Want to see JP:6877 full AI Analyst Report?
Top Page
Obara Group Incorporated
(6877)
Select Model
Select Model
Rating:73Outperform
Price Target:
¥6,612.00
▲(72.64% Upside)
Action:Reiterated
Date:09/26/26
The score is driven primarily by strong financial health (notably low leverage and solid margins) and supportive valuation (low P/E and a ~2.5% dividend yield). This is partially offset by weaker cash flow performance and mixed technicals, with a negative MACD tempering the otherwise positive trend versus moving averages.
Positive Factors
Conservative leverage
Very low leverage gives Obara Group financial flexibility and limits balance-sheet risk. A strong capital structure can help the company continue investing in welding equipment, components, and customer support while remaining better positioned to withstand weaker manufacturing conditions.
Negative Factors
Weaker free cash flow
Declining free cash flow growth and weaker conversion of earnings into cash may reduce the funds available for investment, dividends, or other capital allocation. Even with adequate operating cash generation, persistent deterioration could make growth spending and liquidity management less flexible.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Very low leverage gives Obara Group financial flexibility and limits balance-sheet risk. A strong capital structure can help the company continue investing in welding equipment, components, and customer support while remaining better positioned to withstand weaker manufacturing conditions.
Read all positive factors
Obara Group Incorporated (6877) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥95.01B
Dividend Yield2.53%
Average Volume (3M)32.94K
Price to Earnings (P/E)11.0
Beta (1Y)0.67
Revenue Growth17.28%
EPS Growth26.43%
CountryJP
Employees1,926
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)537.69
Shares Outstanding20,869,380
10 Day Avg. Volume38,490
30 Day Avg. Volume32,943
Financial Highlights & Ratios
PEG Ratio1.11
Price to Book (P/B)0.91
Price to Sales (P/S)1.10
P/FCF Ratio41.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Obara Group Incorporated Business Overview & Revenue Model
Company Description
Obara Group Incorporated is a global manufacturer and supplier of industrial equipment and associated consumables. The company offers a diverse range of products, including resistance welding systems primarily used for joining metal sheets in auto...
How the Company Makes Money
Obara Group primarily makes money by selling resistance welding equipment and related components to manufacturers—especially automotive OEMs and their suppliers—who use these systems in vehicle body assembly and other metal-joining processes. Its ...
Obara Group Incorporated Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.21B | 61.68B | 56.39B | 55.21B | 50.28B | 45.48B |
| Gross Profit | 23.36B | 19.90B | 17.63B | 17.29B | 16.51B | 14.41B |
| EBITDA | 13.93B | 12.25B | 11.32B | 11.65B | 11.27B | 10.50B |
| Net Income | 8.07B | 6.76B | 6.72B | 7.21B | 6.20B | 5.99B |
Balance Sheet | ||||||
| Total Assets | 107.96B | 103.83B | 100.81B | 94.62B | 92.35B | 78.41B |
| Cash, Cash Equivalents and Short-Term Investments | 26.02B | 26.18B | 42.41B | 39.29B | 36.87B | 26.70B |
| Total Debt | 7.88B | 8.00B | 8.11B | 2.11B | 6.77B | 6.88B |
| Total Liabilities | 30.82B | 29.15B | 27.00B | 20.51B | 28.69B | 24.24B |
| Stockholders Equity | 76.99B | 74.53B | 73.73B | 74.04B | 63.59B | 54.10B |
Cash Flow | ||||||
| Free Cash Flow | 1.62B | 1.62B | 5.25B | 4.45B | 5.04B | 8.35B |
| Operating Cash Flow | 5.11B | 5.11B | 8.36B | 5.30B | 6.66B | 9.88B |
| Investing Cash Flow | -18.52B | -18.52B | -3.72B | 5.13B | 68.00M | -546.00M |
| Financing Cash Flow | -6.10B | -6.10B | -1.81B | -2.60B | -3.03B | -5.89B |
Obara Group Incorporated Technical Analysis
Positive
3830.00
Price Trends
5704.60
Positive
5904.20
Positive
5261.32
Positive
Market Momentum
-89.05
Negative
63.26
Neutral
49.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6877, the sentiment is Positive. The current price of 3830 is below the 20-day moving average (MA) of 5485.00, below the 50-day MA of 5704.60, and below the 200-day MA of 5261.32, indicating a bullish trend. The MACD of -89.05 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 49.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6877.
Obara Group Incorporated Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥330.02B | 14.40 | 11.26% | 2.78% | 12.95% | 66.36% | |
73 Outperform | ¥95.01B | 11.03 | ― | 2.53% | 17.28% | 26.43% | |
70 Outperform | ¥246.16B | 12.78 | ― | 1.62% | 23.70% | 56.28% | |
64 Neutral | ¥279.00B | 27.73 | ― | 1.01% | 39.69% | 58.96% | |
63 Neutral | ¥457.90B | 17.02 | 10.78% | 3.58% | 11.79% | 146.87% | |
60 Neutral | ¥131.05B | 17.98 | 3.95% | 1.81% | 3.28% | 58.68% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:6877
Obara Group Incorporated
5,930.00
1,748.90
41.83%
JP:6141
DMG MORI CO
2,933.50
84.05
2.95%
JP:6136
OSG
3,564.00
1,542.89
76.34%
JP:6474
Nachi-Fujikoshi Corp.
5,510.00
1,891.83
52.29%
JP:6101
Tsugami Corp.
5,260.00
2,918.06
124.60%
JP:6278
Union Tool Co.
14,320.00
6,726.12
88.57%
Obara Group Incorporated Corporate Events
Obara Group Posts Double-Digit Profit Growth and Confirms FY2026 Outlook
Aug 5, 2026
Obara Group Incorporated reported strong third-quarter results for the fiscal year ending September 30, 2026, with net sales rising 21.1% year on year to ¥54.7 billion and net income climbing 26.3% to ¥6.3 billion. Earnings per share inc...
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.