OKI Electric Industry Company (6703) AI Stock Analysis

• Market Cap: ¥257.55B
• Dividend Yield: 2.31%
• Average Volume (3M): 798.28K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.51
• Revenue Growth: -2.36%
• EPS Growth: -61.50%
• Country: JP
• Employees: 14,439
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 25.72
• 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: 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): 185.6
• Revenue Forecast (FY): ¥443.90B

• Rating: 70 Outperform
• Price Target: ¥3,271.00 ▲(53.57% Upside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

The score is driven primarily by improving financial performance (return to profitability, normalized leverage, positive and growing free cash flow) and strong bullish price trend signals. Valuation is a notable positive due to the low P/E, but the overall score is held back by modest margins, slightly declining TTM revenue, uneven earnings/cash conversion, and overbought technical readings (RSI/Stoch) that elevate near-term pullback risk.

Positive Factors

Return to Profitability

OKI's return to positive net margins (~4.2% TTM) represents a durable improvement in earnings power after earlier losses. Sustained profitability supports reinvestment, debt service and shareholder distributions, improving financial flexibility over the next several quarters.

Improved Leverage

Material deleveraging (debt/equity ~0.7 vs >1.2 in 2023) reduces financial risk and interest burden, giving management capacity to fund strategic investments or withstand industry cyclicality. A stronger balance sheet is a durable stabilizer for operations and capital allocation.

Positive Free Cash Flow Growth

Meaningful TTM FCF growth (~21%) and positive operating cash flow indicate improving cash generation. Durable FCF expansion enhances ability to fund capex, maintenance, and shareholder returns without relying on new debt or equity, supporting long-term financial health.

Negative Factors

Soft Revenue Trend

Slightly negative TTM revenue growth signals limited demand momentum in core telecom and enterprise segments. Without durable revenue expansion, margin and profit gains may be harder to sustain, constraining long-term scale economies and strategic reinvestment capacity.

Modest Margins and Returns

Gross margins in the mid‑20% band and modest net margins cap upside from operations versus higher-margin peers. Persistently moderate margins limit return on equity and free cash generation, making it harder to translate revenue into strong, sustained shareholder returns.

Uneven Earnings and Cash Conversion

Historical earnings volatility and incomplete cash conversion (FCF ~66% of TTM net income) reduce predictability of internal funding. This uneven conversion impairs reliable reinvestment and raises execution risk for multi‑quarter initiatives and capital allocation planning.

OKI Electric Industry Company Business Overview & Revenue Model

Company Description

Oki Electric Industry Co., Ltd. manufactures and sells products, technologies, software, and solutions for telecommunication and information systems in Japan and internationally. It operates through Solution Systems Business and Components & Platforms Business segments. The company offers transportation infrastructure systems, disaster prevention related systems, defense related systems, communication equipment for telecommunication carriers, financial branch office systems, administrative centralized systems, reservation ticketing systems, IP-PBX, business phones, contact centers, 920 MHz multi-hop wireless systems, etc. It also provides mechatronics systems, including automated teller machines (ATMs), cash handling machines, bank branch terminals, reservation ticket issuing terminals, check-in terminals, foreign currency exchange machines, ATM monitoring and operations services, etc.; and printers, such as color/monochrome LED printers, color/monochrome LED multifunction printers, large format inkjet printers, dot impact printers, etc. In addition, the company offers EMS services, such as consigned design and manufacturing services, printed wiring boards, etc. Oki Electric Industry Co., Ltd. was founded in 1881 and is headquartered in Tokyo, Japan.

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

Financials show a recovery versus 2021–2023: profitability is back to positive (TTM net margin ~4.2%), leverage has improved (debt-to-equity ~0.7), and free cash flow is positive with strong TTM FCF growth (~21%). Offsetting this are slightly negative TTM revenue growth (~-1.5%), modest industry-level margins, uneven historical earnings, and only moderate cash conversion (FCF ~two-thirds of TTM net income).

Income Statement

Profitability has improved meaningfully versus the loss-making year in 2023, with TTM (Trailing-Twelve-Months) net profit margin at ~4.2% and operating profitability holding at moderate levels. However, the top line is slightly down in TTM (Trailing-Twelve-Months) (about -1.5%), and earnings quality looks somewhat volatile historically (profits swung from losses in 2021/2023 to strong profits in 2024, then lower in 2025). Gross margin has been relatively steady in the mid‑20% range, which supports stability, but overall margins remain modest for the industry.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.7 in both 2025 annual and TTM (Trailing-Twelve-Months), improving from a more stretched position in 2023 (above 1.2). Equity has grown versus 2023, supporting balance-sheet resilience. That said, returns on equity have come down from the unusually strong 2024 level to mid-to-high single digits more recently, suggesting profitability is not yet consistently strong enough to materially lift returns.

