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

• Market Cap: ¥81.56B
• Dividend Yield: 2.36%
• Average Volume (3M): 187.01K
• Price to Earnings (P/E): 54.3
• Beta (1Y): 0.82
• Revenue Growth: 2.78%
• EPS Growth: 127.66%
• Country: JP
• Employees: 2,603
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -8.88
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 83.85
• Revenue Forecast (FY): ¥98.10B

• Rating: 68 Neutral
• Price Target: ¥1,900.00 ▲(52.98% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is primarily supported by strong financial performance and cash flow strength, tempered by elevated valuation (high P/E) and overbought technical conditions that raise near-term downside risk despite a strong trend.

Positive Factors

Cash generation

Osaki's operating cash flow nearly doubles reported net income and free cash flow is rising, providing durable internal funding for capex, R&D and working capital. Strong cash conversion reduces refinancing risk and supports steady execution across multi-year utility projects.

Balance sheet strength

Very low leverage and a high equity ratio create financial flexibility to bid on large utility rollouts or weather cyclical downturns. A conservative capital structure supports sustained investment in product development and reduces vulnerability to interest rate or funding shocks.

Utility-focused business model

Core focus on electricity meters, systems and lifecycle services aligns Osaki with multi-year utility capex and replacement cycles. Long-term utility relationships and bundled hardware+software offerings create recurring service revenue and customer stickiness, supporting steady demand.

Negative Factors

EPS contraction

A steep decline in reported EPS signals profit volatility that can persist across quarters. Even with healthy cash flow, falling EPS may reflect margin pressure, one-off charges, or operational challenges that constrain retained earnings and long-term capital allocation.

Modest revenue growth

Low single-digit top-line growth suggests limited organic expansion outside core replacement cycles. Reliance on cyclical utility investments may cap scalable growth absent geographic expansion or new product lines, restricting operating leverage and long-term earnings growth.

Low net margin

A modest net margin leaves limited buffer against rising component, labor or warranty costs. In a project and hardware-driven business, low margins increase sensitivity to contract pricing and cost overruns, which can quickly erode free cash flow and returns during tougher cycles.

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

Strong overall fundamentals: solid income statement trends (revenue growth and improved net margin), low leverage (0.16 debt-to-equity) with a strong equity base (52.34% equity ratio), and excellent cash generation (operating cash flow to net income of 1.97 and rising free cash flow).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 1242.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1242 is below the 20-day moving average (MA) of 1528.95, below the 50-day MA of 1348.52, and above the 200-day MA of 1176.14, indicating a bullish trend. The MACD of 112.82 indicates Negative momentum. The RSI at 83.01 is Negative, neither overbought nor oversold. The STOCH value of 66.54 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
7723	80 Outperform	¥51.47B	11.75	―	3.21%	7.99%	50.13%
7745	80 Outperform	¥77.51B	13.18	―	2.31%	6.50%	30.54%
7715	79 Outperform	¥57.62B	11.67	―	1.94%	-4.17%	-7.07%
6817	70 Outperform	¥41.14B	11.44	―	4.53%	-2.57%	3.43%
6644	68 Neutral	¥81.56B	54.27	―	2.36%	2.78%	127.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥42.98B	11.20	―	1.95%	6.10%	―

Osaki Electric Co., Ltd. Corporate Events

Osaki Electric to Allocate Treasury Shares as Restricted Stock for Employee Share Plan

Osaki Electric Co., Ltd. has approved the disposal of up to 198,000 shares of its treasury stock as restricted stock to the Osaki Group Employee Shareholding Commission, with a reference disposal price of 1,574 yen per share. The plan is designed so that eligible employees of the company and its subsidiaries receive a uniform monetary claim, which is then contributed in kind via the commission to acquire restricted shares.

The move introduces a structured restricted stock incentive scheme for employee shareholders, imposing transfer restrictions and conditions for the company to acquire shares without consideration under certain scenarios. By tying employee benefits to the company’s equity and corporate value, Osaki Electric seeks to foster a stronger sense of ownership, better align employee and shareholder interests, and potentially enhance long-term corporate performance and governance.

The most recent analyst rating on (JP:6644) stock is a Buy with a Yen1727.00 price target. To see the full list of analyst forecasts on Osaki Electric Co., Ltd. stock, see the JP:6644 Stock Forecast page.

Osaki Electric Launches Up to ¥2.5 Billion Share Buyback to Boost Capital Efficiency

Osaki Electric Co., Ltd. has approved a share repurchase program under Japan’s Companies Act, continuing its previously stated policy of using cash flow from reducing non-operating assets for both growth investments and returns to shareholders. The company aims to enhance capital efficiency and shareholder value by buying back up to 1.5 million common shares, equivalent to 3.4% of outstanding shares excluding treasury stock, for a maximum of 2.5 billion yen through open-market purchases on the Tokyo Stock Exchange between February 20 and September 30, 2026.

