Conservative Balance SheetLow debt-to-equity (well below 0.2x) and a conservatively positioned balance sheet provide lasting financial flexibility. This reduces insolvency risk through cycles, preserves capacity for targeted capex or strategic actions, and supports survival during demand downturns.

Steady Returns On EquityHigh-single-digit ROE consistency indicates the business reliably converts equity into profits over time. Stable ROE suggests disciplined capital allocation and operational competence, underpinning sustainable shareholder value even if growth is moderate.

Consistent Underlying ProfitabilityA mid-single-digit operating margin and persistent profitability reflect a durable core business capable of covering fixed costs. This margin floor supports long-term operations, allows incremental reinvestment, and cushions cash needs during cyclical revenue weakness.

Bears Say

Weak Cash GenerationNegative TTM free cash flow and low operating cash relative to earnings are structural concerns: they constrain the company's ability to fund capex, reduce debt, or return capital internally. Repeated weak cash conversion raises financing and execution risk over the medium term.

Stalled / Declining RevenueA decline in TTM revenue signals weakening demand or market share pressure, which reduces the growth runway. With revenue stalled, it becomes harder to leverage fixed costs, invest in expansion, or restore margins, making long-term earnings recovery more challenging.

Rising Total Debt (watch Item)An increase in total debt, even from a low base, is concerning given weak cash conversion. If debt continues rising while free cash flow remains negative, financial flexibility will erode and interest or refinancing needs could divert resources from operations or growth initiatives.

5939 FAQ

What was Otani Kogyo Co., Ltd.’s price range in the past 12 months?

Otani Kogyo Co., Ltd. lowest stock price was ¥4800.00 and its highest was ¥10630.00 in the past 12 months.

What is Otani Kogyo Co., Ltd.’s market cap?

Otani Kogyo Co., Ltd.’s market cap is ¥6.34B.

When is Otani Kogyo Co., Ltd.’s upcoming earnings report date?

Otani Kogyo Co., Ltd.’s upcoming earnings report date is May 19, 2026 which is in 85 days.

How were Otani Kogyo Co., Ltd.’s earnings last quarter?

Otani Kogyo Co., Ltd. released its earnings results on Feb 10, 2026. The company reported ¥144.46 earnings per share for the quarter, beating the consensus estimate of N/A by ¥144.46.

Is Otani Kogyo Co., Ltd. overvalued?

According to Wall Street analysts Otani Kogyo Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Otani Kogyo Co., Ltd. pay dividends?

Otani Kogyo Co., Ltd. pays a Annually dividend of ¥30 which represents an annual dividend yield of 0.55%. See more information on Otani Kogyo Co., Ltd. dividends here

What is Otani Kogyo Co., Ltd.’s EPS estimate?

Otani Kogyo Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Otani Kogyo Co., Ltd. have?

Otani Kogyo Co., Ltd. has 780,000 shares outstanding.

What happened to Otani Kogyo Co., Ltd.’s price movement after its last earnings report?

Otani Kogyo Co., Ltd. reported an EPS of ¥144.46 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.633%.

Which hedge fund is a major shareholder of Otani Kogyo Co., Ltd.?

Currently, no hedge funds are holding shares in JP:5939

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Otani Kogyo Co., Ltd.

Otani Kogyo Co., Ltd. (5939) is a Japanese company primarily engaged in the manufacturing and sales of various types of industrial equipment and materials. The company specializes in the production of high-quality steel pipes, valves, and fittings used across multiple sectors, including construction, infrastructure, and energy. Otani Kogyo is known for its innovation in product design and commitment to quality, serving a diverse clientele both domestically and internationally.