Ono Sokki Co., Ltd. (6858) AI Stock Analysis

• Market Cap: ¥6.73B
• Dividend Yield: 2.5%
• Average Volume (3M): 22.22K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.91
• Revenue Growth: 13.34%
• EPS Growth: -74.02%
• Country: JP
• Employees: 651
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -34.62
• Shares Outstanding: 12,200,000
• 10 Day Avg. Volume: 20,900
• 30 Day Avg. Volume: 22,223
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥631.00
• Price Target Upside: 5.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥631.00 ▲(5.17% Upside)

Ono Sokki Co., Ltd. has a solid financial foundation with strong revenue growth and a healthy balance sheet. However, the negative cash flow growth is a significant concern. The technical indicators suggest mixed signals with a short-term bearish trend but a longer-term bullish outlook. The stock is reasonably valued with a decent dividend yield, making it attractive for income-focused investors.

Ono Sokki Co., Ltd. Business Overview & Revenue Model

Company Description

Ono Sokki Co., Ltd. (6858) is a Japanese company specializing in the development and manufacturing of precision measuring instruments and systems. The company operates in sectors such as automotive, industrial, and electronics, providing core products like tachometers, sound and vibration analyzers, and flow meters. Ono Sokki aims to deliver innovative measurement solutions that enhance quality control and efficiency in various industries.

How the Company Makes Money

Ono Sokki Co., Ltd. generates revenue through the sale of its precision measuring instruments and systems to a diverse range of industries, including automotive, electronics, and other industrial sectors. The company's key revenue streams include direct sales of products, as well as after-sales services such as maintenance, calibration, and technical support. Additionally, Ono Sokki collaborates with industry partners and participates in joint ventures to expand its market reach and enhance its product offerings, contributing to its earnings.

Ono Sokki Co., Ltd. Financial Statement Overview

Summary

Ono Sokki Co., Ltd. demonstrates strong revenue growth and a robust balance sheet with low leverage. However, cash flow management remains a concern, with significant negative free cash flow growth. The company should focus on enhancing cash generation from operations to support its growth trajectory and maintain financial stability.

Income Statement

Ono Sokki Co., Ltd. has shown a consistent revenue growth trend with a 4.45% increase in TTM. The gross profit margin remains strong at 45.69%, indicating efficient cost management. However, the net profit margin has slightly decreased to 12.78% in TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins are stable, suggesting operational efficiency, though there's room for improvement in EBITDA margin.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.084 in TTM, indicating low financial leverage. The return on equity has improved to 10.45%, showcasing effective use of equity to generate profits. The equity ratio is solid, reflecting a strong capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow situation presents challenges, with negative free cash flow growth of -1054.24% in TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 0.22, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is positive but low, highlighting the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.06B	11.80B	11.54B	10.93B	9.85B	11.84B
Gross Profit	5.91B	5.43B	5.29B	5.25B	4.33B	5.07B
EBITDA	1.28B	2.67B	715.00M	600.00M	231.00M	306.00M
Net Income	453.00M	1.46B	438.00M	246.00M	-1.27B	-576.00M
Balance Sheet
Total Assets	20.36B	21.31B	21.00B	21.11B	19.45B	20.81B
Cash, Cash Equivalents and Short-Term Investments	4.56B	4.24B	2.12B	2.28B	2.03B	2.84B
Total Debt	1.26B	1.40B	3.22B	4.10B	3.53B	3.34B
Total Liabilities	4.65B	5.40B	6.89B	7.72B	6.73B	6.59B
Stockholders Equity	15.50B	15.70B	13.95B	13.27B	12.62B	14.13B
Cash Flow
Free Cash Flow	-563.00M	-191.00M	-136.00M	-694.00M	-722.00M	597.00M
Operating Cash Flow	-28.00M	330.00M	340.00M	-230.00M	-498.00M	1.88B
Investing Cash Flow	-747.00M	3.95B	431.00M	-160.00M	-2.00M	-1.30B
Financing Cash Flow	-823.00M	-2.27B	-984.00M	569.00M	-374.00M	317.00M

Ono Sokki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6858, the sentiment is Positive. The current price of 600 is above the 20-day moving average (MA) of 580.70, above the 50-day MA of 576.08, and above the 200-day MA of 554.62, indicating a bullish trend. The MACD of 6.10 indicates Negative momentum. The RSI at 67.49 is Neutral, neither overbought nor oversold. The STOCH value of 90.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6858.

Ono Sokki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	79 Outperform	¥23.29B	12.30	9.06%	2.55%	9.88%	11.83%
6874	78 Outperform	¥21.39B	9.59	10.63%	2.75%	11.31%	20.92%
6863	72 Outperform	¥13.24B	9.91	9.32%	4.86%	4.80%	32.85%
6858	71 Outperform	¥6.73B	13.56	―	2.50%	13.34%	-74.02%
6817	70 Outperform	¥35.95B	20.42	3.12%	4.84%	-3.69%	-22.95%
6853	69 Neutral	¥19.25B	18.17	5.88%	3.12%	2.10%	4.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Ono Sokki Co., Ltd. Corporate Events

Ono Sokki Reports 2025 H1 Financial Results with Increased Sales but Operating Losses

Ono Sokki Co., Ltd. reported its consolidated financial results for the first half of 2025, showing a significant increase in net sales by 24.8% compared to the previous year. Despite the rise in sales, the company faced operating and ordinary losses, with a notable decrease in profit attributable to owners of the parent. The financial forecast for the fiscal year ending December 31, 2025, anticipates a recovery with expected increases in operating and ordinary profits, although the profit attributable to owners is projected to decline by 62.3%. The company also announced a reduction in annual dividends, reflecting a cautious approach amid financial challenges.

Ono Sokki Co., Ltd. Reports Increased Sales Amidst Operating Losses

Ono Sokki Co., Ltd. reported a significant increase in net sales for the first half of 2025, rising by 24.8% compared to the previous year. Despite this growth, the company faced operating and ordinary losses, with a notable decline in profit attributable to owners of the parent. The company anticipates a positive turnaround by the end of the fiscal year, forecasting substantial improvements in operating and ordinary profits, although the profit attributable to owners is expected to decrease by 62.3%. The dividend forecast for the fiscal year ending December 31, 2025, has been revised to a total of 20.00 yen, down from 30.00 yen in the previous year.