Okabe Co., Ltd. (JP:5959)
:5959
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Okabe Co., Ltd.
(5959)
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Rating:69Neutral
Price Target:
¥1,134.00
▲(17.76% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by improved profitability and a conservative balance sheet, tempered by inconsistent free-cash-flow conversion and historical volatility. Technicals add support due to a strong uptrend and positive momentum, while valuation is reasonable with a mid-teens P/E and ~3.1% dividend yield.
Positive Factors
Conservative balance sheet
Sustained low leverage and a large equity base provide financial resilience through construction cycles, reduce default risk, and preserve capacity for opportunistic investment or working capital support. This structural strength supports durability of operations and strategic flexibility over months.
Negative Factors
Inconsistent free cash flow conversion
Weak and erratic conversion of net income into free cash flow limits the firm's ability to self-fund capex, reduce leverage, or sustainably raise dividends. Over a multi-month horizon, inconsistent cash conversion increases refinancing and investment risk and reduces predictability of capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Sustained low leverage and a large equity base provide financial resilience through construction cycles, reduce default risk, and preserve capacity for opportunistic investment or working capital support. This structural strength supports durability of operations and strategic flexibility over months.
Read all positive factors
Okabe Co., Ltd. (5959) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥41.12B
Dividend Yield3.05%
Average Volume (3M)49.54K
Price to Earnings (P/E)13.4
Beta (1Y)0.65
Revenue Growth-0.26%
EPS Growth89.66%
CountryJP
Employees941
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)11.19
Shares Outstanding47,290,630
10 Day Avg. Volume50,240
30 Day Avg. Volume49,543
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.71
Price to Sales (P/S)0.63
P/FCF Ratio54.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 scaffoldin...
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 ne...
Okabe Co., Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
82
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.06B | 69.76B | 67.81B | 78.15B | 76.85B | 64.83B |
| Gross Profit | 21.61B | 21.71B | 20.32B | 20.44B | 19.86B | 17.49B |
| EBITDA | 6.73B | 6.67B | 6.21B | 6.91B | 8.16B | 6.43B |
| Net Income | -461.00M | 3.29B | -874.00M | -5.47B | 3.85B | 2.63B |
Balance Sheet | ||||||
| Total Assets | 87.58B | 85.03B | 86.99B | 89.89B | 103.89B | 92.02B |
| Cash, Cash Equivalents and Short-Term Investments | 12.55B | 9.02B | 11.48B | 12.68B | 18.16B | 23.57B |
| Total Debt | 6.54B | 6.23B | 6.58B | 7.41B | 12.58B | 10.94B |
| Total Liabilities | 27.15B | 23.12B | 27.45B | 27.82B | 36.78B | 31.65B |
| Stockholders Equity | 60.41B | 61.89B | 59.52B | 62.04B | 67.09B | 60.35B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 811.00M | 1.08B | 4.54B | -736.00M | 4.67B |
| Operating Cash Flow | 0.00 | 2.61B | 3.94B | 6.19B | 2.04B | 5.59B |
| Investing Cash Flow | 0.00 | -2.86B | -2.69B | -2.06B | -8.41B | -878.00M |
| Financing Cash Flow | 0.00 | -2.67B | -2.36B | -8.26B | 124.00M | -3.25B |
Okabe Co., Ltd. Technical Analysis
Positive
963.00
Price Trends
986.72
Negative
959.28
Positive
919.80
Positive
Market Momentum
-7.52
Negative
49.78
Neutral
65.57
Neutral
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 963 is below the 20-day moving average (MA) of 974.30, below the 50-day MA of 986.72, and above the 200-day MA of 919.80, indicating a neutral trend. The MACD of -7.52 indicates Negative momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 65.57 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥40.47B | 6.66 | ― | 3.88% | 4.11% | 28.37% | |
73 Outperform | ¥47.08B | 7.92 | ― | 1.96% | 2.55% | -14.37% | |
73 Outperform | ¥26.72B | 9.70 | ― | 3.44% | -5.43% | 34.48% | |
69 Neutral | ¥41.12B | 13.42 | ― | 3.05% | -0.26% | 89.66% | |
67 Neutral | ¥30.15B | 9.10 | ― | 2.04% | -3.21% | -45.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥47.30B | 20.04 | ― | 5.38% | -9.27% | -6.86% |
* Industrials Sector Average
JP:5959
Okabe Co., Ltd.
