OKAMURA CORP (7994) AI Stock Analysis

• Market Cap: ¥234.83B
• Dividend Yield: 3.99%
• Average Volume (3M): 181.61K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.74
• Revenue Growth: 6.02%
• EPS Growth: 18.88%
• Country: JP
• Employees: 5,491
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 30.73
• Shares Outstanding: 100,621,020
• 10 Day Avg. Volume: 187,430
• 30 Day Avg. Volume: 181,606
• PEG Ratio: 0.97
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -12.03
• 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: 76 Outperform
• Price Target: ¥2,574.00 ▲(12.25% Upside)

OKAMURA CORP's strong financial performance, characterized by robust revenue growth and solid profitability margins, is the primary driver of its score. The attractive valuation with a low P/E ratio and high dividend yield further enhances its appeal. Technical indicators suggest some caution due to potential overbought conditions, but overall, the stock is well-positioned.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio reflects conservative financial management, providing flexibility for future investments and resilience against economic downturns.

Cash Flow Improvement

Improved free cash flow enhances the company's ability to fund operations, invest in growth opportunities, and return capital to shareholders.

Negative Factors

Profit Margin Pressure

A decrease in net profit margin suggests potential challenges in maintaining profitability, which could impact long-term financial performance if not addressed.

Cash Generation Challenges

A low operating cash flow to net income ratio indicates potential inefficiencies in cash conversion, which could affect liquidity and operational flexibility.

Profitability Margin Decline

While gross margins are stable, declining net margins may signal rising costs or pricing pressures, affecting overall profitability sustainability.

OKAMURA CORP Business Overview & Revenue Model

Company Description

Okamura Corporation, together with its subsidiaries, manufactures, sells, distributes, and installs office furniture, store displays, material handling systems, and industrial machinery in Japan. The company offers office furniture products, including desks and workstations, office seating, partition screens, storage systems, filing supplies, wooden furniture, reception/meeting room furniture, and recreational areas furniture. It also provides display fixtures and other equipment; shelves; and torque converters products. In addition, it is involved in the contracting of metal fitting installation works; design, manufacture, and sale related to the construction industry, as well as auxiliary works; construction, design, and sale of security systems; design, manufacture, and sale of medical equipment, and other machinery and equipment; and provision of information on improvement of office environments and improvement of office/production efficiency, as well as manufacture and sale of related equipment. Okamura Corporation was founded in 1945 and is headquartered in Yokohama, Japan.

How the Company Makes Money

OKAMURA CORP generates revenue primarily through the sale of its office furniture products, which includes both standard and customized furniture solutions. The company's revenue model is based on direct sales to businesses, government contracts, and partnerships with distributors and retailers. Key revenue streams include the sale of ergonomic office chairs, modular desks, and collaborative workspace solutions. Additionally, OKAMURA often engages in large-scale projects with corporate clients, providing tailored solutions that can lead to substantial contracts. The company also benefits from recurring revenues through after-sales services, maintenance, and support for its furniture systems. Strategic partnerships with architects and interior design firms further enhance its market reach and contribute to its earnings.

OKAMURA CORP Financial Statement Overview

Summary

OKAMURA CORP demonstrates robust financial health with strong revenue growth and profitability margins. The balance sheet is solid with low leverage, and while cash flow shows improvement, there are areas for enhancement in cash conversion efficiency. Overall, the company is well-positioned in its industry.

