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

• Market Cap: ¥9.72B
• Dividend Yield: 2.45%
• Average Volume (3M): 22.56K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.93
• Revenue Growth: 15.66%
• EPS Growth: -69.17%
• Country: JP
• Employees: 651
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 61.77
• Shares Outstanding: 12,200,000
• 10 Day Avg. Volume: 17,760
• 30 Day Avg. Volume: 22,563
• PEG Ratio: -0.23
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 25.01
• 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: 59 Neutral
• Price Target: ¥906.00 ▲(50.00% Upside)

The score is driven mainly by solid financial stability (notably low leverage) but tempered by volatile earnings and historically inconsistent cash generation. Technicals show a strong uptrend, yet the stock appears overheated based on very high RSI/Stoch readings. Valuation is moderate-to-elevated given recent profitability swings, with the dividend providing only partial support.

Positive Factors

Low Leverage / Strong Balance Sheet

The materially lower leverage and large equity base provide long-term financial resilience and flexibility. This strengthens Ono Sokki’s ability to fund R&D, capital equipment or acquisitions without strain, and to withstand sector cyclicality while preserving optionality.

Steady Revenue Growth & Stable Gross Margin

Consistent top‑line expansion with stable mid‑40% gross margins indicates durable underlying demand and pricing/production discipline. That combination supports margin sustainability and suggests the core measurement products retain competitiveness across economic cycles.

Recurring Services and Software Revenue

A mix that includes software, maintenance and engineering services creates recurring, higher‑visibility cash flows and stickier customer relationships. Over time this diversifies revenue, raises lifetime value per customer, and reduces sensitivity to one‑time equipment sales cycles.

Negative Factors

Volatile Profitability

Sharp year‑over‑year swings in net margin reflect volatile operating leverage and profitability drivers. Persistent variability makes earnings forecasting, capital allocation and sustained dividend or buyback policies harder to rely on for long‑term investors.

Inconsistent Cash Generation

An uneven cash‑flow track record—recent recovery notwithstanding—signals inconsistent cash conversion of profits. That raises risk for funding capex, R&D, or shareholder returns without tapping reserves or external financing during weaker years.

Weak Return on Equity

A steep ROE decline despite a strong capital base implies the company is not efficiently converting equity into profits. Over time, persistently low ROE can constrain shareholder value creation and indicate operational or pricing pressure needing strategic remediation.

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 measurement and control instruments. Operating primarily in the sectors of industrial automation and quality assurance, Ono Sokki offers a wide range of products, including precision measuring instruments, vibration testers, and analysis software. The company serves various industries, including automotive, aerospace, and manufacturing, providing solutions that enhance productivity and ensure compliance with quality standards.

How the Company Makes Money

Ono Sokki generates revenue through the sale of its measurement and control instruments, software solutions, and related services. Key revenue streams include direct sales of products to manufacturers, ongoing maintenance contracts, and software licensing fees. The company also benefits from partnerships with other firms in the automation and quality assurance sectors, which enhance its product offerings and market reach. Additionally, Ono Sokki's focus on research and development allows it to innovate and introduce new products, further driving sales and expanding its customer base.

Ono Sokki Co., Ltd. Financial Statement Overview

Summary

Strong, low-leverage balance sheet (debt-to-equity improved to ~0.07) supports resilience, but operating results are inconsistent: profitability fell sharply in 2025 versus 2024 and cash flow quality has been uneven despite a return to positive free cash flow in 2025.

Income Statement

Revenue has grown steadily from 2022–2025 (2025 up ~2.7% YoY), and gross margin has been fairly stable in the mid‑40% range—suggesting decent pricing power/production discipline. However, profitability is volatile: net margin swung from a strong 2024 (~12.4%) to a much lower 2025 (~2.9%), and operating profitability also compressed meaningfully in 2025 versus 2024. The business has recovered from losses in 2020–2021, but earnings consistency remains a key weakness.

Balance Sheet

The balance sheet looks conservative, with low leverage and improving debt levels: debt-to-equity declined from ~0.31 (2022) to ~0.07 (2025), and equity is large relative to the asset base. This provides resilience and flexibility. The main drawback is modest shareholder returns in the latest year (2025 return on equity ~2.4%) and a sharp step-down from 2024 (~9.3%), implying the company is not currently converting its strong capital position into strong profitability.

