Okano Valve Mfg. Co., Ltd. (6492) AI Stock Analysis

3 Followers

Okano Valve Mfg. Co., Ltd.

(TSE/TYO:6492)

Select Model

Rating:70Outperform

Price Target:JPY 12,804.00▲(26.15% Upside)

Action:reiterated

Date:09/16/26

The overall score of 70 is primarily driven by the company's solid fundamentals, including strong net profit margins, a highly secure balance sheet, and an attractive P/E valuation. However, the stock's upside is constrained by significant weaknesses in cash flow generation and a sideways technical setup lacking decisive bullish momentum.

Positive Factors

Improving ProfitabilityThe sustained expansion in gross and net margins indicates stronger operating economics and improved earnings conversion. If maintained, this profitability provides greater capacity to fund product development, withstand cost pressure, and compound shareholder returns even when revenue growth is uneven.

Negative Factors

Revenue VolatilityThe recent revenue decline and historically volatile growth indicate that demand is not consistently expanding. Uneven top-line performance can limit operating leverage, make capacity planning more difficult, and reduce confidence that the company’s improved margins will translate into steadily rising absolute profits.

Okano Valve Mfg. Co., Ltd. (6492) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 15.97B
Dividend Yield: 1.28%
Average Volume (3M): 22.48K
Price to Earnings (P/E): 8.3
Beta (1Y): 1.37
Revenue Growth: ―
EPS Growth: ―
Country: Japan
Employees: 324
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Okano Valve Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Okano Valve Mfg.Co.Ltd., established in 1926 and headquartered in Kitakyushu, Japan, specializes in manufacturing and supplying industrial valve solutions for high-pressure and high-temperature environments. Serving both domestic and international cl...

Okano Valve Mfg. Co., Ltd. Financial Statement Overview

Summary

Displays strong profitability with improving margins and an exceptionally robust, low-leverage balance sheet. However, this is significantly offset by a sharp 73% decline in free cash flow and poor conversion of profit into cash.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Sep 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	6.38B	8.41B	8.17B	7.41B	6.89B	5.85B
Gross Profit	2.49B	2.91B	2.61B	1.83B	1.42B	1.20B
EBITDA	1.97B	1.37B	1.55B	1.19B	917.00M	800.00M
Net Income	1.33B	990.00M	1.10B	697.00M	483.00M	303.00M
Balance Sheet
Total Assets	16.73B	14.62B	14.27B	12.74B	12.41B	12.10B
Cash, Cash Equivalents and Short-Term Investments	4.55B	4.92B	4.40B	3.53B	4.28B	3.89B
Total Debt	1.42B	577.00M	858.00M	1.15B	1.46B	1.77B
Total Liabilities	3.44B	2.62B	3.09B	2.73B	2.96B	3.09B
Stockholders Equity	13.28B	12.00B	11.18B	10.01B	9.46B	9.00B
Cash Flow
Free Cash Flow	-238.00M	516.00M	1.95B	331.00M	852.00M	757.00M
Operating Cash Flow	-105.00M	698.00M	2.27B	471.00M	996.00M	861.00M
Investing Cash Flow	-1.04B	196.00M	-1.03B	-700.00M	-178.00M	-84.00M
Financing Cash Flow	779.00M	-392.00M	-370.00M	-516.00M	-432.00M	-396.00M

Okano Valve Mfg. Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price10150.00

Price Trends

50DMA13404.09Negative

100DMA14447.08Negative

200DMA13308.20Negative

Market Momentum

MACD-1054.77Positive

RSI34.48Neutral

STOCH40.03Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6492, the sentiment is Negative. The current price of 10150.00 is below the 20-day moving average (MA) of 11639.00, below the 50-day MA of 13404.09, and below the 200-day MA of 13308.20, indicating a bearish trend. The MACD of -1054.77 indicates Positive momentum. The RSI at 34.48 is Neutral, neither overbought nor oversold. The STOCH value of 40.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6492.

Okano Valve Mfg. Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6492 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:6492	70Outperform	JPY 17.93B	8.29	―	1.28%	―	―
JP:6490	66Neutral	JPY 225.80B	20.00	―	2.11%	26.93%	56.60%
JP:6498	64Neutral	JPY 156.70B	12.35	10.55%	3.35%	14.51%	10.65%
JP:7995	61Neutral	JPY 110.70B	13.50	―	2.58%	15.41%	54.89%
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:6492 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6492	Okano Valve Mfg. Co., Ltd.	10150.00	1782.18	21.30%
JP:6498	Kitz Corporation	1821.00	186.57	11.42%
JP:6488	Yoshitake Inc.	998.00	72.62	7.85%
JP:6490	Nippon Pillar Packing Co., Ltd.	9280.00	4808.92	107.56%
JP:6495	Miyairi Valve Mfg.Co., Ltd.	102.00	-10.95	-9.69%
JP:7995	Valqua Ltd.	6210.00	2448.01	65.07%

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: Sep 16, 2026

Okano Valve Mfg. Co., Ltd. AI Stock Analysis