Obara Group Incorporated (6877) AI Stock Analysis

• Market Cap: ¥82.19B
• Dividend Yield: 3.85%
• Average Volume (3M): 20.19K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.50
• Revenue Growth: 9.38%
• EPS Growth: 8.88%
• Country: JP
• Employees: 1,711
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 126.36
• Shares Outstanding: 20,869,380
• 10 Day Avg. Volume: 22,760
• 30 Day Avg. Volume: 20,186
• PEG Ratio: 1.11
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.10
• P/FCF Ratio: 41.97
• 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: 74 Outperform
• Price Target: ¥5,645.00 ▲(47.39% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by strong financial performance, especially a conservative, stable balance sheet, tempered by weaker free cash flow trends. Valuation is reasonable with a solid dividend yield. Technicals show strong trend strength but appear overextended based on RSI and stochastic readings, adding near-term risk.

Positive Factors

Conservative Balance Sheet

Obara's very low leverage and healthy equity ratio provide durable financial flexibility: it reduces refinancing and interest-rate risks, supports capital spending for bespoke welding systems, and preserves the firm's ability to invest in R&D or service capacity during industry downturns without stressing liquidity.

Negative Factors

Declining Free Cash Flow Conversion

Weaker FCF growth and lower conversion of net income into cash undermine internal funding for capex, R&D, or dividends. Over months this can constrain strategic investments or require external funding if the company pursues larger system contracts or international expansion, raising execution risk.

Obara Group Incorporated Business Overview & Revenue Model

Company Description

Obara Group Incorporated engages in the manufacture and sale of resistance welder, arc welder, laser equipment, polisher, cleaner/washer, and the consumables in Japan and internationally. The company offers resistance welding systems to weld metal...

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Obara Group Incorporated engages in the manufacture and sale of resistance welder, arc welder, laser equipment, polisher, cleaner/washer, and the consumables in Japan and internationally. The company offers resistance welding systems to weld metal...

How the Company Makes Money

Obara Group makes money primarily by selling resistance welding equipment and systems to manufacturers (notably automotive OEMs and their suppliers) that require high-throughput, repeatable welding processes in body-in-white and related assembly o...

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Obara Group makes money primarily by selling resistance welding equipment and systems to manufacturers (notably automotive OEMs and their suppliers) that require high-throughput, repeatable welding processes in body-in-white and related assembly o...

Obara Group Incorporated Financial Statement Overview

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	61.68B	56.39B	55.21B	50.28B	45.48B
Gross Profit	19.90B	17.63B	17.29B	16.51B	14.41B
EBITDA	11.81B	10.60B	10.46B	9.93B	8.66B
Net Income	6.76B	6.72B	7.21B	6.20B	5.99B
Balance Sheet
Total Assets	103.83B	100.81B	94.62B	92.35B	78.41B
Cash, Cash Equivalents and Short-Term Investments	26.18B	42.41B	39.29B	36.87B	26.70B
Total Debt	8.00B	8.11B	2.11B	6.77B	6.88B
Total Liabilities	29.15B	27.00B	20.51B	28.69B	24.24B
Stockholders Equity	74.53B	73.73B	74.04B	63.59B	54.10B
Cash Flow
Free Cash Flow	1.62B	5.25B	4.45B	5.04B	8.35B
Operating Cash Flow	5.11B	8.36B	5.30B	6.66B	9.88B
Investing Cash Flow	-18.52B	-3.72B	5.13B	68.00M	-546.00M
Financing Cash Flow	-6.10B	-1.81B	-2.60B	-3.03B	-5.89B

Obara Group Incorporated Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3830.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6877, the sentiment is Neutral. The current price of 3830 is below the 20-day moving average (MA) of 5793.50, below the 50-day MA of 4759.30, and below the 200-day MA of 4140.56, indicating a neutral trend. The MACD of 121.90 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 1.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6877.

Obara Group Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6101	83 Outperform	¥152.56B	7.03	―	2.33%	25.95%	66.92%
6877	74 Outperform	¥82.19B	7.58	―	3.85%	9.38%	8.88%
6136	72 Outperform	¥226.12B	10.15	7.86%	2.55%	0.57%	4.54%
6278	72 Outperform	¥240.31B	24.11	―	1.17%	29.51%	48.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥109.76B	17.03	2.64%	2.30%	-4.11%	46.76%
6141	57 Neutral	¥337.11B	15.50	11.46%	3.77%	-9.34%	164.21%

Obara Group Incorporated Corporate Events