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Okamoto Machine Tool Works,Ltd. (JP:6125)
:6125
Japanese Market
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Okamoto Machine Tool Works,Ltd. (6125) AI Stock Analysis

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JP:6125

Okamoto Machine Tool Works,Ltd.

(6125)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
¥5,841.00
▲(29.80% Upside)
Action:Reiterated
Date:05/15/26
The score is held back primarily by deteriorating profitability and weak/volatile cash generation despite a stronger balance sheet. Offsetting this, technicals are favorable with the stock trading above key moving averages and positive momentum, while valuation is supported by a solid dividend yield and a moderate P/E.
Positive Factors
Balance-sheet resilience
A low and improved debt-to-equity ratio gives the company durable financial flexibility to fund capital cycles, absorb demand volatility, and invest in R&D or service capability. This reduces refinancing risk and supports long-term ability to meet capex and working capital needs.
Negative Factors
Sharp margin deterioration
Significant margin compression signals either pricing pressure, cost escalation, or unfavorable product mix that reduces earnings power. If margins remain structurally lower, return generation and reinvestment capacity will be constrained, weakening long-term profitability regardless of revenue recoveries.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet resilience
A low and improved debt-to-equity ratio gives the company durable financial flexibility to fund capital cycles, absorb demand volatility, and invest in R&D or service capability. This reduces refinancing risk and supports long-term ability to meet capex and working capital needs.
Read all positive factors

Okamoto Machine Tool Works,Ltd. (6125) vs. iShares MSCI Japan ETF (EWJ)

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 capital equipment—especially grinding machines and other precision machine tools—directly to manufacturers and industrial customers. Revenue is generated when customers purchase new machi...

Okamoto Machine Tool Works,Ltd. Financial Statement Overview

Summary
Financial quality is mixed: profitability has weakened meaningfully with declining revenue in 2025–2026 and sharp margin compression (net margin ~2.9% in 2026 vs ~9.1% in 2024). The balance sheet is relatively resilient with manageable leverage (debt-to-equity ~0.28), but cash flow is a key concern given volatile operating cash flow and mostly negative free cash flow in 2023–2026.
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
42
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue42.51B43.73B50.20B45.52B37.55B
Gross Profit11.07B12.53B15.53B14.37B11.93B
EBITDA3.93B5.04B8.59B7.15B5.71B
Net Income1.23B2.02B4.56B4.03B2.89B
Balance Sheet
Total Assets67.20B66.80B60.16B55.44B47.51B
Cash, Cash Equivalents and Short-Term Investments14.83B16.40B11.89B12.65B12.33B
Total Debt12.01B11.82B9.36B6.39B5.49B
Total Liabilities24.54B26.24B30.18B30.58B27.18B
Stockholders Equity42.65B40.56B29.98B24.86B20.33B
Cash Flow
Free Cash Flow-691.00M-5.92B-2.09B-486.00M10.50B
Operating Cash Flow3.65B-2.11B929.00M2.68B11.67B
Investing Cash Flow-3.31B-5.09B-3.63B-3.08B-1.55B
Financing Cash Flow-1.36B10.49B1.24B406.00M-3.15B

Okamoto Machine Tool Works,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4500.00
Price Trends
50DMA
5211.80
Positive
100DMA
4735.83
Positive
200DMA
4642.73
Positive
Market Momentum
MACD
68.80
Positive
RSI
53.13
Neutral
STOCH
52.83
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 4500 is below the 20-day moving average (MA) of 5515.00, below the 50-day MA of 5211.80, and below the 200-day MA of 4642.73, indicating a neutral trend. The MACD of 68.80 indicates Positive momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 52.83 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥94.93B17.427.00%3.02%8.49%-0.33%
73
Outperform
¥62.39B15.922.54%3.47%-12.29%
71
Outperform
¥96.47B15.369.39%1.68%7.26%28.37%
70
Outperform
¥358.49B16.457.67%0.91%11.51%46.17%
62
Neutral
¥36.89B29.523.56%-2.79%-35.37%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
¥107.94B33.145.02%3.23%-21.03%-91.77%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6125
Okamoto Machine Tool Works,Ltd.
5,510.00
1,127.97
25.74%
JP:6258
Hirata
3,045.00
1,071.16
54.27%
JP:6135
Makino Milling Machine Co
14,790.00
3,330.00
29.06%
JP:6143
Sodick
1,911.00
927.82
94.37%
JP:6104
Shibaura Machine Co., Ltd.
4,880.00
1,537.76
46.01%
JP:6118
Aida Engineering,Ltd.
1,237.00
379.57
44.27%
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.Date of analysis: May 15, 2026