OPTEX GROUP Company Limited (6914) AI Stock Analysis

• Market Cap: ¥78.93B
• Dividend Yield: 1.9%
• Average Volume (3M): 154.66K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.09
• Revenue Growth: 5.70%
• EPS Growth: 19.34%
• Country: JP
• Employees: 2,148
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 34.26
• Shares Outstanding: 37,735,783
• 10 Day Avg. Volume: 215,860
• 30 Day Avg. Volume: 154,663
• PEG Ratio: 0.48
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 10.31
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,514.00 ▲(6.08% Upside)

OPTEX GROUP's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust revenue growth, profitability, and efficient cash management contribute significantly to its high financial performance score. The technical analysis supports a positive outlook with strong upward trends. The valuation is reasonable, providing a balanced investment opportunity.

OPTEX GROUP Company Limited Business Overview & Revenue Model

Company Description

OPTEX GROUP Company, Limited, together with its subsidiaries, develops, manufactures, and sells security sensors and automatic door sensors in Japan and internationally. It operates through Sensing Solution Business, Industrial Automation Business, and Electronic Manufacturing Service Business segments. The company offers water quality measuring instruments, customer traffic counting systems, and electronic components; factory automation sensors, LED lighting equipment for image processing, industrial PCs, and automation systems. It also provides contract manufacturing service of electronic equipment. The company was founded in 1979 and is headquartered in Otsu, Japan.

How the Company Makes Money

OPTEX GROUP generates revenue primarily through the sale of its sensor and security products, which are distributed globally. The company operates under a B2B model, supplying its products to both direct clients and through a network of distributors and partners. Key revenue streams include the sale of motion and laser sensors for security applications, as well as video surveillance systems. The company also benefits from recurring revenue through maintenance contracts and service agreements. Significant partnerships with security system integrators and collaborations with technology providers enhance its market presence and contribute to its earnings. Additionally, OPTEX GROUP invests in research and development to innovate and expand its product offerings, which helps capture new market opportunities and drive sales growth.

OPTEX GROUP Company Limited Financial Statement Overview

Summary

OPTEX GROUP demonstrates strong financial health with impressive revenue growth and profitability improvements. The balance sheet is robust with low leverage, high equity ratios, and strong cash flow performance, highlighting effective management and a stable financial outlook.

Income Statement

OPTEX GROUP displays strong income statement metrics with a consistent upward trend in revenue and profitability. Gross Profit Margin reached approximately 50.4% for 2024, indicating efficient cost management. The Net Profit Margin improved to about 9.0%, reflecting solid bottom-line growth. Revenue grew by 12.2% from 2023 to 2024, showcasing robust business expansion. EBIT and EBITDA margins are healthy, with EBIT Margin at 11.2% and EBITDA Margin at 14.5% for 2024, highlighting operational efficiency.

Balance Sheet

The balance sheet of OPTEX GROUP is solid with a Debt-to-Equity Ratio of 0.18, suggesting low financial leverage and a conservative capital structure. The Return on Equity (ROE) stands at 11.4% for 2024, indicating effective use of equity capital. The Equity Ratio is 68.7%, reflecting a strong equity base. However, the slight decrease in total liabilities hints at stable financial management.

Cash Flow

Cash flow metrics for OPTEX GROUP are positive with a notable Free Cash Flow growth of 683.5% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.35, indicating a strong correlation between cash generation and earnings. Free Cash Flow to Net Income Ratio is 1.07, suggesting efficient cash utilization. The company exhibits strong cash flow management despite variability in investing and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.10B	63.27B	56.37B	54.81B	45.87B	34.85B
Gross Profit	32.78B	31.87B	28.77B	28.00B	23.89B	18.54B
EBITDA	9.57B	9.71B	8.67B	8.49B	6.75B	3.61B
Net Income	6.16B	5.69B	4.61B	4.75B	3.76B	1.40B
Balance Sheet
Total Assets	72.75B	72.85B	67.13B	63.30B	57.77B	47.39B
Cash, Cash Equivalents and Short-Term Investments	21.21B	21.07B	17.62B	17.61B	17.25B	14.78B
Total Debt	7.85B	8.89B	10.64B	10.88B	10.89B	6.65B
Total Liabilities	20.89B	22.77B	22.86B	23.57B	22.41B	14.77B
Stockholders Equity	51.83B	50.06B	44.25B	39.72B	35.35B	32.62B
Cash Flow
Free Cash Flow	0.00	6.09B	777.00M	289.00M	2.01B	2.51B
Operating Cash Flow	0.00	7.70B	2.11B	1.67B	3.10B	3.89B
Investing Cash Flow	0.00	-867.00M	-782.00M	-310.00M	-2.85B	-3.23B
Financing Cash Flow	0.00	-3.83B	-2.26B	-1.63B	1.79B	1.58B

OPTEX GROUP Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2370.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6914, the sentiment is Positive. The current price of 2370 is above the 20-day moving average (MA) of 2197.45, above the 50-day MA of 2061.88, and above the 200-day MA of 1722.06, indicating a bullish trend. The MACD of 71.13 indicates Negative momentum. The RSI at 70.07 is Negative, neither overbought nor oversold. The STOCH value of 69.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6914.

OPTEX GROUP Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.38B	12.30	―	4.91%	9.88%	11.83%
6914	76 Outperform	¥78.93B	12.62	―	1.90%	5.70%	19.34%
6814	75 Outperform	¥255.17B	15.42	―	1.60%	6.56%	106.55%
6957	75 Outperform	¥109.21B	36.16	―	2.12%	4.48%	-39.40%
6817	70 Outperform	¥36.34B	20.10	―	4.68%	-3.69%	-22.95%
6866	68 Neutral	¥82.29B	13.89	―	3.31%	7.28%	4.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OPTEX GROUP Company Limited Corporate Events

OPTEX GROUP Releases FY2025 H1 Financial Results

OPTEX GROUP Company Limited has released its financial results for the first half of fiscal year 2025, highlighting its diverse business segments. The company continues to strengthen its position in the security and automation sectors through its innovative sensor solutions, which are crucial for enhancing operational efficiencies across various industries.

OPTEX GROUP Reports Strong Operating Profit Growth in H1 2025

OPTEX GROUP CO., LTD. reported its consolidated financial results for the first half of 2025, showing a slight decline in net sales by 0.6% compared to the previous year. Despite this, the company experienced a significant increase in operating profit by 16.2% and profit attributable to owners of the parent by 18.6%. The company also announced an increase in its interim dividend, reflecting a positive outlook for the remainder of the fiscal year. This financial performance indicates a strong operational efficiency and a commitment to returning value to shareholders.

OPTEX GROUP Announces Increased Dividend Forecasts for 2025

OPTEX GROUP Co., Ltd. has announced an increase in its interim and year-end dividend forecasts for the fiscal year ending December 31, 2025. The company has decided to distribute an interim dividend of 25.00 yen per share, up from the previous forecast of 22.50 yen, and a year-end dividend of 25.00 yen per share, also an increase from the prior forecast. This decision reflects the company’s strategy to return profits to shareholders and maintain stable and continuous dividend payments, supported by a new dividend on equity index of 3% or more.