Obara Group Incorporated (6877) AI Stock Analysis

• Market Cap: ¥55.76B
• Dividend Yield: 4.31%
• Average Volume (3M): 49.50K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.50
• Revenue Growth: 11.40%
• EPS Growth: 5.96%
• Country: JP
• Employees: 1,711
• Sector: Industrials
• Sector Strength: 91
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 91.14
• Shares Outstanding: 20,869,380
• 10 Day Avg. Volume: 55,350
• 30 Day Avg. Volume: 49,503
• PEG Ratio: 10.84
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Obara Group Incorporated's stock is bolstered by strong financial performance and attractive valuation metrics. While the technical analysis shows positive trends, high RSI and Stochastic levels suggest caution against potential overbought conditions. The absence of free cash flow could be a concern but is balanced by the company's robust profitability and low leverage.

Obara Group Incorporated Business Overview & Revenue Model

Company Description

Obara Group Incorporated (6877) is a Japanese company specializing in the development and manufacturing of equipment for resistance welding and associated technologies. With a strong presence in the automotive and electronics industries, the company provides advanced welding solutions and systems that enhance efficiency and precision in manufacturing processes. Obara Group's products include welding guns, transformers, and control systems, catering to clients worldwide.

How the Company Makes Money

Obara Group makes money primarily through the sale of its resistance welding equipment and related products. The company's revenue streams include direct sales to automotive manufacturers and electronics companies, which rely on Obara's high-quality welding solutions for their production lines. Additionally, Obara Group generates income from after-sales services, maintenance, and spare parts supply, ensuring long-term relationships with its customers. Strategic partnerships with major automotive and electronics brands further bolster its financial performance by expanding its market reach and enhancing product development capabilities.

Obara Group Incorporated Financial Statement Overview

Summary

Obara Group Incorporated exhibits strong financial health with impressive revenue growth, solid profitability, and a stable balance sheet. However, the recent zero free cash flow for TTM may need attention to ensure continued cash flow stability.

Income Statement

Obara Group Incorporated has demonstrated strong revenue and profit growth, with revenue increasing consistently over the years. The gross profit margin stands at approximately 32.2% for TTM, and the net profit margin is about 12.0%, indicating robust profitability. The EBIT and EBITDA margins are also healthy, reflecting efficient operational performance.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.11, reflecting low leverage. The return on equity (ROE) is approximately 9.2% TTM, indicating effective use of equity to generate profits. The equity ratio is high, around 71.3%, suggesting strong asset financing through equity.

Cash Flow

The cash flow statement shows variability, with zero free cash flow for TTM, likely due to high capital expenditures or operational investments. While the operating cash flow to net income ratio is unavailable for TTM, prior annual data shows a positive trend, indicating operational cash generation capability.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
57.22B	56.39B	55.21B	50.28B	45.48B	44.23B
	Gross Profit
18.43B	17.93B	17.52B	16.82B	14.69B	14.09B
	EBIT
9.38B	9.20B	9.01B	8.50B	7.32B	6.75B
	EBITDA
10.72B	11.32B	11.65B	9.93B	8.66B	8.09B
	Net Income Common Stockholders
6.85B	6.72B	7.21B	6.20B	5.99B	5.10B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
33.20B	42.41B	39.29B	36.87B	26.70B	21.31B
	Total Assets
103.93B	100.81B	94.62B	92.35B	78.41B	72.31B
	Total Debt
8.03B	8.07B	2.03B	6.74B	6.84B	7.17B
	Net Debt
-24.51B	-34.25B	-37.17B	-30.09B	-19.80B	-14.10B
	Total Liabilities
29.71B	27.01B	20.51B	28.69B	24.24B	21.88B
	Stockholders Equity
74.05B	73.73B	74.03B	63.59B	54.10B	50.31B
Cash Flow		Free Cash Flow
0.00	5.13B	4.37B	4.99B	8.30B	6.68B
	Operating Cash Flow
0.00	8.36B	5.30B	6.66B	9.88B	8.09B
	Investing Cash Flow
0.00	-3.72B	5.13B	68.00M	-546.00M	-2.88B
	Financing Cash Flow
0.00	-1.81B	-2.60B	-3.03B	-5.89B	-5.97B

Obara Group Incorporated Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3480.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3480 is above the 20-day moving average (MA) of 3375.25, above the 50-day MA of 3334.73, and below the 200-day MA of 3747.88, indicating a neutral trend. The MACD of 67.06 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.65 is Neutral, 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
6877	76 Outperform	¥55.76B	8.79		4.31%	11.40%	5.96%
6503	75 Outperform	€6.14T	18.78	8.40%	1.73%	5.02%	14.73%
6954	73 Outperform	¥3.56T	24.89		2.49%	0.23%	12.16%
6146	73 Outperform	$3.75T	30.27	27.22%	1.14%	27.88%	47.09%
6506	72 Outperform	$851.69B	14.90	13.62%	1.98%	-6.60%	12.77%
6645	66 Neutral	$760.16B	46.74	2.10%	2.64%	-6.57%	-76.15%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%

Obara Group Incorporated Corporate Events

Obara Group Reports Q2 Financial Results with Mixed Performance

Obara Group Incorporated reported its financial results for the second quarter of the fiscal year ending September 30, 2025, showing a 6.6% increase in net sales compared to the previous year. Despite this growth, the company experienced declines in operating, ordinary, and net income, reflecting challenges in maintaining profitability. The company has revised its consolidated financial forecast for the full fiscal year, indicating a cautious outlook amidst market uncertainties.