Okano Valve Mfg. Co., Ltd. (6492) AI Stock Analysis

• Market Cap: ¥13.89B
• Dividend Yield: 0.59%
• Average Volume (3M): 13.76K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.98
• Revenue Growth: 6.51%
• EPS Growth: 3.68%
• Country: JP
• Employees: 335
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 1,793,000
• 10 Day Avg. Volume: 10,850
• 30 Day Avg. Volume: 13,756
• PEG Ratio: 0.14
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 4.60
• 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: 75 Outperform
• Price Target: ¥9,601.00 ▲(14.03% Upside)

The overall stock score is driven primarily by the company's strong financial performance, characterized by significant revenue growth and robust cash flow management. Technical analysis indicates a neutral to slightly positive outlook, while valuation metrics suggest the stock is reasonably priced. The absence of earnings call data and corporate events means these factors did not influence the score.

Okano Valve Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Okano Valve Mfg. Co., Ltd. (6492) is a leading manufacturer in the valve industry, specializing in the production of high-quality valves for various sectors including oil and gas, water supply, and industrial applications. The company is known for its innovative designs and robust manufacturing processes, producing a wide range of valve products such as gate valves, globe valves, and check valves, which are essential for controlling fluid flow in pipelines and other systems.

How the Company Makes Money

Okano Valve Mfg. Co., Ltd. generates revenue primarily through the sale of its valve products to a diverse range of industries, including energy, water treatment, and manufacturing. The company's revenue model is based on direct sales to distributors and end-users, as well as long-term contracts with major industrial clients. Key revenue streams include bulk orders for large infrastructure projects and ongoing supply agreements for maintenance and replacement valves. Additionally, Okano Valve may benefit from partnerships with engineering firms and contractors, enhancing its market reach and establishing a reliable customer base. The company’s investments in research and development also contribute to its earnings by enabling the introduction of new products and technologies that meet evolving market demands.

Okano Valve Mfg. Co., Ltd. Financial Statement Overview

Summary

Okano Valve Mfg. Co., Ltd. presents an exemplary financial profile, characterized by significant revenue growth, strong profitability, and efficient cash flow management. The balance sheet is solid, with low debt levels and high equity, mitigating financial risk. Overall, the company is well-positioned for sustainable growth and stability in the industrial machinery sector.

Income Statement

Okano Valve Mfg. Co., Ltd. has demonstrated strong revenue growth of 10.28% over the past year, with total revenue increasing from ¥7.4 billion to ¥8.2 billion. The gross profit margin improved significantly to 32.23%, indicating efficient production and cost management. The net profit margin stands at an impressive 13.49%, showcasing strong profitability. EBIT and EBITDA margins have also improved, reflecting robust operational performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.08, indicating conservative leverage practices. The return on equity (ROE) is high at 9.86%, reflecting efficient use of shareholder funds to generate profits. The equity ratio of 78.67% underscores a solid capital structure with a high proportion of equity financing, reducing financial risk.

Cash Flow

Okano Valve Mfg. Co., Ltd. has achieved substantial growth in free cash flow, showing an impressive increase of 544.44% from the previous year. The operating cash flow to net income ratio is 2.06, indicating strong cash conversion efficiency. Additionally, the free cash flow to net income ratio of 1.74 demonstrates robust cash generation relative to net income, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.63B	8.17B	7.41B	6.89B	5.85B	6.36B
Gross Profit	2.77B	2.63B	1.85B	1.42B	1.20B	995.96M
EBITDA	1.63B	1.65B	1.30B	997.00M	808.00M	833.43M
Net Income	1.10B	1.10B	697.00M	483.00M	303.00M	375.00M
Balance Sheet
Total Assets	14.30B	14.21B	12.71B	12.41B	12.10B	12.59B
Cash, Cash Equivalents and Short-Term Investments	4.58B	4.40B	3.53B	4.28B	3.89B	3.51B
Total Debt	701.00M	858.00M	1.15B	1.46B	1.77B	2.09B
Total Liabilities	2.52B	3.03B	2.70B	2.96B	3.09B	3.77B
Stockholders Equity	11.78B	11.18B	10.01B	9.46B	9.00B	8.82B
Cash Flow
Free Cash Flow	0.00	1.91B	297.00M	818.00M	757.00M	1.01B
Operating Cash Flow	0.00	2.27B	471.00M	996.00M	861.00M	1.08B
Investing Cash Flow	0.00	-1.03B	-700.00M	-178.00M	-84.00M	-73.27M
Financing Cash Flow	0.00	-370.00M	-516.00M	-432.00M	-396.00M	-407.12M

Okano Valve Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8420.00
• 50DMA: Negative
• 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:6492, the sentiment is Neutral. The current price of 8420 is below the 20-day moving average (MA) of 8623.00, below the 50-day MA of 8608.66, and above the 200-day MA of 6367.15, indicating a neutral trend. The MACD of 51.85 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 37.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6492.

Okano Valve Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6496	76 Outperform	¥21.96B	15.82	―	1.68%	34.70%	-8.44%
6492	75 Outperform	¥13.89B	11.99	―	0.59%	6.51%	3.68%
6490	75 Outperform	¥121.53B	14.42	―	2.56%	-0.98%	-18.48%
6486	69 Neutral	¥136.61B	24.01	―	3.82%	>-0.01%	-26.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	50 Neutral	¥5.52B	81.52	―	1.77%	10.04%	339.33%