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Obara Group Incorporated (JP:6877)
:6877
Japanese Market
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Obara Group Incorporated (6877) Price & Analysis

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6877 Stock Chart & Stats

¥3830.00
-¥10.00(-0.25%)
At close: 4:00 PM EST
¥3830.00
-¥10.00(-0.25%)

Bulls Say, Bears Say

Bulls Say
Low Leverage / Strong Balance SheetA very low debt-to-equity ratio (0.11) gives Obara durable financial flexibility to fund capital equipment development and support customers through cyclicality. Conservative leverage reduces refinancing risk, preserves investment capacity for R&D and service network expansion over multiple cycles.
High Gross Margins And Revenue GrowthSustained gross margins near 33% alongside ~19.6% revenue growth indicate structural pricing power and operational efficiency in equipment manufacturing. These fundamentals support reinvestment in product development and scale of service operations, underpinning mid-term margin sustainability.
Recurring After-sales And Services RevenueA diversified revenue mix—equipment, engineering/integration, after-sales maintenance and consumables—creates recurring cash flows from an installed base. This reduces cyclicality of project sales, strengthens customer stickiness, and supports long-term stable revenue and parts/service margin streams.
Bears Say
Declining Free Cash Flow GrowthA declining free cash flow growth trend weakens Obara's internal funding for capex and service network investments. Persistent FCF deterioration can force external financing, limit strategic spending, or pressure dividend policy, reducing long-term financial optionality despite solid margins.
Pressure On Net ProfitabilityA falling net margin (10.96%) suggests rising costs or pricing pressure that can erode operating leverage. If sustained, this reduces retained earnings available for reinvestment and shareholder returns, and narrows the buffer against demand swings inherent in capital-equipment markets.
Cyclical Exposure To Automotive CapexHigh dependence on automotive OEM capex and model changeovers creates structural demand cyclicality and timing risk for project bookings. This leads to uneven order flows and utilization, making revenue and cash generation sensitive to industry cycles despite recurring service revenue.

Obara Group Incorporated News

6877 FAQ

What was Obara Group Incorporated’s price range in the past 12 months?
Obara Group Incorporated lowest stock price was ¥3400.00 and its highest was ¥6870.00 in the past 12 months.
    What is Obara Group Incorporated’s market cap?
    Obara Group Incorporated’s market cap is ¥92.61B.
      When is Obara Group Incorporated’s upcoming earnings report date?
      Obara Group Incorporated’s upcoming earnings report date is Jul 31, 2026 which is in 50 days.
        How were Obara Group Incorporated’s earnings last quarter?
        Obara Group Incorporated released its earnings results on May 08, 2026. The company reported ¥129.84 earnings per share for the quarter, beating the consensus estimate of N/A by ¥129.84.
          Is Obara Group Incorporated overvalued?
          According to Wall Street analysts Obara Group Incorporated’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Obara Group Incorporated pay dividends?
            Obara Group Incorporated pays a Semiannually dividend of ¥89 which represents an annual dividend yield of 3.85%. See more information on Obara Group Incorporated dividends here
              What is Obara Group Incorporated’s EPS estimate?
              Obara Group Incorporated’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Obara Group Incorporated have?
              Obara Group Incorporated has 20,869,380 shares outstanding.
                What happened to Obara Group Incorporated’s price movement after its last earnings report?
                Obara Group Incorporated reported an EPS of ¥129.84 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.703%.
                  Which hedge fund is a major shareholder of Obara Group Incorporated?
                  Currently, no hedge funds are holding shares in JP:6877
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Obara Group Incorporated

                    Obara Group Incorporated is a global manufacturer and supplier of industrial equipment and associated consumables. The company offers a diverse range of products, including resistance welding systems primarily used for joining metal sheets in automotive assembly, and arc welders designed to fuse steel components using molten welding wires. Obara also provides precision polishing equipment, vital for the electronics and advanced manufacturing sectors, such as polishers for material substrates found in devices like personal computers and mobile phones. Furthermore, their advanced cleaning systems meticulously remove microscopic particles from sensitive components such as memory disks, flat panel displays, and various opto-electronic devices. Laser equipment, enabling precise localized welding of different metals, is another key offering. Complementing its machinery, Obara supplies a comprehensive suite of consumables, including slurries, abrasives, carriers, pads, and plates, tailored for a wide array of industrial applications. Established in 1955, Obara Group Incorporated is headquartered in Yamato, Japan.

                    Obara Group Incorporated (6877) Earnings & Revenues

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