Okada Aiyon Corporation (6294) AI Stock Analysis

• Market Cap: ¥16.30B
• Dividend Yield: 3.57%
• Average Volume (3M): 16.22K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.95
• Revenue Growth: -1.44%
• EPS Growth: -23.59%
• Country: JP
• Employees: 491
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 40.77
• Shares Outstanding: 8,378,700
• 10 Day Avg. Volume: 14,320
• 30 Day Avg. Volume: 16,223
• PEG Ratio: -0.48
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -12.45
• 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: ¥2,096.00
• Price Target Upside: 3.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥2,096.00 ▲(3.71% Upside)

The overall score reflects a strong valuation profile with a low P/E ratio and high dividend yield as the most significant strengths. While financial performance shows robust revenue growth, declining profitability and negative cash flow are concerns. Technical analysis supports a neutral to slightly bullish outlook.

Okada Aiyon Corporation Business Overview & Revenue Model

Company Description

Okada Aiyon Corporation (6294) is a Japan-based company primarily involved in the manufacturing and development of industrial machinery and equipment, with a focus on the construction and mining sectors. The company specializes in products such as hydraulic excavators, large-scale construction machinery, and other heavy equipment, providing solutions that enhance productivity and efficiency in various industrial applications. Okada Aiyon also engages in the design and production of attachments for construction machinery, which are integral to the versatility and functionality of their primary offerings.

How the Company Makes Money

Okada Aiyon Corporation generates revenue through several key streams, primarily from the sales of its heavy machinery and construction equipment. The company's main revenue model is based on the production and sale of hydraulic excavators and specialized attachments, which are sold to construction firms and contractors both domestically and internationally. Additionally, the company earns revenue through after-sales services, including maintenance, repairs, and spare parts supply, which provide ongoing support for its machinery. Strategic partnerships with construction companies and distributors enhance its market reach and contribute to steady sales growth. Furthermore, Okada Aiyon benefits from investments in research and development, allowing it to innovate and introduce new products that meet evolving industry demands, thereby driving additional revenue.

Okada Aiyon Corporation Financial Statement Overview

Summary

Okada Aiyon Corporation shows strong revenue growth and stable profit margins. However, declining profitability metrics and increased leverage pose potential financial risks. The cash flow situation is concerning, with negative free cash flow indicating 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.55B	26.58B	27.10B	23.58B	20.31B	17.59B
Gross Profit	7.88B	7.86B	8.15B	6.79B	5.97B	5.05B
EBITDA	2.73B	3.01B	3.50B	2.66B	2.29B	1.83B
Net Income	1.39B	1.48B	1.89B	1.41B	1.19B	919.30M
Balance Sheet
Total Assets	35.42B	35.99B	34.01B	30.59B	25.52B	22.27B
Cash, Cash Equivalents and Short-Term Investments	4.90B	4.85B	4.47B	3.12B	3.60B	4.30B
Total Debt	12.69B	12.47B	10.28B	9.29B	6.19B	6.05B
Total Liabilities	18.82B	18.76B	17.99B	16.63B	12.97B	10.88B
Stockholders Equity	16.60B	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: Positive
• Last Price: 2021.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 2021 is below the 20-day moving average (MA) of 2021.20, below the 50-day MA of 2026.86, and above the 200-day MA of 1922.82, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 78.21 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6306	73 Outperform	¥29.55B	18.28	―	4.42%	4.63%	-1.01%
6294	72 Outperform	¥16.30B	11.81	―	3.57%	-1.44%	-23.59%
6358	68 Neutral	¥18.20B	21.23	―	4.92%	-16.47%	-68.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6316	62 Neutral	¥9.76B	15.18	―	3.46%	―	―
6310	56 Neutral	¥54.13B	60.53	―	1.23%	5.63%	―
6390	49 Neutral	¥16.46B	―	―	4.94%	-1.28%	-287.74%

Okada Aiyon Corporation Corporate Events

Okada Aiyon Corporation Reports Decline in Quarterly Results

Okada Aiyon Corporation reported a slight decrease in its quarterly operating results for June 2025, with net sales dropping by 0.6% and operating profit declining by 6.4% compared to the previous year. The company’s financial position remains stable, though there was a notable decrease in comprehensive income, impacting its profitability and stakeholder returns.