Okinawa Cellular Telephone Company (9436) AI Stock Analysis

• Market Cap: ¥304.99B
• Dividend Yield: 2.27%
• Average Volume (3M): 72.97K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.33
• Revenue Growth: 5.10%
• EPS Growth: 12.48%
• Country: JP
• Employees: 468
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 38.42
• Shares Outstanding: 94,178,800
• 10 Day Avg. Volume: 68,280
• 30 Day Avg. Volume: 72,966
• PEG Ratio: 2.58
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 2.41
• P/FCF Ratio: 21.34
• 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: 79 Outperform
• Price Target: ¥3,710.00 ▲(29.00% Upside)

The score is driven primarily by strong financial quality—especially the exceptionally conservative balance sheet and solid profitability—partly offset by mixed cash conversion and recent margin compression. Technicals are supportive but overbought readings raise near-term risk, and valuation (P/E ~22) is moderately expensive relative to the dividend yield.

Positive Factors

Conservative balance sheet

An ultra-conservative balance sheet with near-zero leverage materially reduces financial and interest-rate risk, giving durable flexibility to fund capex, network upgrades, dividends or buybacks from internal resources and to withstand demand shocks without relying on external financing.

Strong profitability margins

Sustained, high TTM margins indicate structural operating efficiency and pricing power in core wireless services. Durable margins support internal cash generation for network investment and returns to shareholders, enhancing resilience versus lower-margin competitors over the medium term.

Improving revenue momentum

A material uptick in TTM revenue versus annual trends suggests accelerating service uptake or ARPU improvement rather than a one-off. If sustained, this structural revenue momentum can fund scale investments, improve margins via fixed-cost leverage, and support longer-term earnings growth.

Negative Factors

Margin compression risk

A notable drop in gross margin versus the prior year signals rising underlying costs or an adverse product/plan mix. Persistent margin compression would erode operating profit and free cash flow, limiting reinvestment capacity and placing structural pressure on long-term profitability.

Suboptimal cash conversion

Operating cash flow below net income and FCF covering only about half of earnings indicates working-capital or capital-spend absorption of profits. Structurally weaker cash conversion reduces financial flexibility for capex, dividends, or strategic investments over the medium term.

Geographic concentration risk

Reliance on a single prefecture limits addressable market and scale economies versus national peers. Long-term growth and margin expansion are constrained by local population size and market saturation, increasing exposure to regional economic or regulatory shifts.

Okinawa Cellular Telephone Company Business Overview & Revenue Model

Company Description

Okinawa Cellular Telephone Company operates as a telecommunications company in Japan. The company provides telecommunication, as well as portable phone services. It also provides au WALLET prepaid and credit card services. The company was founded in 1991 and is headquartered in Naha, Japan. Okinawa Cellular Telephone Company is a subsidiary of KDDI Corporation.

How the Company Makes Money

Okinawa Cellular generates revenue primarily through subscription fees for mobile phone services, which include voice, text, and data plans. The company also earns money from selling mobile devices and accessories, as well as from value-added services such as mobile internet and cloud services. Additionally, partnerships with device manufacturers and content providers can enhance its service offerings and contribute to revenue. The company may also benefit from government contracts and collaborations that require telecommunication services, bolstering its overall earnings.

Okinawa Cellular Telephone Company Financial Statement Overview

Summary

Strong overall fundamentals: solid profitability (TTM ~31.8% gross margin, ~21.6% EBIT margin, ~15.0% net margin) and improving revenue/earnings trends. Balance sheet strength is exceptional with near-zero leverage and steady, healthy ROE (~13.3%). Main risks are margin compression versus prior periods and less-than-full earnings-to-cash conversion (OCF ~0.89x net income; FCF ~55% of net income).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability with ~31.8% gross margin, ~21.6% EBIT margin, and ~15.0% net margin. Revenue momentum is improving (TTM revenue up ~20.8% vs. the latest annual growth of ~8.1%), and net income has trended higher versus prior years. The key weakness is margin compression versus earlier periods (gross margin ~42% in FY2024 vs. ~32% in TTM), suggesting higher costs or a less favorable mix that could limit upside if it persists.

Balance Sheet

The balance sheet is exceptionally conservative: total debt is minimal and debt-to-equity is near zero (TTM ~0.00018), which materially reduces financial risk and interest-rate sensitivity. Equity is sizable relative to assets, and returns on equity are steady and healthy (TTM ~13.3%, up from ~11–12% in prior years). The main trade-off is that an ultra-low leverage profile can cap return expansion versus peers that use prudent leverage, but overall balance-sheet strength is a clear positive.

Cash Flow

Cash generation is generally solid with TTM operating cash flow of ~¥15.5B and free cash flow of ~¥9.7B, and TTM free cash flow growth is strong (+~29.5%). However, cash conversion is somewhat mixed: operating cash flow is below net income (TTM ~0.89x), and free cash flow covers only ~55% of net income (down from ~63% in FY2025), indicating working-capital or spending demands are absorbing part of earnings. Still, the rebound from the weak FY2024 free-cash-flow level is a notable improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.26B	84.31B	77.99B	77.30B	73.42B	74.19B
Gross Profit	27.48B	26.88B	32.88B	31.62B	32.20B	30.93B
EBITDA	25.01B	24.51B	23.48B	22.11B	22.17B	21.42B
Net Income	13.03B	12.40B	12.13B	10.85B	10.66B	10.52B
Balance Sheet
Total Assets	116.43B	118.27B	115.57B	119.65B	118.61B	112.18B
Cash, Cash Equivalents and Short-Term Investments	3.63B	3.51B	3.16B	3.26B	3.19B	3.10B
Total Debt	17.00M	10.00M	43.00M	106.00M	198.00M	308.00M
Total Liabilities	16.87B	19.07B	18.09B	18.53B	18.42B	17.80B
Stockholders Equity	96.69B	96.54B	95.09B	98.88B	96.42B	91.03B
Cash Flow
Free Cash Flow	9.73B	9.53B	1.76B	6.66B	10.49B	9.57B
Operating Cash Flow	15.51B	15.09B	11.33B	14.64B	18.77B	19.07B
Investing Cash Flow	-3.95B	-3.57B	4.91B	-3.94B	-13.82B	-13.11B
Financing Cash Flow	-11.02B	-11.17B	-16.35B	-10.63B	-4.85B	-6.24B

Okinawa Cellular Telephone Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2876.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9436, the sentiment is Positive. The current price of 2876 is below the 20-day moving average (MA) of 2983.20, above the 50-day MA of 2871.70, and above the 200-day MA of 2573.16, indicating a bullish trend. The MACD of 85.85 indicates Negative momentum. The RSI at 79.12 is Negative, neither overbought nor oversold. The STOCH value of 63.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9436.

Okinawa Cellular Telephone Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9436	79 Outperform	¥304.99B	23.26	13.42%	2.27%	5.10%	12.48%
9433	76 Outperform	¥9.86T	14.43	13.75%	2.85%	3.34%	20.36%
9432	73 Outperform	$13.20T	12.34	10.59%	3.36%	2.10%	-9.29%
3774	71 Outperform	¥449.31B	19.62	15.67%	1.31%	12.48%	18.38%
9449	66 Neutral	¥401.64B	23.64	17.97%	1.36%	4.75%	17.02%
9434	64 Neutral	¥9.95T	18.36	―	3.99%	7.79%	5.53%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%