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

• Market Cap: ¥31.18B
• Dividend Yield: 3.43%
• Average Volume (3M): 20.96K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.15
• Revenue Growth: -2.14%
• EPS Growth: -47.09%
• Country: JP
• Employees: 2,283
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 2.48
• Shares Outstanding: 6,703,795
• 10 Day Avg. Volume: 23,180
• 30 Day Avg. Volume: 20,956
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,858.00
• Price Target Upside: 3.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥4,858.00 ▲(3.80% Upside)

The overall stock score reflects a mixed financial performance with strong profit margins but challenges in revenue growth and cash flow. Technical indicators suggest a bearish trend, although the stock appears undervalued with an attractive dividend yield. The absence of earnings call data and corporate events limits further insights.

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

Company Description

Okamoto Machine Tool Works, Ltd. (6125) is a Japanese company specializing in the manufacturing and distribution of high-precision grinding machines and related equipment. Operating within the machine tools sector, Okamoto is recognized for its innovative solutions and high-quality products, which serve a wide range of industries including automotive, electronics, and aerospace. The company's core offerings include surface grinders, profile grinders, and special-purpose grinding machines, as well as a suite of related services and support.

How the Company Makes Money

Okamoto Machine Tool Works, Ltd. generates revenue primarily through the sale of its precision grinding machines and equipment. The company caters to diverse industrial sectors by providing standard and bespoke solutions that meet specific customer requirements. Revenue streams also include after-sales services, such as maintenance and repair, which enhance customer satisfaction and promote long-term business relationships. Okamoto's earnings are further bolstered by strategic partnerships and collaborations with other industry players, enabling it to expand its market reach and enhance its technological capabilities. Additionally, the company invests in continuous research and development to innovate and improve its product offerings, thereby maintaining a competitive edge in the global market.

Okamoto Machine Tool Works,Ltd. Financial Statement Overview

Summary

Okamoto Machine Tool Works, Ltd. shows strong gross profit margins and a solid equity position. However, it faces challenges with declining net profit margins, negative revenue growth, and cash flow pressures, which impact its overall financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.73B	43.73B	50.20B	45.52B	37.55B	30.37B
Gross Profit	12.83B	12.53B	15.53B	14.37B	11.93B	8.49B
EBITDA	5.13B	5.04B	8.59B	7.15B	5.71B	3.38B
Net Income	2.02B	2.02B	4.56B	4.03B	2.89B	1.46B
Balance Sheet
Total Assets	66.80B	66.80B	60.16B	55.10B	47.51B	35.05B
Cash, Cash Equivalents and Short-Term Investments	16.40B	16.40B	11.89B	12.65B	12.33B	4.92B
Total Debt	11.82B	11.82B	9.36B	6.38B	5.48B	10.25B
Total Liabilities	26.24B	26.24B	30.19B	30.24B	27.18B	19.97B
Stockholders Equity	40.56B	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: 4680.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 4680 is above the 20-day moving average (MA) of 4620.25, below the 50-day MA of 4696.80, and above the 200-day MA of 4008.84, indicating a neutral trend. The MACD of -6.33 indicates Positive momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.57 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
6144	80 Outperform	¥32.17B	12.96		3.89%	4.62%	39.04%
6137	79 Outperform	¥28.60B	8.39		3.42%	5.98%	-0.49%
6159	73 Outperform	¥9.96B	18.57		0.75%	27.24%	-53.52%
6149	69 Neutral	¥15.21B	7.76		1.91%	65.63%	103.99%
6158	68 Neutral	¥5.70B	15.23		3.86%	-4.13%	-39.40%
6125	64 Neutral	¥31.18B	12.72		3.43%	-2.14%	-47.09%
Sector *	64 Neutral	$10.75B	15.57	7.24%	2.01%	2.80%	-14.32%