capital to generate profits.

Cash Flow

Operating cash flow has been positive but volatile, reflecting the company's challenges in maintaining consistent operational cash generation. The free cash flow has been negative in recent years, with a slight improvement in 2025, signaling potential issues in capital expenditure management. The operating cash flow to net income ratio is 0.40 in 2025, showing a lower cash conversion from profits, which could impact liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.55B	51.91B	55.32B	43.07B	28.55B	17.05B
Gross Profit	13.94B	16.13B	13.44B	8.97B	2.32B	714.00M
EBITDA	7.30B	11.12B	12.28B	7.12B	932.00M	-874.00M
Net Income	4.72B	7.09B	9.69B	4.39B	-3.11B	-5.08B
Balance Sheet
Total Assets	100.47B	100.92B	92.99B	81.54B	76.59B	77.74B
Cash, Cash Equivalents and Short-Term Investments	4.45B	4.62B	5.97B	6.97B	10.67B	6.52B
Total Debt	45.00B	43.70B	40.10B	40.50B	40.50B	40.00B
Total Liabilities	58.35B	58.09B	54.48B	51.07B	50.08B	48.04B
Stockholders Equity	42.11B	42.84B	38.51B	30.47B	26.51B	29.71B
Cash Flow
Free Cash Flow	0.00	-57.00M	-619.00M	-1.62B	5.31B	-9.53B
Operating Cash Flow	0.00	2.86B	2.10B	741.00M	6.30B	-6.73B
Investing Cash Flow	0.00	-3.48B	-3.02B	-2.69B	-1.45B	-2.88B
Financing Cash Flow	0.00	-694.00M	-524.00M	-369.00M	-559.00M	10.17B

OSAKA Titanium Technologies Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1881.00
• 50DMA: Positive
• 100DMA: Negative
• 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:5726, the sentiment is Positive. The current price of 1881 is below the 20-day moving average (MA) of 1922.20, below the 50-day MA of 2108.22, and below the 200-day MA of 1916.94, indicating a bullish trend. The MACD of 29.39 indicates Negative momentum. The RSI at 65.40 is Neutral, neither overbought nor oversold. The STOCH value of 83.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5726.

OSAKA Titanium Technologies Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	77 Outperform	¥159.89B	10.51	11.58%	1.62%	9.81%	30.20%
1515	75 Outperform	¥209.83B	21.05	6.77%	2.30%	8.19%	34.88%
3036	74 Outperform	¥81.43B	17.18	―	2.98%	8.89%	102.20%
5726	69 Neutral	¥82.83B	13.62	―	1.38%	-3.56%	-30.17%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5541	59 Neutral	¥45.91B	-63.62	―	9.18%	-35.81%	-138.00%
5727	58 Neutral	¥109.96B	31.97	5.78%	1.49%	0.82%	-1.72%

OSAKA Titanium Technologies Co., Ltd. Corporate Events

OSAKA Titanium Secures DBJ Two-Step Loan to Expand Sponge Titanium Capacity

OSAKA Titanium Technologies has secured a 5 billion yen, five‑year unsecured Two-Step Loan from the Development Bank of Japan to help finance its Sponge Titanium Production Capacity Enhancement Plan, which has been certified by the Ministry of Economy, Trade and Industry as a Supply Assurance Plan for Specified Critical Products under Japan’s Economic Security Promotion Act. The funding supports an approximately 33 billion yen investment to boost annual sponge titanium production capacity from 40,000 to 50,000 tons by the end of fiscal 2027, with the project also eligible for up to about 8 billion yen in government grants, reinforcing stable aircraft-grade titanium supply and strengthening the company’s position in strategically important materials markets.

The most recent analyst rating on (JP:5726) stock is a Hold with a Yen2417.00 price target. To see the full list of analyst forecasts on OSAKA Titanium Technologies Co., Ltd. stock, see the JP:5726 Stock Forecast page.

OSAKA Titanium Technologies Reports Improved Q2 Results and Revises Full-Year Forecast

OSAKA Titanium Technologies Co., Ltd. announced a significant improvement in its second-quarter financial results for the fiscal year ending March 31, 2026, surpassing its previously forecasted figures. The company attributes this positive performance to reduced maritime transport costs, deferred cost recordings, and favorable foreign exchange trends. Despite a projected decrease in net sales for the full financial year due to inventory adjustments in the civil aircraft supply chain, the company anticipates an increase in operating, ordinary, and net profits compared to earlier forecasts, driven by strong first-half results.

The most recent analyst rating on (JP:5726) stock is a Buy with a Yen2914.00 price target. To see the full list of analyst forecasts on OSAKA Titanium Technologies Co., Ltd. stock, see the JP:5726 Stock Forecast page.

OSAKA Titanium Reports Decline in Profits for First Half of FY 2025

OSAKA Titanium Technologies Co., Ltd. reported its non-consolidated financial results for the first half of the fiscal year 2025, showing a slight increase in net sales but significant declines in operating, ordinary, and net profits compared to the previous year. The company also revised its earnings forecast for the full fiscal year ending March 31, 2026, predicting a decrease in net sales and profits, which may impact its market positioning and stakeholder expectations.

The most recent analyst rating on (JP:5726) stock is a Buy with a Yen2914.00 price target. To see the full list of analyst forecasts on OSAKA Titanium Technologies Co., Ltd. stock, see the JP:5726 Stock Forecast page.