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OKUMURA ENGINEERING Corp. (6229) AI Stock Analysis

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JP:6229

OKUMURA ENGINEERING Corp.

(TSE/TYO:6229)

Select Model
Rating:79.2Outperform
Price Target:JPY 1,758.00â–²(17.20% Upside)
Action:reiterated
Date:08/17/26

The overall score of 79 reflects OKUMURA ENGINEERING's strong financial foundation and compelling valuation, which outweigh the neutral technical outlook. The company's improving profitability, minimal debt, and robust cash flows provide a solid base, while the low P/E and high dividend yield suggest significant upside potential. Technical indicators remain mixed but do not detract substantially from the positive fundamental picture.

Positive Factors
Conservative balance sheetMeaningful debt reduction and rising equity create durable financial flexibility. Low leverage reduces refinancing and solvency risk, supporting investment, dividends or opportunistic M&A during downturns. This structural strength underpins resilience across economic cycles.
Negative Factors
Historical cash-flow volatilityPronounced swings in operating and free cash flow indicate material working-capital or timing risk. Such volatility can strain investment plans and dividends during adverse periods, requiring conservative buffers and reducing predictability of internal funding over time.

OKUMURA ENGINEERING Corp. (6229) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%40%JP:6229-14.59%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 6.56B
Dividend Yield
3.67%
Average Volume (3M)
12.56K
Price to Earnings (P/E)
9.7
Beta (1Y)
0.97
Revenue Growth
2.80%
EPS Growth
8.78%
Country
Japan
Employees
371
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

OKUMURA ENGINEERING Corp. Business Overview & Revenue Model

Company Description

Okumura Engineering Corporation specializes in the development, manufacturing, and distribution of machinery and components for the construction and engineering sectors. The company's extensive product line features various types of valves, including...

How the Company Makes Money

null

OKUMURA ENGINEERING Corp. Financial Statement Overview

Summary

The company shows strong financial health: improving profitability (income statement score 78), an exceptionally strong balance sheet (score 92), and robust cash flows (score 88). Margins are below historical peaks but trending upward, and debt is minimal.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

88Very Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue11.21B11.11B10.44B9.48B9.16B8.46B
Gross Profit4.02B4.08B3.48B3.26B3.37B3.08B
EBITDA1.55B1.61B1.05B1.09B1.32B1.61B
Net Income684.29M798.70M553.41M511.04M767.29M850.11M
Balance Sheet
Total Assets13.11B13.33B13.16B12.60B12.57B12.37B
Cash, Cash Equivalents and Short-Term Investments3.27B3.29B2.06B1.39B1.61B3.48B
Total Debt482.52M541.22M802.92M988.64M1.44B1.78B
Total Liabilities2.29B2.54B2.85B2.98B3.36B3.85B
Stockholders Equity10.82B10.79B10.31B9.62B9.21B8.52B
Cash Flow
Free Cash Flow01.82B964.05M402.56M-1.39B787.19M
Operating Cash Flow02.00B1.12B628.88M-1.29B993.24M
Investing Cash Flow0-135.75M-129.30M-249.85M585.66M-237.37M
Financing Cash Flow0-709.60M-358.67M-629.85M-557.78M-695.26M

OKUMURA ENGINEERING Corp. Technical Analysis

Technical Analysis SentimentNeutral
Last Price1500.00

Price Trends

50DMA1470.58Positive
100DMA1504.98Negative
200DMA1701.20Negative

Market Momentum

MACD-8.46Negative
RSI58.67Neutral
STOCH90.59Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6229, the sentiment is Neutral. The current price of 1500.00 is above the 20-day moving average (MA) of 1451.40, above the 50-day MA of 1470.58, and below the 200-day MA of 1701.20, indicating a neutral trend. The MACD of -8.46 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 90.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6229.

OKUMURA ENGINEERING Corp. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6229 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6488JP:648881OutperformJPY 12.13B7.46―3.51%8.79%58.86%
JP:6229JP:622979OutperformJPY 6.62B9.72―3.67%2.80%8.78%
JP:6402JP:640276OutperformJPY 8.43B8.38―4.88%2.03%10.16%
JP:6384JP:638472OutperformJPY 9.89B17.65―4.34%-16.54%-18.93%
JP:6393JP:639367NeutralJPY 12.31B8.81―5.02%0.61%3.85%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:6495JP:649544NeutralJPY 5.25B61.69―1.94%9.69%29.00%

* General Sector Average

Performance Comparison

0%50%100%150%JP:6229JP:6384JP:6393JP:6402JP:6488JP:6495Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6229 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6229OKUMURA ENGINEERING Corp.1500.00-294.49-16.41%
JP:6384SHOWA SHINKU CO., LTD.1612.00218.7715.70%
JP:6393Yuken Kogyo Co., Ltd.2989.00174.216.19%
JP:6402Kanematsu Engineering Co., Ltd.1529.0068.754.71%
JP:6488Yoshitake Inc.996.0089.079.82%
JP:6495Miyairi Valve Mfg.Co., Ltd.103.00-7.97-7.18%
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