Okada Aiyon Corporation (6294) AI Stock Analysis

• Market Cap: ¥14.98B
• Dividend Yield: 3.96%
• Average Volume (3M): 13.94K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.94
• Revenue Growth: -1.89%
• EPS Growth: -21.95%
• Country: JP
• Employees: 491
• Sector: Industrials
• Sector Strength: 84
• Industry: Agricultural - Machinery
• EPS (TTM): 68.73
• Shares Outstanding: 8,378,700
• 10 Day Avg. Volume: 11,620
• 30 Day Avg. Volume: 13,936
• PEG Ratio: 0.54
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.05
• 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

• Rating: 70 Outperform
• Price Target: ¥2,038.00 ▲(8.98%Upside)

Okada Aiyon Corporation's stock is supported by strong revenue growth and attractive valuation metrics, with a reasonable P/E ratio and solid dividend yield. However, liquidity challenges and increased leverage pose financial risks. Technical indicators show moderate market momentum without clear bullish or bearish signals.

Okada Aiyon Corporation Business Overview & Revenue Model

Company Description

Okada Aiyon Corporation (6294) is a Japanese company specializing in the manufacture and sale of construction machinery and tools. The company operates across several sectors, including construction equipment, industrial machinery, and environmental machinery. Okada Aiyon is known for its high-quality demolition attachments like hydraulic breakers, crushers, and grapples, which are widely used in construction and demolition projects.

How the Company Makes Money

Okada Aiyon Corporation generates revenue primarily through the sale of its construction and demolition machinery. The company's key revenue streams include the production and sale of hydraulic attachments, such as breakers and crushers, which are essential for demolition and construction projects. Additionally, Okada Aiyon offers maintenance and repair services for its machinery, providing a steady stream of after-sales revenue. The company benefits from partnerships with construction firms and distributors that facilitate the distribution of its products both domestically in Japan and internationally. These partnerships play a significant role in expanding its market reach and driving sales.

Okada Aiyon Corporation Financial Statement Overview

Summary

The company shows strong revenue growth with stable profit margins, but declining profitability metrics and increased leverage pose financial risks. Additionally, negative free cash flow indicates liquidity challenges.

Income Statement

Okada Aiyon Corporation demonstrates a consistent revenue growth trajectory, with a 30.8% increase from 2022 to 2025. The Gross Profit Margin has remained stable around 29-30%, indicating efficient cost management. However, the Net Profit Margin declined slightly from 6.96% in 2024 to 5.55% in 2025, reflecting increased costs or pricing pressure. EBIT and EBITDA margins are healthy, although the slight drop in EBIT margin from 10.04% in 2024 to 8.57% in 2025 suggests potential operational inefficiencies.

Balance Sheet

The company's Debt-to-Equity Ratio increased to 0.72 in 2025, reflecting higher leverage, which introduces potential risk in terms of financial stability. Despite this, the Equity Ratio remained strong at 47.9%, indicating a solid capital structure. Return on Equity declined from 11.8% in 2024 to 8.56% in 2025, pointing towards reduced profitability from shareholders' investments.

Cash Flow

Cash flow analysis reveals challenges, with a significant drop in Operating Cash Flow, moving from a positive $2 billion in 2024 to a negative $7.8 million in 2025. This impacts the Free Cash Flow, which turned negative in 2025. The Free Cash Flow to Net Income Ratio is unfavorably low, indicating difficulties in converting net income into free cash flow. Operating Cash Flow to Net Income Ratio also reflects this downward trend.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
26.16B	26.58B	27.10B	23.58B	20.31B	17.59B
	Gross Profit
7.71B	7.86B	8.15B	6.79B	5.97B	5.05B
	EBIT
2.13B	2.28B	2.72B	1.97B	1.77B	1.38B
	EBITDA
2.49B	3.01B	3.50B	2.66B	2.29B	1.83B
	Net Income Common Stockholders
1.55B	1.48B	1.89B	1.41B	1.19B	919.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.02B	4.85B	4.47B	3.12B	3.60B	4.30B
	Total Assets
36.45B	35.99B	34.01B	30.59B	25.52B	22.27B
	Total Debt
12.37B	12.47B	10.28B	9.29B	6.19B	6.05B
	Net Debt
7.36B	7.62B	5.82B	6.17B	2.59B	1.75B
	Total Liabilities
19.53B	18.76B	17.99B	16.63B	12.97B	10.88B
	Stockholders Equity
16.92B	17.24B	16.02B	13.96B	12.54B	11.39B
Cash Flow		Free Cash Flow
0.00	-1.23B	1.22B	-1.77B	-684.16M	1.16B
	Operating Cash Flow
0.00	-7.80M	2.01B	-658.20M	969.98M	2.17B
	Investing Cash Flow
0.00	-1.13B	-1.29B	-2.57B	-1.62B	-1.13B
	Financing Cash Flow
0.00	1.48B	382.97M	2.77B	-111.69M	69.89M

Okada Aiyon Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1870.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6294, the sentiment is Negative. The current price of 1870 is above the 20-day moving average (MA) of 1868.85, above the 50-day MA of 1849.12, and below the 200-day MA of 1910.51, indicating a neutral trend. The MACD of 1.03 indicates Positive momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 38.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6294.

Okada Aiyon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6306	73 Outperform	¥27.56B	13.79		4.72%	11.49%	52.75%
6358	72 Outperform	¥17.03B	11.63		6.17%	-15.65%	-41.34%
6294	70 Outperform	¥14.98B	10.19		3.96%	-1.89%	-21.95%
6316	66 Neutral	¥9.07B	14.11		4.26%	2.51%	-5.08%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
6310	57 Neutral	¥28.28B	―		2.40%	1.56%	-720.36%
6390	51 Neutral	¥14.78B	―		5.55%	-7.94%	-242.37%

Okada Aiyon Corporation Corporate Events

Okada Aiyon Unveils Strategic Plan for FY2026-2028

Okada Aiyon Corporation has announced its rolling plan for fiscal years 2026 to 2028, under its long-term vision ‘VISION 30 – Go To The Next Stage’. The plan outlines strategies for human resources, market expansion, and management strengthening, aiming to enhance shareholder returns and optimize capital allocation. This strategic plan is expected to solidify the company’s position in the industry and improve operational efficiency, benefiting stakeholders.

Okada Aiyon Unveils Mid-term Business Plan for Sustainable Growth

Okada Aiyon Corporation has announced its mid-term business plan ‘Rolling Plan FY2025-FY2027’ as part of its long-term ‘VISION30’ strategy, aiming for 30 billion yen in sales. The plan focuses on strengthening domestic operations and adapting to international market challenges, with the goal of enhancing corporate value and meeting shareholder expectations.

Okada Aiyon Reports Decline in Fiscal Year 2025 Financial Results

Okada Aiyon Corporation reported a decline in its financial performance for the fiscal year ending March 2025, with net sales decreasing by 1.9% and operating profit dropping by 16.2%. Despite the downturn, the company maintained a solid capital adequacy ratio of 47.9%, indicating a stable financial position.

Okada Aiyon Corporation Announces Executive Changes

Okada Aiyon Corporation has announced changes in its directors and executive appointments, which are set to be finalized at the upcoming Annual General Meeting on June 20, 2025. These changes include the appointment of Iwao Okamoto as Director and Deputy Head of Administration Division, and Sumiko Hoashi as an Outside Director, highlighting a strategic shift in leadership roles to potentially enhance corporate governance and operational efficiency.