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

• Market Cap: ¥4.25B
• Dividend Yield: 0.55%
• Average Volume (3M): 3.75K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.42
• Revenue Growth: -0.15%
• EPS Growth: 10.34%
• Country: JP
• Employees: 177
• Sector: Industrials
• Sector Strength: 92
• Industry: Electrical Equipment & Parts
• EPS (TTM): 43.11
• Shares Outstanding: 780,000
• 10 Day Avg. Volume: 790
• 30 Day Avg. Volume: 3,746
• PEG Ratio: 0.81
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -122.58
• 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: ¥5,957.00
• Price Target Upside: 9.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥6,118.00 ▲(12.05%Upside)

Otani Kogyo Co., Ltd. scores strongly in financial performance due to solid profitability and financial stability. Technical analysis provides mixed signals with limited momentum, and valuation indicates a reasonable but not exceptional price level. The absence of earnings call and corporate events data does not impact the overall score significantly.

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. shows strong financial performance with solid profitability, a robust balance sheet, and improving cash flows. The company has consistent gross margins and operational effectiveness, indicating a stable financial position with some cash flow volatility to monitor.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.90B	7.91B	7.19B	6.41B	6.06B
Gross Profit	1.72B	1.55B	1.29B	1.23B	1.33B
EBITDA	606.68M	587.22M	413.62M	352.84M	482.74M
Net Income	369.16M	334.57M	173.88M	127.00M	206.57M
Balance Sheet
Total Assets	7.56B	7.19B	6.23B	5.49B	5.34B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.56B	1.16B	1.23B	1.52B
Total Debt	478.52M	525.77M	48.00M	48.00M	48.00M
Total Liabilities	3.49B	3.46B	2.84B	2.26B	2.21B
Stockholders Equity	4.08B	3.73B	3.38B	3.23B	3.13B
Cash Flow
Free Cash Flow	428.38M	-70.72M	-42.59M	-273.54M	116.09M
Operating Cash Flow	783.41M	183.99M	112.25M	56.95M	336.18M
Investing Cash Flow	-356.69M	-241.34M	-150.96M	-325.00M	-217.00M
Financing Cash Flow	-74.36M	451.09M	-23.39M	-28.92M	-32.63M

Otani Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5460.00
• 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:5939, the sentiment is Negative. The current price of 5460 is above the 20-day moving average (MA) of 5449.00, below the 50-day MA of 5468.60, and below the 200-day MA of 6137.84, indicating a bearish trend. The MACD of -23.53 indicates Negative momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥2.40B	6.75		3.42%	-4.81%	8.87%
5939	74 Outperform	¥4.25B	11.52		0.55%	-0.15%	10.34%
6654	70 Neutral	¥6.06B	28.63		2.92%	2.75%	-22.26%
5820	66 Neutral	¥2.70B	15.06		2.32%	5.29%	36.01%
Sector *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%
6943	55 Neutral	¥3.53B	23.10		1.86%	-19.88%	-203.82%
6993	52 Neutral	¥12.31B	―		―	-6.70%	-43.22%