OKAMURA CORP (7994) AI Stock Analysis

• Market Cap: ¥270.67B
• Dividend Yield: 3.99%
• Average Volume (3M): 181.61K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.77
• Revenue Growth: 6.02%
• EPS Growth: 18.88%
• Country: JP
• Employees: 5,491
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): N/A
• 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: 78 Outperform
• Price Target: ¥3,117.00 ▲(35.94% Upside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is driven by strong valuation (low P/E with a solid dividend yield) and supportive technical momentum (price above major moving averages with positive MACD). Financial performance is generally healthy on profitability and leverage, but the overall score is capped by inconsistent cash flow history despite the recent TTM improvement.

Positive Factors

Conservative balance sheet

Low leverage and a sizable equity base provide durable financial flexibility: the company can fund capex, sustain dividends, and absorb project timing variability without large refinancing risk. This conservatism supports resilience across business cycles and underpins long-term strategic investments.

Sustained revenue growth

Consistent top-line expansion signals stable demand for both office solutions and logistics systems. Broad revenue growth increases scale, supports fixed-cost absorption, and strengthens dealer/project relationships, enabling more predictable backlog conversion and multi-year revenue visibility.

Improving profitability and ROE

Rising ROE and improved net margins reflect better capital efficiency and operational execution. Sustainable profitability gains increase retained earnings and support shareholder returns, enhancing the company's ability to reinvest in product development and service capabilities over multiple years.

Negative Factors

Volatile cash flow history

Large swings in operating and free cash flow reduce predictability of internal funding for capex, working capital and dividends. Even with a TTM rebound, this variability raises refinancing and liquidity risk for multi-year projects and complicates capital allocation planning under different demand scenarios.

Step-up in total debt in TTM

A material increase in absolute debt, even with modest leverage ratios, can strain interest coverage if operating cash weakens. It reduces optionality for opportunistic investments and raises refinancing timing risk, particularly if the debt funded inventory or project buildup that may take quarters to monetize.

Margins broadly stable, not expanding

Earnings growth driven primarily by volume rather than margin expansion suggests limited pricing power and exposure to input cost swings. Without structural margin improvement, operating leverage is muted, capping profitability upside and leaving earnings vulnerable to competitors or cost inflation.

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

Income statement and balance sheet are solid (revenue growth, improved margins/ROE, low leverage), but cash flow quality is the main drag due to historical volatility and a weak FY2025 annual cash flow profile despite a better TTM rebound.

Income Statement

Top-line momentum is solid, with revenue rising from 261.2B (2022) to 314.5B (2025 annual) and further to 327.1B in TTM (Trailing-Twelve-Months). Profitability has improved versus earlier years: net margin increased from ~4.9% (2021) to ~7.0% (2025 annual) and ~7.4% in TTM, while operating profitability also remains healthy (TTM operating margin ~8.9%). The main watch-out is that margins have been broadly stable rather than consistently expanding (e.g., EBITDA margin slightly lower in TTM vs 2024–2025 annual), suggesting earnings growth is more driven by volume than sustained margin lift.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage: debt-to-equity is ~0.12–0.20 across periods (TTM ~0.20), supported by a sizable equity base (191.5B in TTM). Returns on equity are improving (from ~8.6% in 2021 to ~11.9% in 2025 annual and ~13.0% in TTM), indicating better profitability on shareholder capital. The key risk is a noticeable step-up in total debt in TTM (37.4B) versus 2024–2025 annual levels, though leverage remains manageable given the equity cushion.

