Orchestra Holdings Inc. (6533) AI Stock Analysis

• Market Cap: ¥11.51B
• Dividend Yield: 0.91%
• Average Volume (3M): 14.06K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.53
• Revenue Growth: 15.68%
• EPS Growth: -64.57%
• Country: JP
• Employees: 1,111
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 21.05
• Shares Outstanding: 10,034,200
• 10 Day Avg. Volume: 13,760
• 30 Day Avg. Volume: 14,056
• PEG Ratio: 0.09
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 11.16
• 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: 64 Neutral
• Price Target: ¥1,211.00 ▲(8.51% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by improving financial performance and strong recent cash generation, tempered by a meaningful increase in leverage that raises balance-sheet risk. Technicals are mixed with near-term weakness despite a longer-term uptrend, while valuation appears reasonable with a modest dividend yield.

Positive Factors

Free Cash Flow Conversion

Strong free cash flow that closely tracks net income (~0.93–0.97x in 2023–2025) provides durable internal funding for capex, dividends, or debt reduction. This close linkage implies healthier earnings quality and sustained liquidity to support strategy execution over the medium term.

Revenue Growth Trend

Steady top-line expansion across 2023–2025, including a return to growth in 2025, indicates regained market traction and demand stability. Continued revenue growth supports scale economics, better fixed-cost absorption and provides a durable base for margin recovery and reinvestment over coming quarters.

Profitability Rebound

A material rebound in net income and operating profitability in 2025 suggests improved pricing, cost control or favorable business mix. Sustained higher profitability enhances cash generation, strengthens ability to service obligations, and increases flexibility to invest or return capital over the medium term.

Negative Factors

Rising Leverage

A sharp increase in leverage to roughly 1.0 debt-to-equity reduces financial flexibility and raises refinancing and interest-rate risk. With higher fixed obligations, the company is more exposed to earnings shocks, limiting capacity to invest or absorb cyclical downturns without strengthening the balance sheet.

Margin Volatility

Pronounced margin variability and levels below prior peaks indicate sensitivity to business mix and cost swings. Unstable margins make cash flow forecasting harder, constrain sustainable free cash flow, and increase execution risk for long-term investments or consistent shareholder returns.

Cyclical Cash Flow Risk

Historical periods of negative operating and free cash flow (notably 2022) highlight cyclicality in cash generation. Combined with higher leverage, recurring cash-flow downturns could impair debt servicing and force asset sales or equity raises, reducing strategic optionality during adverse cycles.

Orchestra Holdings Inc. Business Overview & Revenue Model

Company Description

Orchestra Holdings Inc. engages in the digital transformation, digital marketing, and other businesses in Japan. Its solutions include IT engineer services, artificial and business intelligence support, cloud integration, system development, and other services. The company is also involved in the provision of digital marketing support; venture capital services to entrepreneurs; internet and digital advertising; web design; content marketing; SEO services; and merger and acquisition advisory services. In addition, it develops Urala, an app for fortune telling chat consultations; Skill Navi, a SaaS talent management system; and TechReach, a job information site for freelance engineers. The company was formerly known as Digital Identity Inc. and changed its name to Orchestra Holdings Inc. in July 2017. Orchestra Holdings Inc. was incorporated in 2009 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Orchestra Holdings generates revenue through multiple streams, including software licensing, subscription services, and advertisement revenues from its digital platforms. The company's gaming division contributes significantly to its earnings through in-game purchases and microtransactions, while its multimedia content service generates income from subscription fees and licensing agreements. Additionally, strategic partnerships with other tech firms and entertainment companies enhance its market presence and create new monetization opportunities, allowing Orchestra Holdings to capitalize on emerging trends in the digital landscape.

Orchestra Holdings Inc. Financial Statement Overview

Summary

Operating results improved with steady 2023–2025 revenue growth and a material profitability rebound in 2025, supported by strong recent free cash flow conversion. The main offset is higher balance-sheet risk from a sharp leverage increase in 2025 (debt-to-equity ~1.0), reducing financial flexibility if earnings soften.

Income Statement

Revenue has expanded steadily from 2023–2025 (2025 up ~4% YoY after stronger growth in 2023–2024), showing a return to growth after the sharp 2022 decline. Profitability improved materially in 2025 versus 2024 (net income rebounded and operating profitability strengthened), but margins remain well below the 2022 peak and have been volatile over the cycle—highlighting sensitivity to business mix and/or costs.

Balance Sheet

The balance sheet is adequate but trending riskier: leverage increased sharply in 2025, with debt rising and debt-to-equity moving to ~1.0 from ~0.5 in 2023–2024. Equity has grown over time, but the faster debt build reduces financial flexibility and raises exposure if earnings soften.

