OPTEX GROUP Company Limited (6914) AI Stock Analysis

• Market Cap: ¥115.70B
• Dividend Yield: 1.68%
• Average Volume (3M): 154.66K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.19
• Revenue Growth: 2.72%
• EPS Growth: 33.10%
• Country: JP
• Employees: 2,148
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 43.15
• Shares Outstanding: 37,735,783
• 10 Day Avg. Volume: 215,860
• 30 Day Avg. Volume: 154,663
• PEG Ratio: 0.87
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 14.62
• 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): 199.33
• Revenue Forecast (FY): ¥68.75B

• Rating: 80 Outperform
• Price Target: ¥3,131.00 ▲(22.54% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial performance (improving margins, steady growth, and low leverage), supported by a favorable technical uptrend. Valuation is reasonable with a moderate dividend, while elevated RSI/Stoch and historical cash-flow volatility are the key near-term cautions.

Positive Factors

Conservative balance sheet

Very low and falling leverage gives the company financial flexibility to fund capex, R&D, dividends or opportunistic M&A without stressing liquidity. A conservative balance sheet materially reduces refinancing and solvency risk across business cycles, supporting durable operations.

Improving profitability

Sustained margin improvement and healthy operating/EBITDA margins indicate durable operating leverage and better cost control. This enhances cash available for reinvestment and shareholder returns, and provides a buffer against demand slowdowns or pricing pressure over the medium term.

Stronger recent cash generation

Material improvement in OCF and sustained positive FCF in the last two years strengthens ability to fund working capital, capex, and dividends internally. Higher cash conversion in recent periods supports durable investment capacity and reduces reliance on external financing.

Negative Factors

Historic cash-flow volatility

Past variability in operating cash flows and inconsistent FCF conversion (e.g., not fully covering net income across periods) suggests working-capital and capex timing risks. This makes long-term cash availability less predictable, potentially constraining investment pacing or dividends in downturns.

Limited gross margin expansion

If gross margins aren't expanding, profitability gains rely on volume, mix, or cost control rather than structural pricing power. That exposes earnings to reversal if volumes slow, competition intensifies, or input costs rise, making margin sustainability more contingent on execution.

Modest revenue growth rate

A mid-single-digit revenue growth profile indicates limited organic expansion and possible market saturation in core hardware segments. Modest top-line momentum constrains the runway for large margin expansion and increases dependence on operational efficiency to drive earnings growth.

OPTEX GROUP Company Limited Business Overview & Revenue Model

Company Description

OPTEX GROUP Company, Limited, together with its subsidiaries, develops, manufactures, and sells security sensors and automatic door sensors in Japan and internationally. It operates through Sensing Solution Business, Industrial Automation Business, and Electronic Manufacturing Service Business segments. The company offers water quality measuring instruments, customer traffic counting systems, and electronic components; factory automation sensors, LED lighting equipment for image processing, industrial PCs, and automation systems. It also provides contract manufacturing service of electronic equipment. The company was founded in 1979 and is headquartered in Otsu, Japan.

How the Company Makes Money

OPTEX GROUP generates revenue primarily through the sale of its sensor and security products, which are distributed globally. The company operates under a B2B model, supplying its products to both direct clients and through a network of distributors and partners. Key revenue streams include the sale of motion and laser sensors for security applications, as well as video surveillance systems. The company also benefits from recurring revenue through maintenance contracts and service agreements. Significant partnerships with security system integrators and collaborations with technology providers enhance its market presence and contribute to its earnings. Additionally, OPTEX GROUP invests in research and development to innovate and expand its product offerings, which helps capture new market opportunities and drive sales growth.

OPTEX GROUP Company Limited Financial Statement Overview

Summary

Strong overall fundamentals: steady multi-year revenue growth with improving profitability (net margin rising to ~10% by 2025) and a conservative, improving balance sheet (debt-to-equity down to ~0.11). The main offset is cash-flow consistency—recent OCF/FCF are strong, but historical volatility and less-than-full net income conversion (e.g., ~0.66x in 2025) temper the score.

Income Statement

Revenue has grown steadily over time (from 2020 to 2025), with growth re-accelerating in 2025. Profitability is solid and improving: net margin rose from ~4.0% (2020) to ~10.0% (2025), while operating and EBITDA margins are consistently healthy (~12–16% range recently). A key watch-out is that gross margin has been roughly stable rather than expanding, suggesting recent earnings gains are more from operating leverage/mix than pricing power.

Balance Sheet

The balance sheet looks conservative. Leverage is low and improving, with debt-to-equity declining from ~0.31 (2021) to ~0.11 (2025), alongside rising equity and asset base. This provides flexibility and lowers financial risk. The main limitation is that returns on equity are only provided through 2024 (and were ~10–12%), so the latest return profile can’t be fully confirmed from the provided data.

