Research

Okamoto Machine Tool: Mitsui-allied grinder maker drops its takeover defense

OKAMOTO MACHINE TOOL WORKS, LTD. (6125) · Initiated coverage 2026-10-21 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • Okamoto describes itself as a comprehensive abrasive machining equipment maker. It reports two segments: machine tools (mainly grinding machines, precision gears and castings) and semiconductor-related equipment (mainly polishing, grinding and slicing machines for silicon wafers and compound-semiconductor materials).
  • The group consists of the parent and eight consolidated subsidiaries. Manufacturing sites are in Japan, Thailand, Singapore and China, and sales subsidiaries are in the United States and Germany. It reported 2,229 consolidated employees at March 31, 2026, of whom 2,016 were in machine tools.
  • Customers are manufacturers making capital investments. Domestic small and mid-sized firms buy surface grinders with help from government subsidies, and machine tool demand in the United States comes mainly from aerospace. In China, demand is for large grinders used by industrial machinery, die and semiconductor equipment makers, and wafer makers in Japan and East Asia buy the semiconductor equipment (see Performance & Balance).
  • The group has made two recent domestic acquisitions. In November 2023 it acquired all shares of Daiwa Koki, and in December 2023 it took over the surface grinder business of Nikko and placed it in a new wholly owned subsidiary, NICCO.

Investment case

  1. In June 2024 Okamoto formed a capital and business alliance with Mitsui & Co. and issued new shares to it through a third-party allotment. The annual securities report for the year to March 2026 lists Mitsui as an other affiliated company and principal shareholder that sends two directors to the board (see Shareholders).
  2. The board resolved on May 13, 2026 not to renew its takeover defense plan, which expired at the close of the 127th annual general meeting in June 2026. The articles also allow the board to repurchase shares by its own resolution.
  3. Orders rose in both segments in the year to March 2026. The first-quarter release for the year to March 2027 reports a further year-on-year rise in orders and a larger order backlog in both segments, and the company kept its full-year forecast and its unchanged dividend forecast.
  4. The medium-term plan "INOFINITY 700" covers four years starting with the year to March 2025. It sets consolidated targets for revenue, operating margin, ROE and a minimum dividend payout ratio for the year to March 2028, and the company names operating margin as its key performance indicator.

Bear case

  1. Profit in the machine tools segment nearly disappeared in the year to March 2026 because sales of large surface grinders fell. Group operating profit and net income also declined, and the semiconductor segment provided most of the segment profit (see Performance & Balance).
  2. In the first quarter of the year to March 2027 the group reported an operating loss and a net loss. Semiconductor equipment sales fell year on year because some projects were moved into the second quarter or later at customers' request.
  3. The full-year forecast depends on a large rise in sales and profit in later quarters. The company's risk disclosure states that shipments concentrate near the fiscal year-end and that sales and profit are weighted toward the second half.
  4. Capital spending rose in the year to March 2026, including the Tokyo Technical Center and an automated warehouse at the Annaka head plant. The company states that planned facilities will be funded with its own funds and borrowings, and some of its loan agreements carry financial covenants.

Catalysts

  • The second-quarter results for the year to March 2027 will show whether the semiconductor projects deferred from the first quarter were recognized as stated, and whether results are tracking the first-half forecast.
  • The results for the year to March 2028, the final year of the INOFINITY 700 plan, will be measured against the plan's revenue, margin, ROE and payout targets.
  • Disclosures from the alliance with Mitsui & Co. and any board-approved share repurchase are events to watch now that the takeover defense plan has ended.

Key risks

  • The company states that demand for machine tools and semiconductor equipment depends on the economic cycle and capital spending, and that industry orders shrink in downturns.
  • Production and sales outside Japan expose the group to exchange rates, political conditions and sudden changes in laws or regulations. The management discussion also cites U.S. tariff policy, trade friction with China and tensions in the Middle East.
  • The company lists possible impairment of fixed assets, write-downs of slow-moving inventory, reduced deferred tax assets and cyber attacks as risks to results.
  • Mitsui & Co. holds a significant voting stake and sends two directors to the board. Three of the eight directors are outside directors, and two of them are registered as independent. The articles lower the quorum for special resolutions at general meetings to one-third of voting rights (see Shareholders).

Trading liquidity

Median daily trading value US$1.08mn
Average daily volume 44,491 shares

2025-10-03 to 2026-10-20 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • The annual securities report states different dates for the plan's revenue target. The plan section sets consolidated targets for the year to March 2028, while the management discussion and the first-quarter release refer to the revenue target as one for the year to March 2030.
  • The first-quarter release dated August 6, 2026 names a different person as representative director, with the title president and executive officer, from the person who held the president title in the annual securities report filed in June 2026.
  • Qualitative statements are taken from the annual securities report for the year to March 2026 and the first-quarter earnings release for the year to March 2027.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Overview
Machinery

OKAMOTO MACHINE TOOL WORKS,LTD.

