OPTEX GROUP Company Limited (6914) AI Stock Analysis

• Market Cap: ¥85.51B
• Dividend Yield: 1.83%
• Average Volume (3M): 154.66K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.15
• Revenue Growth: 2.72%
• EPS Growth: 33.10%
• Country: JP
• Employees: 2,148
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 57.83
• Shares Outstanding: 37,735,783
• 10 Day Avg. Volume: 215,860
• 30 Day Avg. Volume: 154,663
• PEG Ratio: 0.48
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 10.31
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥2,808.00 ▲(14.29% Upside)

OPTEX GROUP's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust revenue growth, profitability, and efficient cash management are significant strengths. However, the stock's overbought technical indicators and moderate valuation suggest caution for short-term investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and increased demand for OPTEX's sensor and security products, supporting long-term business sustainability.

Cash Flow Management

Significant free cash flow growth showcases OPTEX's ability to generate cash efficiently, providing financial flexibility for reinvestment and debt management.

Balance Sheet Health

A low debt-to-equity ratio and strong equity base indicate a conservative capital structure, enhancing financial stability and reducing risk exposure.

Negative Factors

Profit Margin Pressure

While net profit margin has improved, it remains relatively modest, suggesting potential challenges in maintaining profitability amid competitive pressures.

Market Competition

Operating in a highly competitive market, OPTEX faces challenges in differentiating its products, which could impact pricing power and market share.

Earnings Volatility

Volatility in cash flows from investing and financing activities may indicate potential instability in earnings, affecting long-term financial planning.

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

OPTEX GROUP demonstrates strong financial health with impressive revenue growth and profitability improvements. The company maintains a robust balance sheet with low leverage and high equity ratios. Cash flow performance is commendable, highlighting effective cash management.

Income Statement

OPTEX GROUP displays strong income statement metrics with a consistent upward trend in revenue and profitability. Gross Profit Margin reached approximately 50.4% for 2024, indicating efficient cost management. The Net Profit Margin improved to about 9.0%, reflecting solid bottom-line growth. Revenue grew by 12.2% from 2023 to 2024, showcasing robust business expansion. EBIT and EBITDA margins are healthy, with EBIT Margin at 11.2% and EBITDA Margin at 14.5% for 2024, highlighting operational efficiency.

Balance Sheet

The balance sheet of OPTEX GROUP is solid with a Debt-to-Equity Ratio of 0.18, suggesting low financial leverage and a conservative capital structure. The Return on Equity (ROE) stands at 11.4% for 2024, indicating effective use of equity capital. The Equity Ratio is 68.7%, reflecting a strong equity base. However, the slight decrease in total liabilities hints at stable financial management.

Cash Flow

Cash flow metrics for OPTEX GROUP are positive with a notable Free Cash Flow growth of 683.5% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.35, indicating a strong correlation between cash generation and earnings. Free Cash Flow to Net Income Ratio is 1.07, suggesting efficient cash utilization. The company exhibits strong cash flow management despite variability in investing and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.10B	63.27B	56.37B	54.81B	45.87B	34.85B
Gross Profit	32.78B	31.87B	28.77B	28.00B	23.89B	18.54B
EBITDA	9.57B	9.71B	8.67B	8.49B	6.75B	3.61B
Net Income	6.16B	5.69B	4.61B	4.75B	3.76B	1.40B
Balance Sheet
Total Assets	72.75B	72.85B	67.13B	63.30B	57.77B	47.39B
Cash, Cash Equivalents and Short-Term Investments	21.21B	21.07B	17.62B	17.61B	17.25B	14.78B
Total Debt	7.85B	8.89B	10.64B	10.88B	10.89B	6.65B
Total Liabilities	20.89B	22.77B	22.86B	23.57B	22.41B	14.77B
Stockholders Equity	51.83B	50.06B	44.25B	39.72B	35.35B	32.62B
Cash Flow
Free Cash Flow	0.00	6.09B	777.00M	289.00M	2.01B	2.51B
Operating Cash Flow	0.00	7.70B	2.11B	1.67B	3.10B	3.89B
Investing Cash Flow	0.00	-867.00M	-782.00M	-310.00M	-2.85B	-3.23B
Financing Cash Flow	0.00	-3.83B	-2.26B	-1.63B	1.79B	1.58B

OPTEX GROUP Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2457.00
• 50DMA: Positive
• 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:6914, the sentiment is Positive. The current price of 2457 is above the 20-day moving average (MA) of 2406.15, above the 50-day MA of 2274.56, and above the 200-day MA of 1808.44, indicating a bullish trend. The MACD of 48.08 indicates Positive momentum. The RSI at 59.26 is Neutral, neither overbought nor oversold. The STOCH value of 27.85 is Neutral, 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
6850	80 Outperform	¥24.41B	12.83	―	4.88%	6.15%	2.98%
6814	76 Outperform	¥271.89B	16.43	―	1.71%	6.56%	106.55%
6957	75 Outperform	¥109.52B	36.26	―	2.12%	3.95%	-32.30%
6914	71 Outperform	¥85.51B	13.68	―	1.83%	2.72%	33.10%
6817	71 Outperform	¥37.20B	18.48	―	4.39%	-2.57%	3.43%
6866	68 Neutral	¥81.06B	14.06	―	3.41%	7.28%	4.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OPTEX GROUP Company Limited Corporate Events

OPTEX GROUP Announces FY2025 Q3 Financial Results

OPTEX GROUP CO., LTD. has announced its financial results for the third quarter of fiscal year 2025. The company’s diverse product range, including intrusion detection sensors, automatic door sensors, and factory automation solutions, positions it strongly in the market. This announcement highlights the company’s ongoing commitment to innovation and its strategic focus on enhancing operational efficiencies across its business segments.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2514.00 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 Reports Steady Growth in 2025 Financial Results

OPTEX Group Co., Ltd. reported a modest increase in net sales by 1.5% for the nine months ending September 30, 2025, reaching 47,666 million yen. The company saw significant growth in profit attributable to owners of the parent, which rose by 29.1% year-on-year. The financial position of the company strengthened with an increase in total assets and net assets, and a higher shareholders’ equity ratio. The company maintained its dividend forecast for the fiscal year ending December 31, 2025, indicating a stable outlook for stakeholders.

The most recent analyst rating on (JP:6914) stock is a Buy with a Yen2514.00 price target. To see the full list of analyst forecasts on OPTEX GROUP Company Limited stock, see the JP:6914 Stock Forecast page.