The planned buyback signals a proactive capital allocation stance, potentially improving earnings per share and supporting the stock price, while modestly reducing the company’s free float. As of December 31, 2025, Osaki already held 2,320,266 treasury shares against 44,596,914 shares outstanding, and the new program underscores management’s commitment to shareholder returns alongside operational optimization.

The most recent analyst rating on (JP:6644) stock is a Buy with a Yen1727.00 price target. To see the full list of analyst forecasts on Osaki Electric Co., Ltd. stock, see the JP:6644 Stock Forecast page.

Osaki Electric Books ¥6 Billion Gain From Strategic Real Estate Sale

Osaki Electric’s consolidated subsidiary Osaki Estate Co., Ltd. will sell a rental property in Minami-Azabu, Minato-ku, Tokyo, consisting of land and a building with total floor area of 3,713.91 square meters. The buyer is ES-CON JAPAN Ltd., and although the transfer price is undisclosed, Osaki estimates capital gains of about ¥6 billion from the deal.

The transaction, approved on February 19, 2026, is part of Osaki’s broader initiative to boost return on equity and improve asset efficiency by divesting selected real estate holdings. The company plans to record the roughly ¥6 billion gain as extraordinary income in the fourth quarter of the fiscal year ending March 31, 2026, and will allocate proceeds to growth investments, share buybacks, and a special dividend to enhance shareholder returns.

The most recent analyst rating on (JP:6644) stock is a Buy with a Yen1727.00 price target. To see the full list of analyst forecasts on Osaki Electric Co., Ltd. stock, see the JP:6644 Stock Forecast page.

Osaki Electric Lifts Profit Outlook and Announces Special Dividend on Asset Sale Gains

Osaki Electric has revised its full-year forecast for the year ending March 31, 2026, keeping sales and operating profit targets unchanged but sharply raising projected profit attributable to owners of parent from ¥3.6 billion to ¥5.2 billion. The upgrade reflects a planned ¥6.0 billion gain on the sale of real estate, which more than offsets a previously booked ¥2.04 billion loss tied to its exit from smart meter operations in the Middle East and Africa.

In line with a strategy to recycle non-operating assets into growth and shareholder returns, the company will deploy proceeds from the property sale for investment and a special year-end dividend of ¥10 per share for fiscal 2026. Management reiterated its commitment to stable ordinary dividends based on the higher of a 3% DOE or 30% payout ratio, signaling an emphasis on capital efficiency and enhanced returns for shareholders alongside portfolio optimization.

The most recent analyst rating on (JP:6644) stock is a Buy with a Yen1727.00 price target. To see the full list of analyst forecasts on Osaki Electric Co., Ltd. stock, see the JP:6644 Stock Forecast page.

Osaki Electric Lifts Profits but Suffers Sharp Earnings Drop as It Sticks to Full-Year Forecasts

Osaki Electric reported a modest 2.6% rise in consolidated net sales to ¥72.1 billion for the nine months ended December 31, 2025, with operating and ordinary profit up 7.6% and 9.3% respectively, but profit attributable to owners of parent plunged 87.4% to ¥291 million, sharply reducing earnings per share. Despite the drop in bottom-line profit and a slight decline in total assets and equity, the company maintained a solid equity-to-asset ratio above 50%, confirmed there were no changes in its consolidation scope or accounting policies, and left its full-year forecast unchanged, projecting slight year-on-year growth in sales and profits and signaling continued commitment to higher shareholder returns via an increased annual dividend forecast of ¥35 per share for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:6644) stock is a Buy with a Yen1297.00 price target. To see the full list of analyst forecasts on Osaki Electric Co., Ltd. stock, see the JP:6644 Stock Forecast page.

Osaki Electric Books ¥2.04 Billion Loss on Exit From Middle East and Africa Smart Meter Business

Osaki Electric Co., Ltd. will record an extraordinary loss of ¥2.04 billion in the nine months ended December 31, 2025, following its decision to withdraw from the Middle East and Africa smart meters and solutions business at the end of FY2025. The exit, part of broader structural reforms under its Mid-Term Management Plan, reflects persistent operating losses, geopolitical and credit risks, and difficulties in achieving profitability in the region; the loss primarily comprises valuation losses on inventories and impairment of production assets, but the company is maintaining its full-year earnings forecast as it refocuses its overseas smart meter operations on Oceania, Europe and Asia.

The most recent analyst rating on (JP:6644) stock is a Buy with a Yen1297.00 price target. To see the full list of analyst forecasts on Osaki Electric Co., Ltd. stock, see the JP:6644 Stock Forecast page.