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Onex Corporation (5987) AI Stock Analysis
Onex Corporation
(TSE/TYO:5987)
The score is driven primarily by improved FY2026 financial performance and a strengthening balance sheet with lower leverage, partially offset by a history of earnings volatility and uneven cash conversion. Technicals are supportive with the price above major moving averages and neutral-to-positive momentum indicators. Valuation is also favorable with a low P/E and a modest dividend yield.
Onex Corporation (5987) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 2.73B
- Dividend Yield
- 1.21%
- Average Volume (3M)
- 3,028
- Price to Earnings (P/E)
- 7.1
- Beta (1Y)
- 0.36
- Revenue Growth
- 4.78%
- EPS Growth
- 13147.81%
- Country
- Japan
- Employees
- 251
- Sector
- General
- Sector Strength
- 55
- Industry
- Manufacturing - Metal Fabrication
Onex Corporation Business Overview & Revenue Model
Company Description
ONEX Corporation is a global provider of specialized services focused on metal heat processing, surface remediation, and material treatment. The company offers a comprehensive suite of metal heat treatment techniques, including carburizing, carbonitr...
Onex Corporation Financial Statement Overview
Summary
FY2026 showed a meaningful rebound with ~18% revenue growth and improved margins, lifting net income to ~Â¥383M from near breakeven in FY2025. Balance sheet risk looks lower with declining debt-to-equity (~0.28) and a solid equity base (~Â¥5.7B). Operating cash flow is consistently positive and FY2026 free cash flow was solid (~Â¥353M), but multi-year earnings volatility and uneven cash conversion (FCF materially below net income and prior negative FCF in FY2022) temper confidence in durability.
Income Statement
68PositiveBalance Sheet
76PositiveCash Flow
72Positive| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.29B | 5.29B | 5.05B | 4.97B | 5.37B | 5.30B |
| Gross Profit | 1.45B | 1.45B | 986.95M | 1.03B | 1.11B | 1.09B |
| EBITDA | 773.29M | 773.29M | 374.93M | 581.01M | 605.55M | 671.18M |
| Net Income | 382.93M | 382.93M | 2.89M | -377.47M | 221.44M | 161.80M |
Balance Sheet | ||||||
| Total Assets | 8.27B | 8.27B | 8.70B | 8.89B | 9.95B | 9.79B |
| Cash, Cash Equivalents and Short-Term Investments | 2.84B | 2.84B | 2.94B | 2.72B | 2.54B | 2.45B |
| Total Debt | 1.59B | 1.59B | 1.90B | 2.37B | 2.75B | 2.89B |
| Total Liabilities | 2.60B | 2.60B | 3.45B | 3.61B | 4.30B | 4.36B |
| Stockholders Equity | 5.67B | 5.67B | 5.25B | 5.28B | 5.65B | 5.44B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 352.56M | 523.24M | 538.50M | 310.17M | -65.98M |
| Operating Cash Flow | 0 | 828.69M | 698.37M | 826.07M | 665.08M | 416.39M |
| Investing Cash Flow | 0 | -796.27M | 97.09M | -222.29M | -375.14M | -462.00M |
| Financing Cash Flow | 0 | -431.51M | -574.32M | -423.93M | -202.19M | -155.71M |
Onex Corporation Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5987, the sentiment is Negative. The current price of 1649.00 is above the 20-day moving average (MA) of 1648.60, below the 50-day MA of 1657.30, and below the 200-day MA of 1739.73, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 48.40 is Neutral, neither overbought nor oversold. The STOCH value of 55.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5987.
Onex Corporation Peers Comparison
Overall Rating
JP:592279Outperform- JP:598772.5Outperform
JP:564472Outperform
JP:585266.2Neutral
JP:296252Neutral
JP:599440Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:5922 | 79Outperform | JPY 23.34B | 8.77 | ― | 3.20% | 2.76% | 46.85% |
| JP:5987 | 73Outperform | JPY 2.73B | 7.13 | ― | 1.21% | 4.78% | 13147.81% |
| JP:5644 | 72Outperform | JPY 22.25B | 7.40 | ― | 2.11% | 2.42% | 49.60% |
| JP:5852 | 66Neutral | JPY 14.80B | 7.50 | ― | 6.15% | -0.50% | ― |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:2962 | 52Neutral | JPY 16.55B | 2857.14 | ― | ― | 11.41% | ― |
| JP:5994 | 40Underperform | JPY 4.00B | -1.29 | ― | 2.75% | 3.08% | -260.66% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5987 | Onex Corporation | 1649.00 | -172.20 | -9.46% | |
| JP:2962 | TECNISCO LTD. | 1800.00 | 1385.00 | 333.73% | |
| JP:5644 | Metalart Corporation | 7360.00 | 3364.69 | 84.22% | |
| JP:5852 | Ahresty Corporation | 585.00 | -182.47 | -23.78% | |
| JP:5922 | NASU DENKI-TEKKO CO., LTD. | 20010.00 | 4713.95 | 30.82% | |
| JP:5994 | Fine Sinter Co., Ltd. | 908.00 | -561.97 | -38.23% |
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 17, 2026