Koatsu Kogyo Co., Ltd. (1743) AI Stock Analysis

• Market Cap: ¥4.16B
• Dividend Yield: 1.91%
• Average Volume (3M): 3.29K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.44
• Revenue Growth: 15.02%
• EPS Growth: 0.96%
• Country: JP
• Employees: 284
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -84.40
• Shares Outstanding: 2,280,000
• 10 Day Avg. Volume: 1,310
• 30 Day Avg. Volume: 3,290
• PEG Ratio: 0.03
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 10.82
• 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: 76 Outperform
• Price Target: ¥2,067.00 ▲(13.01% Upside)

Koatsu Kogyo's strong financial performance, particularly its revenue growth and stable balance sheet, are the most significant factors in its overall score. The attractive valuation further supports the stock's potential, while technical indicators suggest a stable market position. However, improvements in cash flow management could enhance the company's financial health.

Koatsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Koatsu Kogyo Co., Ltd. (1743) is a Japanese company specializing in the manufacturing and distribution of high-quality industrial machinery and equipment. The company operates primarily in the sectors of metalworking, automotive, and construction, offering a range of products including hydraulic presses, automated assembly systems, and precision machining tools. With a strong emphasis on innovation and technological advancement, Koatsu Kogyo aims to provide effective solutions that enhance productivity and efficiency for its clients.

How the Company Makes Money

Koatsu Kogyo generates revenue through the sale of its industrial machinery and equipment, which caters to various markets including automotive and construction. The company’s revenue model is based on direct sales to manufacturers and businesses, as well as long-term contracts for machinery supply and maintenance services. Key revenue streams include the sale of hydraulic presses and automated systems, as well as aftermarket services such as repairs and spare parts sales. Additionally, partnerships with other manufacturers and suppliers enhance its market reach and product offerings, contributing significantly to its earnings.

Koatsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Koatsu Kogyo shows strong revenue growth and a stable balance sheet with no debt. Profitability is solid, but cash flow management needs improvement, as indicated by the lack of positive operating cash flow in the TTM period.

Income Statement

Koatsu Kogyo demonstrates strong revenue growth in the TTM period, with a 26.66% increase compared to the previous year. The company maintains solid gross and net profit margins at 12.62% and 3.75% respectively. However, there is a notable decline in net income from the previous year. The EBIT and EBITDA margins show healthy profitability levels, indicating efficient cost management.

Balance Sheet

The balance sheet reflects a robust financial position, with a debt-to-equity ratio of 0, indicating no reliance on debt financing. The equity ratio is strong at 59.37%, showcasing financial stability. The return on equity remains moderate at 5.10%, suggesting room for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement reveals challenges, with a lack of positive operating cash flow in the TTM period. Historical data shows fluctuations, but the free cash flow to net income ratio was positive last year, indicating potential for cash generation. However, the absence of current free cash flow growth highlights a need for efficiency improvements in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.31B	12.06B	9.84B	10.08B	10.55B	11.05B
Gross Profit	1.79B	1.42B	1.24B	1.75B	2.20B	1.75B
EBITDA	1.29B	1.10B	860.83M	1.33B	1.43B	1.02B
Net Income	528.40M	593.04M	227.68M	561.60M	643.26M	619.49M
Balance Sheet
Total Assets	15.20B	14.98B	11.90B	12.70B	12.27B	12.09B
Cash, Cash Equivalents and Short-Term Investments	1.26B	878.12M	777.93M	635.51M	1.71B	1.10B
Total Debt	210.79M	246.94M	320.40M	1.07B	987.49M	1.42B
Total Liabilities	5.88B	6.03B	3.50B	4.59B	4.59B	5.03B
Stockholders Equity	9.32B	8.95B	8.40B	8.11B	7.67B	7.06B
Cash Flow
Free Cash Flow	0.00	276.30M	961.79M	-1.10B	1.34B	1.18B
Operating Cash Flow	0.00	501.22M	1.36B	-523.43M	1.89B	1.59B
Investing Cash Flow	0.00	-182.96M	-400.12M	-572.64M	-568.15M	-316.33M
Financing Cash Flow	0.00	-218.07M	-820.15M	20.50M	-708.67M	-579.68M

Koatsu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1829.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1743, the sentiment is Positive. The current price of 1829 is above the 20-day moving average (MA) of 1827.15, above the 50-day MA of 1828.06, and above the 200-day MA of 1543.94, indicating a neutral trend. The MACD of 1.10 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1743.

Koatsu Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1743	76 Outperform	¥4.16B	7.85	―	1.91%	15.02%	0.96%
1758	75 Outperform	¥5.18B	11.25	―	2.24%	11.48%	―
1795	73 Outperform	¥3.83B	10.76	―	2.17%	18.00%	-15.19%
1841	73 Outperform	¥4.15B	8.42	―	2.40%	-21.00%	-7.27%
1788	71 Outperform	¥2.73B	12.09	―	2.19%	10.80%	73.13%
1764	66 Neutral	¥3.03B	6.82	―	4.40%	9.69%	175.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%