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OKUMURA ENGINEERING Corp. (JP:6229)
:6229
Japanese Market

OKUMURA ENGINEERING Corp. (6229) AI Stock Analysis

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JP

OKUMURA ENGINEERING Corp.

(6229)

Rating:75Outperform
Price Target:
¥1,385.00
▲(11.96%Upside)
OKUMURA ENGINEERING Corp. receives a strong overall score driven by robust financial performance and attractive valuation. The company's solid revenue growth, profitability, and strong balance sheet support a positive outlook. While technical analysis shows a stable trend, the lack of significant bullish signals tempers the score slightly. The absence of earnings call data and corporate events does not affect the overall assessment significantly.

OKUMURA ENGINEERING Corp. (6229) vs. iShares MSCI Japan ETF (EWJ)

OKUMURA ENGINEERING Corp. Business Overview & Revenue Model

Company DescriptionOKUMURA ENGINEERING Corp. (6229) is a Japan-based company primarily engaged in the development, manufacturing, and sale of construction machinery and equipment. The company specializes in products such as hydraulic excavators, wheel loaders, and other heavy machinery that are essential for construction and civil engineering projects. OKUMURA ENGINEERING serves a diverse range of sectors including construction, infrastructure development, and industrial projects, providing advanced machinery solutions to enhance operational efficiency and productivity.
How the Company Makes MoneyOKUMURA ENGINEERING Corp. generates its revenue through the design, production, and sale of construction machinery and equipment. The company's primary revenue streams include the direct sale of heavy machinery such as hydraulic excavators and wheel loaders to construction companies, infrastructure developers, and industrial clients. Additionally, OKUMURA ENGINEERING offers after-sales services, maintenance, and parts replacement, which contribute to its ongoing revenue. The company may also engage in strategic partnerships or collaborations with other firms in the construction and engineering sectors to expand its market reach and enhance its product offerings. Factors such as technological innovation, product quality, and customer service play a significant role in the company's ability to maintain and grow its revenue.

OKUMURA ENGINEERING Corp. Financial Statement Overview

Summary
OKUMURA ENGINEERING Corp. demonstrates strong financial health with solid revenue growth, stable profitability, and a robust balance sheet with low leverage. Cash flow performance is commendable, although there is potential to enhance free cash flow efficiency. The company is well-positioned for sustainable growth, supported by effective cost management and a conservative capital structure.
Income Statement
78
Positive
OKUMURA ENGINEERING Corp. shows healthy revenue growth with a 10.1% increase in 2025 compared to 2024. Gross profit margin is solid at 33.4% in 2025, indicating efficient cost management. The net profit margin improved slightly to 5.3%, reflecting increased profitability. However, the EBIT margin decreased to 7.5%, signaling potential operational inefficiencies. Overall, the company demonstrates strong revenue growth and profitability, albeit with room for improvement in operational efficiency.
Balance Sheet
82
Very Positive
The company's balance sheet is robust with a low debt-to-equity ratio of 0.08 in 2025, indicating a conservative capital structure. Return on Equity improved to 5.4%, showing better utilization of shareholder funds. The equity ratio stands strong at 78.3%, reflecting a solid equity base relative to total assets, enhancing financial stability. Overall, OKUMURA ENGINEERING Corp. maintains a strong and stable financial position with low leverage.
Cash Flow
74
Positive
Operating cash flow increased significantly to ¥1.12 billion in 2025, suggesting improved cash generation from core operations. The free cash flow also improved to ¥964 million, driven by better cash management and reduced capital expenditures. The operating cash flow to net income ratio of 2.03 highlights efficient cash conversion from earnings. However, the free cash flow to net income ratio of 1.74 suggests potential areas for optimizing cash use. Overall, cash flow generation is strong, with room for enhancing free cash flow efficiency.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.44B9.48B9.16B8.46B8.76B
Gross Profit3.48B3.26B3.37B3.08B3.48B
EBITDA1.05B1.09B1.32B1.61B1.39B
Net Income553.41M511.04M767.29M850.11M749.70M
Balance Sheet
Total Assets13.16B12.60B12.57B12.37B12.01B
Cash, Cash Equivalents and Short-Term Investments2.06B1.39B1.61B3.48B3.07B
Total Debt802.92M988.64M1.44B1.78B2.28B
Total Liabilities2.85B2.98B3.36B3.85B4.32B
Stockholders Equity10.31B9.62B9.21B8.52B7.68B
Cash Flow
Free Cash Flow964.05M402.56M-1.39B787.19M-207.09M
Operating Cash Flow1.12B628.88M-1.29B993.24M1.09B
Investing Cash Flow-129.30M-249.85M585.66M-237.37M-1.90B
Financing Cash Flow-358.67M-629.85M-557.78M-695.26M1.24B

OKUMURA ENGINEERING Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1237.00
Price Trends
50DMA
1228.92
Positive
100DMA
1253.57
Negative
200DMA
1242.53
Negative
Market Momentum
MACD
2.42
Positive
RSI
50.74
Neutral
STOCH
10.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6229, the sentiment is Positive. The current price of 1237 is above the 20-day moving average (MA) of 1235.80, above the 50-day MA of 1228.92, and below the 200-day MA of 1242.53, indicating a neutral trend. The MACD of 2.42 indicates Positive momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6229.

OKUMURA ENGINEERING Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥5.61B10.12
3.64%10.05%8.17%
72
Outperform
¥5.31B4.56
1.41%0.96%
72
Outperform
¥5.59B9.66
1.18%-3.54%0.10%
70
Outperform
¥5.65B13.08
4.11%0.20%-40.35%
59
Neutral
AU$1.63B9.6511.24%3.67%6.75%3.18%
51
Neutral
¥5.29B
2.06%-2.05%-14.68%
51
Neutral
¥5.33B
1.80%10.20%-142.32%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6229
OKUMURA ENGINEERING Corp.
1,232.00
-10.51
-0.85%
JP:6155
Takamatsu Machinery Co., Ltd.
487.00
-34.55
-6.62%
JP:6158
Waida Mfg. Co., Ltd.
874.00
-60.15
-6.44%
JP:6391
Kaji Technology Corporation Ltd.
3,375.00
-841.94
-19.97%
JP:6408
Ogura Clutch Co., Ltd.
3,550.00
350.00
10.94%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
111.00
0.20
0.18%
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: Jul 10, 2025