OKAMURA CORP (7994) AI Stock Analysis

• Market Cap: ¥236.31B
• Dividend Yield: 3.94%
• Average Volume (3M): 188.09K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.75
• Revenue Growth: 5.70%
• EPS Growth: -6.28%
• Country: JP
• Employees: 5,491
• Sector: Industrials
• Sector Strength: 84
• Industry: Business Equipment & Supplies
• EPS (TTM): 47.52
• Shares Outstanding: 100,621,020
• 10 Day Avg. Volume: 206,360
• 30 Day Avg. Volume: 188,086
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,713.00
• Price Target Upside: 13.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥2,713.00 ▲(13.66% Upside)

OKAMURA CORP's strong financial performance, characterized by robust revenue growth and profitability, is a major strength. The technical analysis shows upward momentum, although caution is warranted due to overbought signals. Attractive valuation supports the stock's appeal, making it a compelling option despite cash flow challenges.

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 Corporation generates revenue primarily through the sale of its office furniture and commercial interior solutions. The company's key revenue streams include the production and distribution of chairs, desks, storage systems, and other office-related furnishings. Okamura also makes money by offering customized design and layout services to its clients, ensuring that their workspace solutions meet specific needs. The company benefits from strategic partnerships with global distributors and retail chains, which help expand its market reach. Additionally, Okamura invests in research and development to continually innovate its product offerings, maintaining a competitive edge in the industry.

OKAMURA CORP Financial Statement Overview

Summary

OKAMURA CORP shows strong revenue growth and profitability, with efficient operations and healthy margins. The balance sheet reflects financial stability with low leverage and strong equity positioning. However, cash flow challenges indicate a need for improved cash management.

Income Statement

OKAMURA CORP has demonstrated solid revenue growth with a 5.44% increase in revenue for the year ending 2025. The Gross Profit Margin stands at 32.81% and the Net Profit Margin at 7.01%, showing strong profitability. There is a notable EBIT Margin of 7.61% and an EBITDA Margin of 11.94%, indicating good operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a Debt-to-Equity Ratio of 0.19, suggesting low leverage. The Return on Equity (ROE) is robust at 11.90%, reflecting efficient use of equity. The Equity Ratio is 64.05%, indicating a strong equity base relative to total assets.

Cash Flow

There is a significant decline in Free Cash Flow, with a negative growth rate as it shifted from a positive in 2024 to negative in 2025. The Operating Cash Flow to Net Income Ratio is low at 0.04, indicating potential liquidity challenges. However, the company remains fundamentally sound.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	314.53B	298.30B	277.01B	261.18B	244.45B
Gross Profit	103.21B	99.77B	89.00B	83.59B	80.11B
EBITDA	37.57B	36.24B	23.59B	21.71B	20.18B
Net Income	22.05B	20.28B	15.91B	14.99B	11.97B
Balance Sheet
Total Assets	289.14B	282.12B	252.91B	245.37B	245.47B
Cash, Cash Equivalents and Short-Term Investments	26.25B	39.17B	39.02B	39.95B	45.17B
Total Debt	35.84B	20.86B	21.16B	21.59B	21.72B
Total Liabilities	102.35B	107.32B	100.21B	101.25B	105.70B
Stockholders Equity	185.14B	172.35B	150.75B	142.63B	138.76B
Cash Flow
Free Cash Flow	-15.47B	4.29B	111.00M	-729.00M	21.15B
Operating Cash Flow	983.00M	21.35B	13.49B	5.33B	26.92B
Investing Cash Flow	-14.27B	-12.25B	-6.66B	-2.26B	-833.00M
Financing Cash Flow	-209.00M	-8.20B	-9.48B	-8.60B	-13.07B

OKAMURA CORP Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2387.00
• 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:7994, the sentiment is Positive. The current price of 2387 is above the 20-day moving average (MA) of 2377.40, above the 50-day MA of 2282.84, and above the 200-day MA of 2038.98, indicating a bullish trend. The MACD of 51.55 indicates Negative momentum. The RSI at 64.95 is Neutral, neither overbought nor oversold. The STOCH value of 64.03 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
7994	76 Outperform	¥236.31B	11.46		3.94%	5.70%	-6.28%
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
KOK	―	€2.42B	18.86	7.98%	―	―	―
7976	76 Outperform	¥108.19B	14.51		2.24%	10.66%	-37.99%
7846	75 Outperform	¥176.37B	12.69		2.66%	2.17%	11.48%
7991	73 Outperform	¥15.53B	4.18		5.68%	6.60%	-27.12%
7962	52 Neutral	¥24.09B	55.97		1.65%	0.22%	―

OKAMURA CORP Corporate Events

Okamura Corporation Announces Treasury Share Disposal for Stock Compensation Plan

Okamura Corporation announced the disposal of 31,385 treasury shares as part of a restricted stock compensation plan aimed at aligning the interests of its directors and executive officers with those of shareholders. This move is intended to enhance corporate value over the long term by incentivizing key personnel and promoting shared values between management and shareholders.

Okamura Corporation Revises Director Compensation and Introduces Stock Plan

Okamura Corporation has announced a revision to its compensation system for Directors and Auditors, including an increase in compensation limits and the introduction of a restricted stock compensation plan. These changes are intended to align the interests of the Directors with those of the shareholders and enhance corporate value. The proposed revisions will be submitted for approval at the upcoming Annual General Meeting of Shareholders, reflecting the company’s commitment to adapting to evolving economic conditions and business environments.

Okamura Corporation Announces Increased Dividends and Forecasts for 2026

Okamura Corporation announced an increase in dividends for the fiscal year ending March 31, 2025, with a year-end dividend of 49 yen per share, resulting in an annual dividend of 94 yen per share. The company also forecasts an annual dividend of 104 yen per share for the fiscal year ending March 31, 2026, including a commemorative dividend to mark its 80th anniversary, reflecting its commitment to returning profits to shareholders and maintaining a stable dividend payout.

Okamura Corporation Reports Fiscal Year 2025 Financial Results and Positive Outlook

Okamura Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 5.4% increase in net sales to ¥314,527 million. Despite a slight decrease in operating profit, the company achieved an 8.7% rise in profit attributable to owners of the parent, amounting to ¥22,045 million. The company also announced an increase in annual dividends per share and provided a forecast for continued growth in the upcoming fiscal year, which indicates a positive outlook for stakeholders.