OPTEX GROUP Company Limited (6914) AI Stock Analysis

• Market Cap: ¥58.72B
• Dividend Yield: 2.77%
• Average Volume (3M): 111.56K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 1.10
• Revenue Growth: 8.40%
• EPS Growth: 30.12%
• Country: JP
• Employees: 2,148
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 49.92
• Shares Outstanding: 37,735,783
• 10 Day Avg. Volume: 151,730
• 30 Day Avg. Volume: 111,560
• PEG Ratio: 0.47
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 220.77
• 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: ¥1,756.00
• Price Target Upside: 7.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ¥1,929.00 ▲(17.62%Upside)

OPTEX GROUP's overall stock score is driven by strong financial performance and attractive valuation metrics. Technical analysis suggests the stock may be overbought, which could lead to a short-term price correction. The absence of data on earnings call and corporate events did not influence the score.

OPTEX GROUP Company Limited Business Overview & Revenue Model

Company Description

OPTEX GROUP Company Limited (6914) is a leading provider in the field of sensor technology, primarily focusing on security, safety, and automation solutions. The company's core products include security sensors, automatic door sensors, and industrial sensors, which are leveraged across various sectors such as commercial facilities, critical infrastructure, transportation, and residential applications. OPTEX is renowned for its innovation and quality in delivering reliable sensing solutions that enhance safety and operational efficiency.

How the Company Makes Money

OPTEX GROUP Company Limited generates revenue through the sale of its sensor products and solutions across diverse industries. Its primary revenue streams include the direct sale of security sensors, automatic door sensors, and industrial sensors to end-users, distributors, and integrators. The company also engages in strategic partnerships with technology firms and industry leaders to co-develop and integrate advanced sensing solutions. Additionally, OPTEX offers after-sales services and maintenance contracts, which provide a steady stream of recurring revenue. The company's emphasis on research and development ensures a pipeline of innovative products, keeping it competitive and able to capture a significant market share in the sensor technology domain.

OPTEX GROUP Company Limited Financial Statement Overview

Summary

OPTEX GROUP demonstrates strong financial health with impressive revenue growth and profitability improvements. The balance sheet is robust with low leverage, and cash flow performance highlights effective 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.27B	56.37B	54.81B	45.87B	34.85B
Gross Profit	31.87B	28.77B	28.00B	23.89B	18.54B
EBITDA	9.71B	8.67B	8.17B	6.31B	3.68B
Net Income	5.69B	4.61B	4.75B	3.76B	1.40B
Balance Sheet
Total Assets	72.85B	67.13B	63.30B	57.77B	47.39B
Cash, Cash Equivalents and Short-Term Investments	21.07B	17.62B	17.61B	17.25B	14.78B
Total Debt	8.89B	10.64B	10.88B	10.89B	6.65B
Total Liabilities	22.77B	22.86B	23.57B	22.41B	14.77B
Stockholders Equity	50.06B	44.25B	39.72B	35.35B	32.62B
Cash Flow
Free Cash Flow	6.09B	777.00M	289.00M	2.01B	2.51B
Operating Cash Flow	7.70B	2.11B	1.67B	3.10B	3.89B
Investing Cash Flow	-867.00M	-782.00M	-310.00M	-2.85B	-3.23B
Financing Cash Flow	-3.83B	-2.26B	-1.63B	1.79B	1.58B

OPTEX GROUP Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1640.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1640 is above the 20-day moving average (MA) of 1621.07, above the 50-day MA of 1559.61, and above the 200-day MA of 1613.03, indicating a bullish trend. The MACD of 33.92 indicates Positive momentum. The RSI at 59.22 is Neutral, neither overbought nor oversold. The STOCH value of 12.56 is Positive, 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
6814	79 Outperform	¥119.86B	10.48		3.95%	9.11%	114.88%
6850	79 Outperform	¥19.59B	9.87		3.89%	6.94%	13.25%
6914	74 Outperform	¥58.72B	9.38		2.77%	8.40%	30.12%
6957	73 Outperform	¥93.27B	24.31		2.49%	5.02%	-21.81%
6866	68 Neutral	¥76.29B	12.33		3.58%	4.55%	4.94%
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%
6817	54 Neutral	¥30.59B	37.22		5.58%	-3.62%	-81.77%

OPTEX GROUP Company Limited Corporate Events

OPTEX GROUP Announces Business Segment Name Changes in FY2025 Q1

OPTEX GROUP Company Limited announced changes to its business segment names in its FY2025 Q1 financial results presentation. The reorganization aims to enhance clarity in understanding the company’s diverse business operations, which include security sensors, automatic door sensors, and industrial automation systems. This strategic move is expected to streamline the company’s operations and potentially improve stakeholder engagement by providing a clearer view of its market focus.

OPTEX Group Reports Mixed Financial Results for Q1 2025

OPTEX Group Co., Ltd. reported a slight decline in net sales for the first quarter of 2025, with a 2.5% decrease compared to the previous year. Despite this, the company saw an increase in operating profit by 6.7% and a significant rise in profit attributable to owners of the parent by 36.6%. The company’s financial position remains strong with a shareholders’ equity ratio of 70.0%, and it has forecasted a modest growth in net sales and profits for the full year 2025, indicating a stable outlook for stakeholders.

OPTEX GROUP Completes Treasury Stock Disposal for Director Compensation

OPTEX GROUP Co., Ltd. has completed the payment for the disposal of its treasury stock as part of a restricted stock compensation plan for its directors. This move involves the disposal of 6,300 ordinary shares at a price of ¥1,357 per share, totaling ¥8,549,100, and is aimed at aligning the interests of the directors with the company’s long-term performance.

OPTEX GROUP Finalizes Stock Options for Directors

OPTEX GROUP Co., Ltd. has finalized the details of stock options as compensation for its directors and those of its subsidiaries, initially determined on April 8, 2025. This move involves the allocation of 519 share acquisition rights, with a fair value calculated using the Black-Scholes model, aimed at aligning the interests of the management with the company’s performance, potentially impacting its governance and operational strategies.