Ohashi Technica Inc. (7628) AI Stock Analysis

• Market Cap: ¥31.61B
• Dividend Yield: 2.98%
• Average Volume (3M): 18.46K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.77
• Revenue Growth: -2.82%
• EPS Growth: 48.74%
• Country: JP
• Employees: 756
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 24.80
• Shares Outstanding: 25,781,920
• 10 Day Avg. Volume: 8,740
• 30 Day Avg. Volume: 18,456
• PEG Ratio: 0.29
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 17.96
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,347.00 ▲(10.96% Upside)
• Action: Downgraded Date: 10/29/25
• Date: Action: Downgraded 10/29/25

Ohashi Technica Inc. has a solid financial foundation with strong balance sheet metrics and improving profitability margins, which are the most significant factors. However, the bearish technical indicators and recent revenue growth decline are concerns. The valuation is reasonable, supported by a good dividend yield.

Positive Factors

Strong balance sheet / low leverage

A very low debt-to-equity ratio and strong equity ratio reduce financial risk and provide durable financial flexibility. This enables the company to fund capex, sustain dividends, and absorb cyclical shocks without reliance on costly external financing, supporting long-term stability.

Improving profitability margins

Improved net profit and rising EBIT/EBITDA margins reflect better cost control and operational efficiency. Sustained margin expansion enhances cash generation per revenue dollar, strengthens resilience to input cost swings, and supports reinvestment and shareholder returns over the medium term.

Positive and growing operating cash flow

Consistently positive and growing operating cash flow shows the core business generates cash to fund working capital, capex, and dividends without heavy new borrowing. Reliable OCF supports strategic investments, reduces refinancing risk, and cushions the company during industry downturns.

Negative Factors

Declining revenue growth

A recent material decline in revenue growth (nearly 50% on the latest metric) signals weakening demand or lost volumes. Prolonged top-line contraction erodes scale benefits, pressures per-unit margins, and limits funds available for R&D or market diversification, hindering long-term growth.

Volatile free cash flow

Significant FCF volatility indicates earnings do not consistently convert to spendable cash, complicating capital allocation. This unpredictability can constrain steady dividends, planned capex, or M&A, and may force external financing at unfavorable times during industry troughs.

High exposure to automotive cyclicality

Concentration in fastening parts sold mainly to auto OEMs and tier suppliers ties revenue to the automotive cycle and OEM purchasing practices. This exposure raises vulnerability to demand swings, OEM consolidation, and platform changes (including EV design shifts) over the medium term.

Ohashi Technica Inc. Business Overview & Revenue Model

Company Description

Ohashi Technica Inc. develops, manufactures, and sells automotive parts and other components in Japan, the Americas, the ASEAN countries, Taiwan, China, and Europe. Its automotive parts comprise engine and mission, differential, brake, body and chasse, and interior/exterior components; and information technology (IT) and communications device parts include mobile phone hinges and others. The company also offers precision oil pump shafts used in dual clutch transmission; and piezo injector components for diesel engines. In addition, it plans, develops, produces, and markets precision components assembled to various products in automobile and other industries, as well as engages in logistics and import / export businesses. The company was formerly known as Ohashi Shoji, Inc. and changed its name to Ohashi Technica Inc. in May 1987. Ohashi Technica Inc. was founded in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ohashi Technica generates revenue through the sale of its precision machinery and components to a diverse range of industries. The company employs a B2B model, primarily selling directly to manufacturers who require high-quality automation and manufacturing equipment. Key revenue streams include the sale of machinery, replacement parts, and maintenance services. Additionally, Ohashi Technica may engage in strategic partnerships with other firms to co-develop technologies or expand its market reach, which can also contribute to its earnings. The company benefits from a strong reputation for quality and reliability, which helps secure long-term contracts and repeat business from its clients.

Ohashi Technica Inc. Financial Statement Overview

Summary

Ohashi Technica Inc. demonstrates a solid financial position with strong balance sheet metrics and improving profitability margins. However, the recent decline in revenue growth and volatility in free cash flow are areas that require attention.

Income Statement

Ohashi Technica Inc. has shown a stable gross profit margin over the years, with a slight decline in recent periods. The net profit margin has improved in the latest year, indicating better cost management. However, the revenue growth rate has been negative recently, which is a concern. The EBIT and EBITDA margins have shown some improvement, reflecting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio, indicating low financial leverage and risk. Return on equity has been stable, though not exceptionally high, suggesting moderate profitability. The equity ratio is strong, reflecting a solid capital structure.

