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

• Market Cap: ¥11.64B
• Dividend Yield: 0.72%
• Average Volume (3M): 15.68K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.05
• 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: 6,920
• 30 Day Avg. Volume: 15,683
• PEG Ratio: -1.35
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 26.45
• 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: ¥7,385.00 ▼(-12.29% Downside)

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

Margin Expansion

Sustained gross margin improvement over multiple years indicates better cost control, pricing power, or a higher-value product mix. This enhances long-term profitability resilience, funds reinvestment in R&D/capacity, and supports operating leverage through business cycles.

Low Leverage / Strong Balance Sheet

Very low leverage provides durable financial flexibility to fund capex, support customers, and withstand downturns without heavy refinancing risk. Strong equity and improving ROE reduce bankruptcy risk and enable strategic investments or opportunistic M&A.

Healthy Free Cash Flow Conversion

High FCF conversion implies earnings translate into cash, supporting dividends, capex, and balance sheet strengthening. Reliable cash generation underpins long-term sustainability and the ability to invest in product development and customer service capabilities.

Negative Factors

Revenue Volatility

Volatile and occasionally negative revenue growth impedes predictable cash flow and capacity planning. Over the medium term this can pressure margins, reduce pricing leverage, and complicate strategic investments and customer retention initiatives.

Weakened Operating Cash Conversion

A falling operating cash conversion rate signals earnings may be less cash-backed, potentially due to working-capital demands or timing. Persistently lower conversion can constrain funding for growth, force higher external financing, and increase sensitivity to cyclical cash swings.

Cyclical End-Market Exposure

Reliance on industrial capex and replacement cycles makes revenue sensitive to macro and sector capital spending. Structural cyclicality can produce prolonged downturns in demand, making long-term revenue visibility and utilization management challenging.

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. shows strong financial health with improving profitability and a stable balance sheet. The company has effectively managed its debt levels while enhancing equity returns. However, revenue growth volatility and fluctuating cash flow growth rates suggest potential areas for strategic focus.

Income Statement

Okano Valve Mfg. Co., Ltd. has demonstrated strong profitability with a consistent increase in gross profit margin from 15.65% in 2020 to 34.99% in 2025. The net profit margin has also improved, reaching 11.78% in 2025. However, the revenue growth rate has been volatile, with a decline of 2.56% in 2025. Despite this, EBIT and EBITDA margins have shown positive trends, indicating efficient operations.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.048 in 2025, reflecting prudent financial management. The equity ratio is strong, and the return on equity has improved over the years, reaching 9.86% in 2024. This indicates effective use of equity to generate profits, although there is room for improvement in overall asset utilization.

Cash Flow

Cash flow analysis shows a robust operating cash flow to net income ratio of 0.37 in 2025, although it has decreased from previous years. Free cash flow to net income ratio remains healthy at 0.74. The free cash flow growth rate has been inconsistent, with a notable decline in 2023, but the company has managed to stabilize it in subsequent years.

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: Negative
• 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 Negative. The current price of 8420 is above the 20-day moving average (MA) of 7663.00, above the 50-day MA of 7964.80, and above the 200-day MA of 7183.62, indicating a bearish trend. The MACD of -336.58 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of 20.31 is Neutral, 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
6490	79 Outperform	¥152.50B	17.73	―	2.50%	-2.46%	-10.72%
6498	72 Outperform	¥174.58B	15.10	10.44%	2.77%	2.74%	7.86%
6486	70 Outperform	¥152.04B	20.25	―	3.88%	1.70%	18.50%
6496	69 Neutral	¥23.50B	14.72	―	1.82%	34.70%	-8.44%
6492	65 Neutral	¥11.64B	11.13	―	0.72%	6.51%	3.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	54 Neutral	¥8.06B	134.84	―	1.65%	3.96%	―