OKI Electric Industry Company (6703) AI Stock Analysis

• Market Cap: $161.25B
• Dividend Yield: 2.32%
• Average Volume (3M): 798.28K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.39
• Revenue Growth: -2.36%
• EPS Growth: -61.50%
• Country: JP
• Employees: 14,439
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 6.63
• Shares Outstanding: 87,217,600
• 10 Day Avg. Volume: 809,360
• 30 Day Avg. Volume: 798,280
• PEG Ratio: -0.13
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 2.97
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.97
• Enterprise Value/Ebitda: 7.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 25,343.11
• Revenue Forecast (FY): $70.31T

• Rating: 71 Outperform
• Price Target: ¥2,059.00 ▲(9.99% Upside)

The stock's overall score is driven by strong technical momentum and moderate valuation. Financial performance is stable but challenged by declining revenue and cash flow issues. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Operational Efficiency

Stable gross profit margins and positive EBIT and EBITDA margins indicate strong operational efficiency, suggesting the company can manage costs effectively and maintain profitability even in challenging market conditions.

Recurring Revenue Model

A recurring revenue model from maintenance and support services provides financial stability and predictability, enhancing long-term business resilience and reducing dependency on one-time sales.

Leverage Management

Improved leverage management through a better debt-to-equity ratio enhances financial stability, reducing risk and increasing the company's ability to invest in growth opportunities.

Negative Factors

Declining Revenue Growth

Negative revenue growth indicates a shrinking market share or reduced demand for products, which could impact long-term profitability and market position if not addressed.

Cash Flow Challenges

Declining free cash flow growth suggests potential liquidity issues, limiting the company's ability to reinvest in the business, pay down debt, or return capital to shareholders.

Decreased Profitability

A decreasing net profit margin reflects reduced profitability, which can limit the company's ability to fund future growth and may signal operational inefficiencies or increased competition.

OKI Electric Industry Company Business Overview & Revenue Model

Company Description

OKI Electric Industry Company (6703) is a Japanese multinational company that specializes in information and communication technology. Established in 1881, the company operates primarily in the sectors of telecommunications, IT services, and printing solutions. OKI is known for its innovative products including printers, multifunction devices, and advanced communication systems, serving a diverse range of industries including government, healthcare, and manufacturing.

How the Company Makes Money

OKI Electric generates revenue through multiple streams, primarily by selling hardware, software, and services related to printing and telecommunications. The company's key revenue streams include sales of printers and printing solutions, which comprise both hardware sales and consumables such as ink and toner. Additionally, OKI provides IT services and solutions tailored to business needs, which contribute to its service-based revenue. Significant partnerships with various enterprises and government organizations enhance OKI's market reach and reliability, further boosting its earnings. The company also benefits from ongoing maintenance and support services that create a recurring revenue model, ensuring a steady income flow.

OKI Electric Industry Company Financial Statement Overview

Summary

The company shows operational efficiency with stable gross profit margins and positive EBIT and EBITDA margins. However, challenges include declining revenue growth and profitability, as well as cash flow management issues.

Income Statement

The income statement shows a mixed performance. The gross profit margin is relatively stable, but the net profit margin has decreased in the TTM period, indicating reduced profitability. Revenue growth has turned negative, suggesting a decline in sales. However, the company maintains a positive EBIT and EBITDA margin, which indicates operational efficiency despite the revenue drop.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has improved slightly, indicating better leverage management. However, the return on equity has decreased, showing reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low, indicating potential cash flow issues. However, the free cash flow to net income ratio remains positive, suggesting some capacity to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	439.60B	452.46B	421.85B	369.10B	352.06B	392.87B
Gross Profit	106.99B	113.36B	105.41B	86.19B	90.12B	99.42B
EBITDA	28.49B	32.08B	35.37B	13.85B	18.11B	17.54B
Net Income	9.03B	12.48B	25.65B	-2.80B	2.06B	-819.00M
Balance Sheet
Total Assets	393.86B	410.96B	423.40B	390.43B	369.17B	373.21B
Cash, Cash Equivalents and Short-Term Investments	31.06B	36.87B	35.04B	37.75B	36.69B	44.84B
Total Debt	99.86B	103.00B	118.43B	124.89B	100.83B	94.84B
Total Liabilities	253.38B	265.22B	282.09B	291.15B	261.54B	259.95B
Stockholders Equity	140.40B	145.67B	141.25B	99.21B	107.57B	111.53B
Cash Flow
Free Cash Flow	16.43B	28.76B	7.74B	-19.68B	-15.78B	-8.41B
Operating Cash Flow	27.08B	39.26B	24.72B	-3.15B	5.92B	18.07B
Investing Cash Flow	-20.39B	-19.63B	-14.34B	-17.62B	-17.60B	-14.46B
Financing Cash Flow	-10.03B	-17.86B	-15.71B	23.27B	1.68B	-8.85B

OKI Electric Industry Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1872.00
• 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:6703, the sentiment is Positive. The current price of 1872 is below the 20-day moving average (MA) of 1894.80, above the 50-day MA of 1788.54, and above the 200-day MA of 1433.95, indicating a bullish trend. The MACD of 27.86 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 42.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6703.

OKI Electric Industry Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6718	81 Outperform	¥45.37B	16.95	―	4.57%	0.63%	-24.87%
6835	80 Outperform	$24.67B	5.50	24.14%	0.84%	6.43%	368.06%
6820	74 Outperform	¥39.87B	17.09	―	2.95%	-0.90%	-13.24%
6287	73 Outperform	¥72.74B	10.16	9.15%	3.31%	4.82%	55.73%
6703	71 Outperform	$161.25B	15.11	7.16%	2.32%	-2.36%	-61.50%
6675	67 Neutral	¥29.32B	9.10	―	2.51%	20.13%	33.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%