Gross Profit MarginsSustained gross margins above 20% indicate efficient manufacturing and cost control in grinding technology. That structural margin advantage supports investment in R&D and product quality, creating a durable buffer against cyclical demand and protecting operating profitability over time.

After‑sales Recurring RevenueA material business stream from service, parts and consumables creates recurring revenue and higher lifetime customer value. Durable service ties and replacement part demand smooth cyclicality in new equipment sales and strengthen long-term cash generation and customer stickiness.

Balance Sheet StrengthAn improving equity ratio and solid equity base provide financial flexibility to fund capex, pursue selective investments, and absorb downturns. Moderate leverage lowers refinancing risk and supports long‑term strategic initiatives without imminent solvency pressure.

Bears Say

Negative Revenue TrendConsecutive revenue declines reflect weakening demand or competitive pressure in core markets. Persisting top‑line contraction undermines operating leverage and erodes capacity to invest in product development, jeopardizing sustainable growth and market position over the medium term.

Weak Operating Cash FlowDeteriorating OCF and negative free cash flow growth signal cash conversion issues that can strain liquidity and limit funding for maintenance capex or service expansion. Reliance on reserves is finite; sustained cash shortfalls raise refinancing and dividend sustainability risks.

Declining Net ProfitabilityA marked drop in net margins indicates rising costs or weaker pricing power versus peers. Reduced profitability limits retained earnings for reinvestment, weakens ROE, and may force tradeoffs between pricing, cost cuts, and quality—each affecting long‑term competitive strength.

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 ¥5170.00 in the past 12 months.

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

Okamoto Machine Tool Works,Ltd.’s market cap is ¥32.38B.

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

Okamoto Machine Tool Works,Ltd.’s upcoming earnings report date is Feb 10, 2026 which is in 9 days.

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

Okamoto Machine Tool Works,Ltd. released its earnings results on Nov 12, 2025. The company reported ¥66.91 earnings per share for the quarter, beating the consensus estimate of N/A by ¥66.91.

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 ¥66.91 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.451%.

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.