Oriental Chain Mfg. Co., Ltd. (6380) AI Stock Analysis

• Market Cap: ¥3.23B
• Dividend Yield: 1.28%
• Average Volume (3M): 7.33K
• Price to Earnings (P/E): 51.7
• Beta (1Y): 0.02
• Revenue Growth: 0.73%
• EPS Growth: 56.28%
• Country: JP
• Employees: 153
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 67.40
• Shares Outstanding: 1,467,233
• 10 Day Avg. Volume: 9,890
• 30 Day Avg. Volume: 7,333
• PEG Ratio: -0.77
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -4.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥2,506.00 ▲(9.10% Upside)

The stock's overall score is driven by solid revenue growth and stable operational margins, but financial risks such as declining net profit margins and negative free cash flow weigh heavily. Technical indicators show positive momentum, but high valuation metrics suggest caution. The absence of earnings call data and corporate events limits further insights.

Oriental Chain Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Oriental Chain Mfg. Co., Ltd. (6380) is a leading manufacturer specializing in the production of high-quality chains and related products. The company operates in various sectors, including industrial, agricultural, and automotive, providing durable and reliable chain solutions to meet diverse customer needs. With a strong emphasis on innovation and quality, Oriental Chain Mfg. Co., Ltd. offers a wide range of products, including roller chains, conveyor chains, and specialty chains, catering to both domestic and international markets.

How the Company Makes Money

Oriental Chain Mfg. Co., Ltd. generates revenue primarily through the sale of its chain products to a broad customer base across multiple industries. The company’s revenue model is centered around direct sales, where it sells its products to wholesalers, distributors, and end-users. Key revenue streams include standard chain products, custom chains tailored to specific applications, and ongoing contracts with industrial clients. Additionally, the company benefits from strategic partnerships with key players in various sectors, enhancing its distribution and market reach. Factors contributing to its earnings also include economies of scale from large production volumes and a strong brand reputation for quality and reliability, which foster customer loyalty and repeat business.

Oriental Chain Mfg. Co., Ltd. Financial Statement Overview

Summary

The company shows solid revenue growth and stable operational margins. However, declining net profit margins, increased leverage, and negative free cash flow pose significant financial risks. Improvements in cash flow and profitability are needed for enhanced financial stability.

Income Statement

The company showed a consistent revenue growth trend over the years with a notable increase in gross profit margin, improving from 12.8% in 2020 to 19.3% in 2025. However, net profit margin declined from 3.7% in 2024 to 2.5% in 2025, indicating increased costs or inefficiencies. EBIT and EBITDA margins have been relatively stable, suggesting operational control but limited expansion in profitability.

Balance Sheet

The debt-to-equity ratio increased from 0.82 in 2020 to 1.13 in 2025, reflecting rising leverage. The equity ratio decreased marginally from 37.2% in 2020 to 36.2% in 2025, indicating stable but slightly declining equity financing. Return on Equity has decreased from 8.6% in 2024 to 5.4% in 2025, pointing to reduced profitability for shareholders.

Cash Flow

Free Cash Flow has been negative since 2020, with a significant drop in 2025 due to higher capital expenditures. The operating cash flow to net income ratio turned negative in 2025, indicating cash flow challenges. The free cash flow to net income ratio also reflects inefficiency in converting profits into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.06B	4.06B	4.08B	3.90B	3.36B	2.93B
Gross Profit	784.47M	784.60M	777.53M	636.36M	572.28M	425.53M
EBITDA	355.68M	378.12M	420.16M	345.31M	244.40M	192.19M
Net Income	99.76M	100.33M	149.23M	93.91M	28.27M	-8.55M
Balance Sheet
Total Assets	5.13B	5.13B	4.67B	4.23B	4.11B	3.66B
Cash, Cash Equivalents and Short-Term Investments	358.34M	358.34M	407.18M	300.26M	389.45M	394.68M
Total Debt	2.10B	2.10B	1.55B	1.40B	1.37B	1.21B
Total Liabilities	3.27B	3.27B	2.93B	2.68B	2.65B	2.26B
Stockholders Equity	1.86B	1.86B	1.73B	1.55B	1.46B	1.40B
Cash Flow
Free Cash Flow	0.00	-513.13M	23.57M	-182.84M	-99.15M	89.50M
Operating Cash Flow	0.00	-7.35M	321.96M	80.55M	192.68M	254.16M
Investing Cash Flow	0.00	-582.55M	-297.49M	-236.96M	-296.24M	-155.06M
Financing Cash Flow	0.00	501.22M	82.59M	64.75M	96.52M	-13.21M

Oriental Chain Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2297.00
• 50DMA: Negative
• 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:6380, the sentiment is Neutral. The current price of 2297 is below the 20-day moving average (MA) of 2392.35, below the 50-day MA of 2399.56, and above the 200-day MA of 2000.25, indicating a neutral trend. The MACD of -16.53 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 42.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6380.

Oriental Chain Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5952	77 Outperform	¥2.39B	15.39	―	2.56%	1.63%	18.55%
5962	76 Outperform	¥1.78B	11.26	―	2.75%	-6.30%	-56.54%
6380	65 Neutral	¥3.23B	51.66	―	1.28%	0.73%	56.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5950	61 Neutral	¥2.86B	30.03	―	12.56%	4.35%	-68.73%
5969	60 Neutral	¥2.30B	189.29	―	2.55%	-5.24%	-96.07%
5990	54 Neutral	¥4.53B	-17.52	―	3.59%	-4.75%	-178.90%