OHBA CO., LTD. (9765) AI Stock Analysis

• Market Cap: ¥17.81B
• Dividend Yield: 3.9%
• Average Volume (3M): 22.89K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.51
• Revenue Growth: -3.59%
• EPS Growth: -15.46%
• Country: JP
• Employees: 550
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 16,750,000
• 10 Day Avg. Volume: 25,170
• 30 Day Avg. Volume: 22,890
• PEG Ratio: -512.63
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.90
• P/FCF Ratio: -27.29
• 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: ¥1,264.00 ▲(12.96% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by the exceptionally strong, low-leverage balance sheet and solid profitability. It is held back by volatile cash flow conversion with several recent periods of negative operating/free cash flow. Technicals are supportive with the stock trading above key moving averages, while valuation is reasonable with an attractive dividend yield.

Positive Factors

Balance Sheet Strength

The company's effectively zero debt and rising equity enhance financial flexibility, reducing financial risk and supporting long-term stability.

Operating Margin Improvement

Improved operating margins indicate better cost management and efficiency, which can enhance profitability and competitive positioning over time.

Equity Growth

Steady equity growth reflects strong retained earnings and financial health, providing a buffer for future investments and downturns.

Negative Factors

Volatile Cash Flow

Inconsistent cash flow generation suggests potential challenges in managing working capital, which could impact liquidity and investment capacity.

Revenue Decline

A significant decline in revenue indicates market challenges or competitive pressures, which could affect long-term growth prospects and market share.

Choppy Growth Profile

Inconsistent revenue growth highlights potential market or operational challenges, limiting the company's ability to scale and capture market opportunities.

OHBA CO., LTD. Business Overview & Revenue Model

Company Description

Ohba Co., Ltd. provides consulting services for city planning and infrastructure projects in Japan and internationally. The company offers consulting services for the planning of charming cities, as well as technical support services to land owners in relation to land use and land use conversion. It is also involved in the planning and design of roads, bridges, waterways, and water supply and sewage systems; and provision of technical services for creating social infrastructure. In addition, the company offers consulting services related to environmental research and assessments; and handles surveys and investigations involving geography and terrain. Further, it provides land and infrastructure maintenance and management services; and consulting services related to the disposal of real estate, as well as handles land, and drill boring and soil contamination investigations. Additionally, the company offers proposals involving geographic information and other related systems related to urban planning, civil engineering, environmental investigation, and preparation of spatial information. It also provides consulting services related to inheritance tax and real estate utilization, as well as proposes solutions for addressing various social issues. The company was founded in 1922 and is headquartered in Chiyoda, Japan.

How the Company Makes Money

OHBA CO., LTD. generates revenue through its diverse service offerings in the construction consulting sector. The company earns money by providing consulting services for urban planning and environmental projects. Key revenue streams include fees for project management, design, and planning services. The company may also engage in partnerships with government agencies and private sector clients to undertake large-scale infrastructure and development projects, which significantly contribute to its earnings.

OHBA CO., LTD. Financial Statement Overview

Summary

Strong balance sheet with effectively zero debt and rising equity supports low financial risk, and profitability is solid with improved operating margins. The key drag is inconsistent cash conversion, including multiple recent years of negative operating and free cash flow.

Income Statement

Profitability is consistently solid: gross margin has held around ~30–34% and operating profitability improved versus earlier years (operating margin roughly ~8% in 2020 to ~11% in 2025). Net margin remains healthy for the sector (about ~5–8%), and net income has trended upward since 2020. The main offset is a choppy growth profile—revenue was flat-to-down in some years and only modestly higher recently (2025 revenue up ~2% vs. 2024).

Balance Sheet

Balance sheet strength is a clear positive: total debt is effectively zero in recent years (and was minimal even in 2020–2021), resulting in negligible leverage. Equity has steadily increased (from ~¥8.3B in 2020 to ~¥13.2B in 2025), supporting financial flexibility. Returns on equity are steady around ~9–11%, which is respectable, though not exceptionally high given the very conservative capital structure.