Okamoto Machine Tool Works is a global leader in precision grinding machines and semiconductor-related manufacturing equipment. The company offers a full lineup of machine tools including surface, cylindrical, internal, and gear grinding machines ranging from general-purpose to fully automated CNC types, serving diverse industrial sectors. Leveraging its accumulated precision engineering expertise, the company also develops high-performance semiconductor processing equipment to meet growing global demand in the semiconductor industry.

Market Cap
¥29.3B
US$187M
EV
¥24.6B
US$157M
Stock¥4,440▼-4.52%
US$1 = ¥157.05 (2026-10-22)
LTM EV/EBITDA
7.5
x
LTM EV/EBIT
24.6
x
LTM PER
31.5
x
LTM PBR
0.7
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-33.0%pt
10012
Oct 22, 25 – Oct 22, 26StockTOPIX
1Nov 7, 25Disappointment selling after interim earnings
2Aug 7, 26Q1 FY2027/03 earnings announced
MC → EV Bridge
29.3BUS$187MMarket Cap8.21BUS$52.3M+ Debt12.5BUS$79.6M− Cash0.43BUS$2.71M− Inv. Sec.24.6BUS$157MEV
AI Briefing
Top-tier global grinding machine maker with growing semiconductor equipment arm, backed by Mitsui & Co. at 30% ownership. FY26/3 revenue ¥42.5B, OP margin compressed to 3.6% as profitability erodes for third straight year. Fwd EBITDA ¥5.3B vs LTM ¥3.3B signals expected recovery, but thin margins and no tender offer in play keep this a standalone turnaround story.
Performance & Balance
Revenue 5Y (¥B)
37.5US$239M'22/345.5US$290M'23/350.2US$320M'24/343.7US$278M'25/342.5US$271M'26/3
EBITDA 5Y (¥B)
5.50US$35.0M'22/37.12US$45.3M'23/37.97US$50.7M'24/35.10US$32.5M'25/33.69US$23.5M'26/3
Net Income 5Y (¥B)
2.89US$18.4M'22/34.03US$25.7M'23/34.56US$29.0M'24/32.02US$12.9M'25/31.23US$7.86M'26/3
Capital Structure
84%
EquityD/E 0.20xDebt
Liquidity vs Debt 5Y (¥B)▲ Net Cash
CashInv. Sec.Debt
7.59US$48.3M5.48US$34.9M'22/38.91US$56.7M6.37US$40.6M'23/312.4US$78.6M9.35US$59.5M'24/310.3US$65.6M11.8US$75.3M'25/312.6US$80.3M12.0US$76.5M'26/3
Shareholders
Top 10 hold 46.3%
1
MITSUI & CO.,LTD.
30.04%
2
INTERACTIVE BROKERS LLC (Standing Proxy: Interactive Brokers Securities Japan Inc.)
3.82%
3
Japan Securities Finance Co.,Ltd.
1.97%
4
Mitsubishi UFJ Trust and Banking Corporation
1.76%
5
MUFG Bank, Ltd.
1.63%
6
The Shoko Chukin Bank, Ltd.
1.55%
7
Tachibana Securities Co., Ltd.
1.51%
8
V Technology Co.,Ltd.
1.50%
9
FANUC CORPORATION
1.42%
10
Akihiko TOKITSU
1.13%
Management
12 officers
Akira ITO
Representative Director, President
Apr 1981 Joined the Company Apr 1995 General Manager, Singapore Branch, the Company Jul 2003 General Manager, Overseas Sales Department, the Company Jun 2005 Director, General Manager, Sales Control Division, the Company Jun 2009 Director, General Manager, Technology Development Department, the Company Jun 2015 Director, Managing Executive Officer, General Manager, Technology Development Division, the Company Apr 2023 Director, Managing Executive Officer, General Manager, Technology Development Division and Sales Division, the Company Jun 2026 Representative Director, President and Executive Officer, in charge of Technology Development, the Company (current)
1958-02-10
Masaya TAKAHASHI
Director
Apr 1982 Joined the Company Jul 2003 General Manager, Management Administration Department, the Company Jun 2007 Representative Director, President, Giken Co., Ltd. Mar 2008 General Manager, Corporate Systems Development Department, the Company; Representative Director, President, Giken Co., Ltd. Jul 2008 General Manager, Administration and Finance Department, the Company Oct 2008 General Manager, Administration and Finance Department and General Manager, Group Business Management Office, the Company Jun 2009 Director, General Manager, Administration Department, the Company Jul 2011 Director, General Manager, Finance Department, the Company Jun 2014 Director, General Manager, Finance Department, in charge of General Affairs and subsidiaries, the Company Jun 2015 Director, Managing Executive Officer, General Manager, Administration Division, in charge of subsidiaries, the Company (current)
1959-03-02
Tetsuyuki WATANABE
Director
