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Okamoto Machine Tool Works,Ltd.
(6125)
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Rating:52Neutral
Price Target:
¥5,035.00
▲(11.89% Upside)
Action:Reiterated
Date:08/17/26
Overall score is held back primarily by deteriorating profitability and inconsistent cash generation (recurring negative free cash flow in recent years). Technicals are also slightly negative due to weak near-term trend and negative MACD. These risks are partly offset by a stronger balance sheet (manageable leverage) and a ~3.21% dividend yield, though the elevated P/E limits valuation support.
Positive Factors
Balance Sheet Resilience
Lower leverage and cumulative equity growth provide financial resilience. This can help Okamoto absorb cyclical machine-tool demand and fund operations without excessive reliance on creditors.
Negative Factors
Revenue Contraction
Recent revenue declines indicate weaker demand or order activity in the industrial machinery cycle. Sustained contraction would reduce factory utilization, limit operating leverage and make a return to prior earnings levels more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Resilience
Lower leverage and cumulative equity growth provide financial resilience. This can help Okamoto absorb cyclical machine-tool demand and fund operations without excessive reliance on creditors.
Read all positive factors
Okamoto Machine Tool Works,Ltd. (6125) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥33.31B
Dividend Yield3.21%
Average Volume (3M)20.98K
Price to Earnings (P/E)35.4
Beta (1Y)1.21
Revenue Growth-6.36%
EPS Growth-61.60%
CountryJP
Employees2,229
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)186.66
Shares Outstanding6,703,795
10 Day Avg. Volume26,660
30 Day Avg. Volume20,976
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)0.58
Price to Sales (P/S)0.59
P/FCF Ratio-36.07
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
Okamoto Machine Tool Works,Ltd. Business Overview & Revenue Model
Company Description
Okamoto Machine Tool Works, Ltd. is a global producer and purveyor of sophisticated grinding machinery and specialized semiconductor manufacturing equipment. The company's extensive product line encompasses a wide array of grinding solutions, incl...
How the Company Makes Money
Okamoto Machine Tool Works makes money primarily by selling machine tools—especially precision grinding machines—to industrial customers that require high-accuracy finishing and machining. Revenue is generated from (1) new machine sales, where cus...
Okamoto Machine Tool Works,Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
42
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 42.51B | 43.73B | 50.20B | 45.52B | 37.55B |
| Gross Profit | 11.07B | 12.53B | 15.53B | 14.37B | 11.93B |
| EBITDA | 3.93B | 5.04B | 8.59B | 7.15B | 5.71B |
| Net Income | 1.23B | 2.02B | 4.56B | 4.03B | 2.89B |
Balance Sheet | |||||
| Total Assets | 67.20B | 66.80B | 60.16B | 55.44B | 47.51B |
| Cash, Cash Equivalents and Short-Term Investments | 14.83B | 16.40B | 11.89B | 12.65B | 12.33B |
| Total Debt | 12.01B | 11.82B | 9.36B | 6.39B | 5.49B |
| Total Liabilities | 24.54B | 26.24B | 30.18B | 30.58B | 27.18B |
| Stockholders Equity | 42.65B | 40.56B | 29.98B | 24.86B | 20.33B |
Cash Flow | |||||
| Free Cash Flow | -691.00M | -5.92B | -2.09B | -486.00M | 10.50B |
| Operating Cash Flow | 3.65B | -2.11B | 929.00M | 2.68B | 11.67B |
| Investing Cash Flow | -3.31B | -5.09B | -3.63B | -3.08B | -1.55B |
| Financing Cash Flow | -1.36B | 10.49B | 1.24B | 406.00M | -3.15B |
Okamoto Machine Tool Works,Ltd. Technical Analysis
Negative
4500.00
Price Trends
5276.60
Negative
4873.68
Positive
4695.37
Positive
Market Momentum
-59.06
Positive
46.11
Neutral
23.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6125, the sentiment is Negative. The current price of 4500 is below the 20-day moving average (MA) of 5121.75, below the 50-day MA of 5276.60, and below the 200-day MA of 4695.37, indicating a neutral trend. The MACD of -59.06 indicates Positive momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 23.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6125.
Okamoto Machine Tool Works,Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥90.38B | 12.17 | 6.34% | 2.20% | 14.68% | 69.21% | |
73 Outperform | ¥61.14B | 15.77 | ― | 2.54% | 3.47% | -12.29% | |
70 Outperform | ¥121.99B | 15.52 | 8.46% | 2.56% | 9.33% | 45.31% | |
70 Outperform | ¥371.32B | 14.13 | 8.66% | 1.84% | 15.90% | 104.65% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ¥33.31B | 35.40 | ― | 3.56% | -6.36% | -61.60% | |
52 Neutral | ¥93.64B | 39.41 | 2.91% | 2.89% | -21.58% | -98.64% |
* General Sector Average
JP:6125
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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.