OKI Electric Industry Company (6703) AI Stock Analysis

• Market Cap: ¥174.67B
• Dividend Yield: 2.31%
• Average Volume (3M): 798.28K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.40
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥2,248.00 ▲(5.54% Upside)

The overall stock score is driven by a stable financial position and positive technical indicators. The valuation is fair, providing a reasonable P/E ratio and a decent dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Balance sheet stability

Moderate leverage and a solid equity base provide financial flexibility to fund capex, R&D, or absorb cyclical shocks. This stability supports sustainable operations and access to financing over the next 2–6 months, reducing bankruptcy and liquidity risks.

Strong free cash flow improvement

A large increase in free cash flow enhances the company’s ability to fund investments, pay down debt, or sustain dividends without relying on external financing. Improved cash generation is a durable source of financial flexibility if maintained.

Recurring services and telecom focus

A business mix that includes maintenance, support, and telecom systems creates recurring revenue streams and customer stickiness. Serving carriers and enterprises yields stable demand and predictable contracts, supporting revenue resilience over time.

Negative Factors

Declining revenue trend

Negative revenue growth undermines scale economics and constrains reinvestment capacity. If the decline persists, it can erode competitive position, reduce bargaining power with suppliers/customers, and pressure margins and long-term growth prospects.

Low profitability and return on equity

Modest margins and low ROE limit retained earnings and the company’s ability to fund growth internally. Persistently thin profitability reduces resilience to input cost increases and hampers competitive reinvestment over a multi-month horizon.

Weak cash conversion and volatility

Poor conversion of accounting income to operating cash and volatile cash flows reduce predictability of funding for operations and investments. This raises refinancing risk and makes long-term planning and dividend consistency more difficult.

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

The company demonstrates a stable financial position with moderate leverage and a solid equity base. However, the income statement shows mixed results with declining revenue growth and reasonable profit margins. Cash flow generation has improved, but historical volatility remains a concern.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -1.23%, which is a concern. However, the company maintains a reasonable gross profit margin of 24.34% and a net profit margin of 2.05%. The EBIT and EBITDA margins are modest at 2.98% and 6.48%, respectively. The annual data shows a history of fluctuating margins and growth rates, indicating some instability in revenue generation and profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.71, indicating moderate leverage. The return on equity (ROE) is relatively low at 6.41%, suggesting limited efficiency in generating profits from equity. The equity ratio stands at 37.01%, showing a solid equity base. Overall, the balance sheet suggests financial stability with manageable debt levels.

Cash Flow

The cash flow statement reveals a strong free cash flow growth rate of 83.4% in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.17, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is healthier at 0.61, showing some efficiency in cash utilization. Historical data shows volatility in cash flows, which could pose risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	434.19B	452.46B	421.85B	369.10B	352.06B	392.87B
Gross Profit	106.09B	113.36B	105.41B	86.19B	90.12B	99.42B
EBITDA	29.79B	32.08B	35.37B	13.85B	18.11B	17.54B
Net Income	10.69B	12.48B	25.65B	-2.80B	2.06B	-819.00M
Balance Sheet
Total Assets	393.04B	410.96B	423.40B	390.43B	369.17B	373.21B
Cash, Cash Equivalents and Short-Term Investments	28.99B	36.87B	35.04B	37.75B	36.69B	44.84B
Total Debt	99.17B	103.00B	118.43B	124.89B	100.83B	94.84B
Total Liabilities	247.52B	265.22B	282.09B	291.15B	261.54B	259.95B
Stockholders Equity	145.44B	145.67B	141.25B	99.21B	107.57B	111.53B
Cash Flow
Free Cash Flow	16.56B	28.76B	7.74B	-19.68B	-15.78B	-8.41B
Operating Cash Flow	26.99B	39.26B	24.72B	-3.15B	5.92B	18.07B
Investing Cash Flow	-17.44B	-19.63B	-14.34B	-17.62B	-17.60B	-14.46B
Financing Cash Flow	-12.38B	-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: Positive
• RSI: Neutral
• 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 2130 is above the 20-day moving average (MA) of 2116.30, above the 50-day MA of 2003.40, and above the 200-day MA of 1653.31, indicating a neutral trend. The MACD of 10.68 indicates Positive momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 40.05 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	¥46.76B	18.75	―	4.43%	0.63%	-24.87%
6835	80 Outperform	¥33.39B	7.63	24.14%	0.77%	6.43%	368.06%
6675	79 Outperform	¥39.07B	12.12	―	2.26%	20.13%	33.43%
6287	79 Outperform	¥74.75B	10.44	9.15%	3.06%	4.82%	55.73%
6820	70 Outperform	¥42.66B	18.28	―	2.93%	-0.90%	-13.24%
6703	69 Neutral	¥174.67B	16.37	7.16%	2.31%	-2.36%	-61.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OKI Electric Industry Company Corporate Events

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.