Cash Flow

Cash generation is improving in TTM (Trailing-Twelve-Months), with operating cash flow at 25.6B and free cash flow at 17.6B, and free cash flow covering a meaningful portion of net income (~0.68x). However, cash flow has been volatile: 2025 annual shows very weak operating cash flow (1.0B) and materially negative free cash flow (-15.5B), following mixed results in prior years (negative free cash flow in 2022, near-breakeven in 2023). The TTM rebound is encouraging, but the variability reduces confidence in the durability of free cash flow.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	327.14B	314.53B	298.30B	277.01B	261.18B	244.45B
Gross Profit	111.74B	103.21B	99.77B	89.00B	83.59B	80.11B
EBITDA	36.91B	37.57B	36.24B	29.54B	27.56B	20.18B
Net Income	24.32B	22.05B	20.28B	15.91B	14.99B	11.97B
Balance Sheet
Total Assets	287.04B	289.14B	282.12B	252.91B	245.37B	245.47B
Cash, Cash Equivalents and Short-Term Investments	35.46B	26.25B	39.17B	39.02B	39.95B	45.17B
Total Debt	37.44B	35.84B	20.86B	21.16B	21.59B	21.72B
Total Liabilities	93.80B	102.35B	107.32B	100.21B	101.25B	105.70B
Stockholders Equity	191.51B	185.14B	172.35B	150.75B	142.63B	138.76B
Cash Flow
Free Cash Flow	17.56B	-15.47B	4.29B	111.00M	-729.00M	21.15B
Operating Cash Flow	25.64B	983.00M	21.35B	13.49B	5.33B	26.92B
Investing Cash Flow	-6.90B	-14.27B	-12.25B	-6.66B	-2.26B	-833.00M
Financing Cash Flow	-11.32B	-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: Negative
• 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 2554.75, below the 50-day MA of 2435.62, and below the 200-day MA of 2303.41, indicating a bullish trend. The MACD of 69.50 indicates Negative momentum. The RSI at 79.81 is Negative, neither overbought nor oversold. The STOCH value of 83.10 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
7994	78 Outperform	¥270.67B	10.64	―	3.99%	6.02%	18.88%
7991	76 Outperform	¥14.77B	7.83	―	5.73%	-27.22%	-62.64%
7846	71 Outperform	¥188.05B	15.39	―	2.56%	-0.26%	3.35%
7976	71 Outperform	¥127.02B	21.46	―	2.09%	6.39%	-34.84%
7984	67 Neutral	¥395.12B	19.07	8.83%	2.33%	6.29%	8.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥23.49B	43.98	―	1.69%	-2.71%	―

OKAMURA CORP Corporate Events

Okamura Revamps Executive Lineup to Bolster Workplace and Logistics Strategy

Okamura Corporation announced a broad reshuffle of its management team, appointing four new executive officers and adjusting responsibilities across key divisions effective April 1, 2026. The company is elevating leaders in marketing, HR, work style consulting, and workplace innovation within its Office Furniture Division, while also shifting oversight of the Material Handling Systems Division and planning the retirement of a senior managing executive officer.

In addition, Okamura plans director-level changes in late June 2026, including the scheduled retirement of director Mari Kano, pending approval at the annual shareholders’ meeting. The moves signal an effort to strengthen leadership depth and align management structure with strategic priorities in office furniture, workplace innovation, and logistics-related businesses as the company adapts to evolving work styles and market conditions.

The most recent analyst rating on (JP:7994) stock is a Buy with a Yen2778.00 price target. To see the full list of analyst forecasts on OKAMURA CORP stock, see the JP:7994 Stock Forecast page.

Okamura to Restructure Group Operations to Streamline Office Furniture Business

Okamura Corporation has approved a group reorganization centered on its Office Furniture business, aiming to streamline after-sales services, procurement, and internal expertise sharing to improve competitiveness and operational efficiency. The plan includes an absorption-type company split to transfer the maintenance and after-sales service business of Okamura Support and Service Corporation to the parent, while shifting that subsidiary’s remaining operations via an absorption-type merger into Okamura Business Support Corporation, another wholly owned unit.

On the same effective date of April 1, 2026, Okamura will also execute absorption-type mergers with Hill International Inc. and Td Japan Ltd., both wholly owned consolidated subsidiaries, further consolidating group operations under the parent company. Because all transactions occur among wholly owned entities and use simplified and short-form procedures under Japan’s Companies Act, no shareholder meetings are required, underscoring that the reorganization is primarily an internal structural optimization expected to enhance efficiency without immediate changes to capital or ownership.

The most recent analyst rating on (JP:7994) stock is a Buy with a Yen2778.00 price target. To see the full list of analyst forecasts on OKAMURA CORP stock, see the JP:7994 Stock Forecast page.

Okamura Lifts Nine-Month Profit and Confirms Flat Full-Year Outlook With Higher Dividend

Okamura Corporation reported consolidated net sales of ¥233.5 billion for the nine months ended December 31, 2025, up 5.7% year on year, with operating profit rising 6.3% to ¥11.4 billion and profit attributable to owners of parent jumping 20.4% to ¥13.5 billion, while ordinary profit edged down 1.8%. The company’s equity ratio improved to 66.7% from 64.0% at the previous fiscal year-end, and it confirmed its full-year forecast for fiscal 2026, projecting modest sales growth to ¥330.0 billion and broadly flat operating and net profits, alongside a planned annual dividend increase to ¥104 per share, including commemorative dividends, signaling confidence in earnings stability and shareholder returns despite limited profit growth.

The most recent analyst rating on (JP:7994) stock is a Buy with a Yen2790.00 price target. To see the full list of analyst forecasts on OKAMURA CORP stock, see the JP:7994 Stock Forecast page.

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.