OSG (6136) AI Stock Analysis

• Market Cap: $205.84B
• Dividend Yield: 2.73%
• Average Volume (3M): 296.02K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.61
• Revenue Growth: 0.57%
• EPS Growth: 4.54%
• Country: JP
• Employees: 7,674
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 38.38
• Shares Outstanding: 96,145,420
• 10 Day Avg. Volume: 399,860
• 30 Day Avg. Volume: 296,023
• PEG Ratio: -51.68
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 12.79
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 2.88
• Enterprise Value/Ebitda: 5.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,596.00 ▲(18.24% Upside)

OSG's strong financial performance, characterized by robust revenue growth and effective cost management, is the most significant factor driving the stock score. The technical analysis indicates strong bullish momentum, though caution is advised due to overbought signals. The valuation is reasonable, with a fair P/E ratio and attractive dividend yield, supporting the stock's overall appeal.

OSG Business Overview & Revenue Model

Company Description

OSG Corporation, together with its subsidiaries, manufactures and sells cutting tools in Japan, the Americas, Europe and Africa, and Asia. The company's products include taps, drills, end mills, indexable tools, thread mills, rolling dies, gauges, machine tools, machine parts, and tooling systems, as well as reconditioning services to worn tools. It also offers special products and accessories, such as tap holders, holder/arbor related products, circular saws/bandsaws, diameter correction tools, tool storage cabinets, parts/accessories, LHSTIX/bits, and coating rods. In addition, the company imports and sells tools. The company's products are used in automotive, die/mold, aerospace, energy, and heavy industry applications. OSG Corporation was incorporated in 1938 and is headquartered in Toyokawa, Japan.

How the Company Makes Money

OSG generates revenue through multiple streams, primarily from its logistics services, including freight forwarding, warehousing, and distribution. The company charges clients for the transportation of goods, storage solutions, and value-added services such as inventory management and order fulfillment. Key partnerships with shipping lines and transport companies enhance OSG's service offerings and enable competitive pricing. Additionally, OSG leverages technology to streamline operations, which helps reduce costs and improve profit margins. The company’s strategic initiatives to expand into emerging markets and invest in innovative logistics solutions contribute significantly to its earnings.

OSG Financial Statement Overview

Summary

OSG exhibits robust financial health with strong revenue growth, effective cost management, and solid profitability indicators. The company benefits from a conservative leverage position and strong equity base, enhancing financial stability. Cash flows are well-managed, supporting operational needs and growth. The slight decline in net profit margin and return on equity suggests areas for potential improvement but does not significantly detract from the company's overall strong financial position.

Income Statement

The company demonstrates strong financial performance with a consistent revenue growth trend over the years. The gross profit margin stands at 40.8% for 2024, indicating effective cost management. The net profit margin decreased slightly to 8.6% from the previous year's 9.7%, while the EBIT margin is robust at 12.1%. EBITDA margin remains high at 21.2%, reflecting healthy operational profitability. Overall, the income statement shows strength in revenue generation and profitability, though net income has slightly weakened.

Balance Sheet

OSG maintains a solid balance sheet with a low debt-to-equity ratio of 0.29, indicating conservative leverage and financial stability. The equity ratio is healthy at 64.8%, underscoring a strong equity base relative to total assets. Return on equity is at 8.1%, reflecting moderate efficiency in utilizing shareholder capital. The balance sheet reflects strength in equity and low leverage, though the ROE could be improved.

Cash Flow

The cash flow statement shows a positive trajectory with a free cash flow growth rate of 1.6% over the previous year. The operating cash flow to net income ratio is at 2.13, indicating effective cash conversion from earnings. The free cash flow to net income ratio is at 0.92, showcasing efficient cash management. Overall, cash flow management appears strong, with a solid ability to generate free cash and cover operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.23B	155.52B	147.70B	142.53B	126.16B	104.39B
Gross Profit	62.40B	63.48B	60.45B	59.07B	49.19B	38.67B
EBITDA	32.44B	32.91B	31.74B	35.04B	28.00B	20.31B
Net Income	12.71B	13.44B	14.31B	16.53B	10.99B	5.64B
Balance Sheet
Total Assets	248.87B	257.26B	250.12B	228.85B	209.76B	200.11B
Cash, Cash Equivalents and Short-Term Investments	45.98B	55.88B	57.97B	46.70B	46.90B	37.81B
Total Debt	44.95B	49.10B	28.68B	25.57B	30.75B	41.77B
Total Liabilities	72.61B	77.85B	55.49B	52.02B	54.96B	59.93B
Stockholders Equity	163.75B	166.63B	181.56B	164.66B	143.81B	129.35B
Cash Flow
Free Cash Flow	0.00	12.37B	12.17B	11.31B	21.19B	6.92B
Operating Cash Flow	0.00	28.56B	23.33B	20.18B	26.98B	17.04B
Investing Cash Flow	0.00	-21.74B	-8.54B	-12.17B	-6.96B	-17.13B
Financing Cash Flow	0.00	-7.99B	-3.83B	-14.74B	-14.26B	9.66B

OSG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2195.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6136, the sentiment is Neutral. The current price of 2195.5 is below the 20-day moving average (MA) of 2241.75, above the 50-day MA of 2137.15, and above the 200-day MA of 1815.19, indicating a neutral trend. The MACD of 25.06 indicates Positive momentum. The RSI at 48.74 is Neutral, neither overbought nor oversold. The STOCH value of 28.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6136.

OSG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6101	79 Outperform	¥127.76B	10.40	―	2.54%	28.13%	84.20%
6136	79 Outperform	$205.84B	14.06	7.86%	2.73%	0.57%	4.54%
6474	74 Outperform	€95.02B	21.51	2.64%	2.54%	-4.11%	46.76%
6157	70 Outperform	¥20.47B	16.48	―	3.92%	0.97%	-10.48%
6278	69 Neutral	¥144.60B	25.76	―	1.27%	21.67%	40.87%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6472	57 Neutral	€190.60B	-10.26	-7.84%	2.32%	-3.18%	-531.48%

OSG Corporate Events

OSG Corporation Reports Stable Q3 FY2025 Earnings

OSG Corporation is a leading manufacturer in the cutting tool industry, primarily engaged in producing taps, end mills, and drills, with operations spanning globally and listings on the Tokyo and Nagoya Stock Exchanges.

OSG Corporation Reports Strong Q3 FY2025 Financial Results

OSG Corporation reported its financial results for the third quarter of FY2025, showing a significant increase in comprehensive income by 56.3% compared to the previous year. The company maintained its forecast for dividends and financial results, indicating stable financial health and consistent shareholder returns.

The most recent analyst rating on (JP:6136) stock is a Buy with a Yen2195.00 price target. To see the full list of analyst forecasts on OSG stock, see the JP:6136 Stock Forecast page.