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Ochi Holdings Co., Ltd. (3166) AI Stock Analysis
Ochi Holdings Co., Ltd.
(TSE/TYO:3166)
Ochi Holdings scores below average, driven primarily by its weak financial performance — sharply declining profitability, falling ROE, and inconsistent cash flow generation are the most significant concerns. These fundamentals weigh heavily on the outlook despite modest revenue growth. Partially offsetting this, the stock offers a solid 3.67% dividend yield and trades at a reasonable P/E of 13.2x, providing some valuation support. Technical indicators show mild bullish momentum with the price above all key moving averages, though RSI near overbought levels tempers enthusiasm. The low beta provides defensive qualities but also reflects limited growth expectations. Until margin recovery materializes and free cash flow stabilizes, the stock remains a below-average opportunity with income as its primary appeal.
Ochi Holdings Co., Ltd. (3166) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 18.57B
- Dividend Yield
- 3.79%
- Average Volume (3M)
- 2,761
- Price to Earnings (P/E)
- 12.8
- Beta (1Y)
- 0.23
- Revenue Growth
- 3.62%
- EPS Growth
- 49.19%
- Country
- Japan
- Employees
- 1,742
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Home Improvement
Ochi Holdings Co., Ltd. Business Overview & Revenue Model
Company Description
Ochi Holdings Co., Ltd. is a Japanese enterprise that, through its various subsidiaries, primarily deals in a diverse range of building materials. Its core activities encompass the wholesale distribution of construction supplies and residential fixtu...
Ochi Holdings Co., Ltd. Financial Statement Overview
Summary
Ochi Holdings faces significant profitability deterioration. Net profit margin has collapsed from 3.1% (FY2022) to 0.9% (FY2025), and ROE has fallen from 17.5% to 4.4%. Revenue growth is modest at ~2.7% projected for FY2026, but operating margins remain compressed at 1.2%-1.4%. Cash flow generation is inconsistent, with FY2025 free cash flow at just ¥1.0B. The balance sheet carries manageable leverage (D/E ~0.25-0.36), providing some stability, but the overall financial trajectory is weak with thin margins and erratic cash flows characteristic of a struggling low-margin distributor.
Income Statement
38NegativeBalance Sheet
52NeutralCash Flow
45Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 121.56B | 120.43B | 117.08B | 113.37B | 115.61B | 111.88B |
| Gross Profit | 17.08B | 16.14B | 15.39B | 14.84B | 14.99B | 14.57B |
| EBITDA | 3.14B | 3.00B | 2.62B | 3.22B | 3.88B | 3.94B |
| Net Income | 1.45B | 1.31B | 1.04B | 2.09B | 2.48B | 3.45B |
Balance Sheet | ||||||
| Total Assets | 69.02B | 69.18B | 70.04B | 66.34B | 64.53B | 62.83B |
| Cash, Cash Equivalents and Short-Term Investments | 17.92B | 17.04B | 15.56B | 14.60B | 14.15B | 12.20B |
| Total Debt | 5.68B | 6.11B | 8.09B | 6.37B | 6.19B | 5.37B |
| Total Liabilities | 44.05B | 44.55B | 46.51B | 42.99B | 42.97B | 43.02B |
| Stockholders Equity | 24.93B | 24.59B | 23.50B | 23.32B | 21.53B | 19.77B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 3.66B | 996.00M | 1.34B | 1.72B | 3.05B |
| Operating Cash Flow | 0 | 4.54B | 1.88B | 3.38B | 1.86B | 3.43B |
| Investing Cash Flow | 0 | -278.00M | -1.22B | -1.54B | 364.00M | -532.00M |
| Financing Cash Flow | 0 | -2.64B | -278.00M | -1.29B | -376.00M | -1.45B |
Ochi Holdings Co., Ltd. Technical Analysis
Price Trends
Market Momentum
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 1414.00 is below the 20-day moving average (MA) of 1415.45, below the 50-day MA of 1427.45, and below the 200-day MA of 1421.93, indicating a neutral trend. The MACD of -2.37 indicates Negative momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 98.15 is Negative, 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
Overall Rating
JP:319176.25Outperform
JP:751667.6Neutral
JP:821860Neutral
JP:305059Neutral- JP:316651Neutral
JP:279045Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3191 | 76Outperform | JPY 139.00B | 15.59 | ― | 3.61% | 3.06% | 10.38% |
| JP:7516 | 68Neutral | JPY 146.43B | 9.48 | ― | 2.90% | 6.28% | 2.40% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| JP:8218 | 60Neutral | JPY 192.13B | 11.74 | ― | 1.46% | 2.97% | 8.67% |
| JP:3050 | 59Neutral | JPY 221.04B | 13.28 | ― | 2.98% | 5.43% | -7.20% |
| JP:3166 | 51Neutral | JPY 18.55B | 12.80 | ― | 3.79% | 3.62% | 49.19% |
| JP:2790 | 45Neutral | JPY 56.35B | 134.03 | 0.24% | 2.94% | -2.53% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3166 | Ochi Holdings Co., Ltd. | 1424.00 | 87.68 | 6.56% | |
| JP:2790 | NAFCO Co., Ltd. | 1973.00 | 25.69 | 1.32% | |
| JP:3050 | DCM Holdings Co., Ltd. | 1610.00 | 220.64 | 15.88% | |
| JP:3191 | Joyful Honda Co. Ltd. | 2328.00 | 365.34 | 18.61% | |
| JP:7516 | Kohnan Shoji Co., Ltd. | 4660.00 | 1038.56 | 28.68% | |
| JP:8218 | KOMERI CO., LTD. | 3910.00 | 749.04 | 23.70% |
Ochi Holdings Co., Ltd. Corporate Events
Ochi Holdings Delivers Strong Q1 Profit Growth and Maintains Stable Dividend Outlook
Ochi Holdings reported consolidated net sales of ¥30.5 billion for the quarter ended June 30, 2026, up 3.8% year on year, with operating profit surging 42.7% to ¥639 million and profit attributable to owners of parent climbing 42.5% to ...
Ochi Holdings Details FY2026 Results and Capital-Efficient Management Focus
Ochi Holdings Co., Ltd. released supplementary materials detailing its consolidated financial results for the fiscal year ended March 31, 2026, along with forecasts for the year ending March 31, 2027. The documents also outline a series of initiative...
Ochi Holdings Lifts Earnings and Cash Flow, Plans Higher Dividend and Modest Growth
Ochi Holdings reported a solid improvement in earnings for the fiscal year ended March 31, 2026, with net sales rising 2.9% to ¥120.4 billion and profit attributable to owners of parent jumping 25.9% to ¥1.3 billion. Profitability metrics a...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 11, 2026