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Odawara Engineering Co., Ltd. (6149) AI Stock Analysis

JP:6149

Odawara Engineering Co., Ltd.

(TSE/TYO:6149)

Select Model
Rating:84Outperform
Price Target:JPY 2,562.00â–²(29.00% Upside)
Action:reiterated
Date:08/06/26

Odawara Engineering earns an overall score of 84, reflecting its strong financial foundation, positive technical momentum, and compelling valuation. The company's debt-free balance sheet and robust profitability are key strengths, though the recent dip in cash flow warrants monitoring. The stock's low P/E and above-average dividend yield suggest it is undervalued, while technical indicators point to continued upward momentum.

Positive Factors
Conservative Balance SheetEffectively zero debt through 2025 provides durable financial flexibility. Low leverage materially reduces refinancing and solvency risk, enabling the company to fund operations, capex, or opportunistic investments through downturns without needing external financing.
Negative Factors
2025 Cash-Flow CollapseThe sharp 2025 cash-flow reversal—near-zero operating cash flow and deeply negative free cash flow—signals severe cash-conversion stress. This elevates funding risk, could force cuts to investment or payouts, and raises questions on earnings quality if it persists.

Odawara Engineering Co., Ltd. (6149) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%JP:6149-18.84%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 11.55B
Dividend Yield
3.48%
Average Volume (3M)
12.15K
Price to Earnings (P/E)
5.6
Beta (1Y)
0.91
Revenue Growth
-13.80%
EPS Growth
6.13%
Country
Japan
Employees
425
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

Odawara Engineering Co., Ltd. Business Overview & Revenue Model

Company Description

Operating globally with its subsidiaries, Odawara Engineering Co., Ltd. specializes in the conceptualization, manufacturing, and distribution of sophisticated motor winding and assembly solutions. The company's product line features essential compone...

How the Company Makes Money

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Odawara Engineering Co., Ltd. Financial Statement Overview

Summary

Odawara Engineering shows strong revenue growth and net profit margins, with a debt-free balance sheet and high return on equity. However, operating cash flow declined sharply in the latest year, raising some concerns about cash conversion. Overall financial health remains solid.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue16.29B18.24B13.18B14.70B14.09B13.56B
Gross Profit5.33B5.90B3.76B4.51B3.36B3.60B
EBITDA3.07B3.52B1.59B2.41B1.37B1.50B
Net Income2.02B2.32B865.13M1.53B801.53M925.71M
Balance Sheet
Total Assets24.10B24.86B27.91B26.73B24.02B22.78B
Cash, Cash Equivalents and Short-Term Investments8.15B8.73B10.36B8.14B7.69B6.31B
Total Debt34.77M05.17M6.75M3.00B3.00B
Total Liabilities4.69B6.33B11.47B11.05B9.85B9.28B
Stockholders Equity19.41B18.53B16.44B15.68B14.17B13.51B
Cash Flow
Free Cash Flow0-1.35B2.48B3.60B1.51B1.06B
Operating Cash Flow0108.68M3.29B3.81B1.99B1.34B
Investing Cash Flow0-1.97B-745.93M-242.27M-617.18M-278.59M
Financing Cash Flow0-286.55M-284.98M-3.14B-172.86M-760.17M

Odawara Engineering Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1986.00

Price Trends

50DMA2165.32Negative
100DMA2148.02Negative
200DMA2105.07Negative

Market Momentum

MACD-35.32Negative
RSI35.70Neutral
STOCH29.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6149, the sentiment is Negative. The current price of 1986.00 is below the 20-day moving average (MA) of 2061.00, below the 50-day MA of 2165.32, and below the 200-day MA of 2105.07, indicating a bearish trend. The MACD of -35.32 indicates Negative momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 29.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6149.

Odawara Engineering Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6149 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6149JP:614984OutperformJPY 11.87B5.62―3.48%-13.80%6.13%
JP:6488JP:648881OutperformJPY 12.16B7.46―3.51%8.79%58.86%
JP:6492JP:649272OutperformJPY 19.67B8.04―0.95%――
JP:6363JP:636357NeutralJPY 68.03B9.21―2.47%0.93%212.09%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6498JP:649853NeutralJPY 162.77B13.6210.16%3.23%7.97%-1.68%
JP:6495JP:649550NeutralJPY 5.19B61.09―1.96%9.69%29.00%

* General Sector Average

Performance Comparison

0%50%100%150%JP:6149JP:6498JP:6363JP:6488JP:6492JP:6495Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6149 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6149Odawara Engineering Co., Ltd.1986.00-515.20-20.60%
JP:6498Kitz Corporation1887.00171.059.97%
JP:6363Torishima Pump Mfg.Co., Ltd.2669.00629.9130.89%
JP:6488Yoshitake Inc.996.0094.9010.53%
JP:6492Okano Valve Mfg. Co., Ltd.11640.003133.0536.83%
JP:6495Miyairi Valve Mfg.Co., Ltd.102.00-11.94-10.48%
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