Obara Group Incorporated (6877) AI Stock Analysis

• Market Cap: ¥68.09B
• Dividend Yield: 3.45%
• Average Volume (3M): 20.19K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.53
• Revenue Growth: 10.78%
• EPS Growth: 12.90%
• Country: JP
• Employees: 1,711
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 127.44
• Shares Outstanding: 20,869,380
• 10 Day Avg. Volume: 22,760
• 30 Day Avg. Volume: 20,186
• PEG Ratio: -0.78
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 13.60
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥4,640.00 ▲(11.00% Upside)

Obara Group Incorporated's strong financial performance and attractive valuation are the primary strengths, contributing positively to the overall score. However, the technical indicators suggest caution due to potential bearish trends. The absence of free cash flow and lack of recent earnings call data or corporate events also impact the overall assessment.

Obara Group Incorporated Business Overview & Revenue Model

Company Description

Obara Group Incorporated (6877) is a leading provider of advanced manufacturing solutions, specializing in the production and development of welding and cutting technologies. The company serves various sectors, including automotive, electronics, and construction, offering a range of core products such as resistance welding equipment, laser processing systems, and automation solutions. With a strong commitment to innovation and quality, Obara Group aims to enhance productivity and efficiency for its clients through cutting-edge technology and custom solutions.

How the Company Makes Money

Obara Group generates revenue primarily through the sale of its welding and cutting equipment and systems, which include both standard and customized products tailored to specific industrial applications. The company also earns income from providing maintenance services, technical support, and training related to the operation of its equipment. Key revenue streams include direct sales to manufacturers, long-term contracts with major automotive and electronics companies, and partnerships with distributors and service providers. Additionally, Obara Group invests in research and development to create innovative products that meet evolving market demands, thus contributing to its overall earnings growth.

Obara Group Incorporated Financial Statement Overview

Summary

Strong revenue and profit growth with impressive gross and net margins. The balance sheet indicates low leverage and effective asset management, but cash flow variability with zero free cash flow for the trailing twelve months requires attention.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.72B	56.39B	55.21B	50.28B	45.48B	44.23B
Gross Profit	19.82B	17.93B	17.52B	16.82B	14.69B	14.09B
EBITDA	11.37B	11.23B	11.65B	11.27B	10.50B	8.89B
Net Income	6.90B	6.72B	7.21B	6.20B	5.99B	5.10B
Balance Sheet
Total Assets	103.23B	100.81B	94.62B	92.35B	78.41B	72.31B
Cash, Cash Equivalents and Short-Term Investments	29.51B	42.41B	39.29B	36.87B	26.70B	21.31B
Total Debt	7.97B	8.07B	2.03B	6.74B	6.84B	7.17B
Total Liabilities	29.70B	27.01B	20.51B	28.69B	24.24B	21.88B
Stockholders Equity	73.39B	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: Negative
• Last Price: 4180.00
• 50DMA: Negative
• 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:6877, the sentiment is Negative. The current price of 4180 is below the 20-day moving average (MA) of 4263.75, below the 50-day MA of 4236.19, and above the 200-day MA of 3663.76, indicating a neutral trend. The MACD of 6.99 indicates Positive momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 39.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	―	¥129.77B	10.56	―	2.56%	28.13%	84.20%
6474	―	€96.68B	21.40	2.64%	2.57%	-4.11%	46.76%
6877	―	¥68.09B	9.91	―	3.45%	10.78%	12.90%
6480	―	¥46.97B	22.80	―	3.30%	5.34%	79.88%
6278	―	¥120.76B	20.50	―	1.27%	21.67%	40.87%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6472	―	€177.89B	30.58	-9.53%	2.29%	-3.84%	-351.10%

Obara Group Incorporated Corporate Events

Obara Group Reports Q3 Financial Results with Increased Sales but Declining Comprehensive Income

Obara Group Incorporated reported its financial results for the third quarter of the fiscal year ending September 30, 2025, showing a notable increase in net sales by 10.6% compared to the previous year, reaching 45,166 million yen. Despite this growth, the company experienced a decline in comprehensive income by 33.0%, highlighting challenges in maintaining profitability. The financial forecast for FY2025 remains unchanged, with expectations of moderate growth in net sales and stable operating income, reflecting the company’s cautious optimism amidst market uncertainties.