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Okabe Co., Ltd. (JP:5959)
:5959
Japanese Market
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Okabe Co., Ltd. (5959) AI Stock Analysis

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JP:5959

Okabe Co., Ltd.

(5959)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
¥990.00
▲(2.80% Upside)
Action:Reiterated
Date: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
Low leverage and a large equity base provide structural financial resilience, reducing refinancing and solvency risk during construction cycles. This balance-sheet strength supports bidding on large infrastructure projects, strategic capex, and sustained operations through demand swings, improving long-term durability.
Negative Factors
Weak free cash flow conversion
Inconsistent and often weak FCF conversion reduces financial flexibility for dividends, debt reduction, or growth investment. Structural reinvestment needs or working-capital swings mean earnings do not reliably translate into distributable cash, limiting capital allocation choices and raising vulnerability to slower demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and a large equity base provide structural financial resilience, reducing refinancing and solvency risk during construction cycles. This balance-sheet strength supports bidding on large infrastructure projects, strategic capex, and sustained operations through demand swings, improving long-term durability.
Read all positive factors

Okabe Co., Ltd. (5959) vs. iShares MSCI Japan ETF (EWJ)

Okabe Co., Ltd. Business Overview & Revenue Model

Company Description
Operating globally with a significant presence in Japan, North America, and Indonesia, Okabe Co., Ltd. specializes in the manufacturing and distribution of a wide array of construction materials and equipment. Its offerings encompass essential tem...
How the Company Makes Money
Okabe primarily makes money by selling construction and civil-engineering materials—especially reinforcement (rebar) connection and related components—into building and infrastructure projects. Revenue is generated through (1) product sales of reb...

Okabe Co., Ltd. Financial Statement Overview

Summary
Financials show a strong balance sheet (low leverage, large equity base) and a sharp profitability rebound in 2025, but operating results and cash flow quality are volatile. Free cash flow conversion was weak in 2025 (~31% of net income) and has been inconsistent across years, lowering confidence in durability.
Income Statement
58
Neutral
Balance Sheet
82
Very Positive
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue70.20B69.76B67.81B78.15B76.85B64.83B
Gross Profit21.45B21.71B20.32B20.44B19.86B17.49B
EBITDA6.23B6.67B6.21B6.91B8.16B6.43B
Net Income3.08B3.29B-874.00M-5.47B3.85B2.63B
Balance Sheet
Total Assets85.12B85.03B86.99B89.89B103.89B92.02B
Cash, Cash Equivalents and Short-Term Investments8.84B9.02B11.48B12.68B18.16B23.57B
Total Debt5.53B6.23B6.58B7.41B12.58B10.94B
Total Liabilities23.32B23.12B27.45B27.82B36.78B31.65B
Stockholders Equity61.78B61.89B59.52B62.04B67.09B60.35B
Cash Flow
Free Cash Flow0.00811.00M1.08B4.54B-736.00M4.67B
Operating Cash Flow0.002.61B3.94B6.19B2.04B5.59B
Investing Cash Flow0.00-2.86B-2.69B-2.06B-8.41B-878.00M
Financing Cash Flow0.00-2.67B-2.36B-8.26B124.00M-3.25B

Okabe Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price963.00
Price Trends
50DMA
887.63
Positive
100DMA
922.16
Negative
200DMA
916.66
Negative
Market Momentum
MACD
3.88
Negative
RSI
49.83
Neutral
STOCH
37.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5959, the sentiment is Negative. The current price of 963 is above the 20-day moving average (MA) of 894.58, above the 50-day MA of 887.63, and above the 200-day MA of 916.66, indicating a neutral trend. The MACD of 3.88 indicates Negative momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5959.

Okabe Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥45.54B10.381.96%24.91%51.00%
72
Outperform
¥25.24B7.173.44%3.02%32.91%
69
Neutral
¥37.70B13.273.05%3.03%
63
Neutral
¥42.42B12.505.38%-24.18%-32.34%
62
Neutral
¥28.13B7.932.04%-2.55%1.79%
61
Neutral
¥37.98B7.883.88%0.72%30.10%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5959
Okabe Co., Ltd.
895.00
86.11
10.65%
JP:1827
Nakano Corporation
1,325.00
619.91
87.92%
JP:1828
Tanabe Engineering Corporation
2,359.00
-166.94
-6.61%
JP:1866
Kitano Construction Corp.
1,138.00
164.05
16.84%
JP:3431
MIYAJI ENGINEERING GROUP, INC.
1,539.00
-262.26
-14.56%
JP:256A
Tobishima Holdings, Inc.
1,993.00
245.94
14.08%

Okabe Co., Ltd. Corporate Events

Okabe Nears Completion of ¥1.5 Billion Share Buyback Program
Jun 15, 2026
Okabe Co., Ltd. has completed a segment of its treasury share buyback program, repurchasing 172,600 common shares for a total of 155,150,200 yen between June 1 and June 12, 2026, through discretionary purchases on the Tokyo Stock Exchange. This tr...
Okabe Advances Share Buyback, Repurchasing 1.39 Million Shares to Date
Jun 1, 2026
Okabe Co., Ltd. has disclosed the latest status of its share buyback program, reporting that it repurchased 381,500 common shares for a total of ¥346,099,500 between May 1 and May 31, 2026, through discretionary purchases on the Tokyo Stock E...
Okabe Advances Toward Cap in Ongoing Share Buyback Program
May 1, 2026
Okabe Co., Ltd. has reported progress on its previously authorized share buyback program, repurchasing 321,100 common shares for about 314 million yen on the Tokyo Stock Exchange between April 1 and April 30, 2026, via discretionary investment thr...
Okabe’s Q1 Profit Slumps Despite Higher Sales, Full-Year Outlook and Dividend Hike Intact
Apr 30, 2026
Okabe Co., Ltd. reported consolidated net sales of ¥16.4 billion for the first quarter ended March 31, 2026, up 2.7% year on year, while operating profit fell 46.1% to ¥528 million and profit attributable to owners of parent declined 28....
Okabe Completes Treasury Stock Disposal for Restricted Stock Compensation
Apr 24, 2026
Okabe Co., Ltd. has completed payment procedures for the disposal of 50,650 shares of its treasury stock as restricted stock compensation, following a board resolution made on March 27, 2026. The common shares were disposed of at 970 yen per share...
Okabe Progresses ¥1.5 Billion Share Buyback Program on TSE
Apr 1, 2026
Okabe Co., Ltd. has disclosed the status of its ongoing share buyback program authorized under its Articles of Incorporation in line with Japan’s Companies Act. The company repurchased 385,200 common shares for a total of ¥379,019,800 b...
Okabe to Grant Restricted Treasury Shares to Directors and Officers
Mar 27, 2026
Okabe Co., Ltd. has approved the disposal of 50,650 shares of its treasury stock as restricted stock compensation to three directors, eight operating officers and one fellow, at ¥970 per share, totaling ¥49,130,500. This allocation, fund...
Okabe Reshapes Organization and Leadership to Speed Decisions and Elevate Human Capital
Mar 27, 2026
Okabe Co., Ltd. has announced a transition to a function-based division system and a series of executive role changes, effective March 27, 2026, aimed at speeding up decision-making and improving cross-departmental collaboration. The new structure...
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.Date of analysis: Feb 18, 2026