976.00
218.59
28.86%
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Nakano Corporation
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Tanabe Engineering Corporation
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812.72
48.25%
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1,220.00
378.19
44.93%
JP:3431
MIYAJI ENGINEERING GROUP, INC.
1,716.00
216.85
14.46%
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Tobishima Holdings, Inc.
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51.68%
Okabe Co., Ltd. Corporate Events
Okabe Extends Stock-Granting ESOP Trust to 2027
Feb 13, 2026
Okabe Co., Ltd. has decided to extend the duration of its stock-granting ESOP trust, an employee incentive and benefit plan first introduced in 2017 for employees of the company and the wider Okabe Group. Under the program, employees receive share...
Okabe Launches ¥1.5 Billion Share Buyback to Boost Capital Efficiency
Feb 13, 2026
Okabe Co., Ltd. has approved a share buyback of up to 1.7 million common shares, representing 3.71% of its outstanding float, for a maximum total of ¥1.5 billion through market purchases on the Tokyo Stock Exchange between February 16 and Jul...
Okabe Updates Capital-Efficient Management Strategy and Unveils M&A Policy
Feb 13, 2026
Okabe Co., Ltd. announced an update to its initiatives for implementing management that is more conscious of cost of capital and stock price, aiming to support sustainable growth and improve corporate value over the medium to long term. The move r...
Okabe Reshapes Executive Team Ahead of March 2026 Shareholders’ Meeting
Feb 13, 2026
Okabe Co., Ltd. has announced planned changes to its executive lineup effective March 27, 2026, pending approval at its 82nd ordinary shareholders’ meeting and a subsequent board meeting. Two directors, including the managing executive offic...
Okabe Returns to Profit, Lifts Dividend and Forecasts Modest Growth for 2026
Feb 13, 2026
Okabe Co., Ltd. reported a recovery in earnings for the year ended December 31, 2025, with consolidated net sales rising 2.9% to ¥69.8 billion and operating profit up 13.5%, while profit attributable to owners of parent swung back into the bl...
Okabe Extends Employee Stock ESOP Trust to 2027
Feb 13, 2026
Okabe Co., Ltd. has decided to extend its stock-granting ESOP trust, an employee incentive program first introduced in 2017 for employees of the company and its group, by one year until March 31, 2027. The program issues company shares to employee...
Okabe Launches ¥1.5 Billion Share Buyback to Boost Capital Efficiency in Final Year of OX-2026
Feb 13, 2026
Okabe Co., Ltd. has approved a new share buyback program under Article 459 of the Companies Act, authorizing the repurchase of up to 1.7 million common shares, or 3.71% of its outstanding stock, for a maximum of ¥1.5 billion between February ...
Okabe Updates Capital-Efficient Management Plan and Unveils M&A and Cash Allocation Policies
Feb 13, 2026
Okabe Co., Ltd. announced an update to its ongoing efforts to implement management practices that are explicitly conscious of cost of capital and stock price. The initiative is framed as part of the company’s drive for sustainable growth and...
Okabe Reshapes Executive Lineup Ahead of March 2026 Shareholders Meeting
Feb 13, 2026
Okabe Co., Ltd. has announced planned changes to its executive lineup, to be formalized at the 82nd ordinary general meeting of shareholders on March 27, 2026, and a subsequent board meeting. The reshuffle includes the retirement of Director and M...
Okabe Returns to Profit, Lifts Dividend as Balance Sheet Strengthens
Feb 13, 2026
Okabe Co., Ltd. reported a recovery in profitability for the year ended December 31, 2025, with consolidated net sales rising 2.9% to ¥69.8 billion and operating profit up 13.5% to ¥4.8 billion, while profit attributable to owners of par...
Okabe Co., Ltd. Reports Positive Financial Growth for 2025
Nov 21, 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 si...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.