Apr 1985 Joined the Company Jul 2003 General Manager, Domestic Sales Department, the Company Apr 2007 President and Director, OKAMOTO MACHINE TOOL EUROPE GMBH Jun 2009 Director, General Manager, Sales Department, the Company Jun 2015 Director, Managing Executive Officer, General Manager, Sales Division, the Company Apr 2023 Director, Managing Executive Officer, Representative Director, President, OKAMOTO (THAI) CO., LTD.; in charge of manufacturing, Okamoto Machine Tool Group, the Company Jun 2026 Director, Managing Executive Officer, General Manager, Machine Tool Sales Division, the Company (current)
1963-03-21
Ken SATORI
Director
Oct 2007 Joined Mitsui & Co., Ltd. Jan 2019 General Manager, Silicon Valley Office, Mobility Business Department, Mitsui & Co. (U.S.A.), Inc. Jan 2021 General Manager, Personal Mobility Service Office, Passenger Transportation Business Division, Mobility Division I, Mitsui & Co., Ltd. Jul 2022 General Manager, Manufacturing Business Office, Next-Generation Solutions Business Division (now Mobility & Industrial Business Division), Mobility Division I, Mitsui & Co., Ltd. Jun 2024 Director, Executive Officer, General Manager, Business Development Department, the Company (current)
1976-09-21
Takeshi YOSHIMI
Director
Apr 1972 Joined Ministry of International Trade and Industry Apr 1980 Lecturer, Faculty of Economics, Kyoto Gakuen University Apr 1984 Associate Professor, Faculty of Economics, Kobe Gakuin University Apr 1992 Professor, Faculty of Economics, Kobe Gakuin University Apr 2018 Professor Emeritus, Kobe Gakuin University (current) Jun 2019 Director, the Company (current)
1948-07-11
Yoshikazu TANAKA
Full-time Corporate Auditor
Apr 1978 Joined the Company Jun 2003 Deputy General Manager, Management Administration Department, the Company Nov 2006 General Manager, Administration Department, the Company Apr 2008 General Manager, Finance Department, the Company Jul 2008 General Manager, Internal Audit Office, the Company; Administration Department (in charge), the Company Jul 2015 General Manager, Finance Department, Administration Division, the Company Jun 2016 Corporate Auditor, the Company (current)
1955-06-28
Michihiro YAMAOKA
Corporate Auditor
Apr 1994 Registered as Attorney-at-Law Apr 2000 Attached to Criminal Defense Office, Legal Training and Research Institute Apr 2007 Associate Professor, Keio University Law School Jun 2008 Corporate Auditor, the Company (current) Apr 2011 Instructor in Criminal Defense, Legal Training and Research Institute (to Jun 2015) Jun 2015 Examiner, National Bar Examination Apr 2019 Vice President, First Tokyo Bar Association (to Feb 2021) Apr 2025 Executive Director, Japan Federation of Bar Associations Outside Corporate Auditor, Interstellar Technologies Inc. (current)
1966-09-12
Hitoshi ISHIKAWA
Corporate Auditor
Apr 1980 Joined Dowa Fire & Marine Insurance Co., Ltd. Apr 2004 Deputy General Manager, Human Resources Department, Nissay Dowa General Insurance Co., Ltd. Jun 2007 General Manager, Human Resources Department, Nissay Dowa General Insurance Co., Ltd. Apr 2010 Executive Officer, General Manager, Human Resources Department, Nissay Dowa General Insurance Co., Ltd. Oct 2010 Executive Officer, Aioi Nissay Dowa Insurance Co., Ltd. Apr 2012 Managing Executive Officer, Aioi Nissay Dowa Insurance Co., Ltd. Apr 2015 Director, Managing Executive Officer, Aioi Nissay Dowa Insurance Co., Ltd. Apr 2016 Director, Senior Managing Executive Officer, Aioi Nissay Dowa Insurance Co., Ltd. Apr 2019 Director, Vice President Executive Officer, Aioi Nissay Dowa Insurance Co., Ltd. Jun 2019 Representative Director, Vice President Executive Officer, Aioi Nissay Dowa Insurance Co., Ltd. Apr 2022 Full-time Senior Advisor, Aioi Nissay Dowa Insurance Co., Ltd. Jun 2022 Outside Director, Seiwa Business Link Co., Ltd. (current) Apr 2023 Full-time Corporate Auditor, e-Net Holdings Co., Ltd. (current) Jun 2024 Corporate Auditor, the Company (current)
1957-08-23
Katsuhiro TSUJI
Director
