Oi Electric Co., Ltd. (6822) AI Stock Analysis

• Market Cap: ¥6.40B
• Dividend Yield: 0.53%
• Average Volume (3M): 4.51K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.60
• Revenue Growth: 4.93%
• EPS Growth: 23.92%
• Country: JP
• Employees: 983
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 272.00
• Shares Outstanding: 1,470,000
• 10 Day Avg. Volume: 3,640
• 30 Day Avg. Volume: 4,513
• PEG Ratio: 0.09
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 1.57
• 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: 77 Outperform
• Price Target: ¥5,448.00 ▲(36.03% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by strong financial performance (especially cash flow strength) and very attractive valuation (low P/E). Technicals are supportive due to the clear uptrend, but the elevated RSI/Stoch readings temper the overall score because they signal increased near-term reversal risk.

Positive Factors

Strong cash generation

Very strong free cash flow growth (89.1%) and operating cash flow at 2.6x net income indicate durable internal liquidity. This supports ongoing capex, maintenance of infrastructure contracts, debt service and optional shareholder returns without needing frequent external financing, improving resilience.

Infrastructure-focused, diversified end markets

Broad exposure to essential infrastructure sectors (rail, telecom, industrial systems) and integrated services (engineering, installation, maintenance) creates recurring revenue and high customer stickiness. Diversified, non-cyclical demand across public and industrial clients supports steadier long-term cash flows.

Solid shareholder returns (ROE)

A 14.9% ROE reflects efficient capital deployment and attractive returns for shareholders relative to peers. Sustained ROE indicates competitive product margins or disciplined capital allocation, helping long-term value creation and reinvestment capacity even if revenue growth is moderate.

Negative Factors

Relatively high reliance on debt

An equity ratio below 30% and debt-to-equity ~0.78 signal material leverage. While manageable today, higher reliance on debt reduces financial flexibility, raises interest expense sensitivity, and increases risk if rates rise or cash flows dip, constraining strategic investments.

Thin operating and net margins

Modest EBIT/EBITDA and low net margin mean limited internal buffers against cost inflation or competitive price pressure. Sustaining growth or funding expansion without eroding profitability may require efficiency gains or higher-margin product mix, challenging in competitive infrastructure markets.

Modest revenue growth

Low single-digit revenue growth suggests the company operates in mature or constrained markets. Without faster organic growth or successful expansion initiatives, topline stagnation limits scalability benefits, making long-term margin expansion and earnings growth reliant on cost improvements or new business lines.

Oi Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Oi Electric Co., Ltd. (6822) is a leading company in the electronics and electrical equipment sector, specializing in the design, manufacture, and distribution of innovative electrical solutions. The company focuses on various segments, including renewable energy, smart home technology, and industrial automation, providing a range of products such as electric motors, control systems, and energy management solutions.

How the Company Makes Money

Oi Electric Co., Ltd. generates revenue primarily through the sale of its electrical products and solutions to both commercial and residential customers. The company has established key revenue streams from its core product lines, including electric motors and automation systems, which are utilized in various industries such as manufacturing, construction, and home automation. Additionally, Oi Electric has formed strategic partnerships with other technology firms to enhance its product offerings and expand its market presence, contributing to its earnings through collaborative projects and shared innovations. The company also benefits from recurring revenue through service contracts and maintenance agreements for its installed systems.

Oi Electric Co., Ltd. Financial Statement Overview

Summary

Solid fundamentals supported by strong cash generation (free cash flow growth 89.1% and operating cash flow 2.6x net income). Revenue grew 3.3% YoY and profitability is positive (gross margin 19.9%, net margin 3.6%), though operating efficiency has room to improve (EBIT margin 5.1%). Leverage is manageable (debt-to-equity 0.78) but the equity ratio (29.8%) indicates higher reliance on debt.

Income Statement

Oi Electric has shown a positive trajectory in revenue growth with a recent increase of 3.3% from the previous year. The company maintains a healthy gross profit margin of 19.9% and a net profit margin of 3.6%, indicating profitability. However, the EBIT margin at 5.1% suggests room for operational improvements. The EBITDA margin of 7.2% reflects positive earnings before significant expenses.

Balance Sheet

The balance sheet displays a stable financial position with a debt-to-equity ratio of 0.78, which is manageable. The return on equity stands at 14.9%, reflecting strong shareholder returns. However, an equity ratio of 29.8% indicates a relatively high reliance on debt compared to equity, suggesting potential risks if leverage increases.

Cash Flow

Oi Electric shows a robust cash flow position with a free cash flow growth rate of 89.1%, indicating strong liquidity and operational efficiency. The operating cash flow to net income ratio of 2.6 highlights effective cash generation from operations. Moreover, the free cash flow to net income ratio of 2.3 underscores the company's ability to generate cash beyond earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	29.40B	29.05B	28.12B	22.93B	24.74B	29.41B
Gross Profit	6.11B	5.77B	5.38B	4.04B	3.45B	4.93B
EBITDA	2.46B	2.08B	1.32B	59.89M	-405.56M	804.05M
Net Income	1.35B	1.05B	759.51M	-811.86M	-1.02B	139.65M
Balance Sheet
Total Assets	22.74B	23.65B	23.88B	21.63B	21.80B	22.42B
Cash, Cash Equivalents and Short-Term Investments	3.88B	3.88B	2.88B	2.12B	3.55B	3.02B
Total Debt	4.96B	5.53B	6.58B	7.15B	6.78B	4.01B
Total Liabilities	13.75B	14.76B	15.89B	15.05B	14.39B	13.97B
Stockholders Equity	7.17B	7.05B	6.33B	5.10B	6.03B	7.16B
Cash Flow
Free Cash Flow	0.00	2.37B	1.25B	-1.93B	-2.06B	-1.76B
Operating Cash Flow	0.00	2.78B	1.64B	-1.52B	-1.10B	-1.11B
Investing Cash Flow	0.00	-493.26M	-277.88M	-276.20M	-1.07B	-611.56M
Financing Cash Flow	0.00	-1.28B	-604.03M	367.89M	2.70B	2.41B

Oi Electric Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4005.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6822, the sentiment is Positive. The current price of 4005 is below the 20-day moving average (MA) of 4487.25, below the 50-day MA of 4104.70, and above the 200-day MA of 3659.49, indicating a bullish trend. The MACD of 268.02 indicates Negative momentum. The RSI at 73.88 is Negative, neither overbought nor oversold. The STOCH value of 77.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6822.

Oi Electric Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	77 Outperform	¥6.40B	5.07	―	0.53%	4.93%	23.92%
6778	63 Neutral	¥5.99B	32.04	―	3.54%	19.28%	―
6696	62 Neutral	¥1.93B	-47.84	―	―	10.83%	-1827.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	60 Neutral	¥5.06B	7.48	―	2.01%	13.56%	―
6522	54 Neutral	¥3.26B	-24.76	―	―	5.57%	56.29%
6634	47 Neutral	¥4.44B	-6.49	―	―	165.52%	17.61%