Strong Gross Profit MarginsSustained gross margins above 20% indicate durable production efficiency and cost control in grinding machines. This margin buffer supports investment in R&D and aftermarket service capabilities, and helps preserve operating profitability even if top-line growth is uneven over the next 2–6 months.

Solid Equity Position / Improving Equity RatioAn improving equity ratio and solid equity base provide financial stability, lower refinancing risk, and capacity to fund capex or absorb cyclicality. This balance sheet strength supports strategic investments and ensures resilience through industry downturns over the medium term.

Healthy Operational (EBIT/EBITDA) MarginsRelatively healthy EBIT/EBITDA margins reflect operational competitiveness and process efficiency in manufacturing and service delivery. This suggests the company can generate operating profits from core activities, supporting sustainable cash generation and reinvestment potential.

Bears Say

Negative Revenue GrowthDeclining revenue near -5% signals demand weakness in end markets or loss of sales momentum. Persistent top-line contraction reduces scale economies, pressures fixed-cost absorption, and can erode long-term margin sustainability unless new product wins or market recovery restore growth.

Sharp EPS Decline / Net Margin DeteriorationA steep EPS decline and worsening net margins indicate the company struggles to convert revenue into shareholder returns, possibly from higher costs, pricing pressure or one-offs. This reduces return on capital and undermines investor confidence in sustained profitability.

Operating Cash Flow And FCF WeaknessNegative operating cash flow and declining free cash flow growth point to cash conversion issues and potential liquidity strain. Even with short-term cash reserves, prolonged negative OCF limits the firm's ability to fund capex, service dividends, or pursue strategic moves without raising external financing.

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 ¥30.77B.

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 68 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.