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

• Market Cap: ¥54.17B
• Dividend Yield: 2.72%
• Average Volume (3M): 806.61K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.14
• Revenue Growth: -6.16%
• EPS Growth: -26.82%
• Country: JP
• Employees: 687
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Industrial Materials
• EPS (TTM): 43.01
• Shares Outstanding: 36,800,000
• 10 Day Avg. Volume: 652,070
• 30 Day Avg. Volume: 806,610
• PEG Ratio: 0.64
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,200.00
• Price Target Upside: 117.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,607.00 ▲(9.17%Upside)

OSAKA Titanium Technologies Co., Ltd. shows strong financial performance with a solid revenue growth trend and attractive valuation metrics. However, challenges such as high leverage, inconsistent cash flow, and lack of clear market momentum moderate the overall score.

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

Company Description

OSAKA Titanium Technologies Co., Ltd. is a Japanese company specializing in the production and supply of titanium and related materials. The company operates in the advanced materials sector, providing high-purity titanium metal and titanium sponge, which are essential components for various industrial applications including aerospace, medical, and chemical industries. Additionally, the company produces polycrystalline silicon used in semiconductors and solar cells, further diversifying its product offerings.

How the Company Makes Money

OSAKA Titanium Technologies Co., Ltd. generates revenue primarily through the manufacturing and sale of titanium products, which are in high demand across multiple industries such as aerospace, automotive, and construction due to their high strength-to-weight ratio and corrosion resistance. The company also benefits from the sale of polycrystalline silicon, which is a critical material for the electronics and solar power sectors. The company's earnings are bolstered by strategic partnerships and long-term contracts with major industrial players, ensuring a stable demand for its high-quality materials. Additionally, OSAKA Titanium invests in research and development to innovate and improve its product offerings, thereby maintaining a competitive edge in the global market.

OSAKA Titanium Technologies Co., Ltd. Financial Statement Overview

Summary

OSAKA Titanium Technologies demonstrates strong revenue growth and profitability with high margins and effective equity utilization. However, challenges in cash flow management could impact financial flexibility, necessitating improvement in cash generation.

Income Statement

The company has shown a strong improvement in revenue and profitability over the years. TTM data indicates a high gross profit margin of 29.75% and a solid net profit margin of 17.42%. Revenue growth is evident with a 27.77% increase from 2023 to 2024 TTM. The EBIT and EBITDA margins are strong, reflecting efficient operational management.

Balance Sheet

The balance sheet is robust with a moderate debt-to-equity ratio of 1.05, indicating balanced leverage. The return on equity is impressive at 23.18% in the TTM period, suggesting effective utilization of equity. The equity ratio of 41.29% denotes a stable financial structure, though there's room for improvement in reducing liabilities.

Cash Flow

Cash flow performance shows some challenges, with zero reported free cash flow in the TTM period and negative free cash flow in previous years. The operating cash flow to net income ratio is not calculable due to zero operating cash flow, indicating potential cash management issues.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	54.92B	55.32B	43.07B	28.55B	17.05B	38.19B
Gross Profit	16.34B	13.44B	8.97B	2.32B	714.00M	6.37B
EBITDA	10.67B	12.29B	7.25B	1.22B	-167.00M	3.92B
Net Income	9.56B	9.69B	4.39B	-3.11B	-5.08B	736.00M
Balance Sheet
Total Assets	99.90B	92.99B	81.54B	76.59B	77.74B	76.42B
Cash, Cash Equivalents and Short-Term Investments	3.08B	5.97B	6.97B	10.67B	6.52B	5.79B
Total Debt	43.40B	40.10B	40.50B	40.50B	40.00B	29.67B
Total Liabilities	58.64B	54.48B	51.07B	50.08B	48.04B	41.60B
Stockholders Equity	41.26B	38.51B	30.47B	26.51B	29.71B	34.82B
Cash Flow
Free Cash Flow	0.00	-619.00M	-1.62B	5.31B	-9.53B	-1.92B
Operating Cash Flow	0.00	2.10B	741.00M	6.30B	-6.73B	1.50B
Investing Cash Flow	0.00	-3.02B	-2.69B	-1.45B	-2.88B	-3.73B
Financing Cash Flow	0.00	-524.00M	-369.00M	-559.00M	10.17B	-3.03B

OSAKA Titanium Technologies Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1472.00
• 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:5726, the sentiment is Neutral. The current price of 1472 is above the 20-day moving average (MA) of 1453.15, below the 50-day MA of 1511.40, and below the 200-day MA of 1864.33, indicating a neutral trend. The MACD of -9.37 indicates Negative momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 50.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	82 Outperform	¥88.79B	4.80	14.23%	0.82%	6.88%	19.15%
1515	80 Outperform	€123.70B	13.57	6.29%	3.41%	17.91%	37.76%
3036	72 Outperform	¥57.64B	12.00		3.35%	12.64%	200.30%
5726	71 Outperform	¥54.17B	7.64		2.72%	-6.16%	-26.82%
5727	65 Neutral	$90.10B	24.18	6.35%	1.54%	13.48%	-24.74%
5541	48 Neutral	¥33.29B	―		15.39%	-25.73%	84.97%
Sector *	44 Neutral	C$992.05M	-6.68	-13.59%	2.53%	17.48%	-32.48%

OSAKA Titanium Technologies Co., Ltd. Corporate Events

OSAKA Titanium Increases Year-End Dividend Amid Strong Profits

OSAKA Titanium Technologies Co., Ltd. announced an increase in its year-end dividend to 25 yen per share, up from the previously forecasted 20 yen, due to higher-than-expected net profits for the financial year ended March 31, 2025. This decision reflects the company’s commitment to maintaining a stable dividend payout ratio between 25% to 35%, enhancing shareholder value.

The most recent analyst rating on (JP:5726) stock is a Buy with a Yen3200.00 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 Financial Decline Amid Market Challenges

OSAKA Titanium Technologies Co., Ltd. reported its financial results for the year ended March 31, 2025, showing a decline in net sales and net profit compared to the previous year. Despite a challenging financial year, the company maintained a stable capital-to-asset ratio and plans to pay dividends, albeit at a reduced rate. The earnings forecast for the next financial year indicates a further decrease in profits, reflecting ongoing market challenges.

The most recent analyst rating on (JP:5726) stock is a Buy with a Yen4100.00 price target. To see the full list of analyst forecasts on OSAKA Titanium Technologies Co., Ltd. stock, see the JP:5726 Stock Forecast page.