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

• Market Cap: ¥31.38B
• Dividend Yield: N/A
• Average Volume (3M): 9.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.67
• 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: ¥1,153.00 ▲(211.62% 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

Business model strength (B2B specialized manufacturing)

Okamoto Glass operates a B2B, engineered-components model supplying specialized glass parts and value-added processing to equipment and device makers. This customer-facing, specification-driven approach tends to produce durable, repeatable orders, higher switching costs, and longer product lifecycles, supporting stable demand over the medium term.

Improving operational margins

Reported recovery in EBIT and EBITDA margins after a prior dip indicates operational resilience and improved cost/efficiency management. Sustained margin improvement enhances cash generation potential and provides buffer against cyclical revenue swings, strengthening medium-term earnings quality if trends persist.

Stable asset base / manufacturing capacity

The company’s consistent asset base signals preserved manufacturing capacity and installed production capability. For a specialty glass supplier, maintained physical assets underpin the ability to meet bespoke orders, defend customer relationships, and scale output without immediate large incremental capex, supporting steady operations.

Negative Factors

High leverage and low equity ratio

A high debt-to-equity position and low equity ratio reduce financial flexibility, increasing refinancing and interest-rate risk. Heavy leverage can constrain capital allocation to R&D or capacity upgrades and raises solvency risk in prolonged downturns, making earnings more vulnerable to external shocks.

Inconsistent and negative free cash flow

Repeatedly uneven free cash flow and a recent negative reading suggest the company struggles to convert operating profits into sustained cash. Persistent weak FCF limits ability to reduce debt, invest in productivity, or return capital, increasing long-term funding and operational risk.

Revenue decline and volatile net profitability

Negative recent revenue growth and episodes of net loss point to demand variability and structural pressure on topline. Combined with volatile net margins, this undermines predictability of earnings and makes it harder to sustain investment or deleverage, posing medium-term profitability risk.

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. primarily makes money by manufacturing and selling processed glass products and glass components to business customers (B2B). Revenue is generated from (1) product sales of glass parts (including custom/engineered items made to customer specifications), and (2) fees embedded in product pricing for value-added processing (e.g., forming, precision加工, coating/finishing, and assembly work where applicable). Earnings are influenced by customer demand in end-markets served by the company’s glass components, production yields, manufacturing utilization rates, and raw-material/energy costs that affect margins. Any significant recurring service revenue, segment-level revenue breakdown, named major customers/partnerships, or the exact end-market mix cannot be confirmed from the provided information; null.

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	1.43B	1.50B	1.38B	1.39B	1.47B	721.44M
EBITDA	441.01M	457.62M	434.88M	426.79M	540.49M	-144.66M
Net Income	-19.76M	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	5.89B	5.99B	5.27B	5.05B	5.34B	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	-228.35M	109.82M	281.31M	-127.39M
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: Negative
• 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 1038.95, below the 50-day MA of 1072.58, and below the 200-day MA of 454.72, indicating a bullish trend. The MACD of 6.61 indicates Negative momentum. The RSI at 51.37 is Neutral, neither overbought nor oversold. The STOCH value of 53.38 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
6951	78 Outperform	¥303.25B	8.42	―	2.04%	-0.69%	-29.88%
6965	74 Outperform	¥589.35B	44.29	4.03%	2.25%	3.97%	-41.76%
5214	74 Outperform	¥510.85B	16.10	6.30%	2.16%	1.90%	-105.45%
4186	71 Outperform	¥1.02T	20.85	15.75%	1.08%	19.45%	41.03%
7746	64 Neutral	¥31.38B	-133.36	―	―	-9.50%	-170.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5218	60 Neutral	¥27.15B	19.00	3.48%	2.38%	3.53%	10.37%