OKI Electric Industry Company (6703) AI Stock Analysis

• Market Cap: $141.42B
• Dividend Yield: 2.79%
• Average Volume (3M): 537.37K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.30
• Revenue Growth: 0.30%
• EPS Growth: -67.30%
• 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: 388,580
• 30 Day Avg. Volume: 537,366
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 4.62
• 1Y Price Target: $1,719.30
• Price Target Upside: 9.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥1,734.00 ▲(10.24% 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 the sale of its diverse range of products and services in the ICT sector. Its primary revenue streams include the manufacturing and distribution of printers and multifunction devices, which cater to various business needs. Additionally, OKI earns significant income from its ATM and cash handling systems, widely used in financial institutions. The company also profits from providing communication systems and solutions to enterprises, including VoIP and networking equipment. Partnerships with technology firms and financial institutions enhance OKI's market presence, contributing to its revenue. Furthermore, OKI's investments in research and development foster continuous innovation, ensuring a steady demand for its advanced technological solutions.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	452.46B	452.46B	421.85B	369.10B	352.06B	392.87B
Gross Profit	113.36B	113.36B	105.41B	86.19B	90.12B	99.42B
EBITDA	33.94B	32.08B	35.37B	13.85B	18.11B	17.54B
Net Income	12.48B	12.48B	25.65B	-2.80B	2.06B	-205.00M
Balance Sheet
Total Assets	410.96B	410.96B	423.40B	390.43B	369.17B	373.21B
Cash, Cash Equivalents and Short-Term Investments	36.87B	36.87B	35.04B	37.75B	36.69B	44.84B
Total Debt	103.00B	103.00B	118.43B	124.89B	100.83B	94.84B
Total Liabilities	265.22B	265.22B	282.09B	291.15B	261.54B	259.95B
Stockholders Equity	145.67B	145.67B	141.25B	99.21B	107.57B	113.19B
Cash Flow
Free Cash Flow	26.85B	28.76B	7.74B	-19.68B	-15.78B	-8.41B
Operating Cash Flow	39.26B	39.26B	24.72B	-3.15B	5.92B	18.07B
Investing Cash Flow	-19.63B	-19.63B	-14.34B	-17.62B	-17.60B	-14.46B
Financing Cash Flow	-17.86B	-17.86B	-15.71B	23.27B	1.68B	-8.85B

OKI Electric Industry Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1573.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6703, the sentiment is Neutral. The current price of 1573 is below the 20-day moving average (MA) of 1648.30, below the 50-day MA of 1610.20, and above the 200-day MA of 1245.27, indicating a neutral trend. The MACD of 5.61 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 9.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6287	81 Outperform	¥70.51B	10.27	9.28%	3.45%	5.32%	106.88%
6835	80 Outperform	¥22.30B	6.04	18.52%	0.97%	7.81%	301.96%
6718	80 Outperform	¥44.18B	18.65	5.42%	4.53%	-2.28%	-43.48%
6703	77 Outperform	$141.42B	15.68	6.38%	2.79%	0.30%	-67.30%
6820	74 Outperform	¥43.49B	19.02	―	2.74%	-1.19%	-30.24%
6675	73 Outperform	¥28.65B	7.74	11.38%	2.69%	16.42%	79.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%