OSG Corporation Co., Ltd. (6757) AI Stock Analysis

• Market Cap: ¥4.78B
• Dividend Yield: 4.31%
• Average Volume (3M): 7.89K
• Price to Earnings (P/E): 90.1
• Beta (1Y): 0.48
• Revenue Growth: -0.15%
• EPS Growth: 27.85%
• Country: JP
• Employees: 349
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 14.97
• Shares Outstanding: 5,500,000
• 10 Day Avg. Volume: 4,480
• 30 Day Avg. Volume: 7,893
• PEG Ratio: -4.16
• Price to Book (P/B): 1.75
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -33.85
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥990.00 ▲(6.68% Upside)

The overall stock score is influenced primarily by the company's strong technical analysis indicators, suggesting positive market sentiment. However, financial performance challenges, particularly in cash flow and profitability, and a high P/E ratio indicating potential overvaluation, weigh down the score.

OSG Corporation Co., Ltd. Business Overview & Revenue Model

Company Description

OSG Corporation Co., Ltd. (6757) is a Japanese company primarily engaged in the manufacturing and sale of cutting tools and industrial equipment. The company operates in various sectors including metalworking, automotive, and aerospace, providing a wide range of high-precision tools such as drills, end mills, and taps. OSG is known for its innovation in cutting tool technology, focusing on enhancing productivity and performance for its customers across global markets.

How the Company Makes Money

OSG Corporation generates revenue primarily through the sale of its cutting tools and related products. The company’s key revenue streams include direct sales to manufacturers in various industries, distribution through a network of partners, and providing specialized services such as tool reconditioning and support. Significant partnerships with large automotive and aerospace manufacturers also contribute to its earnings. Additionally, OSG invests in research and development to introduce advanced products, which helps to maintain competitive pricing and drive sales growth in the cutting tool market.

OSG Corporation Co., Ltd. Financial Statement Overview

Summary

OSG Corporation Co., Ltd. shows strong gross profitability and a solid equity base, but struggles with revenue decline, low net profitability, and negative cash flow. The moderate debt level is overshadowed by low ROE and cash flow issues, necessitating improved operational efficiency.

Income Statement

The gross profit margin for 2025 is approximately 58.47%, indicating strong profitability at the gross level. However, the net profit margin for 2025 stands at about 0.42%, which is quite low, reflecting challenges in converting revenue into net income. Revenue has decreased over the years, with a notable decline of approximately 19.7% from 2022 to 2025, indicating a negative growth trajectory. EBIT and EBITDA margins are also relatively low at 1.68% and 3.25% respectively, suggesting limited operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of approximately 0.63 in 2025, indicating a balanced use of debt and equity but suggesting potential leverage risks. The return on equity (ROE) for 2025 is low at 1.29%, showing limited effectiveness in using equity to generate profits. However, the equity ratio is strong at about 40.12%, demonstrating a solid equity base relative to total assets.

Cash Flow

The operating cash flow to net income ratio in 2025 is negative, as is the free cash flow, indicating cash flow challenges. The company has experienced a substantial decline in free cash flow over the years, with a negative free cash flow in 2025, which may pose risks to liquidity and operational flexibility. Despite this, cash reserves remain relatively strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.02B	7.93B	7.90B	8.13B	9.87B	10.24B
Gross Profit	4.67B	4.65B	4.65B	4.42B	5.09B	5.13B
EBITDA	311.33M	258.00M	295.57M	565.45M	1.27B	1.37B
Net Income	66.31M	33.84M	49.61M	198.14M	638.50M	583.04M
Balance Sheet
Total Assets	6.31B	6.40B	6.73B	6.73B	6.81B	6.26B
Cash, Cash Equivalents and Short-Term Investments	2.20B	2.36B	2.70B	2.55B	2.64B	2.53B
Total Debt	1.72B	1.61B	1.60B	1.55B	1.46B	1.42B
Total Liabilities	3.52B	3.50B	3.55B	3.31B	3.12B	3.17B
Stockholders Equity	2.40B	2.57B	2.74B	2.90B	3.11B	2.63B
Cash Flow
Free Cash Flow	0.00	-132.43M	289.83M	155.78M	245.22M	1.07B
Operating Cash Flow	0.00	-796.00K	447.26M	305.69M	649.56M	1.12B
Investing Cash Flow	0.00	399.20M	-227.29M	-235.23M	-588.42M	-619.95M
Financing Cash Flow	0.00	-227.68M	-154.76M	-228.83M	-142.41M	-378.46M

OSG Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 928.00
• 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:6757, the sentiment is Positive. The current price of 928 is above the 20-day moving average (MA) of 927.25, above the 50-day MA of 894.38, and above the 200-day MA of 838.52, indicating a bullish trend. The MACD of 10.35 indicates Positive momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6757.

OSG Corporation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6118	74 Outperform	¥51.23B	10.30	―	3.17%	4.02%	74.93%
6159	73 Outperform	¥10.98B	11.20	―	1.14%	23.05%	88.09%
6125	69 Neutral	¥30.77B	12.56	―	3.27%	-2.14%	-47.09%
6757	64 Neutral	¥4.78B	90.14	―	4.31%	-0.15%	27.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6147	57 Neutral	¥1.40B	64.02	―	3.19%	20.26%	582.41%
6155	51 Neutral	¥5.02B	―	―	2.11%	-4.30%	10.69%