Return To ProfitabilityOgura's shift from a loss to ¥1.162bn profit and improved gross margin (15.36% vs 13.64%) reflects sustainable operational repair and cost control. This restores internal capital for reinvestment and reduces reliance on external funding, strengthening medium-term earnings resilience.

Improving Capital StructureAn improved debt-to-equity ratio and stable equity ratio indicate a more balanced capital structure, giving Ogura greater financial flexibility. This supports funding of product development and capex while keeping leverage at a manageable level for the industrial machinery cycle.

Embedded OEM DemandOgura's business model centers on engineering-led design-ins and recurring OEM supply into factory automation, machine tools and automotive systems. Embedded components create sticky demand and predictable production lifecycles, underpinning stable revenue streams over multiple quarters.

Bears Say

Persistently High DebtAlthough leverage eased, absolute debt levels remain elevated, leaving the company sensitive to interest-rate shifts and refinancing cycles. High debt can restrict strategic investments, limit buffer against downturns, and increase fixed costs that compress margins over time.

Weakened Free Cash FlowOperating cash flow and free cash flow dipped as the company increased capex. Sustained heavy investment can erode distributable cash and heighten borrowing needs, constraining capacity to fund dividends, R&D, or M&A without adding leverage or diluting equity.

Low Revenue Growth & Slim MarginsSub‑1% top-line growth and a very thin EBIT margin suggest limited pricing power and modest scale expansion. With low operational margin cushion, the company remains vulnerable to input-cost inflation or weaker demand, undermining the durability of profit improvements.

6408 FAQ

What was Ogura Clutch Co., Ltd.’s price range in the past 12 months?

Ogura Clutch Co., Ltd. lowest stock price was ¥3125.00 and its highest was ¥4290.00 in the past 12 months.

What is Ogura Clutch Co., Ltd.’s market cap?

Ogura Clutch Co., Ltd.’s market cap is ¥6.03B.

When is Ogura Clutch Co., Ltd.’s upcoming earnings report date?

Ogura Clutch Co., Ltd.’s upcoming earnings report date is May 20, 2026 which is in 72 days.

How were Ogura Clutch Co., Ltd.’s earnings last quarter?

Ogura Clutch Co., Ltd. released its earnings results on Feb 12, 2026. The company reported ¥305.95 earnings per share for the quarter, beating the consensus estimate of N/A by ¥305.95.

Is Ogura Clutch Co., Ltd. overvalued?

According to Wall Street analysts Ogura Clutch Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Ogura Clutch Co., Ltd. pay dividends?

Ogura Clutch Co., Ltd. pays a Annually dividend of ¥50 which represents an annual dividend yield of 1.37%. See more information on Ogura Clutch Co., Ltd. dividends here

What is Ogura Clutch Co., Ltd.’s EPS estimate?

Ogura Clutch Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Ogura Clutch Co., Ltd. have?

Ogura Clutch Co., Ltd. has 1,553,323 shares outstanding.

What happened to Ogura Clutch Co., Ltd.’s price movement after its last earnings report?

Ogura Clutch Co., Ltd. reported an EPS of ¥305.95 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 8.983%.

Which hedge fund is a major shareholder of Ogura Clutch Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6408

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Ogura Clutch Co., Ltd.

Ogura Clutch Co., Ltd. (6408) is a leading manufacturer specializing in the production of clutches and brakes for a diverse range of applications, including automotive, industrial machinery, and construction equipment. Established in Japan, the company has built a strong reputation for high-quality products and innovative engineering solutions. Ogura Clutch operates in sectors such as automotive components, industrial machinery, and various specialized markets, providing reliable and efficient products that meet the demands of its global clientele.