Cash Flow

Cash generation has strengthened materially in the last two years: operating cash flow increased from ~¥2.1B (2023) to ~¥9.4B (2025), and free cash flow is consistently positive and strong in 2024–2025 (~¥6.1–¥6.2B). However, cash flow has been more volatile historically (notably weak in 2022–2023), and free cash flow has not consistently covered net income across the full period (e.g., lower conversion in 2022–2023 and ~0.66x in 2025), indicating some variability in working capital/capex dynamics.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.10B	65.88B	63.27B	56.37B	54.81B	45.87B
Gross Profit	32.78B	34.29B	31.87B	28.77B	28.00B	23.89B
EBITDA	9.57B	10.28B	9.71B	8.67B	8.49B	6.75B
Net Income	6.16B	6.59B	5.69B	4.61B	4.75B	3.76B
Balance Sheet
Total Assets	72.75B	76.94B	72.85B	67.13B	63.30B	57.77B
Cash, Cash Equivalents and Short-Term Investments	21.21B	22.88B	21.07B	17.62B	17.61B	17.25B
Total Debt	7.85B	6.45B	8.89B	10.64B	10.88B	10.89B
Total Liabilities	20.89B	20.79B	22.77B	22.86B	23.57B	22.41B
Stockholders Equity	51.83B	56.13B	50.06B	44.25B	39.72B	35.35B
Cash Flow
Free Cash Flow	0.00	6.22B	6.09B	777.00M	289.00M	2.01B
Operating Cash Flow	0.00	9.45B	7.70B	2.11B	1.67B	3.10B
Investing Cash Flow	0.00	-3.78B	-867.00M	-782.00M	-310.00M	-2.85B
Financing Cash Flow	0.00	-4.42B	-3.83B	-2.26B	-1.63B	1.79B

OPTEX GROUP Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2555.00
• 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:6914, the sentiment is Positive. The current price of 2555 is below the 20-day moving average (MA) of 2720.05, below the 50-day MA of 2606.80, and above the 200-day MA of 2114.39, indicating a bullish trend. The MACD of 166.82 indicates Negative momentum. The RSI at 78.47 is Negative, neither overbought nor oversold. The STOCH value of 92.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6914.

OPTEX GROUP Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6914	80 Outperform	¥115.70B	17.28	―	1.68%	2.72%	33.10%
6850	80 Outperform	¥33.01B	16.29	―	2.89%	6.15%	2.98%
6866	79 Outperform	¥105.76B	19.22	―	3.23%	7.28%	4.16%
6814	76 Outperform	¥250.13B	15.44	―	1.88%	6.56%	106.55%
6817	70 Outperform	¥41.14B	11.44	―	4.53%	-2.57%	3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OPTEX GROUP Company Limited Corporate Events

OPTEX GROUP Lifts Earnings, Hikes Dividend and Ups Shareholder Return Targets

OPTEX GROUP reported that full-year 2025 net sales were broadly in line with earlier guidance, but operating and ordinary profits beat forecasts thanks to a favorable product mix and stronger profitability in its Sensing Solution business. Profit attributable to owners of parent rose above expectations, leading to higher basic earnings per share compared with both prior guidance and the previous fiscal year.

Reflecting these stronger results, the company raised its year-end dividend for 2025 to ¥31 per share, lifting the annual payout to ¥56, up from ¥40 a year earlier and above its prior forecast. In a further move to enhance shareholder returns from the next fiscal year, OPTEX GROUP revised its dividend policy, increasing its target consolidated payout ratio from 30% to 35% and its dividend-on-equity target from 3% to 3.5% or more, signaling a commitment to more generous and stable distributions.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2991.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.

OPTEX GROUP Highlights FY2025 Revenue Mix Across Automation and Sensing Businesses

OPTEX GROUP has reported its financial results for fiscal 2025, highlighting a diversified revenue base across its Industrial Automation and Sensing Solution segments, which together generated 65.8 billion yen in sales. The business portfolio is led by security sensors, inspection lighting, and factory automation products, underlining the company’s strong exposure to automation, safety, and infrastructure monitoring demand.

In its segment breakdown, security sensors accounted for the largest share of sales at 30%, followed by inspection lighting at 22% and factory automation at 14%, with additional contributions from automatic door sensors, automation systems, industrial PCs, and social and environmental sensors. This mix underscores OPTEX GROUP’s positioning as a key supplier to factory automation, building security, and social infrastructure markets, and suggests it is well placed to benefit from structural trends in automation, labor saving, and critical facility protection.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2991.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.

