Osaki Electric Co., Ltd. (6644) AI Stock Analysis

• Market Cap: ¥56.29B
• Dividend Yield: 2.41%
• Average Volume (3M): 187.01K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.79
• Revenue Growth: 2.78%
• EPS Growth: 127.66%
• Country: JP
• Employees: 2,603
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 7.66
• Shares Outstanding: 46,917,180
• 10 Day Avg. Volume: 167,400
• 30 Day Avg. Volume: 187,006
• PEG Ratio: 0.23
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 8.43
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,276.00 ▲(6.07% Upside)

Osaki Electric Co., Ltd. demonstrates strong financial performance with robust revenue growth and excellent cash flow management, which significantly contributes to its overall score. The technical analysis indicates a bearish trend, which slightly dampens the score. The valuation is reasonable, providing a balanced view of the stock's potential.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management ensures liquidity and operational flexibility, enabling the company to invest in growth opportunities.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and reduces risk, supporting sustainable growth.

Negative Factors

Net Profit Margin

While improved, the net profit margin remains modest, potentially limiting reinvestment capacity and shareholder returns.

Market Position

A bearish trend may reflect competitive pressures or market challenges, impacting investor confidence and market position.

Return on Equity

A moderate ROE suggests limited efficiency in generating returns from equity, which could affect long-term shareholder value.

Osaki Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Osaki Electric Co., Ltd. develops, manufactures, sells, and installs smart meters in Japan, rest of Asia, the Oceania, Europe, and internationally. It operates through four segments: Smart Meters & Solutions in Japan, Smart Meters & Solutions Overseas, Production Equipment, and Real Estate. The company offers residential and commercial metering devices, such as smart meters and gas meters; and a range of low voltage switchgear systems, including distribution boards, sub-boards, floor stand boards, motor control sensors, and power distribution units. It also provides information and communication related products consisting of optical couplers and switches, optical distributing frames, and electric power distribution panels and shelters. In addition, the company offers software, and related products and services, such as demand control equipment, head end systems, meter data management systems, and data visualization products. Further, it rents real estate properties. The company was formerly known as Kogyo Seisakujo and changed its name to Osaki Electric Co., Ltd. in April 1941. Osaki Electric Co., Ltd. was founded in 1916 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Osaki Electric generates revenue primarily through the sale of its electronic equipment and systems. The company's revenue model is based on direct sales of its products to businesses in various sectors, including industrial automation and telecommunications. Key revenue streams include sales of power supply systems, control devices, and other electronic components. Additionally, Osaki Electric may benefit from service contracts and maintenance agreements associated with its products, which provide recurring revenue. The company also engages in partnerships with other firms to enhance its product offerings and expand its market reach, further contributing to its earnings.

Osaki Electric Co., Ltd. Financial Statement Overview

Summary

Osaki Electric Co., Ltd. exhibits strong financial health across all verticals. The income statement reflects robust revenue and profit growth, while the balance sheet demonstrates stability with low leverage and strong equity positioning. The cash flow statement highlights excellent cash generation capabilities, ensuring liquidity and operational flexibility.

Income Statement

Osaki Electric has demonstrated consistent revenue growth over the years, with a notable increase from the previous year. The gross profit margin stands robustly at 24.14%, indicating efficient cost management. The net profit margin improved significantly to 3.61%, showcasing enhanced profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.16, indicating low leverage and financial stability. The return on equity (ROE) is 6.66%, showing a reasonable return to shareholders. The equity ratio is strong at 52.34%, reflecting a well-capitalized structure with a high proportion of equity financing.

Cash Flow

Osaki Electric's cash flow performance is impressive, with a substantial increase in free cash flow. The operating cash flow to net income ratio is high at 1.97, indicating strong cash generation relative to net earnings. The free cash flow to net income ratio is also positive, further underpinning the company's solid cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	97.77B	97.10B	95.15B	89.25B	76.18B	76.25B
Gross Profit	23.65B	23.44B	22.61B	17.96B	16.38B	17.34B
EBITDA	9.14B	8.95B	7.52B	6.31B	4.14B	5.86B
Net Income	3.51B	3.50B	2.41B	1.32B	-658.00M	482.00M
Balance Sheet
Total Assets	93.78B	100.51B	95.64B	93.27B	91.22B	90.99B
Cash, Cash Equivalents and Short-Term Investments	12.48B	14.10B	10.85B	13.78B	15.40B	17.22B
Total Debt	7.15B	8.27B	6.42B	7.02B	8.54B	8.42B
Total Liabilities	31.80B	37.17B	33.11B	34.64B	33.61B	32.10B
Stockholders Equity	51.20B	52.62B	50.08B	46.40B	45.74B	47.12B
Cash Flow
Free Cash Flow	0.00	4.43B	2.64B	-1.39B	1.72B	8.82B
Operating Cash Flow	0.00	6.89B	4.19B	260.00M	4.42B	10.50B
Investing Cash Flow	0.00	-1.23B	-2.90B	1.35B	-1.22B	-1.19B
Financing Cash Flow	0.00	-3.03B	-2.99B	-5.07B	-2.93B	-6.94B

Osaki Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1203.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6644, the sentiment is Positive. The current price of 1203 is above the 20-day moving average (MA) of 1187.70, below the 50-day MA of 1205.38, and above the 200-day MA of 1040.56, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 46.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6644.

Osaki Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7715	80 Outperform	¥45.69B	8.59	―	2.00%	-4.17%	-7.07%
7723	73 Outperform	¥41.02B	10.49	―	3.19%	7.99%	50.13%
6817	70 Outperform	¥38.02B	18.89	―	4.58%	-2.57%	3.43%
6644	67 Neutral	¥56.29B	15.28	―	2.41%	2.78%	127.66%
7745	67 Neutral	¥51.65B	8.07	―	2.39%	6.50%	30.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥33.19B	30.69	―	2.02%	6.10%	―

Osaki Electric Co., Ltd. Corporate Events

Osaki Electric Reports Steady Growth in H1 2025 Financials

Osaki Electric Co., Ltd. reported a modest increase in its financial performance for the six months ending September 30, 2025, with net sales rising by 2.2% and operating profit increasing by 8.7% compared to the previous year. Despite a significant drop in comprehensive income, the company maintained a stable equity-to-asset ratio, indicating a solid financial position. The announcement reflects Osaki Electric’s steady growth trajectory and its commitment to enhancing shareholder value through increased dividends.

Osaki Electric Revises FY2025 Financial Forecasts Amid Mixed Sales Performance

Osaki Electric Co., Ltd. has revised its financial forecasts for the first half of FY2025, expecting lower net sales due to postponed smart meter sales and weaker-than-expected smart lock sales in Japan. However, the company anticipates higher profits from improved profit margins in its Smart Meters & Solutions business and increased gains from strategic shareholdings sales.

Osaki Electric Completes Retirement of Treasury Stock

Osaki Electric Co., Ltd. has completed the retirement of 1,350,000 treasury shares, which accounted for 2.80% of its outstanding shares, as of September 30, 2025. This move is part of the company’s strategic financial management, potentially enhancing shareholder value and optimizing its capital structure.

Osaki Electric Announces Retirement of Treasury Stock

Osaki Electric Co., Ltd. announced its decision to retire 1,350,000 common shares, representing 2.80% of its outstanding shares, as part of a strategic move to optimize its capital structure. This retirement, effective September 30, 2025, is expected to enhance shareholder value and streamline the company’s equity base, potentially impacting its market positioning positively.