OSG (6136) AI Stock Analysis

• Market Cap: ¥235.48B
• Dividend Yield: 2.55%
• Average Volume (3M): 296.02K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.69
• 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: 0.85
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 15.78
• 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: ¥3,110.00
• Price Target Upside: 31.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 183.9
• Revenue Forecast (FY): ¥165.28B

• Rating: 72 Outperform
• Price Target: ¥3,132.00 ▲(32.10% Upside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

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 Trend

A multi-year pattern of revenue growth (recovering after 2020) indicates durable end-market demand and stable order flows. Sustained top-line expansion supports long-term capacity utilization, investment planning and revenue diversification, underpinning predictable operating cash generation.

Stable Gross & EBITDA Margins

Consistently strong gross and EBITDA margins reflect durable manufacturing efficiencies and pricing discipline. Stable mid-20s operating profitability gives buffer against cyclical swings, supports reinvestment and dividend capacity, and signals structural competitiveness in the product portfolio.

Conservative Balance Sheet

Low-to-moderate leverage with rising equity provides financial flexibility for capex, acquisitions, or shareholder returns. Conservative gearing reduces refinancing risk and interest exposure, improving resilience to downturns and enabling strategic investments without stressing credit metrics.

Negative Factors

Net Margin Compression

Material compression in net margin versus the cycle peak suggests rising costs, pricing pressure, or adverse product mix. If structural rather than temporary, this reduces profitability per unit of revenue, limiting reinvestment ability and long-term earnings power even with stable gross margins.

Weak FCF Conversion

Sub-50% free cash flow conversion and volatility indicate working capital or capex demands are consuming earnings. Lower, unstable FCF limits capacity to sustainably fund dividends, deleverage, or pursue M&A without issuing capital, raising structural operating-finance risk.

Rising Debt Trend

Although leverage remains moderate, an upward debt trend narrows the margin of safety and increases sensitivity to rate rises or earnings shocks. Continued debt accumulation could pressure credit flexibility and constrain long-term strategic options if free cash generation doesn't improve.

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

Solid overall fundamentals: steady multi-year revenue growth, healthy gross/EBITDA margins, and conservative leverage. Offsets include net margin compression versus the 2022 peak and weaker/volatile cash conversion (free cash flow below net income in recent years).

Income Statement

Revenue has grown steadily from 2021–2025 (annual growth ranging from ~0% to ~21%, with 2025 up ~2.8%), showing a generally positive demand backdrop after the 2020 dip. Profitability is solid for a manufacturer, with gross margin consistently around ~40% and EBITDA margin holding near ~21–23%. That said, net margin has compressed from the 2022 peak (~11.6%) to ~8.9% in 2025, suggesting higher costs, pricing pressure, or a less favorable mix versus the prior cycle high.

Balance Sheet

The balance sheet looks conservatively positioned with low-to-moderate leverage: debt is ~0.25x equity in 2025 (generally ~0.16–0.32x across the period). Equity has grown over time (2025 equity above 2024), supporting financial flexibility. A watch item is the increase in debt versus 2023–2022 levels, but overall leverage remains manageable given the company’s scale and profitability.

Cash Flow

Cash generation is positive, with operating cash flow consistently healthy (roughly ¥20–29B annually) and free cash flow positive each year. However, free cash flow is only ~46% of net income in 2025 (similar sub-50% conversion in 2024), indicating working-capital or capital spending demands are absorbing a meaningful portion of earnings. Free cash flow also shows volatility (notably a sharp drop in 2022 growth), which tempers confidence versus the stability seen on the income statement.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	160.62B	155.52B	147.70B	142.53B	126.16B
Gross Profit	65.82B	63.48B	60.45B	59.07B	49.19B
EBITDA	35.24B	32.91B	32.99B	35.04B	27.99B
Net Income	14.33B	13.44B	14.31B	16.53B	10.99B
Balance Sheet
Total Assets	267.70B	257.26B	250.12B	228.85B	209.76B
Cash, Cash Equivalents and Short-Term Investments	52.35B	55.88B	57.97B	46.70B	46.90B
Total Debt	44.96B	49.10B	28.68B	25.57B	30.75B
Total Liabilities	73.84B	77.84B	55.48B	52.01B	54.95B
Stockholders Equity	180.81B	166.63B	181.56B	164.66B	143.81B
Cash Flow
Free Cash Flow	12.06B	13.05B	12.75B	11.57B	21.43B
Operating Cash Flow	26.39B	28.56B	23.33B	20.18B	26.98B
Investing Cash Flow	-13.98B	-21.74B	-8.54B	-12.17B	-6.96B
Financing Cash Flow	-15.04B	-7.99B	-3.83B	-14.74B	-14.26B

OSG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2371.00
• 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:6136, the sentiment is Negative. The current price of 2371 is below the 20-day moving average (MA) of 2723.32, below the 50-day MA of 2670.24, and above the 200-day MA of 2183.51, indicating a neutral trend. The MACD of -38.54 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 31.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6136.

OSG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5945	81 Outperform	¥26.52B	13.22	―	3.89%	1.33%	29.73%
6157	77 Outperform	¥21.89B	14.20	―	3.31%	0.97%	-10.47%
6278	76 Outperform	¥256.03B	24.11	―	1.17%	29.51%	48.81%
6136	72 Outperform	¥235.48B	13.29	7.86%	2.55%	0.57%	4.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥111.43B	17.03	2.64%	2.30%	-4.11%	46.76%
6464	50 Neutral	¥12.50B	-0.51	―	6.98%	-11.46%	43.93%

OSG Corporate Events

OSG to Grant Restricted Treasury Shares to Executives for Long-Term Incentive Plan

OSG Corporation’s board has approved the disposal of 26,557 treasury shares as restricted stock compensation to two directors and eleven executive officers, valued at approximately ¥76 million at a price of ¥2,864.5 per share. The move is part of a restricted stock compensation plan introduced in 2019 to incentivize sustainable improvement of corporate value and better align management with shareholder returns.

Under the plan, eligible executives contribute monetary compensation in kind to receive the allotted shares, which are subject to a 30‑year transfer restriction period and detailed conditions on vesting and forfeiture. The long restriction horizon and strict rules on retirement, death, and unvested stock underscore OSG’s push toward medium‑ to long‑term performance discipline and stronger governance around equity-based pay.

The most recent analyst rating on (JP:6136) stock is a Buy with a Yen3180.00 price target. To see the full list of analyst forecasts on OSG stock, see the JP:6136 Stock Forecast page.

OSG cuts 2030 convertible bond conversion price after extraordinary dividend

OSG Corporation has announced an adjustment to the conversion price of its Zero Coupon Convertible Bonds due 2030, lowering the price from ¥2,096.0 to ¥2,069.4. The change will take effect on December 1, 2025 and reflects the mechanical application of the bond terms following a shareholder-approved cash distribution.

The revision is triggered by the payment of an annual total dividend of ¥88 per share for the fiscal year ended November 30, 2025, which includes an interim dividend of ¥28 and a year-end dividend of ¥60. This treatment categorizes the payout as an extraordinary dividend under the bond conditions, slightly improving bondholders’ conversion terms while signaling OSG’s willingness to return capital to shareholders.

The most recent analyst rating on (JP:6136) stock is a Buy with a Yen3180.00 price target. To see the full list of analyst forecasts on OSG stock, see the JP:6136 Stock Forecast page.

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.