K&O Energy Group, Inc. (1663) AI Stock Analysis

• Market Cap: ¥94.08B
• Dividend Yield: 1.22%
• Average Volume (3M): 101.94K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.00
• Revenue Growth: -3.37%
• EPS Growth: 19.40%
• Country: JP
• Employees: 663
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 51.21
• Shares Outstanding: 28,336,061
• 10 Day Avg. Volume: 148,960
• 30 Day Avg. Volume: 101,936
• PEG Ratio: -3.18
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 12.64
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥4,364.00 ▲(14.24% Upside)

K&O Energy Group's strong financial performance, characterized by robust profitability and a solid balance sheet, is the primary driver of its stock score. Technical indicators suggest a neutral trend with potential for upward momentum. The stock's reasonable valuation further supports its attractiveness. However, revenue volatility and lack of recent earnings call data are areas to watch.

Positive Factors

Balance sheet strength

Extremely low leverage and a high equity ratio provide durable financial flexibility. This enables withstand commodity cycles, funds capital expenditure or acquisitions from internal sources, and reduces refinancing risk, supporting multi-quarter strategic plans and growth investments.

Robust cash generation

Strong free cash flow growth and high operating-cash-to-net-income conversion indicate reliable internal funding for capex, debt servicing, and shareholder returns. Durable cash generation reduces reliance on external financing through commodity cycles and supports long-term strategic initiatives.

Sustainable profit margins

Consistent gross and improving net margins reflect operational efficiency and profitable upstream/midstream integration. Sustainable margins provide cushion against price swings, support reinvestment and debt coverage, and underpin predictable free cash flow over multiple quarters.

Negative Factors

Revenue volatility

Volatile top-line undermines forecastability of earnings and capex planning. Dependence on commodity prices and variable production can cause quarter-to-quarter swings in cash flow and utilization of midstream assets, complicating multi-quarter budgeting and capital allocation decisions.

Modest ROE

A 6.4% ROE signals only modest long-term returns on shareholder capital. Over several quarters this can limit the company's ability to generate attractive equity returns versus peers, constrain dividend capacity, and make equity-funded growth less accretive absent efficiency improvements.

Limited investor disclosure

Lack of recent earnings calls and guidance reduces transparency and visibility into management's operational outlook, reserves, and capital plans. Over months this hampers investor ability to assess strategy execution and creates uncertainty around forward cash flow and allocation decisions.

K&O Energy Group, Inc. Business Overview & Revenue Model

Company Description

K&O Energy Group Inc. engages in the development, production, supply, and sale of natural gas in Japan and internationally. The company is also involved in the manufacture and sale of iodine; and sale of city gas and LP gas. In addition, it undertakes construction, civil engineering, and piping works; sells gas equipment; and offers geothermal wells drilling, geology, and water quality research services. The company was founded in 2014 and is headquartered in Mobara, Japan.

How the Company Makes Money

K&O Energy Group, Inc. generates revenue primarily through the sale of crude oil and natural gas produced from its exploration and production operations. The company earns significant income from its midstream activities, which include the transportation and storage of oil and gas, often through long-term contracts with other energy producers. Additionally, K&O may benefit from strategic partnerships with other energy firms and joint ventures that enhance its operational capabilities and market reach. Fluctuations in global energy prices, regulatory changes, and advancements in extraction technologies also impact the company’s financial performance.

K&O Energy Group, Inc. Financial Statement Overview

Summary

K&O Energy Group exhibits a solid financial performance across all verticals. The income statement shows strong profitability, though revenue volatility is a concern. The balance sheet is exceptionally strong with low leverage and high equity, ensuring financial stability. Cash flow management is efficient, supporting the company's strategic initiatives. Overall, K&O Energy Group is well-positioned for sustainable growth, though monitoring revenue trends remains crucial.

