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

OKUMURA ENGINEERING Corp. (6229) AI Stock Analysis

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JP:6229

OKUMURA ENGINEERING Corp.

(6229)

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Outperform 80 (OpenAI - 5.2)
Rating:80Outperform
Price Target:
¥2,300.00
▲(33.10% Upside)
Action:ReiteratedDate:03/20/26
The score is driven primarily by strong financial health (low leverage, solid profitability and cash flow) and very attractive valuation (low P/E with a dividend). Technicals are supportive of an uptrend, but elevated RSI/Stoch readings temper the score due to potential near-term overbought risk.
Positive Factors
Conservative balance sheet / low leverage
Very low debt and a high equity ratio provide durable financial flexibility. This conservative capital structure reduces refinancing and solvency risk, enabling the company to fund capex, weather downturns, and maintain shareholder returns over the medium term without relying on external financing.
Negative Factors
Declining EBIT margin
A falling EBIT margin points to rising operating costs or lower operational efficiency. If persistent, this trend can erode operating leverage, reduce reinvestment capacity and compress future earnings, undermining the benefits of strong top-line growth and gross margins over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low debt and a high equity ratio provide durable financial flexibility. This conservative capital structure reduces refinancing and solvency risk, enabling the company to fund capex, weather downturns, and maintain shareholder returns over the medium term without relying on external financing.
Read all positive factors

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

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, ele...
How the Company Makes Money
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OKUMURA ENGINEERING Corp. Financial Statement Overview

Summary
Strong overall fundamentals: healthy revenue growth (+10.1% YoY) and solid gross margin (33.4%) with improving net margin (5.3%). Balance sheet is notably strong with very low leverage (debt-to-equity 0.08) and high equity ratio (78.3%). Cash generation is also strong (operating cash flow ¥1.12B; FCF ¥964M), though the decline in EBIT margin (to 7.5%) suggests some operational efficiency pressure.
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue10.90B10.44B9.48B9.16B8.46B8.76B
Gross Profit3.63B3.48B3.26B3.37B3.08B3.48B
EBITDA1.20B1.05B1.09B1.32B1.61B1.39B
Net Income637.19M553.41M511.04M767.29M850.11M749.70M
Balance Sheet
Total Assets13.08B13.16B12.60B12.57B12.37B12.01B
Cash, Cash Equivalents and Short-Term Investments1.32B2.06B1.39B1.61B3.48B3.07B
Total Debt789.01M802.92M988.64M1.44B1.78B2.28B
Total Liabilities2.86B2.85B2.98B3.36B3.85B4.32B
Stockholders Equity10.22B10.31B9.62B9.21B8.52B7.68B
Cash Flow
Free Cash Flow0.00964.05M402.56M-1.39B787.19M-207.09M
Operating Cash Flow0.001.12B628.88M-1.29B993.24M1.09B
Investing Cash Flow0.00-129.30M-249.85M585.66M-237.37M-1.90B
Financing Cash Flow0.00-358.67M-629.85M-557.78M-695.26M1.24B

OKUMURA ENGINEERING Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1728.00
Price Trends
50DMA
2038.53
Positive
100DMA
1912.25
Positive
200DMA
1666.24
Positive
Market Momentum
MACD
3.05
Positive
RSI
50.29
Neutral
STOCH
67.83
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 2121.87, below the 50-day MA of 2038.53, and above the 200-day MA of 1666.24, indicating a neutral trend. The MACD of 3.05 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.83 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥9.50B5.142.55%8.69%14.63%
79
Outperform
¥11.49B10.272.82%7.10%18.03%
79
Outperform
¥10.04B6.382.15%-0.94%6.93%
73
Outperform
¥10.59B27.334.76%41.13%535.42%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
¥12.72B10.996.70%7.96%43.37%
52
Neutral
¥9.94B42.221.65%3.96%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6229
OKUMURA ENGINEERING Corp.
2,085.00
906.66
76.94%
JP:6384
SHOWA SHINKU CO., LTD.
1,719.00
506.41
41.76%
JP:6393
Yuken Kogyo Co., Ltd.
3,060.00
941.43
44.44%
JP:6402
Kanematsu Engineering Co., Ltd.
1,807.00
758.59
72.36%
JP:6488
Yoshitake Inc.
945.00
319.67
51.12%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
207.00
111.89
117.63%
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: Mar 20, 2026