Apr 1987 Joined the Company May 2005 Chief, Semiconductor Sales Section, Semiconductor Business Division, the Company Jul 2013 Group Leader, Nano Process Group, Sales Department, the Company Jul 2018 General Manager, Nano Process Sales Department, Sales Division, the Company Jun 2024 Executive Officer, Deputy General Manager, Sales Division, and General Manager, Nano Process Sales Department, the Company Jun 2026 Director, Executive Officer, General Manager, Semiconductor Equipment Sales Division, the Company (current)
1963-09-19
Isako YAMAMOTO
Director
Apr 1992 Joined Mitsui & Co., Ltd. Aug 2011 General Manager, Europe, Africa, Middle East and Russia Automotive Office, Automotive & Construction Machinery Business Division, Mitsui & Co., Ltd. Jul 2013 General Manager, Business Development Office, Automotive Department III, Machinery & Transportation Systems Division, Mitsui & Co., Ltd. Sep 2020 Assistant General Manager, Passenger Vehicle Solutions Business Division, Mobility Division I, Mitsui & Co., Ltd. Apr 2022 General Manager, Mobility Division, Asia & Oceania Division, and General Manager, Mobility Division, Mitsui & Co., Ltd. Jun 2024 Director, the Company (current) Apr 2025 Executive Officer, General Manager, Mobility & Industrial Business Division, Mobility Division I, Mitsui & Co., Ltd. (current)
1968-09-15
Masayuki FUJITA
Director
Jul 1992 Research Associate, University of Alberta Dec 1992 Researcher, Institute for Laser Technology May 1996 Associate Senior Researcher, Institute for Laser Technology Apr 2006 Visiting Professor, Graduate University for Advanced Photonics Industry Creation Apr 2008 Visiting Professor, Institute of Laser Engineering (now Institute for Laser Science), Osaka University (current) Apr 2009 Chief Researcher, Institute for Laser Technology Jun 2020 Auditor, Laser Society of Japan (current) Nov 2024 Deputy Director, Institute for Laser Technology (current) Jun 2026 Director, the Company (current)
1961-03-30
Makoto FUJIIE
Full-time Corporate Auditor
Apr 1988 Joined Mitsubishi Trust and Banking Corporation Oct 2005 Group Manager, Second Group, Second Corporate Business Department, Head Office, Mitsubishi UFJ Trust and Banking Corporation Apr 2010 General Manager, Nara Branch, Mitsubishi UFJ Trust and Banking Corporation Apr 2012 General Manager, Chiba Branch, Mitsubishi UFJ Trust and Banking Corporation Oct 2016 Deputy General Manager, Head Office Sales Department, Mitsubishi UFJ Trust and Banking Corporation Apr 2018 General Manager, Life Planning Sales Department, Mitsubishi UFJ Trust and Banking Corporation Apr 2019 Manager attached to Executive, General Affairs Department, Ryoshin Holdings Co., Ltd. Oct 2019 Director, General Manager, General Affairs Department, Ryoshin Holdings Co., Ltd. Apr 2025 General Manager, General Affairs Department, Ryoshin Holdings Co., Ltd. Jun 2025 Corporate Auditor, the Company (current)
1964-11-16
Large Shareholding Reports
No filings
Disclosures
No disclosures
Primary Source Filings
TDnet
2026-08-06
Q1 Earnings Flash
FY ending Mar 2027
EDINET
2026-06-25
Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2026-02-10
Q3 Earnings Flash
FY ending Mar 2026
EDINET
2025-11-13
Semi-Annual Securities Report
Period: Apr 2025 – Mar 2026
TDnet
2025-08-07
Q1 Earnings Flash
FY ending Mar 2026
EDINET
2025-06-26
Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2025-02-07
Q3 Earnings Flash
FY ending Mar 2025
EDINET
2024-11-13
Semi-Annual Securities Report
Period: Apr 2024 – Mar 2025
TDnet
2024-08-08
Q1 Earnings Flash
FY ending Mar 2025
EDINET
2024-06-27
Annual Securities Report
Period: Apr 2023 – Mar 2024
EDINET
2024-05-22
Securities Registration Statement
EDINET
2024-02-13
Quarterly Securities Report
Period: Oct 2023 – Dec 2023
EDINET
2023-11-10
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-08-10
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-06-29
Annual Securities Report
Period: Apr 2022 – Mar 2023
EDINET
2023-02-13
Quarterly Securities Report
Period: Oct 2022 – Dec 2022
EDINET
2022-11-08
Quarterly Securities Report
EDINET
2022-08-12
Quarterly Securities Report
EDINET
2022-06-29
Annual Securities Report
EDINET
2022-02-14
Quarterly Securities Report
EDINET
2021-11-12
Quarterly Securities Report
EDINET
2021-08-10
Quarterly Securities Report
EDINET
2021-06-29
Annual Securities Report
EDINET
2021-02-12
Quarterly Securities Report
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