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

0 Followers

Odawara Engineering Co., Ltd.

(TSE/TYO:6149)

Select Model

Rating:73Outperform

Price Target:JPY 2,159.00▲(2.37% Upside)

Action:reiterated

Date:11/07/26

The score is supported most by strong financial stability (near-zero leverage) and very compelling valuation (low P/E and healthy dividend yield). These positives are tempered by a clear technical downtrend and, fundamentally, the sharp 2025 cash-flow deterioration and recent revenue contraction, which raise near-term quality and demand-sustainability concerns.

Positive Factors

Exceptionally conservative balance sheetNear-zero debt gives Odawara substantial financial flexibility through manufacturing cycles. A strong equity base reduces refinancing pressure and allows the company to preserve capacity for investment, customer support, and product development even when equipment demand softens.

Negative Factors

Recent revenue contractionRepeated revenue contraction raises questions about the sustainability of customer demand and the company’s near-term growth base. Continued softness could reduce operating leverage, delay new equipment orders, and make recent margin improvements harder to maintain over several quarters.

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

Market Cap: JPY 12.16B
Dividend Yield: 3.46%
Average Volume (3M): 12.75K
Price to Earnings (P/E): 6.0
Beta (1Y): 0.82
Revenue Growth: 12.32%
EPS Growth: 17.97%
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

Odawara Engineering makes money mainly by selling industrial machinery and automation systems used by manufacturers to produce electric motors and related products. Its core revenue stream is the delivery of production equipment—typically including e...

Odawara Engineering Co., Ltd. Financial Statement Overview

Summary

Strong profitability and an exceptionally conservative balance sheet (effectively zero debt) support a high financial quality profile. However, revenue has contracted recently and 2025 cash generation deteriorated sharply (free cash flow materially negative and very weak cash conversion versus earnings), which meaningfully offsets the margin strength.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.29B	18.24B	13.18B	14.70B	14.09B	13.56B
Gross Profit	5.33B	5.90B	3.76B	4.51B	3.36B	3.60B
EBITDA	3.07B	3.52B	1.59B	2.41B	1.37B	1.50B
Net Income	2.02B	2.32B	865.13M	1.53B	801.53M	925.71M
Balance Sheet
Total Assets	24.10B	24.86B	27.91B	26.73B	24.02B	22.78B
Cash, Cash Equivalents and Short-Term Investments	8.15B	8.73B	10.36B	8.14B	7.69B	6.31B
Total Debt	34.77M	0	5.17M	6.75M	3.00B	3.00B
Total Liabilities	4.69B	6.33B	11.47B	11.05B	9.85B	9.28B
Stockholders Equity	19.41B	18.53B	16.44B	15.68B	14.17B	13.51B
Cash Flow
Free Cash Flow	0	-1.35B	2.48B	3.60B	1.51B	1.06B
Operating Cash Flow	0	108.68M	3.29B	3.81B	1.99B	1.34B
Investing Cash Flow	0	-1.97B	-745.93M	-242.27M	-617.18M	-278.59M
Financing Cash Flow	0	-286.55M	-284.98M	-3.14B	-172.86M	-760.17M

Odawara Engineering Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2109.00

Price Trends

50DMA2126.34Negative

100DMA2144.18Negative

200DMA2098.17Positive

Market Momentum

MACD-26.78Negative

RSI56.30Neutral

STOCH79.13Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6149, the sentiment is Positive. The current price of 2109.00 is above the 20-day moving average (MA) of 2026.85, below the 50-day MA of 2126.34, and above the 200-day MA of 2098.17, indicating a neutral trend. The MACD of -26.78 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6149.

Odawara Engineering Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6149 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6488	81Outperform	JPY 12.13B	7.47	―	3.51%	8.79%	58.86%
JP:6363	76Outperform	JPY 68.44B	9.12	―	2.50%	-1.87%	215.99%
JP:6149	73Outperform	JPY 11.93B	5.97	―	3.46%	12.32%	17.97%
JP:6492	72Outperform	JPY 17.93B	8.29	―	1.28%	―	―
JP:6498	64Neutral	JPY 156.70B	12.35	10.55%	3.35%	14.51%	10.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6495	50Neutral	JPY 5.25B	61.09	―	1.96%	9.69%	29.00%

* General Sector Average

Performance Comparison

JP:6149 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6149	Odawara Engineering Co., Ltd.	2109.00	-222.55	-9.55%
JP:6498	Kitz Corporation	1821.00	186.57	11.42%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2644.00	776.14	41.55%
JP:6488	Yoshitake Inc.	998.00	72.62	7.85%
JP:6492	Okano Valve Mfg. Co., Ltd.	10150.00	1782.18	21.30%
JP:6495	Miyairi Valve Mfg.Co., Ltd.	102.00	-10.95	-9.69%

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: Nov 07, 2026

Odawara Engineering Co., Ltd. AI Stock Analysis