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

0 Followers

Oi Electric Co., Ltd.

(TSE/TYO:6822)

Select Model

Rating:72Outperform

Price Target:JPY 5,228.00▲(7.68% Upside)

Action:reiterated

Date:11/01/26

The overall score of 72 reflects a stark contrast between exceptional fundamentals and poor near-term technicals. Oi Electric's strongest assets are its robust return to profitability, significantly deleveraged balance sheet, and a deeply discounted P/E valuation. However, these highly compelling value propositions are heavily restrained by bearish technical indicators, as the stock struggles with downward price momentum and remains suppressed below all major moving averages.

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)

Market Cap: JPY 5.70B
Dividend Yield: 1.44%
Average Volume (3M): 6,446
Price to Earnings (P/E): 7.1
Beta (1Y): 0.49
Revenue Growth: 15.53%
EPS Growth: -31.70%
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

Oi Electric demonstrates a robust financial turnaround, transitioning from historical losses to a net income of 1.37 billion on 32.7 billion in revenue for 2026. Aggressive debt reduction and sustained positive operating cash flows have established a highly favorable debt-to-equity ratio of 0.60x, greatly reducing financial risk.

Income Statement

84Very Positive

Balance Sheet

82Very Positive

Cash Flow

79Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	34.22B	32.71B	29.05B	28.12B	22.93B	24.74B
Gross Profit	6.32B	6.48B	5.77B	5.38B	4.04B	3.45B
EBITDA	2.30B	2.50B	2.02B	1.31B	-53.20M	-424.38M
Net Income	1.07B	1.37B	1.05B	759.51M	-811.86M	-1.02B
Balance Sheet
Total Assets	27.91B	28.30B	23.65B	23.88B	21.63B	21.87B
Cash, Cash Equivalents and Short-Term Investments	4.57B	4.38B	3.88B	2.88B	2.12B	3.55B
Total Debt	5.38B	5.41B	5.53B	6.58B	7.15B	6.78B
Total Liabilities	17.12B	17.31B	14.76B	15.89B	15.05B	14.46B
Stockholders Equity	8.80B	9.01B	7.05B	6.33B	5.10B	6.03B
Cash Flow
Free Cash Flow	0	744.82M	2.37B	1.47B	-1.75B	-1.69B
Operating Cash Flow	0	1.68B	2.78B	1.64B	-1.52B	-1.10B
Investing Cash Flow	0	-1.03B	-493.26M	-277.88M	-276.20M	-1.07B
Financing Cash Flow	0	-154.83M	-1.28B	-604.03M	367.89M	2.70B

Oi Electric Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4855.00

Price Trends

50DMA4959.80Negative

100DMA5084.99Negative

200DMA5078.79Negative

Market Momentum

MACD-45.59Positive

RSI45.77Neutral

STOCH53.41Neutral

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 4855.00 is below the 20-day moving average (MA) of 4916.25, below the 50-day MA of 4959.80, and below the 200-day MA of 5078.79, indicating a bearish trend. The MACD of -45.59 indicates Positive momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 53.41 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6835	75Outperform	JPY 30.06B	8.94	16.04%	2.77%	0.34%	-27.40%
JP:6718	74Outperform	JPY 43.10B	13.70	―	4.76%	-0.63%	15.90%
JP:6822	72Outperform	JPY 5.67B	7.11	―	1.44%	15.53%	-31.70%
JP:6703	67Neutral	JPY 222.22B	12.30	10.39%	2.63%	-0.76%	62.86%
JP:6675	63Neutral	JPY 32.81B	1.97	―	4.77%	-3.14%	404.89%
JP:6820	63Neutral	JPY 52.10B	13.91	―	2.05%	8.11%	61.38%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:6822 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6822	Oi Electric Co., Ltd.	4855.00	1353.53	38.66%
JP:6835	Allied Telesis Holdings KK	286.00	72.70	34.08%
JP:6703	OKI Electric Industry Company	2468.00	584.83	31.06%
JP:6675	SAXA Holdings, Inc.	1832.00	254.26	16.12%
JP:6718	Aiphone Co., Ltd.	2731.00	93.87	3.56%
JP:6820	Icom Incorporated	3650.00	949.59	35.16%

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

Oi Electric Co., Ltd. AI Stock Analysis