Cash Flow

Cash generation has been uneven. Operating cash flow is positive in 2023–2025 and improved in 2025, and free cash flow turned positive in 2025 after being negative in 2023–2024—an important improvement. Still, the track record includes negative operating cash flow in 2021–2022 and negative free cash flow in multiple years, and cash conversion versus earnings has been inconsistent (e.g., 2025 free cash flow is well below net income). Overall, cash flow quality is improving but not yet consistently strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.63B	11.80B	11.54B	10.93B	9.85B
Gross Profit	6.14B	5.43B	5.29B	5.25B	4.33B
EBITDA	1.41B	2.67B	715.00M	820.00M	231.00M
Net Income	395.00M	1.46B	438.00M	246.00M	-1.27B
Balance Sheet
Total Assets	21.78B	21.31B	21.00B	21.11B	19.45B
Cash, Cash Equivalents and Short-Term Investments	3.77B	4.24B	2.12B	2.28B	2.03B
Total Debt	1.13B	1.40B	3.22B	4.10B	3.53B
Total Liabilities	5.18B	5.40B	6.89B	7.72B	6.73B
Stockholders Equity	16.31B	15.70B	13.95B	13.27B	12.62B
Cash Flow
Free Cash Flow	264.00M	-191.00M	-136.00M	-694.00M	-722.00M
Operating Cash Flow	594.00M	330.00M	340.00M	-230.00M	-498.00M
Investing Cash Flow	-584.00M	3.95B	431.00M	-160.00M	-2.00M
Financing Cash Flow	-530.00M	-2.27B	-984.00M	569.00M	-374.00M

Ono Sokki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 604.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 604 is below the 20-day moving average (MA) of 697.65, below the 50-day MA of 643.14, and above the 200-day MA of 582.92, indicating a bullish trend. The MACD of 41.88 indicates Negative momentum. The RSI at 72.78 is Negative, neither overbought nor oversold. The STOCH value of 89.90 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	80 Outperform	¥24.89B	13.08	―	2.89%	6.15%	2.98%
6863	75 Outperform	¥14.66B	10.59	―	5.39%	6.45%	26.58%
6853	72 Outperform	¥18.89B	18.33	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥23.80B	10.50	―	2.84%	8.78%	16.25%
6817	70 Outperform	¥38.87B	19.31	―	4.53%	-2.57%	3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.72B	22.82	―	2.45%	15.66%	-69.17%

Ono Sokki Co., Ltd. Corporate Events

Ono Sokki Posts Profit Rebound, Cuts 2025 Dividend but Signals Earnings Growth for 2026

Ono Sokki reported consolidated net sales of ¥13.63 billion for the fiscal year ended December 31, 2025, up 15.5% year on year, with operating profit surging more than threefold to ¥588 million and ordinary profit rising 220.3% to ¥679 million, underscoring a solid rebound in core profitability. Despite this, profit attributable to owners of parent fell sharply to ¥395 million from ¥1.46 billion a year earlier, while comprehensive income also dropped, suggesting the previous year had large non-recurring or market-driven gains that were not repeated. The balance sheet remained robust, with equity ratio improving to 74.5% and cash and cash equivalents at ¥3.77 billion, even as investing and financing cash flows were negative. The company cut its annual dividend for 2025 to ¥22 per share from ¥30, raising the payout ratio to 57.9%, but it plans to restore the dividend to ¥30 per share in 2026 and is forecasting further growth, with full-year 2026 sales expected to rise to ¥15.0 billion and profit attributable to owners of parent to ¥800 million, implying more than a doubling of per-share earnings. These results and forecasts indicate Ono Sokki is rebuilding earnings on a healthier operational base while maintaining a conservative financial structure, though shareholders face near-term income pressure from the lower 2025 dividend before a planned recovery next fiscal year.

The most recent analyst rating on (JP:6858) stock is a Hold with a Yen753.00 price target. To see the full list of analyst forecasts on Ono Sokki Co., Ltd. stock, see the JP:6858 Stock Forecast page.