OSG (6136) AI Stock Analysis

• Market Cap: ¥164.87B
• Dividend Yield: 3.23%
• Average Volume (3M): 272.08K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.69
• Revenue Growth: 4.25%
• EPS Growth: -6.41%
• Country: JP
• Employees: 7,674
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 30.73
• Shares Outstanding: 99,182,520
• 10 Day Avg. Volume: 234,370
• 30 Day Avg. Volume: 272,079
• PEG Ratio: 0.22
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.50
• 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: 76 Outperform
• Price Target: ¥1,874.00 ▲(8.70%Upside)

The overall score of 76 reflects OSG's strong financial performance, bolstered by solid revenue growth, effective cost management, and robust cash flow. Valuation metrics are attractive, with a reasonable P/E ratio and a healthy dividend yield. Technical analysis presents a mixed picture, with some bearish signals but neutral RSI, suggesting potential opportunities for upward movement. The absence of earnings call and corporate events data does not impact the score.

OSG Business Overview & Revenue Model

Company Description

OSG Corporation, together with its subsidiaries, manufactures and sells cutting tools in Japan, the Americas, Europe and Africa, and Asia. The company's products include taps, drills, end mills, indexable tools, thread mills, rolling dies, gauges, machine tools, machine parts, and tooling systems, as well as reconditioning services to worn tools. It also offers special products and accessories, such as tap holders, holder/arbor related products, circular saws/bandsaws, diameter correction tools, tool storage cabinets, parts/accessories, LHSTIX/bits, and coating rods. In addition, the company imports and sells tools. The company's products are used in automotive, die/mold, aerospace, energy, and heavy industry applications. OSG Corporation was incorporated in 1938 and is headquartered in Toyokawa, Japan.

How the Company Makes Money

OSG Corporation generates revenue primarily through the sale of its cutting tools and related products to a global customer base. The company's revenue streams are diversified across various industries, including automotive, aerospace, and general manufacturing, where its tools are utilized for precision machining tasks. OSG also leverages its international network of manufacturing and distribution facilities to reach a broad market, enhancing its sales potential. Significant partnerships with major industrial players and continuous investment in research and development contribute to OSG's ability to innovate and maintain a competitive edge in the market, thus driving its financial performance.

OSG Financial Statement Overview

Summary

OSG demonstrates strong financial health with consistent revenue growth, effective cost management, and solid profitability indicators. The balance sheet shows conservative leverage and a strong equity base. Cash flow management is robust, supporting operational needs and growth. Slight declines in net profit margin and return on equity suggest potential improvement areas but do not detract significantly from the 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.73B	155.52B	147.70B	142.53B	126.16B	104.39B
Gross Profit	62.90B	63.48B	60.45B	59.07B	49.19B	38.67B
EBITDA	28.39B	32.91B	31.74B	33.28B	27.49B	19.57B
Net Income	14.93B	13.44B	14.31B	16.53B	10.99B	5.64B
Balance Sheet
Total Assets	270.49B	257.26B	250.12B	228.85B	209.76B	200.11B
Cash, Cash Equivalents and Short-Term Investments	71.86B	55.88B	57.97B	46.70B	46.90B	37.81B
Total Debt	49.42B	49.10B	28.68B	25.57B	30.75B	41.77B
Total Liabilities	76.26B	77.85B	55.49B	52.02B	54.96B	59.93B
Stockholders Equity	180.97B	166.63B	181.56B	164.66B	143.81B	129.35B
Cash Flow
Free Cash Flow	12.35B	12.37B	12.17B	11.31B	21.19B	6.92B
Operating Cash Flow	12.35B	28.56B	23.33B	20.18B	26.98B	17.04B
Investing Cash Flow	0.00	-21.74B	-8.54B	-12.17B	-6.96B	-17.13B
Financing Cash Flow	0.00	-7.99B	-3.83B	-14.74B	-14.26B	9.66B

OSG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1724.00
• 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 1724 is above the 20-day moving average (MA) of 1691.85, above the 50-day MA of 1661.45, and above the 200-day MA of 1701.83, indicating a bullish trend. The MACD of 23.42 indicates Negative momentum. The RSI at 73.48 is Negative, neither overbought nor oversold. The STOCH value of 87.41 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
6101	79 Outperform	¥83.39B	7.70		3.51%	27.98%	104.10%
6136	76 Outperform	¥164.87B	11.98	7.26%	3.23%	4.25%	-6.41%
6157	70 Outperform	¥18.32B	14.45		4.09%	3.18%	2.22%
6474	69 Neutral	€72.54B	15.91	2.66%	3.24%	-8.38%	-3.11%
6278	69 Neutral	¥96.23B	16.95		1.95%	28.68%	71.70%
Sector *	59 Neutral	AU$1.64B	9.68	11.24%	3.68%	6.75%	3.18%
6472	52 Neutral	€122.74B	30.58	-9.65%	4.66%	-1.28%	-325.82%

OSG Corporate Events

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.

OSG Corporation Completes Share Repurchase to Boost Shareholder Value

OSG Corporation announced the successful repurchase of 610,000 shares of its common stock for approximately ¥984 million through an off-auction transaction on the Tokyo Stock Exchange. This move is part of the company’s strategy to enhance shareholder returns and improve capital efficiency, reflecting its ongoing commitment to optimizing its financial structure and market positioning.

OSG Corporation Announces Share Repurchase Plan

OSG Corporation has announced a decision to repurchase its own shares through an off-auction transaction on the Tokyo Stock Exchange. This strategic move, resolved by the Board of Directors, involves buying back up to 610,000 shares at a total price of ¥984,235,000, with the aim to enhance shareholder value and optimize capital structure. The repurchase is part of a broader plan to acquire up to 3.5 million shares by August 2025, reflecting the company’s commitment to proactive financial management.

OSG Corporation Announces Share Repurchase Plan to Enhance Shareholder Value

OSG Corporation has announced a share repurchase plan, approved by its Board of Directors, to buy back up to 3,500,000 shares, representing approximately 4.12% of its total issued shares, for a maximum of ¥5 billion. This move is intended to enhance shareholder returns and improve capital efficiency, with the repurchased shares set to be canceled, reflecting a strategic effort to optimize the company’s financial structure.

OSG Corporation Reports Sharp Decline in Q1 FY2025 Income

OSG Corporation reported a significant drop in comprehensive income for the first quarter of FY2025, with a decrease of 97.9% compared to the previous year. Despite the decline, the company maintained its dividend forecast and did not revise its financial results forecast, indicating a stable outlook amidst the challenging financial performance.