Okamoto Glass Co., Ltd. (7746) AI Stock Analysis

• Market Cap: ¥31.67B
• Dividend Yield: N/A
• Average Volume (3M): 9.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.79
• Revenue Growth: -9.50%
• EPS Growth: -170.30%
• Country: JP
• Employees: 232
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.28
• Shares Outstanding: 29,121,544
• 10 Day Avg. Volume: 5,272,790
• 30 Day Avg. Volume: 9,312,303
• PEG Ratio: -3.52
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.85
• P/FCF Ratio: -10.53
• 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: 64 Neutral
• Price Target: ¥1,164.00 ▲(214.59% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by strong technical strength (bullish trend and positive momentum) but is capped by mixed financial performance, including high leverage and inconsistent profitability/cash generation. Valuation is also a drag due to the negative P/E and lack of dividend yield data.

Positive Factors

Margin recovery and stable gross margin

Stable gross margins and recovering EBIT/EBITDA margins point to improving operational efficiency and cost control. That durability in core margins supports cash generation potential from operations over the next several quarters and reduces vulnerability to modest volume declines.

Specialized B2B manufacturing capabilities

The company's focus on specialized processed-glass parts and value-added services creates barriers to entry and customer stickiness. Technical processing capabilities support durable demand from industrial customers and allow the firm to command premium pricing versus commodity glass suppliers.

Consistent asset base / manufacturing capacity

A consistent asset base implies stable production capacity and established manufacturing infrastructure, enabling reliable fulfilment of multi-month contracts. That operational continuity supports steady revenue delivery and limits short-term capex urgency.

Negative Factors

High financial leverage

High leverage and a low equity ratio constrain financial flexibility, amplify interest expenses, and increase refinancing risk. Over a 2-6 month horizon this reduces buffer against demand shocks and limits the company's ability to fund growth or sustain discretionary investments.

Inconsistent profitability / prior net loss

Historic profit volatility and a past net loss undermine retained earnings and make future earnings less predictable. Persistent earnings inconsistency hampers reinvestment, weakens credit standing, and complicates multi-quarter planning for durable growth initiatives.

Weak and negative free cash flow

Inconsistent and recently negative free cash flow increases dependence on external financing to fund working capital and capex. Combined with high leverage, weak cash generation elevates liquidity and refinancing risks and limits capacity to capitalize on long-term opportunities.

Okamoto Glass Co., Ltd. Business Overview & Revenue Model

Company Description

Okamoto Glass Co., Ltd. manufactures and sells special-purpose glass for industrial use and multi-layer film evaporation products. The company operates through Optical Business, Lighting Business, Functional Thin Film and Glass Business, and Other segments. The Optical Business segment manufactures and sells fly-eye lenses and reflectors for digital cinema projectors. The Lighting Business segment manufactures and sells glass for automobile headlights, fog lights; and glass products for general lighting. The Functional Thin Film and Glass Business segment manufactures and sells durable silver mirrors; and decorative vapor deposition on glass containers, LCD displays, and glass powder. It also produces door glass for washing machines and dental mirrors. In addition, the company offers glass materials, glass molded items, optical/functional coating products, glass ball/ oceanic spacecraft products, and glass powder related products. Its products are used in mobility, display, telecommunication, sensor/IOT, medical, illumination, energy, and infrastructure/residence applications. Okamoto Glass Co., Ltd. was founded in 1928 and is headquartered in Kashiwa, Japan.

How the Company Makes Money

Okamoto Glass Co., Ltd. generates revenue through multiple key streams. The company earns money primarily by selling its glass products to various industries, including construction and automotive sectors, where demand for high-performance and durable glass is significant. Revenue is also generated from custom glass solutions and services tailored to meet specific client needs. Additionally, strategic partnerships with construction firms and automotive manufacturers enhance its market reach and contribute to steady revenue growth. Factors such as technological advancements, efficient production processes, and a strong brand reputation further bolster the company's earnings potential.

Okamoto Glass Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: income statement shows partial operating recovery but inconsistent net profitability (including a notable net loss), the balance sheet indicates high leverage and volatile ROE, and cash flow has been uneven with recent negative free cash flow.

Income Statement

Okamoto Glass Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin is relatively stable, but the net profit margin has been inconsistent, with a notable net loss in 2022. Revenue growth has been fluctuating, with a recent decline. The EBIT and EBITDA margins have shown improvement after a dip in 2021, indicating a partial recovery in operational efficiency.

Balance Sheet

The company's balance sheet reflects high leverage, with a high debt-to-equity ratio. The return on equity has been volatile, showing periods of negative returns. The equity ratio is relatively low, indicating high reliance on debt financing. These factors suggest potential financial risk, though the company has maintained a consistent asset base.

Cash Flow

Okamoto Glass Co., Ltd.'s cash flow statement indicates challenges in generating free cash flow, with inconsistent free cash flow growth and negative free cash flow in recent years. The operating cash flow to net income ratio suggests that operating cash flows are adequate but not translating into consistent net income. The company needs to improve its cash flow management to enhance financial stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.58B	4.69B	4.58B	4.89B	5.07B	4.41B
Gross Profit	1.45B	1.50B	1.46B	1.48B	1.55B	784.48M
EBITDA	318.75M	486.33M	575.65M	540.43M	321.13M	-419.98M
Net Income	-18.93M	89.01M	101.94M	214.98M	-87.77M	-858.10M
Balance Sheet
Total Assets	8.65B	8.68B	7.99B	7.59B	7.67B	8.03B
Cash, Cash Equivalents and Short-Term Investments	1.88B	1.81B	1.68B	1.54B	1.66B	2.33B
Total Debt	5.96B	5.93B	5.29B	5.06B	5.35B	5.70B
Total Liabilities	6.86B	6.88B	6.29B	6.06B	6.38B	6.74B
Stockholders Equity	1.78B	1.80B	1.69B	1.53B	1.29B	1.29B
Cash Flow
Free Cash Flow	0.00	-380.09M	-233.85M	108.51M	281.31M	-132.39M
Operating Cash Flow	0.00	370.12M	337.82M	423.63M	373.77M	-6.66M
Investing Cash Flow	0.00	-846.87M	-473.78M	-256.37M	-713.87M	-131.90M
Financing Cash Flow	0.00	617.91M	220.89M	-288.50M	-339.46M	1.37B

Okamoto Glass Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 370.00
• 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:7746, the sentiment is Positive. The current price of 370 is below the 20-day moving average (MA) of 1188.15, below the 50-day MA of 896.06, and below the 200-day MA of 397.62, indicating a neutral trend. The MACD of 20.17 indicates Positive momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 50.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7746.

Okamoto Glass Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7713	77 Outperform	¥14.33B	15.24	―	2.77%	3.32%	63.26%
5214	76 Outperform	¥570.26B	17.99	-0.30%	2.16%	1.90%	-105.45%
7908	69 Neutral	¥13.72B	17.15	―	3.17%	0.30%	4.85%
7746	64 Neutral	¥31.67B	-633.18	―	―	-9.50%	-170.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5218	60 Neutral	¥28.93B	17.09	3.48%	2.38%	3.53%	10.37%
5216	46 Neutral	¥9.41B	-3.05	―	―	119.98%	-5.60%