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

• Market Cap: ¥9.44B
• Dividend Yield: 2.45%
• Average Volume (3M): 22.56K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.83
• 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)
• Action: Reiterated Date: 02/01/26
• Date: Action: Reiterated 02/01/26

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

A materially lower debt-to-equity ratio gives the company durable financial resilience and flexibility. With minimal leverage the firm can fund R&D, sustain capex, pursue selective investments or weather demand slowdowns without stressing interest costs or needing urgent external financing.

Stable gross margins & steady revenue growth

Consistent mid‑40% gross margins alongside multi‑year revenue growth point to underlying pricing power and manufacturing discipline. This supports medium‑term profitability potential and makes core product economics predictable for planning and investment decisions.

Improving cash flow; FCF positive in 2025

The shift to positive free cash flow in 2025 signals improving operational cash conversion and reduces reliance on financing for operations. If sustained, positive FCF enhances ability to maintain services, support after‑sales, and fund targeted growth or shareholder returns over the next several quarters.

Negative Factors

Volatile profitability / earnings swings

Large year‑over‑year margin swings indicate earnings are sensitive to demand, pricing, or cost variability. This reduces predictability for reinvestment, dividend planning and makes multi‑quarter forecasting riskier for stakeholders relying on steady returns.

Inconsistent cash generation record

A history of intermittent negative operating and free cash flow implies cash generation is not yet reliably structural. This can force reliance on balance sheet buffers during downturns, limiting the firm's ability to consistently fund growth initiatives or expand recurring service offerings.

Low returns on equity

A sharply lower ROE indicates the company is not currently converting its capital base into commensurate profits. Persistently low returns constrain capacity to increase dividends or reinvest profitably and suggest underutilized assets or competitive pressure on margins.

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	5.30B	5.16B	5.15B	4.13B
EBITDA	1.30B	776.00M	715.00M	600.00M	-62.00M
Net Income	395.00M	1.46B	438.00M	246.00M	-1.27B
Balance Sheet
Total Assets	21.91B	21.53B	21.18B	21.11B	19.45B
Cash, Cash Equivalents and Short-Term Investments	3.77B	4.24B	2.12B	2.28B	2.03B
Total Debt	1.22B	1.49B	3.22B	4.10B	3.53B
Total Liabilities	5.30B	5.61B	7.06B	7.72B	6.72B
Stockholders Equity	16.31B	15.71B	13.95B	13.28B	12.62B
Cash Flow
Free Cash Flow	264.00M	-191.00M	107.00M	-508.00M	-637.00M
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: Neutral
• Last Price: 604.00
• 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:6858, the sentiment is Neutral. The current price of 604 is below the 20-day moving average (MA) of 883.95, below the 50-day MA of 796.52, and below the 200-day MA of 634.84, indicating a neutral trend. The MACD of 15.38 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 32.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
7745	80 Outperform	¥71.59B	8.26	―	2.31%	6.50%	30.54%
6866	79 Outperform	¥102.21B	15.13	―	3.23%	7.28%	4.16%
6859	75 Outperform	¥75.61B	12.98	―	3.12%	2.78%	-5.32%
6853	73 Outperform	¥19.27B	18.81	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥23.39B	7.23	―	2.84%	8.78%	16.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.44B	16.72	―	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.