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

• Market Cap: ¥3.45B
• Dividend Yield: 1.2%
• Average Volume (3M): 6.07K
• Price to Earnings (P/E): 55.2
• Beta (1Y): -0.11
• Revenue Growth: 3.83%
• EPS Growth: -60.31%
• Country: JP
• Employees: 153
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 3.54
• Shares Outstanding: 1,467,233
• 10 Day Avg. Volume: 3,460
• 30 Day Avg. Volume: 6,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,620.00
• Price Target Upside: 5.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: ¥2,620.00 ▲(5.22% Upside)

The stock's overall score is driven by strong technical momentum, despite financial risks from declining profitability and cash flow issues. The high P/E ratio suggests potential overvaluation, which tempers the positive technical outlook.

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

Company Description

Oriental Chain Mfg. Co., Ltd. manufactures and sells roller chains. It offers standard roller, self-lubricating, extra heavy duty, mini pitch, corrosion and heat resistance, plastic, leaf, hollow pin, double pitch, attachment, top roller, bai speed, conveyor, circular side bow, cable, and agricultural chains, as well as roller chain with outboards, chain coupling, and sprockets. The company was incorporated in 1947 and is headquartered in Hakusan, Japan.

How the Company Makes Money

Oriental Chain Mfg. Co., Ltd. generates revenue primarily through the sale of its industrial chain products. The company caters to a diverse range of industries, providing essential components that are integral to the functioning of machinery and equipment. Revenue streams are largely driven by product sales, which are supported by a network of distributors and direct sales to industrial clients. Additionally, the company may engage in partnerships with machinery manufacturers or other industrial entities to enhance its market reach and product integration. The quality and durability of its chain products are critical factors that contribute to its earnings, as they ensure customer satisfaction 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.

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: Positive
• Last Price: 2490.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6380, the sentiment is Positive. The current price of 2490 is above the 20-day moving average (MA) of 2387.35, above the 50-day MA of 2098.96, and above the 200-day MA of 1930.96, indicating a bullish trend. The MACD of 97.12 indicates Positive momentum. The RSI at 67.89 is Neutral, neither overbought nor oversold. The STOCH value of 83.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	2.15B	13.88	9.56%	2.73%	1.63%	18.55%
5962	72 Outperform	1.66B	10.50	5.39%	2.90%	-6.30%	-56.54%
6380	64 Neutral	¥3.45B	55.21		1.20%	3.83%	-60.31%
5950	61 Neutral	2.86B	30.03	22.30%	12.50%	4.35%	-68.73%
5969	60 Neutral	2.29B	188.49	1.60%	2.53%	-5.24%	-96.07%
5990	54 Neutral	4.51B	-18.72	-2.32%	3.57%	-4.17%	-175.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%