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OKI Electric Industry Company Limited (JP:6703)
:6703

OKI Electric Industry Company (6703) AI Stock Analysis

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JP

OKI Electric Industry Company

(OTC:6703)

Rating:77Outperform
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 (6703) vs. iShares MSCI Japan ETF (EWJ)

OKI Electric Industry Company Business Overview & Revenue Model

Company DescriptionOki 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 MoneyOKI 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
75
Positive
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
70
Positive
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
80
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
442.21B421.85B369.10B352.06B392.87B457.22B
Gross Profit
115.66B105.41B86.19B90.12B99.42B117.81B
EBIT
20.48B18.69B2.40B5.86B9.51B16.83B
EBITDA
38.67B35.37B13.85B18.11B17.54B33.95B
Net Income Common Stockholders
25.63B25.65B-2.80B2.06B-205.00M14.09B
Balance SheetCash, Cash Equivalents and Short-Term Investments
31.88B35.04B37.75B36.69B44.84B49.23B
Total Assets
422.84B423.40B390.43B369.17B373.21B372.47B
Total Debt
118.80B118.43B124.89B100.83B94.84B97.68B
Net Debt
86.92B83.89B87.14B64.14B50.00B48.45B
Total Liabilities
284.31B282.09B291.15B261.54B259.95B266.03B
Stockholders Equity
138.44B141.25B99.21B107.57B113.19B106.38B
Cash FlowFree Cash Flow
13.02B7.74B-19.68B-15.78B-8.41B16.27B
Operating Cash Flow
26.91B24.72B-3.15B5.92B18.07B32.55B
Investing Cash Flow
-11.37B-14.34B-17.62B-17.60B-14.46B-2.97B
Financing Cash Flow
-15.57B-15.71B23.27B1.68B-8.85B-9.22B

OKI Electric Industry Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1473.00
Price Trends
50DMA
1111.94
Positive
100DMA
1026.77
Positive
200DMA
996.46
Positive
Market Momentum
MACD
106.67
Negative
RSI
72.11
Negative
STOCH
61.75
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$126.96B10.198.57%4.47%7.25%-51.36%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
$119.45M3.1620.51%1.88%
$454.97M9.739.56%3.54%
82
Outperform
¥43.01B11.90
4.94%3.23%-22.14%
80
Outperform
¥23.54B6.68
4.09%7.38%25.89%
74
Outperform
¥43.20B14.64
2.76%-1.34%-14.87%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6703
OKI Electric Industry Company
1,473.00
478.79
48.16%
ATSKF
Allied Telesis Holdings KK
0.70
0.08
12.90%
SATOF
Sato Holdings
14.00
0.92
7.03%
JP:6675
SAXA Holdings, Inc.
4,030.00
1,525.19
60.89%
JP:6718
Aiphone Co., Ltd.
2,623.00
-254.63
-8.85%
JP:6820
Icom Incorporated
2,981.00
16.68
0.56%

OKI Electric Industry Company Corporate Events

Oki Electric Reports Increased Sales but Decline in Profit for FY 2025
May 8, 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.

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.