Okabe Co., Ltd. (5959) AI Stock Analysis

• Market Cap: ¥41.03B
• Dividend Yield: 3.05%
• Average Volume (3M): 49.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -0.26%
• EPS Growth: 89.66%
• Country: JP
• Employees: 941
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 22.43
• Shares Outstanding: 47,290,630
• 10 Day Avg. Volume: 50,240
• 30 Day Avg. Volume: 49,543
• PEG Ratio: 0.48
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 41.03
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ¥917.00 ▼(-6.71% Downside)

The overall stock score reflects significant profitability challenges and valuation concerns, with a negative P/E ratio and recent losses impacting financial performance. Technical indicators show mixed momentum, and the dividend yield provides some support. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Equity Position

A strong equity position provides financial stability and resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Recurring Revenue Streams

Recurring revenue from service contracts enhances financial predictability and supports long-term business sustainability by providing consistent cash flow.

Industry Diversification

Diversification across multiple industries reduces dependency on a single market, mitigating risks and enhancing growth potential through exposure to different economic cycles.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder reinvestment in the business and limit competitive positioning, affecting long-term growth and shareholder value.

Cash Flow Issues

Inadequate cash flow generation can constrain operational flexibility and investment capacity, potentially impacting the company's ability to finance growth initiatives.

Declining Revenue Growth

Declining revenue growth indicates potential market share loss or reduced demand, posing a risk to future earnings and competitive strength in the industry.

Okabe Co., Ltd. Business Overview & Revenue Model

Company Description

Okabe Co., Ltd., together with its subsidiaries, manufactures and sells construction materials and equipment in Japan, North America, Indonesia, and internationally. It offers temporary construction products, such as clamps, inserts for scaffolding, scaffolding, temporary pass, and safety products; and concrete formwork products, including basic items, items for H-beam, items for sheet pile method, supports, water stop/disposal products, insulation items, inserts, rooftop protection, other formwork items, and chamfers. The company also provides products for rebar work, such as joints, pile head, and spacers, as well as products for foundations and beams; and civil engineering products. In addition, it manufactures and sells automotive bolts and screw nuts; automotive battery parts; industrial machinery products; and marine materials and fishing sinkers. Okabe Co., Ltd. was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Okabe Co., Ltd. generates revenue through multiple streams, primarily from the sale of its precision measurement instruments and systems. The company sells its products directly to businesses in various sectors, leveraging a robust distribution network. Additionally, Okabe Co., Ltd. may engage in partnerships with other technology firms to enhance its product offerings and reach new markets. Service contracts for maintenance and calibration of its measurement devices also contribute to the company’s earnings, providing a steady source of recurring revenue. Strategic collaborations and participation in industry trade shows further expand its market presence and revenue opportunities.

Okabe Co., Ltd. Financial Statement Overview

Summary

Okabe Co., Ltd. faces profitability challenges with recent losses impacting net profit margins and return on equity. While the balance sheet remains stable with strong equity, cash flow management needs improvement to support future growth and profitability.

Income Statement

The company has experienced fluctuating revenues with a recent decline in 2024. Gross profit margins are decent but net profit margins have been negative in the past two years, indicating challenges in profitability. EBIT and EBITDA margins have also deteriorated recently, showing operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity position with a manageable debt-to-equity ratio. However, the return on equity has been negative recently due to losses, which is concerning. The equity ratio remains healthy, indicating stability.

Cash Flow

Cash flow performance is mixed. The company has struggled with free cash flow growth, and while operating cash flow is positive, it does not fully cover negative net income. Free cash flow to net income ratio is unfavorable, highlighting cash generation issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.06B	67.81B	78.15B	76.85B	64.83B	63.13B
Gross Profit	21.61B	21.16B	21.28B	20.66B	18.14B	17.62B
EBITDA	7.14B	927.00M	-2.82B	8.80B	6.26B	5.71B
Net Income	-462.00M	-874.00M	-5.47B	3.85B	2.63B	2.69B
Balance Sheet
Total Assets	87.58B	86.99B	89.89B	103.89B	92.02B	89.65B
Cash, Cash Equivalents and Short-Term Investments	12.55B	11.48B	12.68B	18.16B	23.57B	21.98B
Total Debt	6.54B	6.13B	6.92B	12.22B	10.94B	11.96B
Total Liabilities	27.15B	27.45B	27.83B	36.78B	31.65B	31.29B
Stockholders Equity	60.41B	59.52B	62.04B	67.09B	60.35B	58.36B
Cash Flow
Free Cash Flow	0.00	863.00M	4.42B	-859.00M	4.50B	3.01B
Operating Cash Flow	0.00	3.73B	6.20B	1.98B	5.50B	4.88B
Investing Cash Flow	0.00	-2.42B	-2.06B	-8.20B	-696.00M	-1.74B
Financing Cash Flow	0.00	-2.41B	-8.57B	-18.00M	-3.35B	-1.98B

Okabe Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 983.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5959, the sentiment is Positive. The current price of 983 is above the 20-day moving average (MA) of 943.55, above the 50-day MA of 927.52, and above the 200-day MA of 885.47, indicating a bullish trend. The MACD of 15.27 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 89.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5959.

Okabe Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	―	―	―	―	4.84%	62.58%
1860	76 Outperform	¥388.28B	12.33	―	2.73%	18.92%	73.08%
1820	75 Outperform	¥224.35B	12.47	―	3.82%	-3.72%	59.02%
1890	75 Outperform	¥163.72B	18.28	―	5.05%	12.80%	34.19%
1720	69 Neutral	¥137.87B	12.92	―	2.89%	20.38%	128.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5959	50 Neutral	¥41.03B	-112.86	―	3.05%	-0.26%	89.66%

Okabe Co., Ltd. Corporate Events

Okabe Co., Ltd. Reports Positive Financial Growth for 2025

Okabe Co., Ltd. announced the completion of an independent auditor’s review of its consolidated financial results for the first nine months of the fiscal year ending December 31, 2025. The company reported a 3.3% increase in net sales and significant growth in operating and ordinary profits compared to the previous year, indicating a positive financial trajectory. This review was part of preparations for a secondary offering of shares, with no changes made to the previously announced financial statements, suggesting stability and confidence in its financial reporting.

Okabe Co., Ltd. Reports Strong Financial Performance for 2025

Okabe Co., Ltd. reported a 3.3% increase in net sales for the first nine months of the fiscal year ending December 31, 2025, compared to the same period in 2024. The company also saw significant growth in operating profit and profit attributable to owners, indicating a positive financial performance. The company’s equity to total assets ratio improved to 70.8%, suggesting a stronger financial position. The announcement highlights Okabe’s robust financial health and potential for continued growth, benefiting stakeholders and enhancing its market positioning.

Okabe Co., Ltd. to Close Indonesian Retail Store to Focus on B2B Operations

Okabe Co., Ltd. has decided to close its building materials retail store, Okabe Gallery, in Jakarta, Indonesia, due to its inability to meet profit expectations and lack of synergy with the company’s core B2B business. The closure, scheduled for December 31, 2025, is expected to have a negligible impact on the company’s overall financial results, as the company plans to focus on strengthening its primary B2B operations.