OPTEX Group Delivers Profit Growth in 2025 and Lifts Dividends, Signals Steady 2026

OPTEX Group reported consolidated net sales of ¥65.9 billion for the year ended December 31, 2025, up 4.1% year on year, with operating profit rising 14.5% to ¥8.2 billion and profit attributable to owners of parent climbing 15.9% to ¥6.6 billion. The firm’s profitability metrics improved, shareholders’ equity ratio strengthened to 72.4%, and higher operating cash flow supported a substantial dividend increase to ¥56 per share for 2025, with a further hike to ¥65 forecast for 2026.

For 2026, OPTEX forecasts moderate growth, guiding for full-year net sales of ¥69.0 billion and operating profit of ¥8.8 billion, with profit attributable to owners of parent expected to hold roughly flat at ¥6.6 billion despite revenue gains. The outlook suggests stable earnings with continued emphasis on shareholder returns through a higher payout ratio, indicating confidence in cash generation and reinforcing the group’s positioning as a steadily growing player in its niche sensing and control markets.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2991.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.

OPTEX GROUP Lifts Earnings, Hikes Dividend and Raises Payout Targets

OPTEX GROUP reported that full-year 2025 net sales were broadly in line with prior guidance, but operating profit, ordinary profit and profit attributable to owners of the parent all exceeded forecasts, driven by an improved product mix and higher sales of high-margin Sensing Solution offerings. Earnings per share rose to 185.16 yen, outpacing both earlier projections and the previous year, underscoring strengthened profitability.

Reflecting the stronger results, the board approved raising the year-end dividend for 2025 to 31 yen per share, lifting the annual payout to 56 yen, up from 40 yen a year earlier. The company also moved to enhance shareholder returns longer term by revising its dividend policy from the next fiscal year, lifting its target consolidated payout ratio from 30% to 35% and its dividend-on-equity target from at least 3% to at least 3.5%.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2991.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.

OPTEX Group Highlights FY2025 Results and Strength in Automation and Sensing

OPTEX GROUP CO., LTD. reported FY2025 financial results with total sales of 65.8 billion yen, underpinned by a diversified sensor and automation portfolio across industrial automation and sensing solution businesses. The revenue mix highlights security sensors, inspection lighting, and factory automation as core contributors, underscoring the company’s strong positioning in automation, safety, and social infrastructure markets and its operational focus on labor-saving and quality-improvement solutions.

By emphasizing products such as intrusion detection, automatic door, and vehicle detection sensors, alongside industrial PCs and semiconductor-related embedded boards, OPTEX is reinforcing its presence in both manufacturing and infrastructure applications. This business composition indicates a balanced exposure to factory automation demand and security and environmental needs, supporting resilience against cyclical swings in individual end markets and offering stakeholders a clear view of its strategic growth domains.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2991.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.

OPTEX Group Lifts Profits and Dividends, Signals Steady Growth for 2026

OPTEX Group reported consolidated net sales of ¥65.9 billion for fiscal 2025, up 4.1% year on year, with operating profit rising 14.5% to ¥8.2 billion and profit attributable to owners of the parent advancing 15.9% to ¥6.6 billion. Profitability indicators improved, shareholders’ equity ratio climbed to 72.4%, and operating cash flow strengthened, while the company raised the year-end dividend to ¥31 per share, resulting in a full-year dividend of ¥56 and signaling a more generous shareholder return policy.

For fiscal 2026, OPTEX forecasts modest growth, projecting net sales of ¥69.0 billion and operating profit of ¥8.8 billion, with profit attributable to owners of the parent expected to edge up to ¥6.6 billion. Although earnings per share are seen roughly flat, the company plans a further dividend increase to ¥65 per share, underscoring management’s confidence in cash-generation capacity despite changes in accounting policies and a more moderate profit growth outlook.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2991.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.

OPTEX GROUP to Restructure Manufacturing Units to Optimize Business Functions

OPTEX GROUP has approved a group reorganization that will shift factory management, operational functions, and the contract manufacturing service business for electronic devices from manufacturing subsidiary OPTEX MFG to sensor planning and sales unit OPTEX CO., via an absorption-type demerger effective April 1, 2026. Following this, OPTEX MFG will be absorbed into OPTEX FA through an absorption-type merger, with no changes to capital structures or share allocations since all entities are wholly owned subsidiaries; the move is intended to move from past group-wide production consolidation toward “optimization based on business characteristics,” better aligning functions with each operating company’s strengths to enhance competitiveness, accelerate value creation across the group, and support sustainable growth and higher corporate value, with the company judging that the successor entities will have no issues fulfilling assumed obligations.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2587.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.