OKI Electric Industry Company (6703) AI Stock Analysis

• Market Cap: $128.17B
• Dividend Yield: 0.03%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 10.3
• 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: 1,332,170
• 30 Day Avg. Volume: 1,173,620
• PEG Ratio: 0.09
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.16
• 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 ▲(13.04%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 Company, also known as OKI, is a Japanese multinational corporation primarily engaged in the manufacturing and sales of telecommunications equipment, information technology solutions, and printer products. Founded in 1881, the company operates in various sectors including telecommunications infrastructure, financial services, and the automotive industry, providing products and services that range from ATMs and automated teller machines to mechatronics systems and LED printers.

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 a stable financial position with strengths in cash flow generation and a moderate balance sheet. Revenue growth is positive at 7.25%, but profitability metrics such as net profit margin have declined, indicating potential operational cost pressures. The company maintains a manageable debt level, providing a base for future growth.

Income Statement

The income statement shows a moderate performance with a gross profit margin of 25.1% and an EBIT margin of 4.1% for the latest fiscal year. The company demonstrated a revenue growth of 7.25% year-over-year, indicating positive momentum, though net profit margin has declined sharply to 2.76% from a healthier 6.08% the previous year. EBITDA margin at 7.09% reflects adequate operational efficiency but suggests room for improvement.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.71 and an equity ratio of 35.4%. The return on equity stands at 8.57%, indicating efficient use of equity to generate profits, although it has decreased from 18.16% the previous year. This suggests a stable but slightly declining financial leverage position.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 271.6% year-over-year, driven by improved operating cash flow. The operating cash flow to net income ratio is robust at 3.15, suggesting strong cash generation relative to reported profits. The positive free cash flow to net income ratio of 2.3 further emphasizes solid cash flow management.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
452.46B	421.85B	369.10B	352.06B	392.87B
	Gross Profit
113.36B	105.41B	86.19B	90.12B	99.42B
	EBIT
18.63B	18.69B	2.40B	5.86B	9.51B
	EBITDA
32.08B	35.37B	13.85B	18.11B	17.54B
	Net Income Common Stockholders
12.48B	25.65B	-2.80B	2.06B	-205.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.87B	35.04B	37.75B	36.69B	44.84B
	Total Assets
410.96B	423.40B	390.43B	369.17B	373.21B
	Total Debt
103.00B	118.43B	124.89B	100.83B	94.84B
	Net Debt
66.14B	83.89B	87.14B	64.14B	50.00B
	Total Liabilities
265.22B	282.09B	291.15B	261.54B	259.95B
	Stockholders Equity
145.67B	141.25B	99.21B	107.57B	113.19B
Cash Flow		Free Cash Flow
28.76B	7.74B	-19.68B	-15.78B	-8.41B
	Operating Cash Flow
39.26B	24.72B	-3.15B	5.92B	18.07B
	Investing Cash Flow
-19.63B	-14.34B	-17.62B	-17.60B	-14.46B
	Financing Cash Flow
-17.86B	-15.71B	23.27B	1.68B	-8.85B

OKI Electric Industry Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1534.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1534 is above the 20-day moving average (MA) of 1387.90, above the 50-day MA of 1131.18, and above the 200-day MA of 1002.22, indicating a bullish trend. The MACD of 104.70 indicates Positive momentum. The RSI at 76.17 is Negative, neither overbought nor oversold. The STOCH value of 70.74 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	¥42.34B	11.72		6.17%	3.23%	-22.14%
6675	80 Outperform	¥23.42B	6.65		4.09%	7.38%	25.89%
6703	77 Outperform	$128.17B	10.28	8.57%	0.03%	7.25%	-51.36%
6835	76 Outperform	¥17.99B	4.99	20.51%	1.92%	10.80%	484.38%
6820	74 Outperform	¥41.87B	14.19		3.98%	-1.34%	-14.87%
6287	74 Outperform	$64.61B	9.05	9.56%	3.55%	7.92%	100.27%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%

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.