OKAMURA CORP (7994) AI Stock Analysis

• Market Cap: ¥235.22B
• Dividend Yield: 3.99%
• Average Volume (3M): 181.61K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.71
• 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 exhibits strong revenue growth and stable profitability, supported by a solid balance sheet with low leverage. However, cash flow challenges, particularly in free cash flow generation, pose potential risks. The company should focus on improving cash flow efficiency to sustain its growth trajectory.

Income Statement

OKAMURA CORP has demonstrated strong revenue growth with a TTM revenue growth rate of 83.2%, significantly higher than previous periods. The gross profit margin is stable at around 33%, indicating efficient cost management. However, the net profit margin has slightly decreased to 6.22% in the TTM, suggesting some pressure on net profitability. Overall, the income statement reflects robust growth and stable profitability, with minor concerns about net profit margins.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.24 in the TTM, indicating conservative leverage. Return on equity is healthy at 11.05%, showing effective use of equity to generate profits. The equity ratio stands at 63.95%, reflecting a strong equity base relative to total assets. While the balance sheet is stable, the increase in total debt over the past year warrants monitoring.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -124.5% in the TTM. The operating cash flow to net income ratio is 0.33, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.22, suggesting limited free cash flow relative to earnings. While operating cash flow has improved, the negative free cash flow growth is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	317.14B	314.53B	298.30B	277.01B	261.18B	244.45B
Gross Profit	105.81B	103.21B	99.77B	89.00B	83.59B	80.11B
EBITDA	30.09B	37.57B	36.24B	29.54B	27.56B	20.18B
Net Income	19.72B	22.05B	20.28B	15.91B	14.99B	11.97B
Balance Sheet
Total Assets	288.23B	289.14B	282.12B	252.91B	245.37B	245.47B
Cash, Cash Equivalents and Short-Term Investments	32.88B	26.25B	39.17B	39.02B	39.95B	45.17B
Total Debt	44.27B	35.84B	20.86B	21.16B	21.59B	21.72B
Total Liabilities	102.29B	102.35B	107.32B	100.21B	101.25B	105.70B
Stockholders Equity	184.34B	185.14B	172.35B	150.75B	142.63B	138.76B
Cash Flow
Free Cash Flow	3.79B	-15.47B	4.29B	111.00M	-729.00M	21.15B
Operating Cash Flow	17.25B	983.00M	21.35B	13.49B	5.33B	26.92B
Investing Cash Flow	-20.08B	-14.27B	-12.25B	-6.66B	-2.26B	-833.00M
Financing Cash Flow	-632.00M	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 2308.20, above the 50-day MA of 2263.88, and above the 200-day MA of 2202.55, indicating a bullish trend. The MACD of 23.77 indicates Negative momentum. The RSI at 69.87 is Neutral, neither overbought nor oversold. The STOCH value of 90.52 is Negative, 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	¥16.56B	7.39	―	5.73%	-27.22%	-62.64%
7994	76 Outperform	¥235.22B	10.47	―	3.99%	6.02%	18.88%
7984	76 Outperform	¥386.19B	18.30	8.83%	2.33%	6.29%	8.74%
7846	75 Outperform	¥185.70B	13.53	―	2.56%	-0.26%	3.35%
7976	74 Outperform	¥115.41B	16.06	―	2.09%	6.39%	-34.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥23.32B	66.95	―	1.69%	-2.71%	―

OKAMURA CORP Corporate Events

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.

Okamura Corporation Announces Dividend Payment from Retained Earnings

Okamura Corporation has announced a resolution to pay dividends from retained earnings, with a record date of September 30, 2025. The dividend per share is set at 52.00 yen, which includes an ordinary dividend of 48.50 yen and a commemorative dividend of 3.50 yen. This decision reflects the company’s consideration of its earnings forecast and dividend payout ratio, signaling a positive outlook for stakeholders.

The most recent analyst rating on (JP:7994) stock is a Hold with a Yen2442.00 price target. To see the full list of analyst forecasts on OKAMURA CORP stock, see the JP:7994 Stock Forecast page.