Cash Flow

Operating cash flow has been positive and growing, which is a positive sign. However, free cash flow has been volatile, with significant fluctuations over the years. The free cash flow to net income ratio indicates that not all earnings are translating into free cash flow, which could be a concern for future investments.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	40.10B	40.02B	39.21B	34.97B	32.55B	29.78B
Gross Profit	8.55B	8.38B	7.82B	7.87B	7.68B	6.97B
EBITDA	3.26B	3.28B	2.58B	2.94B	3.45B	3.20B
Net Income	1.70B	1.52B	1.01B	1.28B	1.79B	1.54B
Balance Sheet
Total Assets	47.31B	48.68B	46.52B	43.65B	43.35B	42.14B
Cash, Cash Equivalents and Short-Term Investments	21.05B	21.82B	20.80B	19.82B	20.21B	21.36B
Total Debt	228.82M	251.73M	280.10M	220.21M	86.73M	108.88M
Total Liabilities	8.91B	9.03B	9.26B	8.08B	9.90B	10.47B
Stockholders Equity	37.92B	39.15B	36.81B	35.14B	33.06B	31.27B
Cash Flow
Free Cash Flow	0.00	1.35B	1.53B	-172.85M	-439.70M	1.30B
Operating Cash Flow	0.00	2.76B	2.65B	601.46M	567.78M	2.12B
Investing Cash Flow	0.00	-1.38B	-5.55B	-734.04M	-992.07M	-794.93M
Financing Cash Flow	0.00	-1.57B	-1.36B	-1.31B	-1.66B	-1.47B

Ohashi Technica Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1214.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7628, the sentiment is Positive. The current price of 1214 is below the 20-day moving average (MA) of 1227.20, below the 50-day MA of 1215.57, and above the 200-day MA of 1101.28, indicating a bullish trend. The MACD of 16.90 indicates Negative momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 49.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7628.

Ohashi Technica Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	79 Outperform	¥44.08B	10.80	―	1.78%	-0.94%	51.59%
8103	76 Outperform	¥38.34B	12.30	―	4.05%	-3.82%	18.03%
8052	73 Outperform	¥60.27B	12.05	―	3.00%	16.06%	31.78%
7628	66 Neutral	¥31.61B	13.18	―	2.98%	-2.82%	48.74%
7128	66 Neutral	¥54.68B	29.50	―	3.24%	-2.85%	-56.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	63 Neutral	¥26.53B	6.46	―	3.55%	12.31%	90.88%

Ohashi Technica Inc. Corporate Events

Ohashi Technica Lifts Profits and Dividends Despite Flat Sales

Ohashi Technica Inc. reported consolidated net sales of ¥30.446 billion for the nine months ended December 31, 2025, a slight 0.7% rise year on year, but significantly boosted profitability with operating profit up 29.9% to ¥1.846 billion and profit attributable to owners of parent surging 74.5% to ¥2.154 billion, lifting basic earnings per share to ¥84.11 after adjusting for a recent stock split. The company maintained a strong balance sheet with an equity ratio of 83.8%, raised interim dividends versus the prior year, and kept its full-year forecast unchanged, signaling confidence in delivering higher profits despite flat sales, which should reassure shareholders about both earnings quality and capital return stability.

For the fiscal year ending March 31, 2026, Ohashi Technica expects net sales of ¥39.5 billion, down 1.3% from the previous year, but projects operating profit growth of 9.4% and a 33.3% rise in profit attributable to owners of parent to ¥2.03 billion, reflecting a focus on margin improvement over top-line expansion. Together with the announced stock split and implied full-year dividend equivalent to ¥74 per pre-split share, the company’s guidance underscores a strategy of enhancing shareholder value through improved profitability and sustained dividend payments in a relatively mature sales environment.

The most recent analyst rating on (JP:7628) stock is a Hold with a Yen2294.00 price target. To see the full list of analyst forecasts on Ohashi Technica Inc. stock, see the JP:7628 Stock Forecast page.

Ohashi Technica Updates Strategic Measures for Financial Growth

Ohashi Technica, Inc. has updated its measures to enhance management’s focus on capital cost and stock price, as part of its ongoing Medium-Term Business Plan. The company has seen a recovery in operating profit and earnings, despite challenges such as increased costs and a changing business environment in China. Efforts to improve financial metrics like ROE, PER, and PBR are underway, with initiatives including cost reflection in sales prices, production efficiency improvements, and enhanced investor relations activities. The company also plans to continue its cash allocation strategy, focusing on capital expenditures, ESG investments, and shareholder returns.

The most recent analyst rating on (JP:7628) stock is a Hold with a Yen2273.00 price target. To see the full list of analyst forecasts on Ohashi Technica Inc. stock, see the JP:7628 Stock Forecast page.