Income Statement

OKAMURA CORP shows strong revenue growth with a TTM growth rate of 1.74% and consistent gross profit margins around 33%. The net profit margin has slightly decreased to 6.22% in the TTM, indicating some pressure on profitability. However, EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.24, indicating conservative leverage. Return on equity is strong at 11.05%, showcasing effective use of equity. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Cash flow performance is mixed. The TTM shows a significant improvement in free cash flow growth at 136.59%, but the operating cash flow to net income ratio is relatively low at 0.33, suggesting potential challenges in cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	322.65B	314.53B	298.30B	277.01B	261.18B	244.45B
Gross Profit	108.55B	103.21B	99.77B	89.00B	83.59B	80.11B
EBITDA	32.45B	37.57B	36.24B	29.54B	27.56B	20.18B
Net Income	21.48B	22.05B	20.28B	15.91B	14.99B	11.97B
Balance Sheet
Total Assets	287.27B	289.14B	282.12B	252.91B	245.37B	245.47B
Cash, Cash Equivalents and Short-Term Investments	35.31B	26.25B	39.17B	39.02B	39.95B	45.17B
Total Debt	35.97B	35.84B	20.86B	21.16B	21.59B	21.72B
Total Liabilities	96.17B	102.35B	107.32B	100.21B	101.25B	105.70B
Stockholders Equity	189.49B	185.14B	172.35B	150.75B	142.63B	138.76B
Cash Flow
Free Cash Flow	8.97B	-15.47B	4.29B	111.00M	-729.00M	21.15B
Operating Cash Flow	22.29B	983.00M	21.35B	13.49B	5.33B	26.92B
Investing Cash Flow	-15.15B	-14.27B	-12.25B	-6.66B	-2.26B	-833.00M
Financing Cash Flow	-4.74B	-209.00M	-8.20B	-9.48B	-8.60B	-13.07B

OKAMURA CORP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2293.00
• 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:7994, the sentiment is Positive. The current price of 2293 is below the 20-day moving average (MA) of 2382.70, below the 50-day MA of 2314.40, and above the 200-day MA of 2240.97, indicating a neutral trend. The MACD of 14.76 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 29.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7994.

OKAMURA CORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7991	76 Outperform	¥16.73B	7.47	―	5.73%	-27.22%	-62.64%
7994	76 Outperform	¥234.83B	10.45	―	3.99%	6.02%	18.88%
7984	76 Outperform	¥388.21B	18.40	8.83%	2.33%	6.29%	8.74%
7846	75 Outperform	¥187.12B	13.63	―	2.56%	-0.26%	3.35%
7976	74 Outperform	¥118.63B	16.50	―	2.09%	6.39%	-34.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥23.12B	43.29	―	1.69%	-2.71%	―

OKAMURA CORP Corporate Events

Okamura to Restructure Group Subsidiaries to Streamline Office Furniture Operations

Okamura Corporation has resolved to begin preparations for a group-wide organizational reorganization, targeted for April 1, 2026, involving absorption-type company splits and mergers among the parent and several wholly owned subsidiaries. The plan includes transferring the maintenance and after-sales service business of Okamura Support and Service Corporation to Okamura Corporation via an absorption-type split, shifting the subsidiary’s remaining businesses to Okamura Business Support Corporation through an absorption-type merger, and merging two other wholly owned subsidiaries, Hill International Inc. and Td Japan Ltd., into Okamura Corporation. By consolidating these functions, the company aims to streamline its office furniture value chain, enhance after-sales and purchasing capabilities, promote human resource development through shared expertise, and ultimately strengthen competitiveness and management efficiency within its core business.

The most recent analyst rating on (JP:7994) stock is a Buy with a Yen2574.00 price target. To see the full list of analyst forecasts on OKAMURA CORP stock, see the JP:7994 Stock Forecast page.

Okamura Corporation Reports Mixed Financial Results for Six Months Ending September 2025

Okamura Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a 5.6% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a decline in ordinary profit by 5.6% and profit attributable to owners of the parent by 7.1%. The company has also revised its forecast for the fiscal year ending March 31, 2026, indicating a slight increase in net sales but a decrease in ordinary profit, reflecting challenges in maintaining profitability amid market conditions.

The most recent analyst rating on (JP:7994) stock is a Hold with a Yen2471.00 price target. To see the full list of analyst forecasts on OKAMURA CORP stock, see the JP:7994 Stock Forecast page.

Okamura Corporation Revises Financial Forecast Amid Mixed Segment Performance

Okamura Corporation has revised its financial forecast for the fiscal year ending March 31, 2026, maintaining net sales but lowering operating and ordinary income projections due to increased personnel expenses and a decline in material handling systems revenue. The Office Furniture segment is expected to exceed initial forecasts, while the Store Displays and Material Handling Systems segments are anticipated to underperform, impacting overall profitability.

The most recent analyst rating on (JP:7994) stock is a Hold with a Yen2471.00 price target. To see the full list of analyst forecasts on OKAMURA CORP stock, see the JP:7994 Stock Forecast page.