OSG (6136) AI Stock Analysis

• Market Cap: ¥183.34B
• Dividend Yield: 3.08%
• Average Volume (3M): 485.38K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.66
• Revenue Growth: 0.32%
• EPS Growth: -5.70%
• Country: JP
• Employees: 7,674
• Sector: Industrials
• Sector Strength: 87
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 46.21
• Shares Outstanding: 96,145,420
• 10 Day Avg. Volume: 653,030
• 30 Day Avg. Volume: 485,376
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,873.25
• Price Target Upside: -5.39% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥2,195.00 ▲(10.86%Upside)

OSG's overall score reflects its strong financial performance, characterized by solid revenue growth and effective cash management. The stock's valuation is favorable, with a low P/E ratio and a good dividend yield. Despite strong market momentum, technical indicators suggest a possible short-term correction due to overbought conditions. These factors collectively position the stock as an attractive investment opportunity with potential for both income and growth.

OSG Business Overview & Revenue Model

Company Description

OSG Corporation is a leading manufacturer in the cutting tool industry, specializing in the production of taps, end mills, drills, and indexable tools. Headquartered in Japan, the company serves a diverse range of industries, including automotive, aerospace, and energy, providing high-precision tools essential for metalworking and machining applications. With a robust global presence, OSG is committed to innovation and quality, offering advanced tooling solutions to enhance manufacturing efficiency and productivity.

How the Company Makes Money

OSG Corporation generates revenue primarily through the sale of its cutting tools, which include taps, end mills, drills, and indexable tools. The company operates in a B2B model, supplying these essential tools to various industries such as automotive, aerospace, energy, and general manufacturing. OSG's revenue streams are bolstered by its strong global distribution network, which helps reach a wide customer base. Additionally, the company invests in research and development to innovate and expand its product offerings, ensuring it meets the evolving needs of its clients. OSG also benefits from strategic partnerships and collaborations that enhance its market reach and product development capabilities. These factors, combined with its emphasis on quality and precision, contribute significantly to its earnings.

OSG Financial Statement Overview

Summary

OSG exhibits robust financial health with strong revenue growth, effective cost management, and solid profitability indicators. The company benefits from a conservative leverage position and strong equity base, enhancing financial stability. Cash flows are well-managed, supporting operational needs and growth. The slight decline in net profit margin and return on equity suggests areas for potential improvement but does not significantly detract from the company's overall strong financial position.

Income Statement

The company demonstrates strong financial performance with a consistent revenue growth trend over the years. The gross profit margin stands at 40.8% for 2024, indicating effective cost management. The net profit margin decreased slightly to 8.6% from the previous year's 9.7%, while the EBIT margin is robust at 12.1%. EBITDA margin remains high at 21.2%, reflecting healthy operational profitability. Overall, the income statement shows strength in revenue generation and profitability, though net income has slightly weakened.

Balance Sheet

OSG maintains a solid balance sheet with a low debt-to-equity ratio of 0.29, indicating conservative leverage and financial stability. The equity ratio is healthy at 64.8%, underscoring a strong equity base relative to total assets. Return on equity is at 8.1%, reflecting moderate efficiency in utilizing shareholder capital. The balance sheet reflects strength in equity and low leverage, though the ROE could be improved.

