Organo Corp. (6368) AI Stock Analysis

• Market Cap: ¥744.78B
• Dividend Yield: 1.43%
• Average Volume (3M): 305.77K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.62
• Revenue Growth: 7.87%
• EPS Growth: 38.32%
• Country: JP
• Employees: 2,512
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 171.53
• Shares Outstanding: 46,359,700
• 10 Day Avg. Volume: 290,510
• 30 Day Avg. Volume: 305,770
• PEG Ratio: 0.31
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 11.04
• 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: ¥15,000.00
• Price Target Upside: 15.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥18,328.00 ▲(41.47% Upside)

The score is primarily driven by strong financial performance with improving profitability and resilient cash generation. This is tempered by overbought technical conditions despite a clear uptrend, and a valuation profile that appears only moderately attractive given the P/E and modest dividend yield.

Positive Factors

Improving profit margins

Organo's income statement shows materially stronger net, gross and operating margins, indicating durable improvements in cost structure and pricing power. Higher margins boost cash conversion, fund R&D and commercialization, and increase resilience to demand swings over the next 2-6 months.

Resilient cash generation

The company's operating cash flow recovery and improving free cash flow to net income ratio point to sustainable internal funding capacity. Reliable cash generation reduces reliance on external financing, supports steady R&D investment and strategic initiatives, and enhances financial flexibility.

Solid balance sheet and manageable leverage

A strong equity base and moderate debt levels provide Organo with balance-sheet flexibility to weather cyclicality, pursue targeted M&A, or increase capex for product development. Manageable leverage lowers refinancing risk and preserves capacity for strategic action over ensuing months.

Negative Factors

Moderate revenue growth pace

Reported ~7.9% revenue growth is constructive but modest for a biotech/health company aiming to scale. Sustained mid-single-digit growth may limit market-share gains and requires continued margin expansion or inorganic moves to meet higher return targets and support long-term R&D investments.

Above-market volatility

A beta above 1.6 signals that earnings and cash flows are relatively sensitive to macro shifts and investor sentiment. Elevated volatility raises the effective cost of capital, complicates long-term planning and timing of strategic moves, and can constrain access to opportunistic financing.

Reliance on direct-to-consumer channel

Heavy exposure to a DTC sales model captures margins but demands sustained marketing spend and strong retention. Persistent customer acquisition costs and channel concentration risk can pressure margins and growth durability unless the company builds a robust brand moat and lowers churn over time.

Organo Corp. Business Overview & Revenue Model

Company Description

Organo Corporation operates as a water treatment engineering company in Japan and internationally. The company operates through two segments, Water Treatment Engineering Business Unit and Performance Products Business Unit. It offers pure water systems, such as reverse osmosis (RO) systems, regenerative automatic and manual pure water systems, electric regeneration pure water systems, desktop-type pure water systems, cabinet-type pure water systems, electrode ionization high-purity water systems, cartridge water purifiers, and two-stage RO systems; ultrapure water systems, including desktop and cabinet-type ultrapure water systems, and final polishing unit; and other equipment comprising alkaline electrolyzed water production equipment, homogenizers, electro conductivity meters, resistivity meters, and ion exchange filters. The company also provides water, wastewater, and RO water treatment chemicals; industrial filters consisting of micro filter, sanitary, polypropylene, and plastic housings, as well as micro, RO wound, PF cartridge, capsule, and PF carbon; and commercial water purifiers. In addition, it offers ultrapure and multi-functional water production systems, wastewater treatment systems, valuable resource recovery systems, and organic solvent refining systems for the electronics industry; water supply and sewage treatment facilities; purified water production and supply systems, UF water production and supply systems, and water for injection production and supply systems, as well as pharmaceutical water system consulting services; condensate filter, condensate demineralizer, reactor water cleanup, fuel pool cleanup, makeup water, and waste water treatment systems; and sugar refining systems and equipment. The company was formerly known as Japan Organo Co., Ltd. and changed its name to Organo Corporation in 1966. Organo Corporation was incorporated in 1941 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Organo Corp. generates revenue through multiple streams, primarily from the sale of its biopharmaceutical products and health supplements. The company leverages a direct-to-consumer model, allowing it to capture retail margins and build brand loyalty. Additionally, revenue is supplemented through collaborations with healthcare providers, where Organo Corp. receives fees for product placements and joint marketing initiatives. Strategic partnerships with research institutions also contribute to revenue through grants and funding for joint research projects aimed at developing new therapies. Furthermore, the company may monetize its intellectual property through licensing agreements for its proprietary technologies and formulations.

