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Okada Aiyon Corporation (JP:6294)
:6294
Japanese Market

Okada Aiyon Corporation (6294) AI Stock Analysis

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JP

Okada Aiyon Corporation

(6294)

Rating:68Neutral
Price Target:
¥2,047.00
▲(8.42%Upside)
Okada Aiyon Corporation's overall stock score is driven by its strong valuation metrics, suggesting it may be undervalued with a good dividend yield. However, financial performance concerns, particularly around cash flow and increased leverage, along with neutral to bearish technical indicators, temper the overall positive valuation outlook.

Okada Aiyon Corporation (6294) vs. iShares MSCI Japan ETF (EWJ)

Okada Aiyon Corporation Business Overview & Revenue Model

Company DescriptionOkada Aiyon Corporation is a Japanese company that specializes in the manufacturing and distribution of industrial machinery and equipment. The company operates primarily in the construction and recycling sectors, offering a wide range of products including hydraulic breakers, crushers, and environmental recycling machines. With a focus on innovation and sustainability, Okada Aiyon provides solutions that enhance productivity and efficiency in construction and demolition projects.
How the Company Makes MoneyOkada Aiyon Corporation generates revenue through the sale of its industrial machinery and equipment to clients in the construction and recycling industries. The company's primary revenue streams include the sale of hydraulic breakers, crushers, and other related machinery. Additionally, Okada Aiyon offers maintenance and after-sales services, which contribute to its earnings. The company may also engage in strategic partnerships with construction firms and recycling companies to enhance its market reach and product offerings. Factors such as technological innovation, customer service, and a strong distribution network play a significant role in its revenue generation.

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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue26.16B26.58B27.10B23.58B20.31B17.59B
Gross Profit7.71B7.86B8.15B6.79B5.97B5.05B
EBITDA2.49B3.01B3.50B2.66B2.29B1.83B
Net Income1.55B1.48B1.89B1.41B1.19B919.30M
Balance Sheet
Total Assets36.45B35.99B34.01B30.59B25.52B22.27B
Cash, Cash Equivalents and Short-Term Investments5.02B4.85B4.47B3.12B3.60B4.30B
Total Debt12.37B12.47B10.28B9.29B6.19B6.05B
Total Liabilities19.53B18.76B17.99B16.63B12.97B10.88B
Stockholders Equity16.92B17.24B16.02B13.96B12.54B11.39B
Cash Flow
Free Cash Flow0.00-1.23B1.22B-1.77B-684.16M1.16B
Operating Cash Flow0.00-7.80M2.01B-658.20M969.98M2.17B
Investing Cash Flow0.00-1.13B-1.29B-2.57B-1.62B-1.13B
Financing Cash Flow0.001.48B382.97M2.77B-111.69M69.89M

Okada Aiyon Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1888.00
Price Trends
50DMA
1865.76
Positive
100DMA
1897.50
Negative
200DMA
1898.54
Negative
Market Momentum
MACD
1.33
Negative
RSI
56.60
Neutral
STOCH
55.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6294, the sentiment is Positive. The current price of 1888 is above the 20-day moving average (MA) of 1865.70, above the 50-day MA of 1865.76, and below the 200-day MA of 1898.54, indicating a neutral trend. The MACD of 1.33 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 55.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6294.

Okada Aiyon Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
¥27.60B13.81
4.71%11.49%52.70%
73
Outperform
¥17.58B12.00
5.98%-15.65%-41.32%
68
Neutral
¥15.12B10.29
3.92%-1.89%-21.95%
68
Neutral
¥9.17B14.26
4.22%
65
Neutral
$10.89B15.565.22%1.87%3.09%-26.84%
57
Neutral
¥31.88B
2.13%1.56%-720.36%
49
Neutral
¥15.75B
5.21%-7.94%-242.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6294
Okada Aiyon Corporation
1,888.00
-432.69
-18.64%
JP:6306
Nikko Co., Ltd.
722.00
-26.15
-3.50%
JP:6310
Iseki & Co., Ltd.
1,385.00
376.40
37.32%
JP:6316
Maruyama Mfg.Co., Inc.
2,015.00
-314.58
-13.50%
JP:6358
Sakai Heavy Industries, Ltd.
2,029.00
-856.40
-29.68%
JP:6390
KATO WORKS CO., LTD.
1,344.00
128.18
10.54%

Okada Aiyon Corporation Corporate Events

Okada Aiyon Corporation Announces Treasury Shares Disposal for Director Compensation
Jul 11, 2025

Okada Aiyon Corporation has resolved to dispose of treasury shares as part of a restricted stock compensation plan aimed at directors, excluding outside directors. This initiative is designed to align directors’ interests with shareholders by sharing stock price risks and benefits, thereby motivating directors to enhance corporate and stock value over the long term. The plan involves allotting 3,400 shares of common stock to four directors, with restrictions on transfer for 30 years. This move is expected to strengthen the company’s governance and incentivize directors to focus on long-term growth.

Okada Aiyon Unveils Strategic Plan for FY2026-2028
May 23, 2025

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
May 14, 2025

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
May 14, 2025

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
Apr 24, 2025

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.

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: Jul 10, 2025