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Oi Electric Co., Ltd. (6822) AI Stock Analysis

JP:6822

Oi Electric Co., Ltd.

(TSE/TYO:6822)

Select Model
Rating:70Outperform
Price Target:JPY 5,181.00â–²(5.63% Upside)
Action:reiterated
Date:11/01/26

The company's strong financial health and very attractive valuation are the most significant positive factors, indicating a fundamentally sound business at a low price. However, these are offset by weak technical momentum, with the stock trading below all major moving averages and showing bearish signals, which presents a significant near-term headwind.

Positive Factors
Revenue RecoveryThe renewed acceleration in revenue indicates that demand has recovered beyond the earlier contraction. If sustained, broader sales momentum can improve operating leverage, support reinvestment in electrical and infrastructure products, and strengthen the company’s position with business customers over the next several quarters.
Negative Factors
Unstable Cash ConversionPositive cash flow is encouraging, but the sharp year-over-year decline shows that earnings are not yet converting into cash consistently. Weaker conversion can constrain internally funded growth, reduce flexibility for working-capital needs, and make the recent profitability improvement less dependable.

Oi Electric Co., Ltd. (6822) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%JP:6822+31.04%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 5.51B
Dividend Yield
1.49%
Average Volume (3M)
5,991
Price to Earnings (P/E)
6.9
Beta (1Y)
0.53
Revenue Growth
15.53%
EPS Growth
-32.11%
Country
Japan
Employees
944
Sector
Technology
Sector Strength
61
Industry
Communication Equipment

Oi Electric Co., Ltd. Business Overview & Revenue Model

Company Description

Oi Electric Co., Ltd. supplies information and communication technology and associated services crucial for Japan's social infrastructure. Its product range includes advanced transmission and monitoring solutions, comprising optical transport network...

How the Company Makes Money

Oi Electric primarily generates revenue through the sale of its manufactured electrical/electronic products and associated systems to business customers (e.g., construction, facility, and infrastructure-related clients). Its earnings are driven by (1...

Oi Electric Co., Ltd. Financial Statement Overview

Summary

The company shows a strong financial turnaround with solid revenue growth, expanding margins, and a robust balance sheet featuring low leverage and a healthy debt-to-equity ratio of 0.60. The primary concern is a decline in free cash flow, which warrants monitoring.

Income Statement

84Very Positive

Balance Sheet

87Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue34.22B32.71B29.05B28.12B22.93B24.74B
Gross Profit6.32B6.48B5.77B5.38B4.04B3.45B
EBITDA2.30B2.50B2.02B1.31B-53.20M-424.38M
Net Income1.07B1.37B1.05B759.51M-811.86M-1.02B
Balance Sheet
Total Assets27.91B28.30B23.65B23.88B21.63B21.87B
Cash, Cash Equivalents and Short-Term Investments4.57B4.38B3.88B2.88B2.12B3.55B
Total Debt5.38B5.41B5.53B6.58B7.15B6.78B
Total Liabilities17.12B17.31B14.76B15.89B15.05B14.46B
Stockholders Equity8.80B9.01B7.05B6.33B5.10B6.03B
Cash Flow
Free Cash Flow0744.82M2.37B1.47B-1.75B-1.69B
Operating Cash Flow01.68B2.78B1.64B-1.52B-1.10B
Investing Cash Flow0-1.03B-493.26M-277.88M-276.20M-1.07B
Financing Cash Flow0-154.83M-1.28B-604.03M367.89M2.70B

Oi Electric Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price4905.00

Price Trends

50DMA4987.39Negative
100DMA5139.52Negative
200DMA5034.88Negative

Market Momentum

MACD-15.48Positive
RSI30.98Neutral
STOCH54.49Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6822, the sentiment is Negative. The current price of 4905.00 is below the 20-day moving average (MA) of 4987.25, below the 50-day MA of 4987.39, and below the 200-day MA of 5034.88, indicating a bearish trend. The MACD of -15.48 indicates Positive momentum. The RSI at 30.98 is Neutral, neither overbought nor oversold. The STOCH value of 54.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6822.

Oi Electric Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:6822 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6835JP:683580OutperformJPY 31.72B9.5416.04%2.59%>-0.01%-7.51%
JP:6703JP:670377OutperformJPY 208.45B8.1515.75%2.70%-3.84%183.41%
JP:6820JP:682077OutperformJPY 51.96B16.76―2.07%4.53%36.26%
JP:6718JP:671874OutperformJPY 42.16B13.42―4.86%0.84%22.33%
JP:6822JP:682270OutperformJPY 5.53B6.90―1.49%15.53%-32.11%
JP:6675JP:667569NeutralJPY 35.36B2.09―4.42%-2.98%322.40%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%

* Technology Sector Average

Performance Comparison

0%50%100%JP:6822JP:6835JP:6703JP:6675JP:6718JP:6820Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6822 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6822Oi Electric Co., Ltd.4905.001092.8428.67%
JP:6835Allied Telesis Holdings KK297.0094.1746.43%
JP:6703OKI Electric Industry Company 2378.00609.9634.50%
JP:6675SAXA Holdings, Inc.1911.00191.5511.14%
JP:6718Aiphone Co., Ltd.2639.0014.280.54%
JP:6820Icom Incorporated3650.00516.1116.47%
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 01, 2026