Gross Profit MarginsConsistently strong gross margins above 20% reflect durable manufacturing efficiency and pricing power in precision grinding. Over 2–6 months this supports cash generation potential, funds for R&D and service capability, and cushions the company against cyclical revenue swings in industrial end markets.

Balance Sheet StrengthA solid equity base and improving equity ratio provide financial stability and flexibility to fund capex, service operations, or weather downturns. Moderate leverage limits refinancing risk and preserves strategic optionality for investments or M&A over the medium term.

Specialized Grinding ExpertiseFocused expertise in precision grinding creates a structural competitive advantage: engineering know-how, customer stickiness, and recurring aftermarket demand for parts and service. This niche positioning supports steady aftermarket revenue and higher barriers to entry over months to years.

Bears Say

Declining Revenue GrowthNegative revenue growth signals weakening end-market demand or lost share in core machine tool sales. Over a multi-month horizon, shrinking top-line limits operating leverage, compresses margins, and undermines the company’s ability to invest in product development or expand services sustainably.

Weak Cash GenerationOperating cash flow turning negative and worsening free cash flow point to structural cash conversion issues. Persisting weak cash generation forces reliance on reserves or external financing, constrains capital expenditure and dividends, and raises liquidity risk if business conditions don't improve.

Falling Profitability MetricsSignificant declines in net profit margin and ROE indicate eroding returns from the existing asset base, possibly from higher costs or pricing pressure. Over months this reduces shareholder value creation, limits reinvestment capacity, and may force strategic shifts to restore long-term profitability.

6125 FAQ

What was Okamoto Machine Tool Works,Ltd.’s price range in the past 12 months?

Okamoto Machine Tool Works,Ltd. lowest stock price was ¥2890.00 and its highest was ¥5350.00 in the past 12 months.

What is Okamoto Machine Tool Works,Ltd.’s market cap?

Okamoto Machine Tool Works,Ltd.’s market cap is ¥29.14B.

When is Okamoto Machine Tool Works,Ltd.’s upcoming earnings report date?

Okamoto Machine Tool Works,Ltd.’s upcoming earnings report date is May 19, 2026 which is in 89 days.

How were Okamoto Machine Tool Works,Ltd.’s earnings last quarter?

Okamoto Machine Tool Works,Ltd. released its earnings results on Feb 10, 2026. The company reported -¥20.89 earnings per share for the quarter, missing the consensus estimate of N/A by -¥20.89.

Is Okamoto Machine Tool Works,Ltd. overvalued?

According to Wall Street analysts Okamoto Machine Tool Works,Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Okamoto Machine Tool Works,Ltd. pay dividends?

Okamoto Machine Tool Works,Ltd. pays a Semiannually dividend of ¥80 which represents an annual dividend yield of 3.56%. See more information on Okamoto Machine Tool Works,Ltd. dividends here

What is Okamoto Machine Tool Works,Ltd.’s EPS estimate?

Okamoto Machine Tool Works,Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Okamoto Machine Tool Works,Ltd. have?

Okamoto Machine Tool Works,Ltd. has 6,703,795 shares outstanding.

What happened to Okamoto Machine Tool Works,Ltd.’s price movement after its last earnings report?

Okamoto Machine Tool Works,Ltd. reported an EPS of -¥20.89 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went up 3.682%.

Which hedge fund is a major shareholder of Okamoto Machine Tool Works,Ltd.?

Currently, no hedge funds are holding shares in JP:6125

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Okamoto Machine Tool Works,Ltd.

Okamoto Machine Tool Works, Ltd. manufactures and sells grinding machines and semiconductor related equipment in Japan and internationally. It offers conventional type precision, CNC precision, double column type, and rotary surface grinding machines; precision and ultra precision form grinding machines; precision cylindrical, internal, universal, and center hole grinding machines; gear and specialized grinding machines; and consumer and special designed devices. It also provides semiconductor equipment devices, including wafer backside grinding machines, polishing machines, lapping machines, slicing machines, and ingot processing machines. In addition, the company provides various materials. Okamoto Machine Tool Works, Ltd. was founded in 1926 and is headquartered in Annaka, Japan.