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Osaki Electric Co., Ltd. (JP:6644)
:6644
Japanese Market

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

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JP:6644

Osaki Electric Co., Ltd.

(6644)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
¥1,969.00
▲(58.53% Upside)
Action:UpgradedDate:03/11/26
The score is driven primarily by strong financial performance (growth, low leverage, and excellent cash flow) and a supportive technical uptrend. These positives are tempered by valuation uncertainty due to a negative P/E and only a modest dividend yield.
Positive Factors
Cash generation
Osaki’s strong operating cash conversion (OCF to net income 1.97) and rising free cash flow create durable internal funding for capex, R&D, maintenance and shareholder returns. This reduces reliance on external financing and supports resilience through multi-quarter utility project cycles.
Low leverage / capital structure
A low debt-to-equity ratio (0.16) and strong equity ratio (52.34%) provide financial flexibility and lower refinancing risk. This well-capitalized structure supports multi-quarter investments in meter and systems projects and cushions the company against cyclical swings in utility spending.
Steady revenue and margin profile
Consistent top-line growth together with a healthy gross margin (24.14%) indicates durable product competitiveness and cost control in meter manufacturing. Even a modest but improving net margin shows the business can scale operations profitably across project and service sales over several quarters.
Negative Factors
Modest net profitability
A net margin of ~3.6% leaves limited earnings buffer against cost inflation, contract price pressure, or project overruns. Over 2–6 months, this constrains the company’s ability to absorb negative shocks while still funding discretionary investments or larger system integration projects without tapping reserves.
Earnings volatility (EPS decline)
A steep year-over-year EPS decline (~41%) signals earnings volatility or one-off impacts that hurt per-share profitability. Persistent swings in EPS can limit management’s ability to commit to long-term spend plans and reduce predictability of shareholder returns across upcoming quarters.
Dependence on utility capex cycles
Revenue is significantly tied to utility capex and smart meter rollouts, making sales lumpy and timing-sensitive. Delays or pauses in large-scale municipal or utility programs can materially slow revenue recognition and backlog conversion over several months, increasing business cyclicality.

Osaki Electric Co., Ltd. (6644) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionOsaki 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 MoneyOsaki Electric primarily makes money by selling electricity metering equipment and related solutions and services. Key revenue streams include: (1) Product sales of electricity meters: Revenue is generated from supplying metering devices used for measuring electricity consumption, typically sold to electric utilities and other large electricity users. This includes both traditional meters and advanced metering products (e.g., smart/AMR/AMI-capable meters) when applicable. (2) System and solution sales: The company earns revenue from providing systems that work with meters—such as meter data collection, communication, and management platforms—often delivered as project-based sales that may include hardware, software, and integration. (3) Services and maintenance: Ongoing earnings can come from after-sales support tied to deployed meters and systems, including maintenance, calibration/inspection-related support, and other lifecycle services associated with installed equipment. (4) Overseas/affiliate contributions: To the extent the company sells through subsidiaries or affiliated entities outside Japan, revenue is recognized from those product and system sales as well. Significant earnings drivers typically include utility capex cycles (e.g., large-scale meter replacement/smart meter rollouts), long-term relationships with electric utilities, and the company’s ability to bundle meters with communication and data-management solutions. Specific named partnerships, contract terms, segment margins, or customer concentration details: null.

Osaki Electric Co., Ltd. Financial Statement Overview

Summary
Strong overall financial health supported by consistent revenue growth, solid margins (gross margin 24.14%; improving net margin 3.61%), low leverage (debt-to-equity 0.16), and excellent cash generation (operating cash flow to net income 1.97; rising free cash flow).
Income Statement
78
Positive
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
75
Positive
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
82
Very Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue97.77B97.10B95.15B89.25B76.18B76.25B
Gross Profit23.65B23.44B22.61B17.96B16.38B17.34B
EBITDA9.14B8.95B7.52B6.31B4.14B5.86B
Net Income3.51B3.50B2.41B1.32B-658.00M482.00M
Balance Sheet
Total Assets93.78B100.51B95.64B93.27B91.22B90.99B
Cash, Cash Equivalents and Short-Term Investments12.48B14.10B10.85B13.78B15.40B17.22B
Total Debt7.15B9.07B7.21B7.02B8.54B8.42B
Total Liabilities31.80B37.17B33.10B34.63B33.61B32.10B
Stockholders Equity51.20B52.62B50.08B46.40B45.75B47.12B
Cash Flow
Free Cash Flow0.004.43B2.64B-1.39B1.72B8.82B
Operating Cash Flow0.006.89B4.19B260.00M4.42B10.50B
Investing Cash Flow0.00-1.23B-2.90B1.35B-1.22B-1.19B
Financing Cash Flow0.00-3.03B-2.99B-5.07B-2.93B-6.94B

Osaki Electric Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1242.00
Price Trends
50DMA
1489.20
Positive
100DMA
1345.48
Positive
200DMA
1234.63
Positive
Market Momentum
MACD
84.70
Positive
RSI
57.85
Neutral
STOCH
76.96
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 1724.55, below the 50-day MA of 1489.20, and above the 200-day MA of 1234.63, indicating a bullish trend. The MACD of 84.70 indicates Positive momentum. The RSI at 57.85 is Neutral, neither overbought nor oversold. The STOCH value of 76.96 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥703.62B26.7113.15%0.23%2.66%7.90%
78
Outperform
¥703.28B15.508.07%2.85%11.18%-0.75%
72
Outperform
¥82.54B-34.712.36%2.78%127.66%
70
Outperform
¥36.58B10.464.53%-2.57%3.43%
70
Outperform
¥80.38B10.573.05%10.79%12.28%
64
Neutral
¥158.77B29.595.91%2.39%-3.24%-25.21%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6644
Osaki Electric Co., Ltd.
1,764.00
935.89
113.02%
JP:5344
Maruwa Co
57,030.00
25,347.73
80.01%
JP:6806
HIROSE ELECTRIC CO
21,400.00
4,004.26
23.02%
JP:6807
Japan Aviation Electronics Industry
2,302.00
-360.13
-13.53%
JP:6817
Sumida Corporation
1,112.00
162.28
17.09%
JP:6908
IRISO Electronics Co., Ltd.
3,435.00
847.53
32.76%

Osaki Electric Co., Ltd. Corporate Events

Osaki Electric Begins Share Buyback Under ¥2.5 Billion Authorization
Mar 2, 2026

Osaki Electric Co., Ltd. has begun executing a share buyback program authorized by its board on February 19, 2026, repurchasing 16,700 common shares for a total of 28,413,900 yen through open-market transactions on the Tokyo Stock Exchange between February 20 and February 28, 2026. The program allows the company to buy back up to 1.5 million shares, or roughly 3.4% of its outstanding stock excluding treasury shares, for up to 2.5 billion yen by September 30, 2026, signaling an effort to enhance capital efficiency and potentially support shareholder value through active balance sheet management.

As of February 28, 2026, only a small fraction of the authorized maximum has been repurchased, indicating that Osaki Electric retains considerable capacity to continue purchases over the coming months. This phased approach gives the company flexibility to respond to market conditions while gradually adjusting its capital structure, which may influence earnings per share and ownership concentration over time, and could be viewed positively by investors seeking returns via capital policies as well as business growth.

The most recent analyst rating on (JP:6644) stock is a Buy with a Yen1952.00 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 to Allocate Treasury Shares as Restricted Stock for Employee Share Plan
Feb 19, 2026

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
Feb 19, 2026

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
Feb 19, 2026

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
Feb 19, 2026

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
Feb 3, 2026

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
Jan 27, 2026

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 11, 2026