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Okamoto Machine Tool Works,Ltd. (JP:6125)
:6125
Japanese Market
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Okamoto Machine Tool Works,Ltd. (6125) AI Stock Analysis

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JP:6125

Okamoto Machine Tool Works,Ltd.

(6125)

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Neutral 52 (OpenAI - Gpt-5.6Sol)
Rating:52Neutral
Price Target:
¥4,590.00
▲(2.00% Upside)
Action:Reiterated
Date:08/17/26
Overall score is held back primarily by deteriorating profitability and inconsistent cash generation (recurring negative free cash flow in recent years). Technicals are also slightly negative due to weak near-term trend and negative MACD. These risks are partly offset by a stronger balance sheet (manageable leverage) and a ~3.21% dividend yield, though the elevated P/E limits valuation support.
Positive Factors
Precision grinding specialization
A focused position in precision grinding machinery gives the company a clearly defined industrial role serving high-accuracy metalworking needs. This specialized product focus can support durable customer relevance and provides a foundation for ongoing equipment and service demand.
Negative Factors
Revenue decline and margin compression
Recent revenue contraction is occurring alongside a sharp reduction in profitability, materially lowering current earnings power. If this weaker demand and cost environment persists, reduced margins could limit reinvestment, weaken returns, and make recovery more dependent on improved operating conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Precision grinding specialization
A focused position in precision grinding machinery gives the company a clearly defined industrial role serving high-accuracy metalworking needs. This specialized product focus can support durable customer relevance and provides a foundation for ongoing equipment and service demand.
Read all positive factors

Okamoto Machine Tool Works,Ltd. (6125) vs. iShares MSCI Japan ETF (EWJ)

Okamoto Machine Tool Works,Ltd. Business Overview & Revenue Model

Company Description
Okamoto Machine Tool Works, Ltd. is a global producer and purveyor of sophisticated grinding machinery and specialized semiconductor manufacturing equipment. The company's extensive product line encompasses a wide array of grinding solutions, incl...
How the Company Makes Money
Okamoto Machine Tool Works makes money primarily by selling machine tools—especially precision grinding machines—to industrial customers that require high-accuracy finishing and machining. Revenue is generated from (1) new machine sales, where cus...

Okamoto Machine Tool Works,Ltd. Financial Statement Overview

Summary
Financials are mixed: profitability has weakened sharply with revenue declines in 2025–2026 and major margin compression (net margin ~2.9% in 2026 vs ~9.1% in 2024; EBIT margin ~3.6% vs ~13.5%). The balance sheet is comparatively resilient with manageable leverage (debt-to-equity ~0.28 in 2026), but returns have fallen (ROE ~2.9% in 2026). Cash flow is the biggest concern due to volatile operating cash flow and mostly negative free cash flow across 2023–2026.
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
42
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue41.96B42.51B43.73B50.20B45.52B37.55B
Gross Profit10.81B11.07B12.53B15.53B14.37B11.93B
EBITDA3.29B3.93B5.04B8.59B7.15B5.71B
Net Income931.00M1.23B2.02B4.56B4.03B2.89B
Balance Sheet
Total Assets64.22B67.20B66.80B60.16B55.44B47.51B
Cash, Cash Equivalents and Short-Term Investments12.50B14.83B16.40B11.89B12.65B12.33B
Total Debt7.46B12.01B11.82B9.36B6.39B5.49B
Total Liabilities22.14B24.54B26.24B30.18B30.58B27.18B
Stockholders Equity42.08B42.65B40.56B29.98B24.86B20.33B
Cash Flow
Free Cash Flow0.00-691.00M-5.92B-2.09B-486.00M10.50B
Operating Cash Flow0.003.65B-2.11B929.00M2.68B11.67B
Investing Cash Flow0.00-3.31B-5.09B-3.63B-3.08B-1.55B
Financing Cash Flow0.00-1.36B10.49B1.24B406.00M-3.15B

Okamoto Machine Tool Works,Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4500.00
Price Trends
50DMA
5051.70
Negative
100DMA
5018.60
Negative
200DMA
4713.15
Negative
Market Momentum
MACD
-109.57
Negative
RSI
41.15
Neutral
STOCH
35.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6125, the sentiment is Negative. The current price of 4500 is below the 20-day moving average (MA) of 4771.00, below the 50-day MA of 5051.70, and below the 200-day MA of 4713.15, indicating a bearish trend. The MACD of -109.57 indicates Negative momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 35.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6125.

Okamoto Machine Tool Works,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥352.69B13.4210.02%1.85%15.90%104.65%
75
Outperform
¥61.39B17.543.17%-1.63%-23.69%
70
Outperform
¥110.03B14.0010.14%2.03%9.33%45.31%
64
Neutral
¥81.23B10.948.18%2.18%14.68%69.21%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
¥30.37B32.283.52%-6.36%-61.60%
47
Neutral
¥92.98B39.132.15%3.31%-21.58%-98.64%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6125
Okamoto Machine Tool Works,Ltd.
4,545.00
23.17
0.51%
JP:6258
Hirata
3,450.00
1,610.60
87.56%
JP:6135
Makino Milling Machine Co
14,580.00
3,020.00
26.12%
JP:6143
Sodick
1,607.00
737.83
84.89%
JP:6104
Shibaura Machine Co., Ltd.
4,225.00
114.81
2.79%
JP:6118
Aida Engineering,Ltd.
1,230.00
332.93
37.11%
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 17, 2026