Okamoto Machine Tool Works,Ltd. (6125) AI Stock Analysis

• Market Cap: ¥31.71B
• Dividend Yield: 3.37%
• Average Volume (3M): 29.88K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.26
• Revenue Growth: -12.88%
• EPS Growth: -70.22%
• Country: JP
• Employees: 2,283
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 207.86
• Shares Outstanding: 6,703,795
• 10 Day Avg. Volume: 45,220
• 30 Day Avg. Volume: 29,876
• PEG Ratio: 0.23
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -50.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥5,415.00 ▲(14.12%Upside)

The stock score reflects strong technical momentum and reasonable valuation, offset by mixed financial performance, particularly cash flow challenges and declining profitability. These factors combined suggest a cautiously optimistic outlook with attention to financial health improvements.

Okamoto Machine Tool Works,Ltd. Business Overview & Revenue Model

Company Description

Okamoto Machine Tool Works, Ltd. (6125) is a prominent Japanese company specializing in the manufacturing of precision grinding machines and other machine tools. The company operates primarily in the industrial machinery sector, offering a range of high-quality products that include surface grinders, cylindrical grinders, internal grinders, and various other specialized machinery. Okamoto's products are designed to cater to diverse industries such as automotive, electronics, and aerospace, providing advanced solutions for precision machining and surface finishing needs.

How the Company Makes Money

Okamoto Machine Tool Works, Ltd. generates revenue primarily through the sale of its precision grinding machines and related equipment. The company caters to both domestic and international markets, with a strong presence in various industrial sectors that require high-precision machinery. Key revenue streams include direct sales to manufacturers in the automotive, electronics, and aerospace industries, as well as sales through distributors and agents. Additionally, Okamoto provides after-sales services, maintenance, and technical support, contributing to a recurring revenue stream. The company's earnings are further supported by its reputation for quality and innovation, which helps maintain strong customer relationships and secure long-term contracts.

Okamoto Machine Tool Works,Ltd. Financial Statement Overview

Summary

The company's financial performance reflects strong gross profit margins and a solid equity position. However, challenges include declining net profit margins, negative revenue growth, and cash flow issues, which impact overall financial stability.

Income Statement

The company's income statement shows strong gross profit margins consistently above 20%, indicating efficient production. However, the net profit margin has declined significantly from the previous year, primarily due to decreased revenues and increased expenses. Revenue growth has been negative in the past year, reflecting a challenging market environment. EBIT and EBITDA margins show a healthy operational efficiency but experienced a decline, suggesting increased operational costs or reduced pricing power.

Balance Sheet

The balance sheet reflects a solid equity position with an improving equity ratio, indicating financial stability. The debt-to-equity ratio is relatively moderate, showing a balanced leverage approach. However, the return on equity has decreased, suggesting lower profitability from shareholder investments. The company's asset base has grown, supporting potential for future expansion.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow growth, indicating cash management issues. Operating cash flow has turned negative, which could stress liquidity if persistent. The operating cash flow to net income ratio has deteriorated, suggesting inefficiencies in converting income into cash. However, the company has substantial cash reserves to support operations in the short term.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	45.23B	43.73B	50.20B	45.52B	37.55B	30.37B
Gross Profit	13.67B	12.53B	15.53B	14.37B	11.93B	8.49B
EBITDA	6.02B	5.04B	7.97B	7.15B	5.71B	3.38B
Net Income	2.71B	2.02B	4.56B	4.03B	2.89B	1.46B
Balance Sheet
Total Assets	67.64B	66.80B	60.16B	55.10B	47.51B	35.05B
Cash, Cash Equivalents and Short-Term Investments	14.21B	16.40B	11.89B	12.65B	12.33B	4.92B
Total Debt	8.88B	11.82B	9.36B	6.38B	5.48B	10.25B
Total Liabilities	27.53B	26.24B	30.19B	30.24B	27.18B	19.97B
Stockholders Equity	40.11B	40.56B	29.98B	24.86B	20.33B	15.08B
Cash Flow
Free Cash Flow	0.00	-5.92B	-2.09B	-486.00M	10.50B	5.07B
Operating Cash Flow	0.00	-2.11B	929.00M	2.68B	11.67B	5.92B
Investing Cash Flow	0.00	-5.09B	-3.63B	-3.08B	-1.55B	-919.00M
Financing Cash Flow	0.00	10.49B	1.24B	406.00M	-3.15B	-3.69B

Okamoto Machine Tool Works,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4745.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6125, the sentiment is Positive. The current price of 4745 is above the 20-day moving average (MA) of 4347.50, above the 50-day MA of 4011.80, and above the 200-day MA of 3769.99, indicating a bullish trend. The MACD of 243.64 indicates Negative momentum. The RSI at 69.31 is Neutral, neither overbought nor oversold. The STOCH value of 74.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6125.

Okamoto Machine Tool Works,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6137	81 Outperform	¥29.40B	7.66		3.33%	7.43%	18.47%
6144	75 Outperform	¥28.41B	12.10		4.46%	4.40%	18.82%
6125	71 Outperform	¥31.71B	14.53		3.37%	-12.88%	-70.22%
6149	69 Neutral	¥11.40B	19.85		2.55%	-10.39%	-43.57%
6158	69 Neutral	¥5.69B	13.16		4.09%	0.20%	-40.35%
6159	69 Neutral	¥9.97B	11.34		0.52%	9.79%	-25.96%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%