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Okabe Co., Ltd. (5959) AI Stock Analysis

JP:5959

Okabe Co., Ltd.

(TSE/TYO:5959)

Select Model
Rating:67Neutral
Price Target:JPY 981.00â–²(6.86% Upside)
Action:reiterated
Date:08/06/26

Stable financial position with low leverage and profitability recovery drives the score, supported by reasonable valuation and mixed technical signals; cash flow weaknesses and inconsistent revenue pose risks.

Positive Factors
Conservative Balance SheetVery low leverage and a large equity base provide financial resilience through construction-cycle fluctuations. Okabe can support operations and investment without relying heavily on borrowing, limiting balance-sheet risk if demand weakens.
Negative Factors
Earnings VolatilityRecent swings between losses and profit reduce confidence in the durability of earnings. Volatile results can constrain planning, weaken returns on the existing asset base, and make performance more sensitive to construction activity.

Okabe Co., Ltd. (5959) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:5959+5.74%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 40.50B
Dividend Yield
3.49%
Average Volume (3M)
93.66K
Price to Earnings (P/E)
13.8
Beta (1Y)
0.48
Revenue Growth
4.63%
EPS Growth
―
Country
Japan
Employees
966
Sector
General
Sector Strength
55
Industry
Construction Materials

Okabe Co., Ltd. Business Overview & Revenue Model

Company Description

Operating globally with a significant presence in Japan, North America, and Indonesia, Okabe Co., Ltd. specializes in the manufacturing and distribution of a wide array of construction materials and equipment. Its offerings encompass essential tempor...

How the Company Makes Money

Okabe primarily makes money by selling construction and civil-engineering materials—especially reinforcement (rebar) connection and related components—into building and infrastructure projects. Revenue is generated through (1) product sales of rebar-...

Okabe Co., Ltd. Financial Statement Overview

Summary

Mixed income statement with recent profitability recovery but volatile revenue; stable balance sheet with low debt; weaker cash flows due to declining operating cash generation.

Income Statement

65Positive

Balance Sheet

75Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue70.20B69.76B67.81B78.15B76.85B64.83B
Gross Profit21.45B21.71B20.32B20.44B19.86B17.49B
EBITDA6.23B6.67B6.21B6.91B8.16B6.43B
Net Income3.08B3.29B-874.00M-5.47B3.85B2.63B
Balance Sheet
Total Assets85.12B85.03B86.99B89.89B103.89B92.02B
Cash, Cash Equivalents and Short-Term Investments8.84B9.02B11.48B12.68B18.16B23.57B
Total Debt5.53B6.23B6.58B7.41B12.58B10.94B
Total Liabilities23.32B23.12B27.45B27.82B36.78B31.65B
Stockholders Equity61.78B61.89B59.52B62.04B67.09B60.35B
Cash Flow
Free Cash Flow0811.00M1.08B4.54B-736.00M4.67B
Operating Cash Flow02.61B3.94B6.19B2.04B5.59B
Investing Cash Flow0-2.86B-2.69B-2.06B-8.41B-878.00M
Financing Cash Flow0-2.67B-2.36B-8.26B124.00M-3.25B

Okabe Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price918.00

Price Trends

50DMA932.66Negative
100DMA916.76Positive
200DMA930.77Negative

Market Momentum

MACD-3.81Negative
RSI48.43Neutral
STOCH37.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5959, the sentiment is Positive. The current price of 918.00 is above the 20-day moving average (MA) of 913.80, below the 50-day MA of 932.66, and below the 200-day MA of 930.77, indicating a neutral trend. The MACD of -3.81 indicates Negative momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5959.

Okabe Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5959 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1827JP:182778OutperformJPY 45.37B8.96―2.88%35.61%99.85%
JP:1828JP:182877OutperformJPY 24.69B6.66―4.33%6.41%38.90%
JP:256AJP:256A68NeutralJPY 42.21B9.05―4.74%2.71%9.63%
JP:5959JP:595967NeutralJPY 38.67B13.77―3.49%4.63%―
JP:3431JP:343163NeutralJPY 38.18B13.25―5.92%-27.67%-45.04%
JP:1866JP:186662NeutralJPY 26.94B6.48―2.75%-3.56%25.50%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-25%0%25%50%75%JP:5959JP:1827JP:1828JP:1866JP:3431JP:256ADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5959 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5959Okabe Co., Ltd.918.0041.234.70%
JP:1827Nakano Corporation1320.00385.0941.19%
JP:1828Tanabe Engineering Corporation2307.0021.400.94%
JP:1866Kitano Construction Corp.1090.00-202.08-15.64%
JP:3431MIYAJI ENGINEERING GROUP, INC.1385.00-500.15-26.53%
JP:256ATobishima Holdings, Inc.2215.00201.4410.00%

Okabe Co., Ltd. Corporate Events

Okabe Posts Lower Profits but Confirms 2026 Outlook and Maintains Robust Dividend Policy

Jul 31, 2026

Okabe Co., Ltd. reported consolidated net sales of ¥34.56 billion for the first half of fiscal 2026, up 4.5% year on year, but operating profit fell 20.5% to ¥1.81 billion and profit attributable to owners of parent dropped 15.2% to ¥1...

Okabe Nears Completion of ¥1.5 Billion Share Buyback Program

Jun 15, 2026

Okabe Co., Ltd. has completed a segment of its treasury share buyback program, repurchasing 172,600 common shares for a total of 155,150,200 yen between June 1 and June 12, 2026, through discretionary purchases on the Tokyo Stock Exchange. This trans...

Okabe Advances Share Buyback, Repurchasing 1.39 Million Shares to Date

Jun 1, 2026

Okabe Co., Ltd. has disclosed the latest status of its share buyback program, reporting that it repurchased 381,500 common shares for a total of ¥346,099,500 between May 1 and May 31, 2026, through discretionary purchases on the Tokyo Stock Exch...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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 06, 2026