OKUMURA ENGINEERING Corp. (6229) AI Stock Analysis

• Market Cap: ¥5.61B
• Dividend Yield: 3.64%
• Average Volume (3M): 6.70K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.66
• Revenue Growth: 10.05%
• EPS Growth: 8.17%
• Country: JP
• Employees: 345
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): -19.60
• Shares Outstanding: 4,538,200
• 10 Day Avg. Volume: 9,790
• 30 Day Avg. Volume: 6,696
• PEG Ratio: -0.42
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,417.00
• Price Target Upside: 14.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• 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. Business Overview & Revenue Model

Company Description

OKUMURA 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 Money

OKUMURA 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.44B	9.48B	9.16B	8.46B	8.76B
Gross Profit	3.48B	3.26B	3.37B	3.08B	3.48B
EBITDA	1.05B	1.09B	1.32B	1.61B	1.39B
Net Income	553.41M	511.04M	767.29M	850.11M	749.70M
Balance Sheet
Total Assets	13.16B	12.60B	12.57B	12.37B	12.01B
Cash, Cash Equivalents and Short-Term Investments	2.06B	1.39B	1.61B	3.48B	3.07B
Total Debt	802.92M	988.64M	1.44B	1.78B	2.28B
Total Liabilities	2.85B	2.98B	3.36B	3.85B	4.32B
Stockholders Equity	10.31B	9.62B	9.21B	8.52B	7.68B
Cash Flow
Free Cash Flow	964.05M	402.56M	-1.39B	787.19M	-207.09M
Operating Cash Flow	1.12B	628.88M	-1.29B	993.24M	1.09B
Investing Cash Flow	-129.30M	-249.85M	585.66M	-237.37M	-1.90B
Financing Cash Flow	-358.67M	-629.85M	-557.78M	-695.26M	1.24B

OKUMURA ENGINEERING Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1237.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6229	75 Outperform	¥5.61B	10.12		3.64%	10.05%	8.17%
6408	72 Outperform	¥5.31B	4.56		1.41%	0.96%	―
6391	72 Outperform	¥5.59B	9.66		1.18%	-3.54%	0.10%
6158	70 Outperform	¥5.65B	13.08		4.11%	0.20%	-40.35%
Sector *	59 Neutral	AU$1.63B	9.65	11.24%	3.67%	6.75%	3.18%
6155	51 Neutral	¥5.29B	―		2.06%	-2.05%	-14.68%
6495	51 Neutral	¥5.33B	―		1.80%	10.20%	-142.32%