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

• Market Cap: ¥16.71B
• Dividend Yield: 0.72%
• Average Volume (3M): 15.68K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.97
• 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: 77 Outperform
• Price Target: ¥11,112.00 ▲(31.97% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by improving profitability and a very low-leverage balance sheet, supported by strong bullish technical momentum with the price trending above key moving averages. Valuation is acceptable on earnings (P/E 17.06) but the dividend yield is low, tempering the overall score.

Positive Factors

Improving profitability

Sustained margin expansion to 34.99% gross and 11.78% net indicates durable improvements in pricing, product mix, and cost control. Higher margins increase operational resilience, support reinvestment and shareholder returns, and cushion earnings through industry cycles.

Very low leverage

A debt-to-equity ratio near 0.05 shows a conservative capital structure, providing financial flexibility for capex, R&D or selective M&A without heightened refinancing risk. Low leverage reduces bankruptcy risk during downturns and supports long-term strategic optionality.

Strong cash conversion

A FCF-to-net-income ratio of ~0.74 demonstrates the business converts profits into cash at a healthy rate, supporting capex, working capital and returns. Reliable cash conversion underpins sustainable operations and funds incremental investment without relying on debt.

Negative Factors

Volatile revenue trends

Revenue volatility and a recent decline reduce predictability of future earnings and make it harder to leverage fixed costs. For an industrial valve maker, cyclical end-markets and uneven order flows can constrain long-term planning and slow scaling of margins.

Inconsistent FCF growth

Despite healthy conversion ratios, inconsistent free cash flow growth—including a sharp drop in 2023—limits the firm’s ability to sustainably fund expansions or increase shareholder distributions. Variability complicates multi-year investment decisions.

Moderate return on equity

ROE below double digits signals room to improve asset utilization and capital efficiency. For long-term value creation, the company needs higher asset turnover or margin expansion to convert its conservative balance sheet into stronger returns for shareholders.

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

Strong overall fundamentals: profitability has improved materially (gross margin rising to 34.99% and net margin to 11.78% in 2025) and the balance sheet is conservative (debt-to-equity 0.048). Offsetting this are volatile top-line trends including a 2.56% revenue decline in 2025 and uneven free cash flow growth.

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	Sep 2025	Nov 2024	Nov 2023	Nov 2022	Nov 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: Positive
• Last Price: 8420.00
• 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:6492, the sentiment is Positive. The current price of 8420 is below the 20-day moving average (MA) of 8669.00, above the 50-day MA of 8163.20, and above the 200-day MA of 7599.20, indicating a bullish trend. The MACD of 634.12 indicates Negative momentum. The RSI at 63.39 is Neutral, neither overbought nor oversold. The STOCH value of 41.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6492	77 Outperform	¥16.71B	15.97	―	0.72%	6.51%	3.68%
6490	76 Outperform	¥200.97B	22.58	―	2.50%	-2.46%	-10.72%
6498	72 Outperform	¥187.69B	16.40	10.44%	2.77%	2.74%	7.86%
6486	70 Outperform	¥168.25B	20.47	―	3.88%	1.70%	18.50%
6496	69 Neutral	¥26.93B	16.86	―	1.82%	34.70%	-8.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	55 Neutral	¥13.20B	242.29	―	1.65%	3.96%	―