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

• Market Cap: ¥13.35B
• Dividend Yield: 0.76%
• Average Volume (3M): 16.60K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.02
• 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: 12,740
• 30 Day Avg. Volume: 16,603
• 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: 65 Neutral
• Price Target: ¥8,579.00 ▲(1.89% Upside)

Okano Valve Mfg. Co., Ltd. has a solid financial foundation with strong profitability and a stable balance sheet. However, technical indicators suggest a bearish trend, and valuation metrics indicate the stock is fairly valued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Profitability

Improving net profit margins indicate strong operational efficiency and cost management, enhancing long-term profitability.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing stability and flexibility for future investments.

Gross Profit Margin

Rising gross profit margins suggest effective cost control and pricing power, supporting sustained earnings growth.

Negative Factors

Revenue Growth Volatility

Volatile revenue growth can indicate market challenges or competitive pressures, potentially impacting long-term stability.

Cash Flow Fluctuations

Inconsistent cash flow growth can limit reinvestment opportunities and affect financial planning, posing risks to future expansion.

Revenue Growth Volatility

Revenue volatility and cash flow fluctuations highlight the need for strategic initiatives to stabilize and enhance growth.

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

Company Description

Okano Valve Mfg.Co.Ltd. produces and sells industrial valve for high pressure and high-temperature service in Japan and internationally. The company's value products include globe, gate, check, safety and relief, screw-down stop check, drain, lining, NAC, control, and 3-way valves, as well as other valve accessories, such as expanded graphite seal rings, safety valve adapters, and nozzle cleaners. It also offers steel castings; and maintenance services comprising valve seat, nut seat face, flange gasket and seal ring contact faces, neck bush, stem bush wear measurement, safety valves, ampere-voltage-diagnostic systems AVD, valve maintenance management support system, and chemical decontamination of valves, as well as operates technical training centers. The company provides its products for thermal and nuclear power plants, and chemical industries, as well as marine, steel manufacturing, textile, and other industrial service applications. Okano Valve Mfg.Co.Ltd. was founded in 1926 and is headquartered in Kitakyushu, Japan.

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 with strong revenue growth, high profitability, and efficient cash flow management. The balance sheet is robust, with low debt levels and high equity, reducing financial risk.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.63B	8.41B	8.17B	7.41B	6.89B	5.85B
Gross Profit	2.77B	2.94B	2.63B	1.85B	1.42B	1.20B
EBITDA	1.63B	1.81B	1.65B	1.30B	997.00M	808.00M
Net Income	1.10B	990.00M	1.10B	697.00M	483.00M	303.00M
Balance Sheet
Total Assets	14.30B	14.55B	14.21B	12.71B	12.41B	12.10B
Cash, Cash Equivalents and Short-Term Investments	4.58B	4.92B	4.40B	3.53B	4.28B	3.89B
Total Debt	701.00M	577.00M	858.00M	1.15B	1.46B	1.77B
Total Liabilities	2.52B	2.54B	3.03B	2.70B	2.96B	3.09B
Stockholders Equity	11.78B	12.00B	11.18B	10.01B	9.46B	9.00B
Cash Flow
Free Cash Flow	0.00	516.00M	1.91B	297.00M	818.00M	757.00M
Operating Cash Flow	0.00	698.00M	2.27B	471.00M	996.00M	861.00M
Investing Cash Flow	0.00	196.00M	-1.03B	-700.00M	-178.00M	-84.00M
Financing Cash Flow	0.00	-392.00M	-370.00M	-516.00M	-432.00M	-396.00M

Okano Valve Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8420.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6492, the sentiment is Negative. The current price of 8420 is above the 20-day moving average (MA) of 8286.00, above the 50-day MA of 8402.40, and above the 200-day MA of 6720.31, indicating a neutral trend. The MACD of -138.53 indicates Positive momentum. The RSI at 43.72 is Neutral, neither overbought nor oversold. The STOCH value of 9.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥20.46B	14.74	―	1.84%	34.70%	-8.44%
6486	69 Neutral	¥136.61B	24.01	―	3.96%	1.70%	18.50%
6490	67 Neutral	¥121.53B	14.42	―	2.57%	-2.46%	-10.72%
6492	65 Neutral	¥13.35B	12.77	―	0.76%	6.51%	3.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	50 Neutral	¥5.52B	81.52	―	1.71%	3.96%	―