OSG Corporation Co., Ltd. (6757) AI Stock Analysis

• Market Cap: ¥4.05B
• Dividend Yield: 5.13%
• Average Volume (3M): 7.77K
• Price to Earnings (P/E): 119.6
• Beta (1Y): 0.40
• Revenue Growth: 0.43%
• EPS Growth: -31.79%
• Country: JP
• Employees: 349
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): -12.37
• Shares Outstanding: 5,500,000
• 10 Day Avg. Volume: 4,620
• 30 Day Avg. Volume: 7,770
• PEG Ratio: -3.09
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Number of Analyst Covering: 0

OSG Corporation Co., Ltd. has strong gross profitability and a solid equity base, but faces challenges in revenue growth, net profitability, and cash flow generation. The technical analysis indicates a neutral to bearish trend with potential overbought conditions, while the valuation suggests overvaluation due to a high P/E ratio, offset somewhat by a high dividend yield. Overall, the stock's financial challenges and technical weaknesses result in a moderate score.

OSG Corporation Co., Ltd. Business Overview & Revenue Model

Company Description

OSG Corporation Co., Ltd. is a leading Japanese company specializing in the manufacture and distribution of precision cutting tools for industrial applications. The company operates in various sectors including automotive, aerospace, and energy, providing a wide range of products such as taps, end mills, drills, and indexable tools. OSG Corporation is renowned for its innovative solutions and high-quality products that enhance machining performance and productivity.

How the Company Makes Money

OSG Corporation makes money primarily through the sale of its cutting tools and related products to a diverse range of industries. The company's revenue model revolves around manufacturing and distributing high-precision tools that are essential for machining processes. Key revenue streams include direct sales to manufacturers in the automotive, aerospace, and energy sectors, as well as distribution through a global network of subsidiaries and partners. OSG's ability to innovate and provide customized solutions enhances its competitive edge and contributes to its earnings. The company also benefits from its strong brand reputation and a commitment to quality, which helps in maintaining long-term relationships with major clients.

OSG Corporation Co., Ltd. Financial Statement Overview

Summary

OSG Corporation Co., Ltd. demonstrates strong gross profitability and a solid equity base, but faces significant challenges in revenue growth, net profitability, and cash flow generation. The company's reliance on debt is moderate, but the low return on equity and negative cash flow metrics highlight potential financial weaknesses. Improving operational efficiency and cash flow management will be crucial for enhancing financial performance.

Income Statement

The gross profit margin for 2025 is approximately 58.47%, indicating strong profitability at the gross level. However, the net profit margin for 2025 stands at about 0.42%, which is quite low, reflecting challenges in converting revenue into net income. Revenue has decreased over the years, with a notable decline of approximately 19.7% from 2022 to 2025, indicating a negative growth trajectory. EBIT and EBITDA margins are also relatively low at 1.68% and 3.25% respectively, suggesting limited operational efficiency.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of approximately 0.63 in 2025, indicating a balanced use of debt and equity but suggesting potential leverage risks. The return on equity (ROE) for 2025 is low at 1.29%, showing limited effectiveness in using equity to generate profits. However, the equity ratio is strong at about 40.12%, demonstrating a solid equity base relative to total assets.

Cash Flow

The operating cash flow to net income ratio in 2025 is negative, as is the free cash flow, indicating cash flow challenges. The company has experienced a substantial decline in free cash flow over the years, with a negative free cash flow in 2025, which may pose risks to liquidity and operational flexibility. Despite this, cash reserves remain relatively strong.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
7.93B	7.90B	8.13B	9.87B	10.24B
	Gross Profit
4.65B	4.65B	4.42B	5.09B	5.13B
	EBIT
133.96M	310.07M	397.47M	1.14B	1.25B
	EBITDA
258.00M	295.57M	565.45M	1.27B	1.37B
	Net Income Common Stockholders
33.84M	49.61M	198.14M	638.50M	583.04M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.36B	2.70B	2.55B	2.64B	2.53B
	Total Assets
6.40B	6.73B	6.73B	6.81B	6.26B
	Total Debt
1.61B	1.60B	1.55B	1.46B	1.42B
	Net Debt
-751.83M	-1.10B	-998.32M	-1.18B	-1.12B
	Total Liabilities
3.50B	3.55B	3.31B	3.12B	3.17B
	Stockholders Equity
2.57B	2.74B	2.90B	3.11B	2.63B
Cash Flow		Free Cash Flow
-168.19M	289.83M	155.78M	245.22M	1.07B
	Operating Cash Flow
-38.00M	447.26M	305.69M	649.56M	1.12B
	Investing Cash Flow
437.00M	-227.29M	-235.23M	-588.42M	-619.95M
	Financing Cash Flow
-227.68M	-154.76M	-228.83M	-142.41M	-378.46M

OSG Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 777.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6757, the sentiment is Neutral. The current price of 777 is above the 20-day moving average (MA) of 755.20, above the 50-day MA of 765.68, and below the 200-day MA of 823.13, indicating a neutral trend. The MACD of 2.58 indicates Negative momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 80.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6757.

OSG Corporation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6301	80 Outperform	¥4.09T	9.37		4.41%	5.97%	13.78%
6113	78 Outperform	¥467.79B	15.25	6.10%	4.11%	0.28%	-10.20%
6101	74 Outperform	¥87.04B	8.03		3.17%	12.42%	82.93%
6479	73 Outperform	¥830.31B	14.01	8.10%	2.09%	7.44%	-5.08%
6141	68 Neutral	¥419.07B	24.82	8.94%	3.40%	-4.91%	-16.52%
Sector *	64 Neutral	$4.43B	12.01	5.15%	249.50%	3.98%	-11.60%
6757	57 Neutral	¥4.05B	119.58		5.13%	0.43%	-31.79%