Cash Flow

The cash flow statement shows a positive trajectory with a free cash flow growth rate of 1.6% over the previous year. The operating cash flow to net income ratio is at 2.13, indicating effective cash conversion from earnings. The free cash flow to net income ratio is at 0.92, showcasing efficient cash management. Overall, cash flow management appears strong, with a solid ability to generate free cash and cover operational needs.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.52B	147.70B	142.53B	126.16B	104.39B
Gross Profit	63.48B	60.45B	59.07B	49.19B	38.67B
EBITDA	32.91B	31.74B	33.28B	27.49B	19.57B
Net Income	13.44B	14.31B	16.53B	10.99B	5.64B
Balance Sheet
Total Assets	257.26B	250.12B	228.85B	209.76B	200.11B
Cash, Cash Equivalents and Short-Term Investments	55.88B	57.97B	46.70B	46.90B	37.81B
Total Debt	49.10B	28.68B	25.57B	30.75B	41.77B
Total Liabilities	77.85B	55.49B	52.02B	54.96B	59.93B
Stockholders Equity	166.63B	181.56B	164.66B	143.81B	129.35B
Cash Flow
Free Cash Flow	12.37B	12.17B	11.31B	21.19B	6.92B
Operating Cash Flow	28.56B	23.33B	20.18B	26.98B	17.04B
Investing Cash Flow	-21.74B	-8.54B	-12.17B	-6.96B	-17.13B
Financing Cash Flow	-7.99B	-3.83B	-14.74B	-14.26B	9.66B

OSG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1980.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6136, the sentiment is Positive. The current price of 1980 is above the 20-day moving average (MA) of 1857.47, above the 50-day MA of 1741.23, and above the 200-day MA of 1698.66, indicating a bullish trend. The MACD of 66.20 indicates Negative momentum. The RSI at 79.08 is Negative, neither overbought nor oversold. The STOCH value of 94.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6136.

OSG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6136	79 Outperform	¥183.34B	13.30	7.41%	3.08%	0.32%	-5.70%
6101	78 Outperform	¥99.96B	8.13		2.86%	28.13%	84.20%
Sector *	71 Outperform	¥257.47B	14.37	8.45%	2.83%	6.40%	12.21%
6157	70 Outperform	¥19.52B	14.91		3.94%	3.18%	2.22%
6474	69 Neutral	€78.84B	17.16	2.79%	3.02%	-4.76%	78.57%
6278	69 Neutral	¥111.60B	19.66		1.55%	28.68%	71.70%
6472	54 Neutral	€139.62B	30.58	-9.65%	4.18%	-1.28%	-325.82%

OSG Corporate Events

OSG Corporation Cancels Treasury Stock to Optimize Share Structure

OSG Corporation has announced the cancellation of 3,037,100 shares of its treasury stock, representing 3.06% of the total shares issued before cancellation. This move, decided by the Board of Directors, aims to streamline the company’s share structure and potentially enhance shareholder value by reducing the number of outstanding shares.

OSG Corporation Announces Revised Dividend Forecasts for 2025

OSG Corporation has announced a revision to its dividend forecasts for the fiscal year ending November 30, 2025, in celebration of its 88th anniversary. The company will issue a commemorative dividend of 28 yen per share, resulting in a total year-end dividend of 60 yen per share. This decision reflects OSG’s gratitude towards its shareholders and stakeholders for their continued support. The revised dividend will be discussed at the upcoming Ordinary General Meeting of Shareholders in February 2026.

OSG Corporation Reports Decline in FY2025 Semi-Annual Results, Revises Dividend Forecast

OSG Corporation reported a significant decline in its semi-annual consolidated financial results for FY2025, with comprehensive income dropping by 64.8% compared to the previous year. Despite this downturn, the company announced a revision in its dividend forecast, including an ordinary and commemorative dividend, reflecting a strategic decision to maintain shareholder value amidst challenging financial performance.

OSG Completes Restricted Stock Incentive Share Disposal

OSG Corporation has completed the payment procedures for the disposal of its own shares as part of a Restricted Stock Incentive for Employee Shareholding Associations. The number of shares and total disposal amount were adjusted due to partial forfeiture, reflecting the number of employees who consented to the plan, impacting the company’s employee engagement strategy.

OSG Corporation Executes Strategic Share Repurchase Plan

OSG Corporation has repurchased 2,041,600 of its own shares for a total of ¥3,328,317,700 as part of a board-approved strategy to enhance shareholder value. This move, executed through market purchases at the Tokyo Stock Exchange, is part of a broader plan to repurchase up to 3,500,000 shares, indicating a significant commitment to optimizing its capital structure and potentially boosting its stock value.