Obara Group Incorporated (6877) AI Stock Analysis

• Market Cap: ¥62.01B
• Dividend Yield: 3.83%
• Average Volume (3M): 24.94K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.51
• Revenue Growth: 11.40%
• EPS Growth: 5.96%
• Country: JP
• Employees: 1,711
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 91.14
• Shares Outstanding: 20,869,380
• 10 Day Avg. Volume: 26,050
• 30 Day Avg. Volume: 24,943
• PEG Ratio: -4.90
• 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: ¥3,873.00
• Price Target Upside: -1.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥4,449.00 ▲(13.49%Upside)

Obara Group Incorporated demonstrates strong financial performance and attractive valuation, with strong revenue growth and low P/E ratio. Technical indicators show bullish momentum but caution is advised due to overbought conditions.

Obara Group Incorporated Business Overview & Revenue Model

Company Description

Obara Group Incorporated (6877) is a Japanese company primarily engaged in the manufacturing and sale of welding equipment and related products. The company operates within the industrial machinery sector, focusing on providing high-quality welding solutions to automotive and other manufacturing industries. Obara Group's core products include resistance welding machines, welding guns, and related components, which are essential for various manufacturing processes.

How the Company Makes Money

Obara Group Incorporated generates revenue primarily through the sale of its welding equipment and related products. The company's key revenue streams include the sale of resistance welding machines, welding guns, and components used in the manufacturing industry, particularly in automotive production. Additionally, Obara Group may also earn income through servicing and maintenance contracts for its equipment, as well as through the sale of spare parts. Significant partnerships with major automotive manufacturers and other industrial clients contribute to its earnings by ensuring a steady demand for its products and services. Furthermore, the company's focus on innovation and quality helps maintain its competitive edge in the industrial machinery market.

Obara Group Incorporated Financial Statement Overview

Summary

Obara Group Incorporated demonstrates strong financial health with consistent revenue and profit growth. The company shows robust profitability with a gross profit margin of 32.2% and a net profit margin of 12.0%. The balance sheet is solid with a low debt-to-equity ratio of 0.11 and a high equity ratio of 71.3%, indicating low leverage and strong asset financing through equity. However, the cash flow statement shows variability, with zero free cash flow for TTM, which may require 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	56.39B	55.21B	50.28B	45.48B	44.23B
Gross Profit	17.93B	17.52B	16.82B	14.69B	14.09B
EBITDA	11.23B	11.65B	9.93B	8.66B	8.09B
Net Income	6.72B	7.21B	6.20B	5.99B	5.10B
Balance Sheet
Total Assets	100.81B	94.62B	92.35B	78.41B	72.31B
Cash, Cash Equivalents and Short-Term Investments	42.41B	39.29B	36.87B	26.70B	21.31B
Total Debt	8.07B	2.03B	6.74B	6.84B	7.17B
Total Liabilities	27.01B	20.51B	28.69B	24.24B	21.88B
Stockholders Equity	73.73B	74.03B	63.59B	54.10B	50.31B
Cash Flow
Free Cash Flow	5.13B	4.37B	4.99B	8.30B	6.68B
Operating Cash Flow	8.36B	5.30B	6.66B	9.88B	8.09B
Investing Cash Flow	-3.72B	5.13B	68.00M	-546.00M	-2.88B
Financing Cash Flow	-1.81B	-2.60B	-3.03B	-5.89B	-5.97B

Obara Group Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3920.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6877, the sentiment is Positive. The current price of 3920 is above the 20-day moving average (MA) of 3746.50, above the 50-day MA of 3597.50, and above the 200-day MA of 3675.83, indicating a bullish trend. The MACD of 86.21 indicates Negative momentum. The RSI at 75.87 is Negative, neither overbought nor oversold. The STOCH value of 85.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	¥97.67B	7.95		2.86%	28.13%	84.20%
6877	77 Outperform	¥62.01B	9.77		3.83%	11.40%	5.96%
Sector *	71 Outperform	¥270.65B	14.28	8.44%	2.84%	6.34%	11.66%
6474	69 Neutral	¥78.84B	17.16	2.79%	3.09%	-4.76%	78.57%
6278	69 Neutral	¥111.60B	19.66		1.67%	28.68%	71.70%
6480	65 Neutral	¥43.50B	43.26		3.15%	-1.21%	-62.52%
6472	54 Neutral	¥136.96B	30.58	-9.65%	4.18%	-1.28%	-325.82%

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.