Ochi Holdings Co., Ltd. (3166) AI Stock Analysis

• Market Cap: ¥18.15B
• Dividend Yield: 3.86%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.41
• Revenue Growth: 3.08%
• EPS Growth: -50.33%
• Country: JP
• Employees: 1,624
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 25.44
• Shares Outstanding: 13,610,970
• 10 Day Avg. Volume: 3,230
• 30 Day Avg. Volume: 2,973
• PEG Ratio: -0.33
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 17.61
• 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: ¥1,480.00
• Price Target Upside: 6.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,480.00 ▲(6.25% Upside)

The stock's overall score reflects stable financial performance, bolstered by solid valuation metrics. Technical indicators hint at moderate bullish momentum, though potential oversold conditions warrant caution. With no earnings call or corporate events data, these factors were excluded from the assessment.

Ochi Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Ochi Holdings Co., Ltd., through its subsidiaries, trades in building materials in Japan. It engages in the wholesale of construction materials and housing equipment, such as wood building materials, plywood, eco-related goods, etc. The company also wholesales and sells air conditioning equipment, heating equipment, cooling equipment, household goods, etc.; and processes, manufactures, and sells wood precuts 2 x 4 panels for wooden houses. In addition, it is involved in the nursing care related business in the construction industry; and sale of industrial materials. Ochi Holdings Co., Ltd. was founded in 1955 and is based in Fukuoka, Japan.

How the Company Makes Money

Ochi Holdings Co., Ltd. generates revenue through the wholesale distribution of building materials. The company sources materials from manufacturers and sells them to contractors and construction companies, earning a margin on each transaction. It also benefits from its extensive distribution network and relationships with key players in the construction industry. Additionally, Ochi Holdings may engage in partnerships with manufacturers and other suppliers to ensure a steady supply of materials to meet market demand. The company's earnings are influenced by construction industry trends, economic conditions, and real estate development activities, which drive the demand for building materials.

Ochi Holdings Co., Ltd. Financial Statement Overview

Summary

Ochi Holdings Co., Ltd. demonstrates stable revenue growth and profitability from core operations. However, challenges are observed in managing net profit margins and generating free cash flow. Despite these issues, the company's low debt-to-equity ratio and improved equity ratio indicate financial stability.

Income Statement

Gross profit margin remained stable at around 13% over the years, indicating consistent profitability from core operations. However, net profit margin showed a declining trend from 3.1% in 2023 to 0.9% in 2025, suggesting challenges in managing overall expenses or other operational efficiencies. Revenue growth was positive, with a moderate increase of 3.3% from 2024 to 2025, though slower compared to previous years.

Balance Sheet

The debt-to-equity ratio remained relatively low around 0.34 in 2025, indicating a conservative leverage position, which is a positive sign of financial stability. ROE decreased from 11.4% in 2023 to 4.4% in 2025, reflecting reduced profitability on equity. The equity ratio improved to 33.5% in 2025, enhancing financial stability by increasing reliance on equity over debt.

Cash Flow

Free cash flow decreased by 23.1% from 2024 to 2025, indicating potential challenges in generating cash from operations. The operating cash flow to net income ratio was strong at 1.80 in 2025, suggesting efficient conversion of net income to cash. However, the declining free cash flow trend could pose a risk to future investments or debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.31B	117.08B	113.37B	115.61B	111.88B	101.84B
Gross Profit	15.75B	15.39B	15.55B	15.62B	15.09B	13.08B
EBITDA	2.89B	3.27B	4.46B	4.83B	5.71B	3.80B
Net Income	971.00M	1.04B	2.09B	2.48B	3.45B	1.79B
Balance Sheet
Total Assets	69.18B	70.04B	66.34B	64.53B	62.83B	56.91B
Cash, Cash Equivalents and Short-Term Investments	16.49B	15.56B	14.60B	14.15B	12.20B	10.73B
Total Debt	7.41B	8.09B	6.37B	6.19B	5.37B	6.15B
Total Liabilities	45.61B	46.51B	42.99B	42.98B	43.02B	39.76B
Stockholders Equity	23.53B	23.50B	23.32B	21.53B	19.77B	17.11B
Cash Flow
Free Cash Flow	0.00	996.00M	1.29B	1.66B	2.95B	1.83B
Operating Cash Flow	0.00	1.88B	3.38B	1.86B	3.43B	2.19B
Investing Cash Flow	0.00	-1.22B	-1.54B	364.00M	-532.00M	877.00M
Financing Cash Flow	0.00	-278.00M	-1.29B	-376.00M	-1.45B	-541.00M

Ochi Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1393.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3166, the sentiment is Positive. The current price of 1393 is above the 20-day moving average (MA) of 1392.12, above the 50-day MA of 1386.01, and above the 200-day MA of 1343.25, indicating a bullish trend. The MACD of 3.07 indicates Positive momentum. The RSI at 51.47 is Neutral, neither overbought nor oversold. The STOCH value of 10.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3166.

Ochi Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9976	72 Outperform	¥5.43B	11.66	―	3.97%	4.17%	10.59%
3166	69 Neutral	¥18.15B	18.68	―	3.86%	3.08%	-50.33%
7516	67 Neutral	¥121.29B	8.05	―	2.53%	3.83%	7.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8208	61 Neutral	―	―	―	―	-3.21%	56.44%
9903	55 Neutral	¥5.94B	12.29	―	2.34%	-1.54%	―
7450	48 Neutral	¥10.75B	―	―	0.50%	-1.79%	-491.60%

Ochi Holdings Co., Ltd. Corporate Events

Ochi Holdings Reports FY2025 Financial Results with Increased Sales but Declining Profits

Ochi Holdings Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 3.3% increase in net sales to 117,084 million yen. However, the company experienced a significant decline in profits, with operating profit down by 31.8% and profit attributable to owners of the parent dropping by 50.3%. The company has introduced a Board Benefit Trust and Trust-type Employee Shareholding Incentive Plan, impacting its treasury shares. The financial forecast for the next fiscal year anticipates a 6.8% increase in net sales and a 15.3% rise in profit attributable to owners of the parent, indicating a positive outlook despite the current challenges.