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

• Market Cap: ¥77.74B
• Dividend Yield: 1.45%
• Average Volume (3M): 186.25K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.04
• Revenue Growth: -2.76%
• EPS Growth: 17.20%
• Country: JP
• Employees: 663
• Sector: Utilities
• Sector Strength: 63
• Industry: Regulated Gas
• EPS (TTM): 85.04
• Shares Outstanding: 28,336,061
• 10 Day Avg. Volume: 102,560
• 30 Day Avg. Volume: 186,253
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,217.00
• Price Target Upside: 1.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥3,217.00 ▲(1.64% Upside)

The overall stock score for K&O Energy Group is primarily driven by its strong financial performance and attractive valuation. The company's solid balance sheet and efficient cash flow management provide a stable foundation for growth. However, technical analysis indicates mixed signals, with the stock trading below its 200-day moving average and approaching overbought conditions. The absence of recent earnings call insights or significant corporate events limits additional context for future prospects.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low leverage and high equity provides financial stability, enabling the company to invest in growth opportunities and weather economic downturns effectively.

Cash Flow Management

Efficient cash flow management supports strategic initiatives and ensures the company can fund future investments and service debt, contributing to long-term sustainability.

Profitability

Consistent profitability with healthy margins indicates efficient operations and the ability to generate returns, which is crucial for sustaining business growth and shareholder value.

Negative Factors

Revenue Volatility

Volatile revenue growth can create uncertainty in financial planning and may impact the company's ability to maintain consistent performance, posing a risk to long-term stability.

Revenue Growth Decline

A decline in revenue growth suggests challenges in market expansion or product adoption, which could hinder the company's ability to achieve sustained growth and competitive positioning.

Market Sentiment

Trading below the 200-day moving average may reflect negative market sentiment, potentially affecting investor confidence and the company's ability to raise capital or pursue strategic initiatives.

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

Company Description

K&O Energy Group, Inc. is a diversified energy company focused on providing innovative solutions in the oil and gas sector. The company operates in various segments including exploration and production, midstream services, and renewable energy initiatives. K&O Energy Group offers a range of core products and services that encompass drilling, well services, and the transportation and storage of hydrocarbons, while also investing in sustainable energy projects to transition towards a low-carbon future.

How the Company Makes Money

K&O Energy Group generates revenue primarily through its operations in the exploration and production of oil and natural gas. The company earns income by selling crude oil, natural gas, and natural gas liquids to various markets. Additionally, its midstream services segment contributes to revenue by providing transportation, storage, and processing of hydrocarbons, charging fees for these services. The company may also engage in joint ventures or partnerships with other energy firms, leveraging shared resources and technologies to enhance efficiency and profitability. Furthermore, investments in renewable energy projects could create additional revenue streams as the energy market increasingly shifts towards sustainable solutions.

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	92.74B	92.42B	96.30B	106.20B	66.07B	58.45B
Gross Profit	21.07B	20.16B	19.85B	17.03B	13.46B	13.25B
EBITDA	17.10B	14.62B	15.89B	13.19B	9.65B	9.45B
Net Income	7.70B	6.17B	6.46B	4.77B	2.85B	2.84B
Balance Sheet
Total Assets	121.52B	119.45B	111.44B	109.82B	99.10B	94.62B
Cash, Cash Equivalents and Short-Term Investments	33.89B	34.05B	28.68B	24.57B	23.59B	23.80B
Total Debt	2.01B	913.00M	926.00M	953.00M	1.00B	1.07B
Total Liabilities	19.43B	20.04B	18.52B	23.44B	16.98B	15.07B
Stockholders Equity	99.15B	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: 3165.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3165 is below the 20-day moving average (MA) of 3260.25, above the 50-day MA of 3049.18, and above the 200-day MA of 3049.80, indicating a neutral trend. The MACD of 24.24 indicates Positive momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 9.42 is Positive, 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	73 Outperform	¥77.74B	10.60		1.45%	-2.76%	17.20%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
XSG	―	€423.36M	8.39	8.21%	―	―	―
1KS	―	€492.90M	11.45	6.08%	―	―	―
9534	81 Outperform	¥59.34B	5.35		2.69%	1.12%	-3.79%
9537	71 Outperform	¥18.22B	7.38		2.11%	5.66%	―
9539	68 Neutral	¥38.36B	11.26		1.78%	1.39%	―

K&O Energy Group, Inc. Corporate Events

K&O Energy Group Revises Dividend Forecast for 2025

K&O Energy Group Inc. has announced a revision to its dividend forecast for the fiscal year ending December 31, 2025, increasing the year-end dividend per share from ¥24 to ¥26. This decision aligns with the company’s progressive dividend policy under its Medium-Term Management Plan, aiming to enhance shareholder returns while balancing investments in core and new business areas.

K&O Energy Group Reports Profit Growth and Dividend Increase

K&O Energy Group Inc. reported a slight decrease in net sales for the first half of 2025, but saw significant increases in operating and ordinary profits, as well as profit attributable to owners of the parent. The company also announced a revised dividend forecast, increasing the year-end dividend per share, indicating a positive outlook for stakeholders.