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OKAMURA CORP (7994) AI Stock Analysis

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JP:7994

OKAMURA CORP

(TSE/TYO:7994)

Select Model
Rating:68Neutral
Price Target:JPY 2,341.00▲(10.95% Upside)
Action:downgraded
Date:11/11/26

The score is supported primarily by above-average financial quality (solid margins and low leverage) and attractive valuation (low P/E and strong dividend yield). These positives are tempered by weak technical momentum (price below major moving averages, negative MACD, and low RSI) and near-term fundamental risk signaled by sharply negative TTM revenue growth and historical cash-flow volatility.

Positive Factors
Resilient ProfitabilitySolid and fairly stable margins indicate that Okamura retains meaningful profitability across its office furniture and industrial solutions businesses. This provides an earnings buffer during slower demand periods and supports continued investment in product development, customer delivery, and competitive positioning.
Negative Factors
Sharp TTM Revenue ContractionA sharply negative TTM revenue growth rate indicates that current demand or project activity is weaker than the comparable period. If this persists, lower volume can reduce operating leverage, constrain earnings expansion, and make it harder for the company to sustain its otherwise solid profitability.

OKAMURA CORP (7994) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:7994-0.81%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 202.22B
Dividend Yield
4.95%
Average Volume (3M)
252.62K
Price to Earnings (P/E)
9.5
Beta (1Y)
0.57
Revenue Growth
2.02%
EPS Growth
0.99%
Country
Japan
Employees
6,082
Sector
General
Sector Strength
55
Industry
Business Equipment & Supplies

OKAMURA CORP Business Overview & Revenue Model

Company Description

Headquartered in Yokohama, Japan, Okamura Corporation and its various subsidiaries are involved in the manufacturing, sales, distribution, and installation of a broad spectrum of products across Japan. Their core business encompasses office furnishin...

How the Company Makes Money

OKAMURA makes money primarily by selling and delivering (1) office furniture and workplace-related solutions and (2) industrial equipment and logistics/facility systems. In its office-related business, revenue is generated from the sale of products s...

OKAMURA CORP Financial Statement Overview

Summary

Overall fundamentals are above-average: solid and fairly stable profitability (TTM gross margin ~34%, operating margin ~8.5%, net margin ~6.3%) and conservative leverage (debt-to-equity ~0.15). Key offsets are sharply negative TTM revenue growth and a history of cash-flow volatility (including materially negative FY2025 FCF), despite healthier current TTM operating cash flow (~32B) and free cash flow (~24B).

Income Statement

66Positive

Balance Sheet

78Positive

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue327.14B314.53B329.03B298.30B277.01B261.18B
Gross Profit111.74B103.21B111.33B97.42B86.64B81.40B
EBITDA38.97B37.57B37.84B36.24B29.54B27.56B
Net Income24.32B22.05B22.42B20.28B15.91B14.99B
Balance Sheet
Total Assets287.04B296.12B301.88B298.34B260.63B253.55B
Cash, Cash Equivalents and Short-Term Investments35.46B26.25B32.73B39.17B39.02B39.95B
Total Debt37.44B36.86B30.02B21.26B21.75B22.81B
Total Liabilities93.80B109.32B95.78B123.54B107.93B109.43B
Stockholders Equity191.51B185.14B204.13B172.35B150.76B142.63B
Cash Flow
Free Cash Flow17.56B-15.47B19.27B5.58B1.12B91.00M
Operating Cash Flow25.64B983.00M27.22B21.35B13.49B5.33B
Investing Cash Flow-6.90B-14.27B-5.36B-12.21B-6.63B-2.26B
Financing Cash Flow-11.32B-209.00M-16.16B-8.23B-9.51B-8.61B

OKAMURA CORP Technical Analysis

Technical Analysis SentimentNegative
Last Price2110.00

Price Trends

50DMA2245.60Negative
100DMA2246.42Negative
200DMA2316.29Negative

Market Momentum

MACD-30.24Positive
RSI34.97Neutral
STOCH35.53Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7994, the sentiment is Negative. The current price of 2110.00 is below the 20-day moving average (MA) of 2197.50, below the 50-day MA of 2245.60, and below the 200-day MA of 2316.29, indicating a bearish trend. The MACD of -30.24 indicates Positive momentum. The RSI at 34.97 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7994.

OKAMURA CORP Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7994 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8060JP:806076OutperformJPY 844.75B17.6211.76%2.34%3.43%21.93%
JP:6448JP:644874OutperformJPY 1.10T10.3414.22%2.39%7.97%106.89%
JP:7994JP:799468NeutralJPY 209.58B9.50―4.95%2.02%0.99%
JP:7752JP:775265NeutralJPY 952.98B11.557.30%2.51%5.20%44.17%
JP:7984JP:798464NeutralJPY 372.16B16.039.06%2.96%9.10%8.80%
JP:4902JP:490260NeutralJPY 286.72B12.014.73%2.79%4.51%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

-20%0%20%40%60%JP:7994JP:7752JP:6448JP:4902JP:7984JP:8060Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7994 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7994OKAMURA CORP2110.00-20.04-0.94%
JP:7752RICOH CO1671.50347.1626.21%
JP:6448Brother Industries 4603.001669.4256.91%
JP:4902Konica Minolta 574.10-53.82-8.57%
JP:7984Kokuyo Co 853.00-27.53-3.13%
JP:8060Canon Marketing Japan Inc.3853.00662.3620.76%

OKAMURA CORP Corporate Events

Okamura Completes ¥8.8 Billion Share Repurchase, Plans Cancellation

Nov 9, 2026

Okamura Corporation completed the repurchase of 4.1 million common shares for ¥8.8068 billion, purchasing the shares at ¥2,148 each through the Tokyo Stock Exchange’s ToSTNeT-3 off-auction trading on November 9, 2026. The transaction completed the bu...

Okamura Announces ¥9.83 Billion Treasury Share Buyback and Cancellation

Nov 6, 2026

Okamura Corporation is a Japanese manufacturer of office furniture and workspace products, serving commercial, institutional and related facility markets. The Tokyo-listed company said the capital action supports shareholder returns under its Mid-Ter...

Okamura Reports Flat Sales and Lower First-Half Profits

Nov 6, 2026

Okamura Corporation is a Japanese manufacturer of office furniture and workplace environments, serving corporate, commercial, educational and healthcare markets with furniture, interior and space-design solutions. Its market focus includes helping or...

Okamura Corp Raises Interim Dividend, Confirms Full-Year Payout Outlook

Oct 9, 2026

Okamura Corporation’s board has approved an interim dividend from retained earnings with a record date of September 30, 2026, setting the payment at 52.50 yen per share and a total payout of 4,980 million yen. The dividend will be paid on December 10...

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 11, 2026