OKAMURA CORP (7994) AI Stock Analysis

• Market Cap: ¥224.14B
• Dividend Yield: 4.15%
• Average Volume (3M): 181.61K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.72
• 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: 70 Neutral
• Price Target: ¥2,471.00 ▲(11.46% Upside)

The overall stock score for OKAMURA CORP is driven by strong financial performance, particularly in revenue growth and profitability, and an attractive valuation with a low P/E ratio and high dividend yield. However, technical indicators suggest a bearish trend, which could pose short-term risks.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, positioning the company well for future expansion.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Profitability

High return on equity indicates efficient management and the ability to generate profits, supporting long-term shareholder value creation.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth can hinder the company's ability to fund operations and investments, potentially impacting future growth.

Net Profit Margin Pressure

Decreased net profit margins suggest rising costs or pricing pressures, which could affect long-term profitability if not addressed.

Debt Increase

Rising debt levels, despite low leverage, could strain financial resources and limit strategic flexibility if the trend continues.

OKAMURA CORP Business Overview & Revenue Model

Company Description

OKAMURA CORP (7994) is a Japanese company specializing in the design, manufacture, and sale of office furniture and related products. Established in 1946, the company operates primarily in the office furniture sector, offering a wide range of products including desks, chairs, and storage solutions. OKAMURA is known for its innovative designs and ergonomic solutions, catering to various commercial spaces, including corporate offices, educational institutions, and public facilities. The company also engages in the development of workspace systems that promote productivity and well-being.

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: Negative
• Last Price: 2217.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2217 is below the 20-day moving average (MA) of 2223.30, below the 50-day MA of 2265.68, and above the 200-day MA of 2155.43, indicating a neutral trend. The MACD of -7.41 indicates Negative momentum. The RSI at 45.27 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥15.99B	7.13	―	5.97%	-27.22%	-62.64%
7846	75 Outperform	¥178.72B	12.86	―	2.63%	-0.26%	3.35%
7976	74 Outperform	¥107.80B	15.00	―	2.15%	6.39%	-34.84%
7984	72 Outperform	¥419.52B	18.91	8.83%	2.27%	6.29%	8.74%
7994	70 Neutral	¥224.14B	9.98	―	4.15%	6.02%	18.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥24.12B	69.24	―	1.66%	-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.

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.

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.