Strong Balance Sheet / Low LeverageA high equity ratio and low leverage provide durable financial flexibility, enabling the company to fund working capital, strategic investments, or absorb demand shocks without needing immediate external financing. This strengthens solvency and supports multi-month operational resilience.

Good Cash Conversion From EarningsStrong conversion of net income into operating cash flow indicates underlying earnings quality and reliable cash generation from core operations. Over the next several months this helps cover operating needs and creates a base to manage capex timing or service liabilities despite negative free cash flow intervals.

Historical Revenue Growth And Stable Gross MarginsSustained top-line expansion and stable gross margins across multiple years point to a resilient business model and pricing or cost advantages. This structural stability supports medium-term earnings recovery if recent cyclical weakness subsides and preserves competitive positioning.

Bears Say

Recent Revenue DeclineA measurable revenue decline in the latest period signals weakening demand or lost volumes, which can erode scale economics and reduce operating leverage. If this trend persists across the next 2-6 months, it may impede margin recovery and constrain reinvestment capacity.

Sharp EPS ContractionA steep drop in EPS indicates substantial margin or one-off pressures affecting profitability. Such a contraction can reduce retained earnings and limit the company's ability to fund growth internally, increasing sensitivity to future revenue volatility and capital allocation trade-offs.

Negative Free Cash Flow From High CapexPersistent negative free cash flow driven by elevated capex reduces internal liquidity and may necessitate drawing reserves or external funding. Over several months this can limit strategic flexibility, pressure dividend or buyback capacity, and elevate financing risk if capex does not quicky translate into higher returns.

6568 FAQ

What was KNC Laboratories Co.,Ltd.’s price range in the past 12 months?

KNC Laboratories Co.,Ltd. lowest stock price was ¥957.00 and its highest was ¥1418.00 in the past 12 months.

What is KNC Laboratories Co.,Ltd.’s market cap?

KNC Laboratories Co.,Ltd.’s market cap is ¥9.84B.

When is KNC Laboratories Co.,Ltd.’s upcoming earnings report date?

KNC Laboratories Co.,Ltd.’s upcoming earnings report date is May 19, 2026 which is in 91 days.

How were KNC Laboratories Co.,Ltd.’s earnings last quarter?

KNC Laboratories Co.,Ltd. released its earnings results on Feb 13, 2026. The company reported ¥13.53 earnings per share for the quarter, beating the consensus estimate of N/A by ¥13.53.

Is KNC Laboratories Co.,Ltd. overvalued?

According to Wall Street analysts KNC Laboratories Co.,Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does KNC Laboratories Co.,Ltd. pay dividends?

KNC Laboratories Co.,Ltd. pays a Semiannually dividend of ¥17 which represents an annual dividend yield of 2.98%. See more information on KNC Laboratories Co.,Ltd. dividends here

What is KNC Laboratories Co.,Ltd.’s EPS estimate?

KNC Laboratories Co.,Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does KNC Laboratories Co.,Ltd. have?

KNC Laboratories Co.,Ltd. has 7,779,900 shares outstanding.

What happened to KNC Laboratories Co.,Ltd.’s price movement after its last earnings report?

KNC Laboratories Co.,Ltd. reported an EPS of ¥13.53 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.556%.

Which hedge fund is a major shareholder of KNC Laboratories Co.,Ltd.?

Currently, no hedge funds are holding shares in JP:6568

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

KNC Laboratories Co.,Ltd.

KNC Laboratories Co., Ltd. engages in the research, development, and production solutions of organic chemicals in Japan. The company offers products for use in the pharmaceutical, electronic-chemical, agrochemical, energy, and environment fields. It offers support services for drugs and functional chemicals. The company was incorporated in 1985 and is headquartered in Kobe, Japan.