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

• Market Cap: ¥4.13B
• Dividend Yield: 4.06%
• Average Volume (3M): 7.89K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.53
• Revenue Growth: 1.44%
• EPS Growth: -184.10%
• Country: JP
• Employees: 349
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 17.09
• Shares Outstanding: 5,500,000
• 10 Day Avg. Volume: 4,480
• 30 Day Avg. Volume: 7,893
• PEG Ratio: 0.19
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -11.59
• 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: 49 Neutral
• Price Target: ¥809.00 ▼(-19.74% Downside)
• Action: Reiterated Date: 03/15/26
• Date: Action: Reiterated 03/15/26

The score is held back primarily by weakening financial performance—thin operating profitability and especially weak recent operating/free cash flow—alongside bearish technicals (below key moving averages and negative MACD). A high dividend yield provides some valuation support, but the negative P/E reduces confidence in earnings-based valuation.

Positive Factors

Specialized business model

OSG’s focus on precision optical components for industrial and professional imaging creates durable end-market specialization. Technical know‑how, long product lifecycles and customer integration create higher switching costs and recurring aftermarket/service demand, supporting steady structural revenue.

High gross margins

Gross margin near 59% indicates manufacturing pricing power and differentiated product value. Sustainably high gross margins give the company room to absorb input cost volatility, invest in R&D or regain operating leverage if SG&A is controlled, supporting long‑term profitability potential.

Equity buffer on balance sheet

A sizeable equity base relative to assets provides a structural financial cushion versus peers. This supports access to credit and absorbs cyclical shocks while cash flow is weak, allowing management more time to execute operational fixes or capex without immediate solvency pressure.

Negative Factors

Weak cash generation

Persistent deterioration in operating cash and a large recent FCF deficit create a structural funding shortfall. Over months this raises refinancing and funding risk, limits self‑funding for capex/R&D, constrains dividend sustainability and increases dependence on external debt or equity issuance.

Compressed operating margins

Sharp margin compression versus prior years indicates weakened operating leverage or rising below‑gross costs. Low EBIT and net margins reduce the firm’s buffer to absorb shocks, limit reinvestment capacity, and make returns sensitive to price pressure or cost increases without structural cost or pricing remediation.

Rising leverage

An upward trend in debt‑to‑equity increases financial risk as cashflow weakens. Higher leverage raises interest and refinancing burdens, narrows strategic flexibility for capex or M&A, and elevates insolvency risk if operational recovery lags, making capital structure a longer‑term vulnerability.

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

Company Description

OSG Corporation Co., Ltd. develops and sells water products in Japan and internationally. The company offers water ionizers and purifiers, and ionized alkaline water vending machines for beverage purpose; and acidic water generators for disinfection purpose. Its products are used for residential, commercial, and industrial sectors. The company was incorporated in 1970 and is headquartered in Osaka, Japan.

How the Company Makes Money

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OSG Corporation Co., Ltd. Financial Statement Overview

Summary

Income statement profitability has deteriorated sharply (EBIT margin down to ~2.5%, net margin ~1.3%) on only modest revenue growth. Balance sheet leverage remains manageable but is trending worse (debt-to-equity ~0.81). Cash flow is the key weakness, with very small/negative operating cash flow recently and a large free-cash-flow deficit most recently.

Income Statement

Revenue has been broadly flat over the last few years, with only modest growth in the latest annual period (+2.1%). Profitability, however, has deteriorated sharply versus 2021–2022: EBIT margin fell from double-digits (2021–2022) to ~2.5% most recently, and net profit margin is now very thin (~1.3%) despite strong gross margins (~59%). Net income has also compressed materially from prior peaks, signaling weaker operating leverage and/or higher cost pressure below the gross line.

Balance Sheet

Leverage is moderate but trending worse: debt-to-equity rose to ~0.81 in the latest annual period from ~0.47–0.63 in earlier years, reflecting increasing reliance on debt and/or declining equity. Equity remains sizeable relative to the asset base, which provides some balance-sheet support, but the direction of leverage and lower profitability reduces financial flexibility compared with earlier periods.

Cash Flow

Cash generation has weakened meaningfully. Operating cash flow turned very small in the last two annual periods (including slightly negative in 2025), and free cash flow swung to a large deficit most recently (-369M), pointing to either heavier investment needs or weaker cash conversion. The company’s cash flow no longer consistently supports earnings, and the recent pattern increases funding risk if sustained.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	8.02B	8.19B	7.93B	7.90B	8.13B	9.87B
Gross Profit	4.68B	4.81B	4.65B	4.65B	4.42B	5.09B
EBITDA	313.79M	385.58M	258.00M	295.57M	565.45M	1.27B
Net Income	52.43M	106.69M	33.84M	49.61M	198.14M	638.50M
Balance Sheet
Total Assets	6.73B	6.47B	6.40B	6.73B	6.76B	6.84B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.25B	2.36B	2.70B	2.55B	2.64B
Total Debt	1.96B	2.02B	1.61B	1.60B	1.55B	1.46B
Total Liabilities	3.84B	3.65B	3.50B	3.55B	3.34B	3.15B
Stockholders Equity	2.48B	2.48B	2.57B	2.74B	2.90B	3.11B
Cash Flow
Free Cash Flow	0.00	-368.94M	-132.43M	289.83M	155.78M	245.22M
Operating Cash Flow	0.00	97.10M	-796.00K	447.26M	305.69M	649.56M
Investing Cash Flow	0.00	-325.91M	399.20M	-227.29M	-235.23M	-588.42M
Financing Cash Flow	0.00	28.52M	-227.68M	-154.76M	-228.83M	-142.41M

OSG Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1008.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 1008 is above the 20-day moving average (MA) of 813.10, above the 50-day MA of 855.35, and above the 200-day MA of 856.90, indicating a bearish trend. The MACD of -11.00 indicates Negative momentum. The RSI at 32.72 is Neutral, neither overbought nor oversold. The STOCH value of 36.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
6104	81 Outperform	¥83.95B	136.93	5.02%	3.23%	-10.00%	-51.92%
6317	78 Outperform	¥15.86B	15.61	―	3.41%	-3.27%	572.42%
6203	65 Neutral	¥19.76B	8.12	―	1.73%	26.09%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6125	62 Neutral	¥28.84B	-53.89	―	3.56%	-3.85%	-45.64%
6135	61 Neutral	¥280.60B	8.88	7.67%	0.91%	9.03%	10.76%
6757	49 Neutral	¥4.13B	40.07	―	4.06%	1.44%	-184.10%