Okada Aiyon Corporation (6294) AI Stock Analysis

• Market Cap: ¥18.72B
• Dividend Yield: 3.29%
• Average Volume (3M): 18.31K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.94
• Revenue Growth: -1.36%
• EPS Growth: 5.14%
• Country: JP
• Employees: 491
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 64.75
• Shares Outstanding: 8,378,700
• 10 Day Avg. Volume: 18,490
• 30 Day Avg. Volume: 18,310
• 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: 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: 74 Outperform
• Price Target: ¥2,619.00 ▲(13.62% Upside)

The stock's overall score is driven by strong technical indicators and reasonable valuation, despite financial performance concerns. The upward price trend and attractive dividend yield are significant positives, while liquidity challenges and increased leverage are key risks.

Positive Factors

Stable Gross Margins

Sustained gross margins near 29-30% indicate durable cost control and product-level pricing power in hydraulic attachments. This margin stability supports long-term profitability even through cyclical construction demand, underpinning consistent contribution to operating income and reinvestment capacity.

Multi-year Revenue Growth

A 30.8% revenue rise over three years shows structural demand expansion and successful market penetration for core machinery and attachments. Multi-year top-line growth supports scale benefits, a larger installed base for aftermarket parts/services, and strengthens long-term cash generation potential.

Solid Equity Ratio

An equity ratio near 48% signals a resilient capital structure that cushions downturns and preserves borrowing capacity. This balance sheet strength helps the company absorb cyclical swings in construction activity, maintain access to funding for capex, and supports strategic investments over time.

Negative Factors

Negative Operating Cash Flow

Operating cash flow turning negative despite reported profits indicates weak cash conversion and strains internal funding for maintenance capex and working capital. Persistent negative OCF forces reliance on external financing, raising long-term cost of capital and limiting flexibility for aftermarket expansion.

Rising Leverage

Higher debt-to-equity elevates fixed obligations and financial risk in a cyclical end market. With leverage rising, the company faces greater refinancing and interest-rate sensitivity, which can constrain capital allocation, reduce resilience to demand shocks, and pressure credit metrics over the medium term.

Eroding Profitability Metrics

Declining net and EBIT margins suggest rising costs or pricing pressure that are reducing returns on sales. If persistent, margin erosion will slow retained-earnings growth and weaken returns on equity, limiting reinvestment and making it harder to finance growth without increasing leverage or diluting shareholders.

Okada Aiyon Corporation Business Overview & Revenue Model

Company Description

Okada Aiyon Corporation manufactures, sells, and repairs construction machines primarily in Japan. Its products include hydraulic breakers; demolition pulverizers; demolition crusher/shear comprising cross cutters, cutters, and primary crushers; recycling attachment, which includes grapples, clean and wood cutters, and screening bucket; coupler; and secondhand attachments. The company was formerly known as OKADA Rock Drill Co. and changed its name to Okada Aiyon Corporation in 1983. Okada Aiyon Corporation was founded in 1938 and is headquartered in Osaka, Japan.

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, but declining profitability metrics and increased leverage pose financial risks. The negative cash flow situation is concerning, 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: 2305.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2305 is below the 20-day moving average (MA) of 2382.70, above the 50-day MA of 2257.90, and above the 200-day MA of 2025.38, indicating a neutral trend. The MACD of 23.62 indicates Positive momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 13.63 is Positive, 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
6294	74 Outperform	¥18.72B	11.81	―	3.29%	-1.36%	5.14%
6306	74 Outperform	¥31.16B	17.22	―	4.26%	-4.23%	-1.63%
6358	70 Outperform	¥19.17B	33.20	―	5.14%	-13.63%	-74.53%
6316	68 Neutral	¥10.81B	12.89	―	3.58%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6310	45 Neutral	¥40.40B	24.79	―	1.56%	10.90%	―
6390	43 Neutral	¥16.03B	-6.03	―	5.40%	-2.22%	18.80%

Okada Aiyon Corporation Corporate Events

Okada Aiyon Completes Strategic Financial Issuance

Okada Aiyon Corporation has successfully completed the payment for the issuance of its Fifth Series of Share Subscription Rights and the First Series of Unsecured Convertible Bonds with Share Subscription Rights through third-party allotment. This strategic financial move is expected to raise significant capital, enhancing the company’s financial flexibility and potentially impacting its market positioning positively.

The most recent analyst rating on (JP:6294) stock is a Buy with a Yen2371.00 price target. To see the full list of analyst forecasts on Okada Aiyon Corporation stock, see the JP:6294 Stock Forecast page.

Okada Aiyon Corporation Announces New Share Subscription Rights and Convertible Bonds

Okada Aiyon Corporation has announced the issuance of its Fifth Series of Share Subscription Rights and First Series of Unsecured Convertible Bonds with Share Subscription Rights through third-party allotment. This strategic financial move is expected to raise significant capital, which could bolster the company’s market position and provide opportunities for growth and expansion. The planned allottee is PSPI III S1, L.P., and the allotment date is set for December 10, 2025. The initiative reflects the company’s proactive approach to leveraging financial instruments to enhance shareholder value and operational capabilities.

The most recent analyst rating on (JP:6294) stock is a Buy with a Yen2371.00 price target. To see the full list of analyst forecasts on Okada Aiyon Corporation stock, see the JP:6294 Stock Forecast page.

Okada Aiyon Partners with Advantage Partners for Growth

Okada Aiyon Corporation has announced a strategic business partnership with Advantage Partners Inc. to accelerate its growth strategies and enhance corporate value. This collaboration aims to leverage Advantage Partners’ expertise in private equity to support Okada Aiyon’s expansion and strengthen its market position.

The most recent analyst rating on (JP:6294) stock is a Buy with a Yen2371.00 price target. To see the full list of analyst forecasts on Okada Aiyon Corporation stock, see the JP:6294 Stock Forecast page.

Okada Aiyon Forms Strategic Alliance with Advantage Partners for Growth

Okada Aiyon Corporation has announced a business alliance with Advantage Partners to enhance its corporate value through advanced management assistance and fundraising. This partnership aims to expand sales in the US and Europe, improve domestic profitability, and enhance after-sales service structures, among other strategic initiatives, leveraging Advantage Partners’ expertise in consulting and growth support.

The most recent analyst rating on (JP:6294) stock is a Buy with a Yen2371.00 price target. To see the full list of analyst forecasts on Okada Aiyon Corporation stock, see the JP:6294 Stock Forecast page.

Okada Aiyon Sees Profit Growth Despite Sales Dip in Q2 2025

Okada Aiyon Corporation reported a slight decrease in net sales by 1.4% for the second quarter of 2025 compared to the same period in 2024. However, the company saw improvements in operating and ordinary profits, which increased by 7.4% and 13.7% respectively, indicating a positive operational performance despite the sales decline.

The most recent analyst rating on (JP:6294) stock is a Buy with a Yen2371.00 price target. To see the full list of analyst forecasts on Okada Aiyon Corporation stock, see the JP:6294 Stock Forecast page.