TSE:6103

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Executive Summary

Okuma Corporation manufactures and sells machine tools, NC controllers, FA products, and servo motors in Japan, the United States, rest of the Americas, Europe, China, and the Asia Pacific. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Okuma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6103 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

6103

2.5%

JP Machinery

0.2%

JP Market


1 Year Return

-17.3%

6103

0.8%

JP Machinery

-0.7%

JP Market

Return vs Industry: 6103 underperformed the JP Machinery industry which returned 1.1% over the past year.

Return vs Market: 6103 underperformed the JP Market which returned 0.1% over the past year.


Shareholder returns

6103IndustryMarket
7 Day4.4%2.5%0.2%
30 Day1.7%2.0%-0.7%
90 Day12.3%6.5%3.9%
1 Year-15.5%-17.3%2.6%0.8%1.8%-0.7%
3 Year-14.5%-19.7%-10.4%-16.0%0.4%-6.6%
5 Year19.0%7.5%23.3%10.9%21.6%8.2%

Price Volatility Vs. Market

How volatile is Okuma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Okuma undervalued compared to its fair value and its price relative to the market?

20.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6103 (¥5250) is trading above our estimate of fair value (¥4993.6)

Significantly Below Fair Value: 6103 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6103 is poor value based on its PE Ratio (20.3x) compared to the JP Machinery industry average (14.3x).

PE vs Market: 6103 is poor value based on its PE Ratio (20.3x) compared to the JP market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 6103 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 6103 is overvalued based on its PB Ratio (1x) compared to the JP Machinery industry average (0.7x).


Next Steps

Future Growth

How is Okuma forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

30.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6103's forecast earnings growth (30% per year) is above the savings rate (0.05%).

Earnings vs Market: 6103's earnings (30% per year) are forecast to grow faster than the JP market (17.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6103's revenue (7.6% per year) is forecast to grow faster than the JP market (5.2% per year).

High Growth Revenue: 6103's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6103's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Okuma performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6103 has high quality earnings.

Growing Profit Margin: 6103's current net profit margins (5.2%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 6103's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: 6103's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6103 had negative earnings growth (-53.5%) over the past year, making it difficult to compare to the Machinery industry average (-20.8%).


Return on Equity

High ROE: 6103's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is Okuma's financial position?


Financial Position Analysis

Short Term Liabilities: 6103's short term assets (¥132.5B) exceed its short term liabilities (¥30.3B).

Long Term Liabilities: 6103's short term assets (¥132.5B) exceed its long term liabilities (¥8.6B).


Debt to Equity History and Analysis

Debt Level: 6103's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: 6103's debt to equity ratio has reduced from 10.6% to 3.5% over the past 5 years.

Debt Coverage: 6103's debt is well covered by operating cash flow (169.4%).

Interest Coverage: 6103 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Okuma current dividend yield, its reliability and sustainability?

1.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6103's dividend (1.52%) is higher than the bottom 25% of dividend payers in the JP market (1.33%).

High Dividend: 6103's dividend (1.52%) is low compared to the top 25% of dividend payers in the JP market (3.17%).


Stability and Growth of Payments

Stable Dividend: 6103 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6103's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.3%), 6103's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Yoshimaro Hanaki (78 yo)

no data

Tenure

Mr. Yoshimaro Hanaki is Chairman of Okuma Corporation since June 2019. He serves as Chief Executive Officer at Okuma Corporation and was its President since June 2006 until June 2019. Mr. Hanaki joined Oku ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Okuma Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Okuma Corporation
  • Ticker: 6103
  • Exchange: TSE
  • Founded: 1898
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: JP¥168.595b
  • Shares outstanding: 31.57m
  • Website: https://www.okuma.co.jp

Number of Employees


Location

  • Okuma Corporation
  • Oguchi-cho
  • Niwa
  • Aichi
  • 480-0193
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6103TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
OKUDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Okuma Corporation manufactures and sells machine tools, NC controllers, FA products, and servo motors in Japan, the United States, rest of the Americas, Europe, China, and the Asia Pacific. The company off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 14:59
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.