Cash Flow

Cash generation is the weak spot: operating cash flow and free cash flow swing materially year to year, including negative operating and free cash flow in 2022, 2024, and 2025 (2025 operating cash flow about -¥0.5B and free cash flow about -¥0.6B). While 2021 and especially 2023 show strong positive free cash flow, the repeated recent cash outflows suggest working-capital volatility and reduce confidence in earnings-to-cash consistency.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	17.08B	18.10B	16.49B	15.65B	15.93B	15.86B
Gross Profit	5.65B	5.74B	5.52B	5.18B	4.84B	4.70B
EBITDA	2.09B	2.21B	2.11B	1.73B	1.86B	1.63B
Net Income	1.27B	1.33B	1.34B	1.08B	1.09B	852.47M
Balance Sheet
Total Assets	18.26B	17.90B	17.97B	16.12B	14.43B	13.67B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.69B	3.12B	4.21B	1.96B	3.00B
Total Debt	1.70B	0.00	0.00	0.00	0.00	60.00M
Total Liabilities	5.24B	4.73B	5.34B	5.19B	4.20B	4.37B
Stockholders Equity	13.02B	13.17B	12.62B	10.93B	10.23B	9.30B
Cash Flow
Free Cash Flow	0.00	-598.94M	-552.10M	2.24B	-504.92M	1.20B
Operating Cash Flow	0.00	-510.39M	-346.42M	2.29B	-345.89M	1.99B
Investing Cash Flow	0.00	-119.27M	-164.44M	573.97M	-178.89M	-847.54M
Financing Cash Flow	0.00	-797.42M	-578.46M	-619.29M	-521.42M	-481.14M

OHBA CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1119.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9765, the sentiment is Positive. The current price of 1119 is below the 20-day moving average (MA) of 1183.90, below the 50-day MA of 1156.88, and above the 200-day MA of 1079.32, indicating a bullish trend. The MACD of 10.30 indicates Positive momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 40.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9765.

OHBA CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9765	76 Outperform	¥17.81B	13.69	―	3.90%	-3.59%	-15.46%
1770	76 Outperform	¥16.62B	12.80	―	3.71%	-21.52%	-35.65%
1960	73 Outperform	¥22.39B	10.85	―	2.97%	22.32%	5024.88%
1914	67 Neutral	¥15.59B	12.17	―	3.68%	5.82%	-22.14%
1726	66 Neutral	¥23.85B	19.79	―	4.48%	-6.37%	-16.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	59 Neutral	¥15.27B	22.65	―	5.36%	-3.19%	109.84%

OHBA CO., LTD. Corporate Events

OHBA Boosts Profits Despite Lower Sales, Confirms Dividend and FY2026 Outlook

For the six months ended November 30, 2025, OHBA reported an 11.9% year-on-year decline in net sales to ¥7.38 billion, but still achieved increases in operating profit (up 2.9% to ¥814 million), ordinary profit (up 9.8% to ¥910 million), and profit attributable to owners of parent (up 9.0% to ¥616 million), with basic earnings per share rising to ¥38.72. Despite a lower equity-to-asset ratio as total assets expanded to ¥20.97 billion, the company maintained a strong capital base and kept its full-year forecast unchanged, projecting modest profit growth in fiscal 2026 even as sales are expected to fall 6.1%, while reaffirming a total annual dividend of ¥42 per share, underscoring its commitment to stable shareholder returns.

The most recent analyst rating on (JP:9765) stock is a Buy with a Yen1264.00 price target. To see the full list of analyst forecasts on OHBA CO., LTD. stock, see the JP:9765 Stock Forecast page.

OHBA Advances Share Buyback, Repurchasing 19,200 Shares in December

OHBA CO., LTD. has reported the status of its ongoing share buyback program, disclosing that it repurchased 19,200 shares of its common stock on the Tokyo Stock Exchange during December 2025 at a total cost of ¥20,889,800. This transaction forms part of a broader board-approved authorization from April 2025 allowing the company to buy back up to 250,000 shares for as much as ¥200 million through February 28, 2026; by the end of December, OHBA had cumulatively acquired 133,300 shares for ¥142,738,500, signaling continued execution of its capital allocation policy and a potential enhancement of shareholder value through reduced shares outstanding.

The most recent analyst rating on (JP:9765) stock is a Buy with a Yen1264.00 price target. To see the full list of analyst forecasts on OHBA CO., LTD. stock, see the JP:9765 Stock Forecast page.