Ogura Clutch Co., Ltd. (6408) AI Stock Analysis

• Market Cap: ¥5.91B
• Dividend Yield: 1.37%
• Average Volume (3M): 1.10K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.20
• Revenue Growth: -3.05%
• EPS Growth: N/A
• Country: JP
• Employees: 1,887
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 305.95
• Shares Outstanding: 1,553,323
• 10 Day Avg. Volume: 910
• 30 Day Avg. Volume: 1,096
• PEG Ratio: -0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 7.94
• 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: 61 Neutral
• Price Target: ¥4,199.00 ▲(17.45% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Ogura Clutch Co., Ltd. demonstrates a positive trajectory in financial performance, with improved profitability and operational efficiency. However, technical indicators suggest bearish momentum, which could limit short-term gains. The stock's valuation appears attractive with a low P/E ratio, offering potential for long-term investors.

Positive Factors

Profitability Recovery

Ogura’s return to positive net income and improved gross and EBIT margins demonstrate that operating performance and cost control have meaningfully recovered. Sustained profitability increases internal funding capacity for R&D and capex, reduces insolvency risk, and supports long-term business stability if margins hold.

Balanced Capital Structure

The lower debt-to-equity and stable equity ratio indicate progress toward de-leveraging and a more balanced capital base. This improved structure enhances financial flexibility to fund steady capex cycles and absorb cyclical demand shocks, while a positive ROE signals efficient use of equity capital going forward.

Embedded OEM Revenue Model

Ogura’s business is rooted in OEM design‑ins where products are integrated into long-lived machinery. That engineering-led position generates recurring production orders, higher switching costs, and predictable demand streams across industrial and automotive markets, supporting durable revenue visibility.

Negative Factors

High Leverage Remains

Although leverage has improved, absolute debt remains elevated and can constrain strategic flexibility. High debt increases interest and refinancing risk during downturns, limits capacity for opportunistic M&A or aggressive capex, and makes the company more sensitive to cash‑flow volatility over the medium term.

Weakened Free Cash Flow

Declining operating cash flow and reduced free cash flow, driven in part by heavy capex, weaken the company’s ability to self‑fund investments, pay down debt, or increase shareholder distributions. Persistently pressured FCF would force reliance on external financing and reduce resilience to cycle downturns.

Revenue Growth Weakness

Negative revenue growth indicates exposure to cyclical end markets and/or loss of volumes. Weak top‑line trends limit operating leverage, make margin gains harder to sustain, and increase reliance on cost cuts to protect profits. Structural demand recovery is required for durable improvement.

Ogura Clutch Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Ogura Clutch Co., Ltd. generates revenue primarily through the sales of its clutch and brake products to various industries, including automotive and industrial sectors. Key revenue streams include direct sales to original equipment manufacturers (OEMs) and aftermarket sales. The company benefits from long-term partnerships with major automotive manufacturers, which provide a stable demand for its products. Additionally, Ogura Clutch invests in research and development to innovate and improve its offerings, allowing it to maintain a competitive edge and command premium pricing. The company's strong focus on quality and performance helps to secure contracts and repeat business, further contributing to its revenue.

Ogura Clutch Co., Ltd. Financial Statement Overview

Summary

Ogura Clutch Co., Ltd. shows improvement in profitability with a return to positive net income and EBIT margins. The balance sheet reflects moderate leverage with a stable equity ratio, but high debt levels persist. Cash flow from operations is stable, though free cash flow is under pressure due to significant capital expenditures.

Income Statement

Ogura Clutch Co., Ltd. shows a recovering income statement with a notable improvement in net income from a loss of 598 million yen in 2024 to a profit of 1.162 billion yen in 2025. The gross profit margin improved to 15.36% in 2025 from 13.64% in 2024, indicating better cost management. However, revenue growth is modest at 0.96% from 2024 to 2025. The EBIT margin has returned to positive territory at 1.06% in 2025, showing operational improvement.

Balance Sheet

The balance sheet of Ogura Clutch Co., Ltd. reflects moderate leverage with a debt-to-equity ratio of 1.05 in 2025, slightly improved from 1.34 in 2024. The equity ratio is stable at 37.67%, indicating a balanced capital structure. Return on equity is positive at 6.57% in 2025, a significant improvement from negative figures in previous years. However, total assets have slightly decreased, and the company's debt levels remain high.

Cash Flow

Ogura Clutch Co., Ltd.'s cash flow statement shows a decline in operating cash flow from 2.932 billion yen in 2024 to 2.794 billion yen in 2025. Free cash flow has decreased from 723 million yen in 2024 to 603 million yen in 2025, indicating reduced cash generation. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio suggests room for improvement. The company has been investing heavily, impacting free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	43.49B	43.91B	43.49B	44.20B	38.91B	33.61B
Gross Profit	6.88B	6.75B	5.93B	7.21B	5.64B	4.54B
EBITDA	2.83B	3.25B	2.09B	3.15B	1.04B	448.00M
Net Income	634.00M	1.16B	-598.00M	509.00M	-1.13B	-1.58B
Balance Sheet
Total Assets	44.78B	47.01B	48.60B	48.33B	46.77B	42.02B
Cash, Cash Equivalents and Short-Term Investments	7.53B	7.93B	8.66B	7.10B	8.01B	8.40B
Total Debt	17.59B	18.62B	20.52B	19.77B	19.63B	15.01B
Total Liabilities	27.86B	29.31B	33.24B	33.28B	32.70B	26.74B
Stockholders Equity	16.91B	17.70B	15.36B	15.04B	14.05B	14.88B
Cash Flow
Free Cash Flow	0.00	603.00M	723.00M	-792.00M	-4.74B	-443.00M
Operating Cash Flow	0.00	2.79B	2.93B	1.16B	-2.72B	1.16B
Investing Cash Flow	0.00	-495.00M	-2.05B	-1.76B	-1.24B	-1.72B
Financing Cash Flow	0.00	-2.44B	295.00M	-593.00M	3.65B	1.56B

Ogura Clutch Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3575.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6408, the sentiment is Positive. The current price of 3575 is below the 20-day moving average (MA) of 3939.75, below the 50-day MA of 3794.80, and below the 200-day MA of 3693.73, indicating a bullish trend. The MACD of 66.64 indicates Positive momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 35.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6408.

Ogura Clutch Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6402	79 Outperform	¥10.66B	10.22	―	2.15%	-0.94%	6.93%
6336	76 Outperform	¥7.87B	7.68	―	2.63%	0.59%	53.87%
6391	74 Outperform	¥7.66B	11.69	―	1.19%	-14.09%	-36.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6408	61 Neutral	¥5.91B	3.90	―	1.37%	-3.05%	―
6292	61 Neutral	¥5.78B	17.49	―	5.22%	-8.98%	4.00%
6495	55 Neutral	¥10.75B	197.36	―	1.65%	3.96%	―