Otani Kogyo Co., Ltd. (5939) AI Stock Analysis

• Market Cap: ¥4.25B
• Dividend Yield: 0.55%
• Average Volume (3M): 796.00
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.45
• Revenue Growth: 0.31%
• EPS Growth: -13.69%
• Country: JP
• Employees: 177
• Sector: Industrials
• Sector Strength: 79
• Industry: Electrical Equipment & Parts
• EPS (TTM): 108.91
• Shares Outstanding: 780,000
• 10 Day Avg. Volume: 940
• 30 Day Avg. Volume: 796
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥6,121.00
• Price Target Upside: 12.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥5,979.00 ▲(9.51% Upside)

Otani Kogyo Co., Ltd. demonstrates strong financial performance with robust revenue growth and a solid balance sheet. However, cash flow challenges and technical indicators suggest caution. Valuation metrics indicate the stock is fairly valued, with a modest dividend yield.

Otani Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Otani Kogyo Co., Ltd. (5939) is a Japanese company that specializes in the manufacturing and distribution of metal products, particularly focusing on building materials and metal fittings. The company operates primarily in the construction and industrial sectors, providing high-quality and durable products used in a variety of applications. Otani Kogyo is known for its commitment to innovation and quality, ensuring that its products meet the rigorous standards required in building and industrial projects.

How the Company Makes Money

Otani Kogyo Co., Ltd. generates revenue through the production and sale of metal products such as building materials and metal fittings. The company's key revenue streams include direct sales to construction companies and industrial firms that require durable and reliable components for their projects. Additionally, Otani Kogyo may engage in partnerships with distributors and retailers to expand its market reach. The company's focus on high-quality materials and innovative product designs helps it maintain a competitive edge, contributing to its earnings. Furthermore, any significant economic developments or trends in the construction industry can influence the company's financial performance.

Otani Kogyo Co., Ltd. Financial Statement Overview

Summary

Otani Kogyo Co., Ltd. demonstrates strong financial performance with robust profitability, financial stability, and improving cash flow metrics. The company shows consistent gross profit margins, a strong equity position, and effective cash generation, although some cash flow volatility exists.

Income Statement

Otani Kogyo Co., Ltd. has demonstrated strong profitability with consistent gross profit margins and improving EBIT and EBITDA margins over the years. The net profit margin has seen a steady increase, reflecting efficient cost management and operational effectiveness. Revenue growth has fluctuated, but the overall trend is positive, indicating a healthy growth trajectory.

Balance Sheet

The company's balance sheet shows a robust equity position with a strong equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting prudent financial leverage and low risk of financial distress. Return on equity has consistently improved, showcasing effective utilization of equity to generate profits.

Cash Flow

Otani Kogyo Co., Ltd. has exhibited significant improvements in free cash flow, with a notable growth rate in recent years. The operating cash flow to net income ratio is strong, indicating efficient cash generation from operations. However, historical volatility in free cash flow suggests some fluctuations in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.95B	7.90B	7.91B	7.19B	6.41B	6.06B
Gross Profit	1.65B	1.72B	1.55B	1.29B	1.23B	1.33B
EBITDA	541.80M	606.68M	587.22M	402.64M	352.84M	482.74M
Net Income	325.45M	369.16M	334.57M	173.88M	127.00M	206.57M
Balance Sheet
Total Assets	7.43B	7.56B	7.19B	6.23B	5.49B	5.34B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.91B	1.56B	1.16B	1.23B	1.52B
Total Debt	478.17M	478.52M	525.77M	48.00M	48.00M	48.00M
Total Liabilities	3.29B	3.49B	3.46B	2.84B	2.26B	2.21B
Stockholders Equity	4.14B	4.08B	3.73B	3.38B	3.23B	3.13B
Cash Flow
Free Cash Flow	-530.65M	428.38M	-70.72M	-42.59M	-273.54M	116.09M
Operating Cash Flow	170.99M	783.41M	183.99M	112.25M	56.95M	336.18M
Investing Cash Flow	-702.02M	-356.69M	-241.34M	-150.96M	-325.00M	-217.00M
Financing Cash Flow	-75.55M	-74.36M	451.09M	-23.39M	-28.92M	-32.63M

Otani Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5460.00
• 50DMA: Positive
• 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:5939, the sentiment is Neutral. The current price of 5460 is above the 20-day moving average (MA) of 5452.00, above the 50-day MA of 5448.60, and below the 200-day MA of 5861.38, indicating a neutral trend. The MACD of -1.76 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5939.

Otani Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6894	76 Outperform	¥2.71B	7.98		4.08%	-10.78%	1.10%
5939	69 Neutral	¥4.25B	13.07		0.55%	0.31%	-13.69%
5820	67 Neutral	¥2.63B	14.91		2.39%	2.89%	94.76%
6654	64 Neutral	¥5.84B	27.61		3.04%	2.75%	-22.26%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
6943	51 Neutral	¥3.60B	23.10		1.60%	-16.30%	-281.92%
6993	50 Neutral	¥10.84B	―		―	-6.70%	-17.49%