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

• Market Cap: ¥6.89B
• Dividend Yield: 1.37%
• Average Volume (3M): 1.10K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.16
• 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: 67 Neutral
• Price Target: ¥4,991.00 ▲(39.61% Upside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is driven primarily by improving financial performance (return to profitability and positive operating margin) but tempered by still-high leverage and weaker free cash flow. Technicals are strong with clear momentum above major moving averages, though overbought signals increase near-term risk. Valuation is a major positive due to the very low P/E alongside a modest dividend.

Positive Factors

Return to profitability

Ogura moved from a loss to a 1.162 billion yen profit in 2025 with EBIT margin back in positive territory. This operational recovery strengthens cash generation potential, supports reinvestment in products and customers, and improves stakeholder confidence over the medium term.

Recurring OEM business model

The company's revenue is driven by embedded OEM sales and engineering design-in, creating recurring orders across industrial and automotive equipment lifecycles. This structural customer stickiness supports steady demand and reduces revenue volatility over multiple quarters.

Improving balance-sheet metrics

Leverage has started to improve and equity ratio is stable, with ROE turning positive. These changes increase financial flexibility versus prior years, helping the company better support capital expenditure cycles and negotiate with lenders over the coming months.

Negative Factors

Still-elevated leverage

Although debt ratios have improved, absolute debt remains elevated. Persistently high leverage limits strategic flexibility, increases sensitivity to interest costs and could constrain capital allocation choices if cash generation weakens or investments remain sizable.

Declining free cash flow

FCF declined due to heavier investment despite reported profit. Reduced free cash flow limits the company’s ability to rapidly deleverage, increase dividends, or self-fund new product development without raising external capital over the medium term.

Modest revenue growth and thin margins

Top-line growth is muted and operating margins are thin, leaving limited cushion against cyclical demand dips or cost inflation. This structural mix constrains the pace at which the company can expand margins, invest in new capabilities, or accelerate deleveraging.

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 primarily generates revenue by manufacturing and selling clutch- and brake-related components and systems. Its core revenue streams are (1) product sales of electromagnetic clutches and brakes and other motion/power-control components to industrial equipment and machinery customers (typically supplied as OEM parts incorporated into end-products such as factory automation equipment, machine tools, printing/packaging machinery, and other industrial systems), and (2) sales of clutch-related products into automotive and other end markets where the company’s components are integrated into customers’ assemblies. The company earns money mainly through unit sales under supply agreements and repeat OEM demand, supported by engineering/design-in work that embeds its components into customers’ platforms and drives recurring production orders over product lifecycles. Information on specific customer names, partnership structures, pricing terms, or the exact segment revenue breakdown is null.

Ogura Clutch Co., Ltd. Financial Statement Overview

Summary

Profitability has improved meaningfully (net income swung from a loss to a profit and EBIT margin turned positive), but revenue growth remains modest. Leverage is still elevated despite improvement, and free cash flow has declined due to heavy investment.

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	2.57B	2.37B	1.54B	2.32B	669.00M	1.04B
Net Income	634.00M	1.16B	-598.00M	508.00M	-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	18.81B	20.81B	20.17B	19.88B	15.35B
Total Liabilities	27.86B	29.31B	33.24B	33.27B	32.69B	26.74B
Stockholders Equity	16.91B	17.70B	15.36B	15.04B	14.06B	14.89B
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: Negative
• 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 4228.25, below the 50-day MA of 3962.30, and below the 200-day MA of 3750.13, indicating a bullish trend. The MACD of 208.48 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 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
6371	81 Outperform	¥246.42B	9.64	8.91%	3.85%	1.48%	8.86%
6317	78 Outperform	¥15.86B	15.61	―	3.41%	-3.27%	572.42%
5195	77 Outperform	¥87.39B	8.96	―	3.82%	3.68%	-46.19%
6327	74 Outperform	¥13.02B	7.89	―	1.17%	53.68%	146.92%
6408	67 Neutral	¥6.89B	3.03	―	1.37%	-3.05%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6393	60 Neutral	¥12.94B	10.99	―	6.70%	7.96%	43.37%