Organo Corp. Financial Statement Overview

Summary

Strong financial profile supported by improving revenue growth and rising gross/EBIT/EBITDA and net profit margins. Balance sheet leverage appears manageable with a solid equity position, and cash flow shows resilient operating cash flow with improving free cash flow efficiency.

Income Statement

Organo Corp. has shown strong revenue growth, with a consistent increase in total revenue over the years, indicating a positive trajectory. The gross profit margin has improved, reflecting efficient cost management. Notably, the net profit margin has strengthened markedly, showcasing enhanced profitability. EBIT and EBITDA margins have also shown consistent improvement, underscoring robust operational performance.

Balance Sheet

The balance sheet of Organo Corp. reveals a solid equity position, with a favorable equity ratio indicating financial stability. The debt-to-equity ratio is within a reasonable range, suggesting manageable leverage levels. Additionally, the company has shown a strong return on equity, reflecting effective utilization of shareholder funds and solid profitability.

Cash Flow

Organo Corp.'s cash flow statement indicates a strong recovery in operating cash flow, supporting a positive free cash flow trend. The operating cash flow to net income ratio is robust, confirming effective cash conversion. Meanwhile, the free cash flow to net income ratio has improved, signaling efficient capital management despite past fluctuations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	169.76B	163.27B	150.36B	132.43B	112.07B	100.64B
Gross Profit	58.45B	55.18B	43.84B	34.98B	28.51B	26.33B
EBITDA	36.63B	34.53B	25.88B	18.02B	14.15B	11.02B
Net Income	25.12B	24.15B	17.31B	11.73B	9.21B	7.07B
Balance Sheet
Total Assets	190.39B	194.40B	182.70B	164.85B	130.51B	115.01B
Cash, Cash Equivalents and Short-Term Investments	20.57B	16.75B	17.64B	15.56B	20.20B	12.80B
Total Debt	28.15B	22.56B	36.47B	33.02B	15.63B	16.00B
Total Liabilities	71.01B	73.20B	80.56B	78.48B	54.50B	47.65B
Stockholders Equity	119.38B	120.95B	101.93B	86.17B	75.84B	67.21B
Cash Flow
Free Cash Flow	0.00	26.54B	2.08B	-19.99B	7.99B	-5.84B
Operating Cash Flow	0.00	28.80B	3.73B	-18.54B	10.79B	-4.58B
Investing Cash Flow	0.00	-2.13B	-1.42B	-1.31B	-1.52B	-1.26B
Financing Cash Flow	0.00	-20.82B	-641.00M	14.71B	-2.59B	4.93B

Organo Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12955.00
• 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:6368, the sentiment is Positive. The current price of 12955 is below the 20-day moving average (MA) of 15332.00, below the 50-day MA of 13890.30, and above the 200-day MA of 10899.48, indicating a bullish trend. The MACD of 771.00 indicates Negative momentum. The RSI at 63.59 is Neutral, neither overbought nor oversold. The STOCH value of 66.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6368.

Organo Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6332	80 Outperform	¥105.86B	7.26	―	3.20%	2.46%	533.70%
6331	79 Outperform	¥76.75B	11.35	16.37%	2.79%	31.48%	16.11%
9551	76 Outperform	¥119.19B	14.25	12.54%	1.84%	13.86%	51.05%
6368	72 Outperform	¥744.78B	27.09	―	1.43%	7.87%	38.32%
6013	71 Outperform	¥196.72B	18.96	9.02%	3.11%	1.25%	-3.97%
6370	71 Outperform	¥866.78B	37.88	6.61%	1.58%	5.02%	-27.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%