Cash Flow

Cash generation has improved from 2021–2023, with positive operating cash flow and positive free cash flow in both 2025 annual and TTM (Trailing-Twelve-Months). TTM (Trailing-Twelve-Months) free cash flow growth is strong (~21%), which is a clear positive. Offsetting this, cash conversion remains only moderate: operating cash flow is relatively small versus revenue, and free cash flow covers only about two-thirds of TTM (Trailing-Twelve-Months) net income, indicating earnings are not fully translating into cash on a consistent basis.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	427.68B	452.46B	421.85B	369.10B	352.06B	392.87B
Gross Profit	104.84B	113.36B	105.41B	86.19B	90.12B	99.42B
EBITDA	39.27B	32.08B	35.37B	13.85B	18.11B	17.54B
Net Income	17.88B	12.48B	25.65B	-2.80B	2.06B	-819.00M
Balance Sheet
Total Assets	418.90B	410.96B	423.40B	390.43B	369.17B	373.21B
Cash, Cash Equivalents and Short-Term Investments	27.12B	36.87B	35.04B	37.75B	36.69B	44.84B
Total Debt	110.42B	103.00B	118.43B	124.89B	100.83B	94.84B
Total Liabilities	266.03B	265.22B	282.09B	291.15B	261.54B	259.95B
Stockholders Equity	152.78B	145.67B	141.25B	99.21B	107.57B	111.53B
Cash Flow
Free Cash Flow	20.09B	28.76B	7.74B	-19.68B	-15.78B	-8.41B
Operating Cash Flow	29.95B	39.26B	24.72B	-3.15B	5.92B	18.07B
Investing Cash Flow	-19.18B	-19.63B	-14.34B	-17.62B	-17.60B	-14.46B
Financing Cash Flow	-15.28B	-17.86B	-15.71B	23.27B	1.68B	-8.85B

OKI Electric Industry Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2130.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2130 is below the 20-day moving average (MA) of 2847.30, below the 50-day MA of 2384.58, and above the 200-day MA of 1836.49, indicating a bullish trend. The MACD of 261.62 indicates Negative momentum. The RSI at 73.51 is Negative, neither overbought nor oversold. The STOCH value of 82.38 is Negative, 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	¥44.05B	71.35	―	4.43%	0.63%	-24.87%
6287	71 Outperform	¥78.80B	9.50	9.15%	3.06%	4.82%	55.73%
6820	70 Outperform	¥46.00B	14.45	―	2.93%	-0.90%	-13.24%
6703	70 Outperform	¥257.55B	6.34	7.16%	2.31%	-2.36%	-61.50%
6835	68 Neutral	¥29.09B	9.33	24.14%	0.77%	6.43%	368.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	60 Neutral	¥4.73B	44.10	―	2.01%	13.56%	―

OKI Electric Industry Company Corporate Events

Oki Electric Lifts Full-Year Profit Outlook Despite Lower Nine-Month Sales

Oki Electric Industry reported consolidated net sales of ¥282.2 billion for the nine months ended December 31, 2025, down 8.1% year on year, as operating income fell 20.6% to ¥6.1 billion but ordinary income rose 14.9% to ¥6.5 billion and profit attributable to owners of parent surged more than threefold to ¥7.4 billion, driven by improved profitability and non-operating factors. The company’s financial position strengthened modestly, with total assets rising to ¥418.9 billion, net assets to ¥152.9 billion and the shareholders’ equity ratio improving to 36.5%, while it confirmed a year-end dividend forecast of ¥50 per share for fiscal 2025 and upgraded its full-year outlook to ¥430 billion in sales and ¥19 billion in net profit, signaling confidence in earnings growth despite lower revenue and a narrower consolidation scope following the exclusion of a Thai manufacturing subsidiary.

The most recent analyst rating on (JP:6703) stock is a Buy with a Yen2329.00 price target. To see the full list of analyst forecasts on OKI Electric Industry Company stock, see the JP:6703 Stock Forecast page.

Oki Electric Issues Correction to FY2024 Results on Medium-Term Targets

Oki Electric Industry has issued a partial correction to its previously announced financial results for fiscal year 2024, specifically revising content in the section on management targets of its medium-term business plan originally released on May 8, 2025. While the company did not disclose the exact nature of the revisions in this notice, the correction indicates an adjustment to its medium-term strategic targets, which could affect how investors and other stakeholders assess OKI’s performance benchmarks and future business direction.

The most recent analyst rating on (JP:6703) stock is a Hold with a Yen2083.00 price target. To see the full list of analyst forecasts on OKI Electric Industry Company stock, see the JP:6703 Stock Forecast page.

Oki Electric Issues Partial Correction to H1 FY2025 Financial Results

Oki Electric Industry has issued a notice of partial correction to its previously announced financial results for the first half of fiscal 2025, originally released on November 6, 2025. The correction applies specifically to the Enterprise Solutions business segment overview within those results, with amended details provided in an appendix, indicating a clarification or adjustment in segment reporting that may affect how investors assess performance in that part of OKI’s operations.

The most recent analyst rating on (JP:6703) stock is a Hold with a Yen2083.00 price target. To see the full list of analyst forecasts on OKI Electric Industry Company stock, see the JP:6703 Stock Forecast page.