OKUMURA ENGINEERING Corp. (6229) AI Stock Analysis

• Market Cap: ¥9.41B
• Dividend Yield: 2.55%
• Average Volume (3M): 11.64K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.92
• Revenue Growth: 8.69%
• EPS Growth: 14.63%
• Country: JP
• Employees: 345
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 84.09
• Shares Outstanding: 4,552,200
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,405.00 ▲(39.18% Upside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

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

Conservative capital structure

A debt-to-equity of 0.08 and 78.3% equity ratio indicate a very conservative capital structure. This durable strength lowers financial risk, limits interest burden, preserves borrowing capacity for strategic investments or downturns, and supports long-term operational stability.

Strong cash generation

Rising operating cash flow and nearly ¥1.0bn in free cash flow show sustained cash conversion from operations. Reliable cash generation supports capex, dividends, and working capital needs, enabling strategic choices and resilience across business cycles.

Consistent revenue growth and solid gross margin

Double-digit revenue growth paired with a 33.4% gross margin suggests competitive pricing and effective cost control. This combination underpins durable top-line expansion and the capacity to sustain operating leverage as the company scales in its industrial-machinery market.

Negative Factors

Worsening operating profitability

A decline in EBIT margin to 7.5% points to rising operating costs or pressure on core operations. If this trend persists, it can erode earnings power, limit reinvestment capacity, and reduce the cushion for cyclicality common in industrial machinery markets.

Modest return on equity

An ROE of 5.4% is modest, indicating limited efficiency in converting equity into profit. Over the medium term this may constrain shareholder value creation versus peers, making it harder to justify reinvestment without productivity or margin improvements.

Room to improve free cash flow efficiency

While FCF is positive, a FCF/net income ratio of 1.74 flagged for improvement implies some inefficiency in capital deployment or working capital. Persistent inefficiencies could limit ability to fund growth initiatives or return capital consistently over time.

OKUMURA ENGINEERING Corp. Business Overview & Revenue Model

Company Description

Okumura Engineering corp. designs, manufactures, and sells construction and engineering machineries and components. The company offers gas rubber seated butterfly valves, pinch valves, slim check valves, firefighting equipment-approved valves, electronic control valves, marine valves, fluor resin-lined valves, knife gate valves, and other valves. Its products are used in various sectors, such as construction, power generation, shipbuilding, and various plants. The company was founded in 1902 and is headquartered in Gamou, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1728.00
• 50DMA: Positive
• 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:6229, the sentiment is Positive. The current price of 1728 is below the 20-day moving average (MA) of 2025.95, below the 50-day MA of 1902.68, and above the 200-day MA of 1582.36, indicating a bullish trend. The MACD of 66.89 indicates Positive momentum. The RSI at 55.68 is Neutral, neither overbought nor oversold. The STOCH value of 33.10 is Neutral, 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	¥9.41B	12.78	―	2.55%	8.69%	14.63%
6391	74 Outperform	¥7.45B	9.59	―	1.19%	-14.09%	-36.08%
6158	71 Outperform	¥6.74B	61.07	―	4.08%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6408	61 Neutral	¥5.96B	4.00	―	1.37%	-3.05%	―
6155	58 Neutral	¥5.22B	-34.90	―	2.10%	-0.59%	89.24%
6495	55 Neutral	¥11.67B	242.29	―	1.65%	3.96%	―