Cash Flow

Cash generation is a clear positive: free cash flow is strongly positive in 2023–2025 and tracks net income closely (free cash flow running at roughly ~0.93–0.97x of net income in 2023–2025), suggesting decent earnings quality. The key drawback is volatility—2022 posted negative operating and free cash flow—so while recent performance is strong, consistency across cycles remains a watch item.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.10B	15.77B	14.04B	12.11B	10.38B	16.64B
Gross Profit	6.65B	6.90B	6.49B	5.87B	5.10B	3.88B
EBITDA	1.25B	1.76B	1.36B	1.21B	1.72B	1.45B
Net Income	183.77M	816.84M	331.75M	474.00M	853.71M	757.23M
Balance Sheet
Total Assets	13.56B	16.16B	12.82B	12.71B	11.41B	10.56B
Cash, Cash Equivalents and Short-Term Investments	3.51B	3.54B	3.28B	3.59B	3.02B	4.96B
Total Debt	3.98B	6.29B	2.88B	3.01B	1.71B	1.53B
Total Liabilities	7.51B	9.15B	6.70B	6.68B	5.67B	5.62B
Stockholders Equity	5.60B	6.50B	5.68B	5.63B	5.33B	4.47B
Cash Flow
Free Cash Flow	357.00M	961.81M	1.09B	972.00M	-533.72M	1.11B
Operating Cash Flow	422.00M	1.04B	1.12B	1.00B	-484.54M	1.11B
Investing Cash Flow	-1.13B	-1.23B	-380.87M	-2.00B	-993.87M	-32.18M
Financing Cash Flow	916.00M	425.10M	-716.78M	1.21B	-413.55M	2.46B

Orchestra Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1116.00
• 50DMA: Positive
• 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:6533, the sentiment is Positive. The current price of 1116 is below the 20-day moving average (MA) of 1161.10, below the 50-day MA of 1148.92, and above the 200-day MA of 898.03, indicating a neutral trend. The MACD of -7.80 indicates Positive momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 35.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6533.

Orchestra Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2173	79 Outperform	¥17.15B	8.69	―	2.46%	6.38%	18.64%
7050	73 Outperform	¥14.68B	12.58	―	4.08%	51.26%	296.98%
6045	68 Neutral	¥13.91B	21.67	―	2.19%	14.43%	10.99%
6533	64 Neutral	¥11.51B	13.51	―	0.91%	15.68%	-64.57%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6094	50 Neutral	¥13.68B	17.08	―	―	-2.68%	91.68%
9235	43 Neutral	¥4.67B	-9.90	―	―	49.01%	-21.56%

Orchestra Holdings Inc. Corporate Events

Orchestra Holdings Lifts Earnings and Dividend as Revenue Grows Under New IFRS Regime

Orchestra Holdings Inc. reported consolidated revenue of ¥15.77 billion for the year ended December 31, 2025, up 12.3% year on year, with operating profit rising 8.4% to ¥1.44 billion and profit attributable to owners of parent increasing 10.3% to ¥816 million. Earnings per share climbed to ¥84.92, equity attributable to owners grew to ¥6.50 billion, and the company maintained solid profitability metrics despite a slight dip in profit margins.

The group strengthened its financial position with total assets of ¥16.16 billion, higher cash and cash equivalents, and a year-end dividend increase from ¥11 to ¥12 per share, alongside a forecast of ¥13 for 2026. For 2026, Orchestra projects further growth, targeting revenue of ¥17.5 billion and a 17.5% rise in profit attributable to owners to ¥960 million, suggesting continued expansion and improving shareholder returns following the first full-year adoption of IFRS and the addition of JTPRO Corporation to the consolidation scope.

On a non-consolidated basis, the holding company’s net sales rose 11.9% to ¥1.29 billion, with operating profit up 30.8%, helped by changes in management fee allocation to subsidiaries. Although the parent company still posted a net loss, it narrowed significantly from the previous year as provisions for doubtful accounts related to certain group receivables declined, indicating reduced credit risk within the group structure.

The most recent analyst rating on (JP:6533) stock is a Buy with a Yen1410.00 price target. To see the full list of analyst forecasts on Orchestra Holdings Inc. stock, see the JP:6533 Stock Forecast page.

Orchestra Holdings Lifts Earnings, Dividend and Forecasts After IFRS Shift

Orchestra Holdings Inc. reported consolidated revenue of ¥15.77 billion for 2025, up 12.3% year on year, with operating profit rising 8.4% to ¥1.44 billion and profit attributable to owners of the parent up 10.3% to ¥816 million. Earnings per share climbed to ¥84.92, equity attributable to owners increased to ¥6.50 billion, and the company raised its annual dividend to ¥12 per share, while also adding JTPRO Corporation to its consolidation scope.

The company forecasts further growth in 2026, targeting revenue of ¥17.5 billion and a 17.5% jump in profit attributable to owners to ¥960 million, implying EPS of ¥102.54 and another dividend increase to ¥13 per share. Management attributes improved non‑consolidated results to changes in management fee allocation and reduced credit-loss provisions for certain subsidiaries, underscoring a stronger financial base following its adoption of IFRS standards.

The most recent analyst rating on (JP:6533) stock is a Buy with a Yen1410.00 price target. To see the full list of analyst forecasts on Orchestra Holdings Inc. stock, see the JP:6533 Stock Forecast page.