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

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OSG Corporation Co., Ltd.

(TSE/TYO:6757)

Select Model

Rating:40Underperform

Price Target:JPY 837.00▼(-6.38% Downside)

Action:downgraded

Date:11/06/26

The overall score is 40, reflecting significant financial and valuation risks. The primary concern is the company's weak cash generation, with persistent negative free cash flow and minimal operating cash flow relative to its debt, which threatens the high dividend. The extremely high P/E ratio is not justified by the current low profitability. While the stock is holding above its long-term moving averages, near-term technical momentum is negative, reinforcing a cautious outlook.

Positive Factors

Diversified industrial customer baseOSG’s broad portfolio and exposure to multiple manufacturing sectors reduce reliance on any single end market. Its international operating footprint and established applications in precision machining provide a durable platform for customer retention and longer-term industrial demand.

Negative Factors

Sharp profitability deteriorationThe steep decline in operating and net margins shows that revenue is currently producing far less earnings than in prior years. Persistently thin profitability would reduce reinvestment capacity, weaken resilience to demand changes, and make recovery dependent on reversing cost or operating-efficiency pressure.

OSG Corporation Co., Ltd. (6757) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.68B
Dividend Yield: 4.46%
Average Volume (3M): 4,128
Price to Earnings (P/E): 117.6
Beta (1Y): 0.46
Revenue Growth: 1.06%
EPS Growth: -25.88%
Country: Japan
Employees: 366
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

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

Company Description

OSG Corp. Co., Ltd. engages in the manufacturing and sale of water products and purifying equipment. It operates through the following segments: Water-Related Equipment, Maintenance, Home & Office Delivery (HOD) and Others. The Water-Related Equipmen...

OSG Corporation Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak. While revenue is stabilizing and margins are improving slightly, profitability remains deeply depressed (net margin 1.3%). The balance sheet shows rising leverage (D/E 0.81) and cash flow is a major concern, with negative free cash flow of ¥369M and operating cash flow covering only 3.8% of total debt.

Income Statement

45Neutral

Balance Sheet

40Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	8.10B	8.19B	7.93B	7.90B	8.13B	9.87B
Gross Profit	4.80B	4.81B	4.65B	4.65B	4.42B	5.09B
EBITDA	270.32M	385.58M	258.00M	295.57M	565.45M	1.27B
Net Income	39.51M	106.69M	33.84M	49.61M	198.14M	638.50M
Balance Sheet
Total Assets	6.77B	6.47B	6.40B	6.73B	6.76B	6.84B
Cash, Cash Equivalents and Short-Term Investments	2.34B	2.25B	2.36B	2.70B	2.55B	2.64B
Total Debt	2.27B	2.02B	1.61B	1.60B	1.55B	1.46B
Total Liabilities	4.03B	3.65B	3.50B	3.55B	3.34B	3.15B
Stockholders Equity	2.38B	2.48B	2.57B	2.74B	2.90B	3.11B
Cash Flow
Free Cash Flow	0	-368.94M	-132.43M	289.83M	155.78M	245.22M
Operating Cash Flow	0	97.10M	-796.00K	447.26M	305.69M	649.56M
Investing Cash Flow	0	-325.91M	399.20M	-227.29M	-235.23M	-588.42M
Financing Cash Flow	0	28.52M	-227.68M	-154.76M	-228.83M	-142.41M

OSG Corporation Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price894.00

Price Trends

50DMA895.50Negative

100DMA878.73Positive

200DMA855.84Positive

Market Momentum

MACD-4.64Positive

RSI50.35Neutral

STOCH74.58Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6757, the sentiment is Positive. The current price of 894.00 is below the 20-day moving average (MA) of 894.45, below the 50-day MA of 895.50, and above the 200-day MA of 855.84, indicating a neutral trend. The MACD of -4.64 indicates Positive momentum. The RSI at 50.35 is Neutral, neither overbought nor oversold. The STOCH value of 74.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6757.

OSG Corporation Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6757 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6135	86Outperform	JPY 348.03B	11.75	10.65%	10.75%	17.26%	81.47%
JP:6317	64Neutral	JPY 21.47B	10.21	―	5.11%	3.71%	-28.36%
JP:6104	58Neutral	JPY 100.35B	63.88	2.15%	3.12%	-21.68%	-103.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6125	52Neutral	JPY 28.47B	30.54	―	3.72%	-1.08%	-44.97%
JP:6757	40Underperform	JPY 4.65B	117.63	―	4.46%	1.06%	-25.88%
JP:6203	40Underperform	JPY 25.09B	31.03	―	1.00%	-7.53%	-13.28%

* General Sector Average

Performance Comparison

JP:6757 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6757	OSG Corporation Co., Ltd.	894.00	-11.74	-1.30%
JP:6135	Makino Milling Machine Co	2808.00	605.93	27.52%
JP:6104	Shibaura Machine Co., Ltd.	4485.00	464.49	11.55%
JP:6125	Okamoto Machine Tool Works,Ltd.	4300.00	129.51	3.11%
JP:6203	Howa Machinery, Ltd.	1995.00	906.37	83.26%
JP:6317	Kitagawa Corporation	2288.00	672.32	41.61%

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: Nov 05, 2026

OSG Corporation Co., Ltd. AI Stock Analysis