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

• Market Cap: ¥12.96B
• Dividend Yield: 0.52%
• Average Volume (3M): 10.00K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.82
• Revenue Growth: 6.51%
• EPS Growth: 3.68%
• Country: JP
• Employees: 335
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): 281.99
• Shares Outstanding: 1,793,000
• 10 Day Avg. Volume: 15,700
• 30 Day Avg. Volume: 10,003
• PEG Ratio: -1.08
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥7,124.00
• Price Target Upside: -1.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥7,697.00 ▲(6.46%Upside)

Okano Valve Mfg. Co., Ltd.'s strong financial performance is the primary driver of its overall score, supported by a solid balance sheet and efficient cash flow management. The technical analysis suggests bullish momentum but flags a possible short-term correction due to overbought conditions. Despite this, the stock's valuation remains attractive, reinforcing its investment appeal.

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

Company Description

Okano Valve Mfg. Co., Ltd. (6492) is a Japanese company specializing in the manufacturing of industrial valves. The company operates within the industrial machinery sector, providing a wide range of valve products that cater to various industries, including oil and gas, chemical, power generation, and water treatment. Okano Valve is known for its high-quality and reliable valve solutions, which are essential components in controlling and regulating the flow of fluids in industrial processes.

How the Company Makes Money

Okano Valve Mfg. Co., Ltd. generates revenue primarily through the sale of its industrial valve products. The company's key revenue streams include product sales to various industries that require specialized valves for their operations, such as oil and gas, chemical processing, and power generation facilities. Okano Valve likely has multiple distribution channels, including direct sales to end-users and partnerships with distributors or agents that help expand its market reach. Additionally, the company may derive income from providing maintenance, repair, and after-sales services for its products, ensuring long-term customer relationships and recurring revenue. Strategic partnerships with other industrial equipment manufacturers or service providers may also contribute to its earnings, enhancing its product offerings and market presence.

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

Summary

Okano Valve Mfg. Co., Ltd. demonstrates strong financial health with significant revenue growth, robust profitability, and efficient cash flow management. The company maintains a solid balance sheet, characterized by low debt levels and high equity, minimizing 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.17B	7.41B	6.89B	5.85B	6.36B
Gross Profit	2.63B	1.85B	1.42B	1.20B	995.96M
EBITDA	1.65B	1.30B	917.00M	800.00M	833.43M
Net Income	1.10B	697.00M	483.00M	303.00M	375.00M
Balance Sheet
Total Assets	14.21B	12.71B	12.41B	12.10B	12.59B
Cash, Cash Equivalents and Short-Term Investments	4.40B	3.53B	4.28B	3.89B	3.51B
Total Debt	858.00M	1.15B	1.46B	1.77B	2.09B
Total Liabilities	3.03B	2.70B	2.96B	3.09B	3.77B
Stockholders Equity	11.18B	10.01B	9.46B	9.00B	8.82B
Cash Flow
Free Cash Flow	1.91B	297.00M	818.00M	757.00M	1.01B
Operating Cash Flow	2.27B	471.00M	996.00M	861.00M	1.08B
Investing Cash Flow	-1.03B	-700.00M	-178.00M	-84.00M	-73.27M
Financing Cash Flow	-370.00M	-516.00M	-432.00M	-396.00M	-407.12M

Okano Valve Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7230.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 7230 is above the 20-day moving average (MA) of 6305.50, above the 50-day MA of 5680.40, and above the 200-day MA of 5498.43, indicating a bullish trend. The MACD of 452.28 indicates Negative momentum. The RSI at 82.56 is Negative, neither overbought nor oversold. The STOCH value of 83.81 is Negative, 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
6496	80 Outperform	¥17.41B	9.93		2.02%	20.91%	18.64%
6492	78 Outperform	¥12.96B	11.19		0.52%	6.51%	3.68%
6490	77 Outperform	¥92.21B	10.96		3.21%	-1.05%	-23.08%
6486	74 Outperform	¥111.31B	21.08		4.19%	0.68%	-32.97%
Sector *	61 Neutral	C$6.52B	7.65	2.76%	2.58%	6.48%	-23.55%
6495	51 Neutral	¥5.52B	―		1.71%	10.20%	-142.32%