OKI Electric Industry Company (6703) AI Stock Analysis

• Market Cap: $126.96B
• Dividend Yield: 4.47%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.36
• Revenue Growth: 7.25%
• EPS Growth: -51.36%
• Country: JP
• Employees: 14,439
• Sector: Technology
• Sector Strength: 84
• Industry: Communication Equipment
• EPS (TTM): 143.92
• Shares Outstanding: 87,217,600
• 10 Day Avg. Volume: 1,244,190
• 30 Day Avg. Volume: 1,123,093
• PEG Ratio: -0.54
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.19
• 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

• Rating: 77 Outperform
• Price Target: ¥1,734.00 ▲(17.72%Upside)

The stock of OKI Electric Industry Company scores well due to strong technical momentum and robust cash flow generation, despite some declines in profitability metrics. The valuation metrics suggest potential undervaluation, further enhancing the stock's attractiveness. However, the overbought condition indicated by the RSI warrants caution.

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 Industry Company generates revenue through multiple streams. Primarily, the company earns by selling telecommunications systems and equipment to businesses and government entities, providing essential infrastructure for communication networks. Additionally, OKI derives significant income from its information technology solutions, which include hardware, software, and related services tailored to different industry needs such as retail and finance. The company's printer division also contributes to its earnings by manufacturing and distributing a range of printing solutions, particularly LED printers, to global markets. OKI maintains strategic partnerships and collaborates with other technology firms to enhance its product offerings and expand market reach, further bolstering its revenue.

OKI Electric Industry Company Financial Statement Overview

Summary

OKI Electric Industry Company demonstrates significant improvement in financial health, with recovering revenue and profitability, better cash flow generation, and strong equity support. However, historical volatility in earnings and reliance on leverage present potential risks that require monitoring.

Income Statement

The company shows a strong recovery in revenue growth with a 5% increase from the previous year. The TTM gross profit margin is healthy at 26.14%, and the net profit margin improved significantly to 5.79%. However, past volatility in net income and fluctuating EBIT margins indicate some instability in operational efficiency.

Balance Sheet

The debt-to-equity ratio is moderately high at 0.86, indicating significant leverage. However, the company maintains a robust equity ratio of 32.73%, reflecting solid asset backing. Return on equity has improved, showcasing better profitability, but past fluctuations warrant caution.

Cash Flow

Free cash flow showed strong growth, improving significantly from past negative values. The operating cash flow to net income ratio is solid at 1.05, indicating good cash generation from operations relative to net income. The cash flow recovery trajectory is promising, enhancing financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
442.21B	421.85B	369.10B	352.06B	392.87B	457.22B
	Gross Profit
115.66B	105.41B	86.19B	90.12B	99.42B	117.81B
	EBIT
20.48B	18.69B	2.40B	5.86B	9.51B	16.83B
	EBITDA
38.67B	35.37B	13.85B	18.11B	17.54B	33.95B
	Net Income Common Stockholders
25.63B	25.65B	-2.80B	2.06B	-205.00M	14.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.88B	35.04B	37.75B	36.69B	44.84B	49.23B
	Total Assets
422.84B	423.40B	390.43B	369.17B	373.21B	372.47B
	Total Debt
118.80B	118.43B	124.89B	100.83B	94.84B	97.68B
	Net Debt
86.92B	83.89B	87.14B	64.14B	50.00B	48.45B
	Total Liabilities
284.31B	282.09B	291.15B	261.54B	259.95B	266.03B
	Stockholders Equity
138.44B	141.25B	99.21B	107.57B	113.19B	106.38B
Cash Flow		Free Cash Flow
13.02B	7.74B	-19.68B	-15.78B	-8.41B	16.27B
	Operating Cash Flow
26.91B	24.72B	-3.15B	5.92B	18.07B	32.55B
	Investing Cash Flow
-11.37B	-14.34B	-17.62B	-17.60B	-14.46B	-2.97B
	Financing Cash Flow
-15.57B	-15.71B	23.27B	1.68B	-8.85B	-9.22B

OKI Electric Industry Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1473.00
• 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:6703, the sentiment is Positive. The current price of 1473 is above the 20-day moving average (MA) of 1367.15, above the 50-day MA of 1111.94, and above the 200-day MA of 996.46, indicating a bullish trend. The MACD of 106.67 indicates Negative momentum. The RSI at 72.11 is Negative, neither overbought nor oversold. The STOCH value of 61.75 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
6703	77 Outperform	$126.96B	10.19	8.57%	4.47%	7.25%	-51.36%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
ATSKF		$119.45M	3.16	20.51%	1.88%	―	―
SATOF		$454.97M	9.73	9.56%	3.54%	―	―
6718	82 Outperform	¥43.01B	11.90		4.94%	3.23%	-22.14%
6675	80 Outperform	¥23.54B	6.68		4.09%	7.38%	25.89%
6820	74 Outperform	¥43.20B	14.64		2.76%	-1.34%	-14.87%

OKI Electric Industry Company Corporate Events

Oki Electric Reports Increased Sales but Decline in Profit for FY 2025

Oki Electric Industry Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 7.3% increase in net sales to ¥452,457 million, despite a decline in profit attributable to owners of the parent by 51.3% to ¥12,479 million. The company experienced a slight decrease in operating and ordinary income, reflecting challenges in maintaining profitability. The dividend per share increased from ¥30.00 to ¥45.00, indicating a commitment to returning value to shareholders. Looking ahead, Oki Electric forecasts a modest decline in net sales for the fiscal year ending March 31, 2026, but anticipates improvements in operating and ordinary income, as well as a 12.2% increase in profit attributable to owners of the parent.