OKUMURA ENGINEERING Corp. (6229) AI Stock Analysis

• Market Cap: ¥8.35B
• Dividend Yield: 2.47%
• Average Volume (3M): 11.64K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.75
• Revenue Growth: 8.69%
• EPS Growth: 14.63%
• Country: JP
• Employees: 345
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 31.76
• Shares Outstanding: 4,539,200
• 10 Day Avg. Volume: 12,290
• 30 Day Avg. Volume: 11,636
• PEG Ratio: 1.25
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 6.19
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥1,895.00 ▲(0.80% Upside)

OKUMURA ENGINEERING Corp. scores well due to its strong financial performance and attractive valuation. The stock's bullish technical indicators suggest strong momentum, although overbought conditions may lead to short-term volatility. The absence of earnings call data and corporate events does not impact the overall score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective product offerings, supporting long-term business expansion and stability.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and weathering economic downturns.

Cash Generation

Strong cash generation from core operations ensures liquidity and supports reinvestment in R&D and growth initiatives, fostering long-term sustainability.

Negative Factors

Operational Efficiency

A decline in EBIT margin suggests potential inefficiencies in operations, which could impact profitability if not addressed, necessitating process improvements.

Free Cash Flow Efficiency

While cash flow is strong, there is room to optimize free cash flow efficiency, which can enhance financial flexibility and shareholder returns over time.

Profit Margin Pressure

Although profitability improved, the slight increase in net profit margin indicates potential pressure on margins, requiring focus on cost control and pricing strategies.

OKUMURA ENGINEERING Corp. Business Overview & Revenue Model

Company Description

OKUMURA ENGINEERING Corp. (6229) is a Japanese company specializing in the design and manufacture of high-quality industrial equipment and systems. Operating primarily in the engineering sector, the company focuses on providing advanced solutions in fields such as automation, robotics, and precision machinery. With a commitment to innovation, OKUMURA ENGINEERING develops products that enhance operational efficiency and productivity for clients across various industries.

How the Company Makes Money

OKUMURA ENGINEERING Corp. generates revenue through the sale of its industrial equipment and systems, which are tailored to meet the specific needs of its clients. The company has established key revenue streams from direct sales of machinery, ongoing maintenance contracts, and engineering consultancy services. Additionally, partnerships with other technology providers and manufacturers enhance its product offerings and market reach. The company's emphasis on research and development enables it to introduce cutting-edge solutions, thereby attracting a diverse clientele and securing long-term contracts that contribute to stable earnings.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.90B	10.44B	9.48B	9.16B	8.46B	8.76B
Gross Profit	3.63B	3.48B	3.26B	3.37B	3.08B	3.48B
EBITDA	1.20B	1.05B	1.09B	1.32B	1.61B	1.39B
Net Income	637.19M	553.41M	511.04M	767.29M	850.11M	749.70M
Balance Sheet
Total Assets	13.08B	13.16B	12.60B	12.57B	12.37B	12.01B
Cash, Cash Equivalents and Short-Term Investments	1.32B	2.06B	1.39B	1.61B	3.48B	3.07B
Total Debt	789.01M	802.92M	988.64M	1.44B	1.78B	2.28B
Total Liabilities	2.86B	2.85B	2.98B	3.36B	3.85B	4.32B
Stockholders Equity	10.22B	10.31B	9.62B	9.21B	8.52B	7.68B
Cash Flow
Free Cash Flow	0.00	964.05M	402.56M	-1.39B	787.19M	-207.09M
Operating Cash Flow	0.00	1.12B	628.88M	-1.29B	993.24M	1.09B
Investing Cash Flow	0.00	-129.30M	-249.85M	585.66M	-237.37M	-1.90B
Financing Cash Flow	0.00	-358.67M	-629.85M	-557.78M	-695.26M	1.24B

OKUMURA ENGINEERING Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1880.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 1880 is above the 20-day moving average (MA) of 1799.30, above the 50-day MA of 1653.26, and above the 200-day MA of 1384.69, indicating a bullish trend. The MACD of 46.38 indicates Positive momentum. The RSI at 64.74 is Neutral, neither overbought nor oversold. The STOCH value of 89.63 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6229	76 Outperform	¥8.35B	13.05	―	2.47%	8.69%	14.63%
6391	69 Neutral	¥5.67B	11.90	―	1.17%	-14.09%	-36.08%
6158	68 Neutral	¥5.52B	14.76	―	4.02%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6408	61 Neutral	¥5.37B	4.86	―	1.39%	-3.05%	―
6155	58 Neutral	¥5.21B	-8.31	―	2.04%	-0.59%	89.24%
6495	50 Neutral	¥5.52B	81.52	―	1.77%	3.96%	―