Income Statement

K&O Energy Group has demonstrated strong profitability with a consistent gross profit margin around 22% and a net profit margin improving to 6.7% in the latest year. Revenue growth has been volatile, with a decline in 2023 but a recovery in 2024. EBIT and EBITDA margins are robust, indicating efficient operations. However, the revenue fluctuations pose a risk to future stability.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage. The equity ratio is high at 80.7%, reflecting a solid financial foundation. Return on Equity (ROE) is healthy at 6.4%, showcasing effective use of equity. The company's financial position is stable, with ample cash reserves and low liabilities.

Cash Flow

K&O Energy Group's cash flow is robust, with a significant free cash flow growth of 70.5% in 2024. The operating cash flow to net income ratio is strong at 2.24, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 1.29, highlighting effective capital expenditure management. Overall, cash flow management is a strength, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.12B	92.42B	96.30B	106.20B	66.07B	58.45B
Gross Profit	20.90B	20.16B	19.85B	17.03B	13.46B	13.25B
EBITDA	17.54B	14.62B	15.89B	13.19B	9.65B	9.45B
Net Income	7.96B	6.17B	6.46B	4.77B	2.85B	2.84B
Balance Sheet
Total Assets	122.26B	119.45B	111.44B	109.82B	99.10B	94.62B
Cash, Cash Equivalents and Short-Term Investments	36.80B	34.05B	28.68B	24.57B	23.59B	23.80B
Total Debt	1.89B	913.00M	926.00M	953.00M	1.00B	1.07B
Total Liabilities	17.68B	20.04B	18.52B	23.44B	16.98B	15.07B
Stockholders Equity	101.42B	96.45B	90.36B	84.28B	78.61B	76.30B
Cash Flow
Free Cash Flow	0.00	7.96B	4.67B	6.21B	1.23B	3.26B
Operating Cash Flow	0.00	13.84B	11.83B	12.17B	6.44B	7.93B
Investing Cash Flow	0.00	-6.03B	-8.98B	-9.67B	-7.07B	-6.54B
Financing Cash Flow	0.00	-1.49B	-1.26B	-1.87B	-961.00M	-1.93B

K&O Energy Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1663, the sentiment is Positive. The current price of 3820 is above the 20-day moving average (MA) of 3741.80, above the 50-day MA of 3592.37, and above the 200-day MA of 3130.46, indicating a bullish trend. The MACD of 89.70 indicates Negative momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 62.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1663.

K&O Energy Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1663	78 Outperform	¥94.08B	13.29	―	1.22%	-3.37%	19.40%
9534	77 Outperform	¥71.20B	6.04	―	2.88%	2.77%	10.64%
9536	76 Outperform	¥82.83B	9.28	9.07%	3.61%	9.39%	77.24%
9543	70 Outperform	¥88.70B	9.02	8.29%	3.89%	1.08%	37.11%
9537	69 Neutral	¥17.93B	5.97	―	2.18%	6.66%	―
9539	68 Neutral	¥38.75B	11.88	―	1.81%	0.93%	1212.45%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

K&O Energy Group, Inc. Corporate Events

K&O Energy Group Announces Executive Changes to Enhance Governance

K&O Energy Group Inc. has announced changes in its executive personnel appointments and officer structure, effective January 2026, to enhance its governance framework. This strategic move aims to better align the company’s business planning and execution processes with its governance, potentially strengthening its market position and operational efficiency.

The most recent analyst rating on (JP:1663) stock is a Buy with a Yen3733.00 price target. To see the full list of analyst forecasts on K&O Energy Group, Inc. stock, see the JP:1663 Stock Forecast page.

K&O Energy Group Reports Increased Profits Despite Slight Sales Decline

K&O Energy Group Inc. reported its consolidated financial results for the nine months ending September 30, 2025, showing a slight decrease in net sales by 1.6% compared to the previous year. However, the company experienced significant growth in profits, with operating profit increasing by 10.6%, ordinary profit by 13.0%, and profit attributable to owners of the parent rising by 36.5%. This financial performance indicates a strong operational efficiency and improved profitability, which could enhance the company’s industry positioning and provide positive implications for stakeholders.

The most recent analyst rating on (JP:1663) stock is a Buy with a Yen3733.00 price target. To see the full list of analyst forecasts on K&O Energy Group, Inc. stock, see the JP:1663 Stock Forecast page.