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Odawara Engineering Co., Ltd. (JP:6149)
:6149
Japanese Market

Odawara Engineering Co., Ltd. (6149) AI Stock Analysis

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JP:6149

Odawara Engineering Co., Ltd.

(6149)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥2,142.00
▼(-13.49% Downside)
Action:UpgradedDate:02/18/26
The score is driven primarily by strong financial strength (minimal leverage and improved margins) and very compelling valuation (low P/E with a ~3.36% yield). These positives are tempered by a key financial risk—sharp 2025 cash-flow deterioration—and bearish technical signals with the stock trading below key moving averages.
Positive Factors
Improving profitability
Margins have expanded substantially across the cycle, showing durable cost control and/or pricing power. Higher operating and net margins increase internal cash available for reinvestment or dividends and create a profit buffer if top-line volatility resumes.
Negative Factors
Sharp cash-flow deterioration
A sudden shift to negative free cash flow undermines the company’s internal funding model. If elevated working-capital needs or heavy investment persist, the firm may need external funding or asset sales, reducing strategic optionality and pressuring margins long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Margins have expanded substantially across the cycle, showing durable cost control and/or pricing power. Higher operating and net margins increase internal cash available for reinvestment or dividends and create a profit buffer if top-line volatility resumes.
Read all positive factors

Odawara Engineering Co., Ltd. (6149) vs. iShares MSCI Japan ETF (EWJ)

Odawara Engineering Co., Ltd. Business Overview & Revenue Model

Company Description
Odawara Engineering Co., Ltd. (6149) is a Japanese company specializing in precision machinery and equipment manufacturing. The company operates primarily in the sectors of semiconductor production equipment, industrial automation, and robotics. I...
How the Company Makes Money
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Odawara Engineering Co., Ltd. Financial Statement Overview

Summary
Strong profitability improvement (net margin ~4.0% in 2020 to ~12.7% in 2025; operating margin ~16.7% in 2025) and an exceptionally conservative balance sheet with effectively zero debt support a high score. The main offset is cash-flow weakness in 2025 (free cash flow ~-1.35B and very low cash conversion vs. earnings) alongside two consecutive years of revenue contraction, which raises near-term quality-of-earnings and demand durability risks.
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
48
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue18.90B18.24B13.18B14.70B14.09B13.56B
Gross Profit5.63B5.90B3.76B4.51B3.36B3.60B
EBITDA3.16B3.52B1.59B2.41B1.37B1.50B
Net Income1.90B2.32B865.13M1.53B801.53M925.71M
Balance Sheet
Total Assets25.63B24.86B27.91B26.73B24.02B22.78B
Cash, Cash Equivalents and Short-Term Investments9.56B8.73B10.36B8.14B7.69B6.31B
Total Debt36.47M0.005.17M6.75M3.00B3.00B
Total Liabilities8.10B6.33B11.47B11.05B9.85B9.28B
Stockholders Equity17.53B18.53B16.44B15.68B14.17B13.51B
Cash Flow
Free Cash Flow0.00-1.35B2.48B3.60B1.51B1.06B
Operating Cash Flow0.00108.68M3.29B3.81B1.99B1.34B
Investing Cash Flow0.00-1.97B-745.93M-242.27M-617.18M-278.59M
Financing Cash Flow0.00-286.55M-284.98M-3.14B-172.86M-760.17M

Odawara Engineering Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2476.00
Price Trends
50DMA
2076.06
Negative
100DMA
2166.65
Negative
200DMA
2207.68
Negative
Market Momentum
MACD
-45.79
Negative
RSI
49.87
Neutral
STOCH
81.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6149, the sentiment is Negative. The current price of 2476 is above the 20-day moving average (MA) of 1947.10, above the 50-day MA of 2076.06, and above the 200-day MA of 2207.68, indicating a neutral trend. The MACD of -45.79 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 81.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6149.

Odawara Engineering Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥20.31B7.970.72%6.51%3.68%
79
Outperform
¥11.44B10.272.82%7.10%18.03%
73
Outperform
¥11.68B3.292.13%8.09%109.84%
72
Outperform
¥178.75B14.1210.28%2.77%2.74%7.86%
70
Outperform
¥88.33B4.093.09%6.35%-34.20%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
52
Neutral
¥10.27B42.221.65%3.96%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6149
Odawara Engineering Co., Ltd.
1,983.00
333.95
20.25%
JP:6498
Kitz
2,059.00
1,045.47
103.15%
JP:6363
Torishima Pump Mfg.Co., Ltd.
3,365.00
1,515.31
81.92%
JP:6488
Yoshitake Inc.
941.00
315.67
50.48%
JP:6492
Okano Valve Mfg. Co., Ltd.
11,990.00
7,531.87
168.95%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
214.00
119.88
127.36%
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: Feb 18, 2026