Obara Group Incorporated (JP:6877)
:6877
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Obara Group Incorporated
(6877)
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Rating:78Outperform
Price Target:
¥7,629.00
▲(99.19% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by strong financial quality (notably low leverage and solid margins) and an attractive valuation (low P/E with a ~2.25% yield). Technicals are supportive but tempered by overbought momentum signals (high RSI/Stoch), which slightly reduces the overall rating.
Positive Factors
Low leverage / strong balance sheet
A debt-to-equity of 0.11 signals very low leverage and strong capitalization, giving Obara durable financial flexibility. This supports funding of bespoke equipment projects, cushions cyclical downturns in capex-driven end markets, and lowers refinancing risk over the next 2–6 months.
Negative Factors
Declining free cash flow conversion
A reduction in free cash flow growth and weakening FCF-to-net-income ratio suggests the company is generating less cash from earnings. This reduces internal funding for capex, R&D, and working capital needs, potentially constraining investment in product upgrades and service capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
A debt-to-equity of 0.11 signals very low leverage and strong capitalization, giving Obara durable financial flexibility. This supports funding of bespoke equipment projects, cushions cyclical downturns in capex-driven end markets, and lowers refinancing risk over the next 2–6 months.
Read all positive factors
Obara Group Incorporated (6877) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥101.26B
Dividend Yield3.85%
Average Volume (3M)20.19K
Price to Earnings (P/E)10.0
Beta (1Y)0.58
Revenue Growth19.61%
EPS Growth25.91%
CountryJP
Employees1,711
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)424.88
Shares Outstanding20,869,380
10 Day Avg. Volume22,760
30 Day Avg. Volume20,186
Financial Highlights & Ratios
PEG Ratio1.11
Price to Book (P/B)0.91
Price to Sales (P/S)1.10
P/FCF Ratio41.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
How the Company Makes Money
Obara Group makes money primarily by selling resistance welding equipment and production-line systems to manufacturers (notably automotive OEMs and their suppliers). Key revenue streams include: (1) Equipment and system sales: revenue from deliver...
Obara Group Incorporated Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| 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
Positive
3830.00
Price Trends
5630.65
Positive
4937.85
Positive
4492.59
Positive
Market Momentum
259.18
Negative
59.03
Neutral
48.17
Neutral
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 3830 is below the 20-day moving average (MA) of 5903.00, below the 50-day MA of 5630.65, and below the 200-day MA of 4492.59, indicating a bullish trend. The MACD of 259.18 indicates Negative momentum. The RSI at 59.03 is Neutral, neither overbought nor oversold. The STOCH value of 48.17 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥277.98B | 8.85 | ― | 2.33% | 20.23% | 56.48% | |
80 Outperform | ¥334.98B | 19.71 | ― | 1.17% | 29.22% | 29.50% | |
78 Outperform | ¥101.26B | 9.96 | ― | 3.85% | 19.61% | 25.91% | |
74 Outperform | ¥305.94B | 11.92 | 7.86% | 2.55% | 5.68% | 41.20% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥136.28B | 26.06 | 2.64% | 2.30% | 0.90% | 15.74% | |
58 Neutral | ¥460.40B | 55.37 | 11.46% | 3.77% | 2.76% | 56.11% |
* Industrials Sector Average
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Obara Group Incorporated Corporate Events
Obara Group Delivers Strong Q2 and Confirms Full-Year Growth Outlook
May 8, 2026
Obara Group Incorporated reported a strong second quarter for the fiscal year ending September 30, 2026, with net sales rising 27.9% year-on-year to ¥36.1 billion and net income climbing 31.8% to ¥3.9 billion. Operating and ordinary inco...
Obara Group Lifts 2026 Earnings Forecast on Asian Market Recovery
May 7, 2026
Obara Group Inc. has sharply raised its consolidated forecast for the fiscal year ending 30 September 2026, citing a recovery in Asian market conditions that is driving stronger-than-expected demand. For the first half, the company now projects ne...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.