OSG (6136) AI Stock Analysis

• Market Cap: ¥231.31B
• Dividend Yield: 2.55%
• Average Volume (3M): 296.02K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.68
• Revenue Growth: 0.57%
• EPS Growth: 4.54%
• Country: JP
• Employees: 7,674
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 56.79
• Shares Outstanding: 96,145,420
• 10 Day Avg. Volume: 399,860
• 30 Day Avg. Volume: 296,023
• PEG Ratio: -51.68
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 12.79
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,773.00 ▲(16.95% Upside)

Score is primarily supported by strong financial fundamentals (steady growth and low leverage), complemented by reasonable valuation and dividend yield. The main offset is technical overextension (very high RSI/Stoch) despite an otherwise bullish trend, which raises near-term downside risk.

Positive Factors

Revenue growth consistency

Multi-year revenue growth shows durable demand and market traction across cycles. Consistent top-line expansion supports scale economies, predictable operating leverage and capacity to invest in technology and network expansion, underpinning medium-term earnings resilience.

Sustained gross and EBITDA margins

Stable high gross and EBITDA margins indicate structural cost advantages or pricing power in core services. Margin durability supports cash generation after cyclical swings, funds reinvestment in operations, and creates a buffer versus industry cost pressures over the next several quarters.

Conservative leverage and equity growth

Low-to-moderate leverage with rising equity provides financial flexibility for capex, opportunistic M&A, and dividends without over-reliance on external funding. A conservative balance sheet increases resilience to downturns and preserves strategic optionality over 2–6 months and beyond.

Negative Factors

Net margin compression

Declining net margin signals rising costs, pricing pressure, or adverse mix that erode earnings quality. If persistent, margin compression will reduce free cash flow and limit reinvestment or shareholder returns, making earnings more sensitive to revenue swings over the medium term.

Weak and volatile free cash flow conversion

Sub-50% FCF conversion and past volatility indicate working capital or capex strains preventing earnings turning into cash. This reduces funding certainty for dividends, buybacks or investments and raises execution risk if cash conversion does not stabilize.

Rising debt vs prior years (watch)

An uptick in debt, even from still-modest leverage, could increase interest expense and reduce strategic flexibility if the trend continues. Persistent debt growth could constrain capital allocation and heighten refinancing risk in less favorable market conditions.

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 generates revenue through multiple streams, primarily from its logistics services, including freight forwarding, warehousing, and distribution. The company charges clients for the transportation of goods, storage solutions, and value-added services such as inventory management and order fulfillment. Key partnerships with shipping lines and transport companies enhance OSG's service offerings and enable competitive pricing. Additionally, OSG leverages technology to streamline operations, which helps reduce costs and improve profit margins. The company’s strategic initiatives to expand into emerging markets and invest in innovative logistics solutions 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	156.19B	160.62B	155.52B	147.70B	142.53B	126.16B
Gross Profit	62.27B	64.74B	63.48B	60.45B	59.07B	49.19B
EBITDA	33.65B	35.24B	32.91B	31.74B	35.04B	28.00B
Net Income	13.29B	14.33B	13.44B	14.31B	16.53B	10.99B
Balance Sheet
Total Assets	252.31B	267.70B	257.26B	250.12B	228.85B	209.76B
Cash, Cash Equivalents and Short-Term Investments	44.23B	52.35B	55.88B	57.97B	46.70B	46.90B
Total Debt	44.94B	44.96B	49.10B	28.68B	25.57B	30.75B
Total Liabilities	71.20B	73.84B	77.85B	55.49B	52.02B	54.96B
Stockholders Equity	168.41B	180.81B	166.63B	181.56B	164.66B	143.81B
Cash Flow
Free Cash Flow	0.00	12.06B	12.37B	12.17B	11.31B	21.19B
Operating Cash Flow	0.00	26.39B	28.56B	23.33B	20.18B	26.98B
Investing Cash Flow	0.00	-13.98B	-21.74B	-8.54B	-12.17B	-6.96B
Financing Cash Flow	0.00	-15.04B	-7.99B	-3.83B	-14.74B	-14.26B

OSG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2371.00
• 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 2371 is above the 20-day moving average (MA) of 2309.93, above the 50-day MA of 2257.85, and above the 200-day MA of 1912.80, indicating a bullish trend. The MACD of 33.13 indicates Negative momentum. The RSI at 81.24 is Negative, neither overbought nor oversold. The STOCH value of 86.49 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	¥137.26B	10.44	―	2.33%	25.95%	66.92%
6157	77 Outperform	¥21.79B	17.55	―	3.31%	0.97%	-10.47%
6278	76 Outperform	¥156.00B	24.47	―	1.17%	29.51%	48.81%
6474	74 Outperform	¥112.50B	25.46	2.64%	2.30%	-4.11%	46.76%
6136	72 Outperform	¥231.31B	14.51	7.86%	2.55%	0.57%	4.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6472	57 Neutral	¥196.21B	-10.56	-7.84%	3.08%	-3.18%	-531.48%

OSG Corporate Events

OSG Raises Dividend Target to Boost Capital Efficiency and Shareholder Returns

OSG Corporation has revised its shareholder return policy to enhance capital efficiency, raising its target consolidated dividend payout ratio from at least 35% to 45% or a dividend on equity (DOE) of 3.5%, whichever is higher. The company will continue to consider share buybacks as part of its capital allocation strategy and will apply the new policy from the fiscal year ending November 30, 2026, signaling a stronger commitment to returning profits to shareholders while balancing growth investments and capital adequacy.

The most recent analyst rating on (JP:6136) stock is a Buy with a Yen2596.00 price target. To see the full list of analyst forecasts on OSG stock, see the JP:6136 Stock Forecast page.

OSG Lifts Earnings and Dividends, Signals Further Growth for FY2026

OSG Corporation reported higher consolidated revenue and profits for FY2025, with net sales, operating income and net income all rising year on year, alongside a stronger equity base and improved comprehensive income, indicating resilient demand and efficient operations despite a challenging macroeconomic backdrop. The company boosted shareholder returns by declaring a substantially higher year-end dividend, including a large commemorative component, and also guided to further growth in sales and earnings for FY2026, signalling confidence in its order pipeline and market position while maintaining solid cash generation and balance sheet strength.

The most recent analyst rating on (JP:6136) stock is a Buy with a Yen2596.00 price target. To see the full list of analyst forecasts on OSG stock, see the JP:6136 Stock Forecast page.

OSG Corporation Announces Leadership Continuity

OSG Corporation announced changes in its directors and executive officers, effective February 20, 2026, pending approval from the upcoming General Meeting of Shareholders. The company has decided to maintain the current leadership structure, with no changes to the titles of its key executives, indicating a stable management approach. This decision reflects OSG’s strategic focus on continuity and stability in its leadership, which may reassure stakeholders about the company’s consistent operational direction.

The most recent analyst rating on (JP:6136) stock is a Buy with a Yen2596.00 price target. To see the full list of analyst forecasts on OSG stock, see the JP:6136 Stock Forecast page.