Kodensha,Co., Ltd. (1948) AI Stock Analysis

• Market Cap: ¥26.43B
• Dividend Yield: 3.62%
• Average Volume (3M): 29.25K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.86
• Revenue Growth: 14.48%
• EPS Growth: 122.79%
• Country: JP
• Employees: 687
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 72.50
• Shares Outstanding: 8,970,000
• 10 Day Avg. Volume: 21,220
• 30 Day Avg. Volume: 29,250
• PEG Ratio: 0.03
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 17.59
• 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: ¥3,642.00 ▲(13.11% Upside)

Kodensha, Co., Ltd. receives a strong overall stock score driven by its robust financial performance and attractive valuation. The company's solid revenue and profit growth, combined with a low P/E ratio and high dividend yield, make it an appealing investment. However, technical indicators suggest caution due to overbought conditions, which could lead to short-term volatility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, enabling the company to invest in growth opportunities.

Cash Flow Recovery

Significant cash flow recovery enhances the company's ability to fund operations and invest in future growth, improving financial resilience.

Negative Factors

Cash Flow Volatility

Volatile cash flows can lead to uncertainty in funding operations and investments, potentially impacting financial stability.

Debt Increase

An increase in debt, even if slight, can strain resources and limit financial flexibility, posing risks to long-term growth.

Cash Management

Inconsistent cash management can hinder the company's ability to maintain liquidity and meet financial obligations, affecting stability.

Kodensha,Co., Ltd. Business Overview & Revenue Model

Company Description

Kodensha, Co., Ltd. is a Japanese company established in 1948, specializing in the manufacturing and distribution of high-quality electrical equipment and components. The company operates in various sectors, including industrial automation, electronic devices, and telecommunications. Kodensha is recognized for its innovative products, which encompass circuit breakers, relays, and power supply systems, aimed at enhancing energy efficiency and reliability across different industries.

How the Company Makes Money

Kodensha generates revenue primarily through the sale of its electrical equipment and components to a diverse range of industries, including manufacturing, construction, and telecommunications. The company's revenue model is built on both direct sales and long-term contracts with large corporations, which provide a steady stream of income. Key revenue streams include product sales, maintenance services, and customization solutions tailored to meet specific client needs. Additionally, partnerships with major industrial players and participation in government projects enhance its market presence and contribute to earnings. The company also invests in research and development to innovate and expand its product line, further driving revenue growth.

Kodensha,Co., Ltd. Financial Statement Overview

Summary

Kodensha, Co., Ltd. demonstrates strong financial health with notable revenue and profit growth, supported by efficient operations and a solid balance sheet. The company shows an impressive cash flow recovery, though past fluctuations suggest a need for careful cash management.

Income Statement

Kodensha, Co., Ltd. has shown strong revenue growth of 12.61% year-over-year, with consistent increases in gross and net profit margins, indicating efficient operations. The gross profit margin for the most recent year is 20.8%, while the net profit margin stands at 6.97%. EBIT and EBITDA margins have also improved significantly, reflecting better earnings before interest and taxes. These metrics suggest a robust upward trajectory in profitability and revenue generation.

Balance Sheet

The company's balance sheet reflects a healthy financial structure with a debt-to-equity ratio of 0.02, indicating low leverage and substantial equity backing. The return on equity (ROE) is a strong 12.55%, showing effective utilization of shareholders' equity to generate profits. The equity ratio is 65.35%, suggesting a strong equity position relative to total assets. While the financial stability is commendable, the slight increase in total debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals positive momentum, with a free cash flow growth rate of 646.67% from the previous year, driven by substantial improvements in operating cash flow. The operating cash flow to net income ratio is 0.41, and the free cash flow to net income ratio is 0.37, indicating sufficient cash generation relative to profits. However, past volatility in operating cash flows highlights potential risks in cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.16B	39.26B	34.87B	33.56B	29.16B	32.42B
Gross Profit	8.17B	8.17B	6.12B	5.38B	4.80B	5.81B
EBITDA	3.37B	4.00B	1.53B	1.05B	651.00M	1.42B
Net Income	2.73B	2.74B	899.00M	556.00M	310.00M	885.00M
Balance Sheet
Total Assets	30.47B	33.38B	32.42B	31.58B	28.46B	29.23B
Cash, Cash Equivalents and Short-Term Investments	660.00M	892.00M	1.45B	1.60B	1.59B	1.54B
Total Debt	531.00M	514.00M	572.00M	589.00M	608.00M	738.00M
Total Liabilities	8.95B	11.46B	11.97B	12.86B	9.92B	10.57B
Stockholders Equity	21.39B	21.81B	20.35B	18.63B	18.46B	18.58B
Cash Flow
Free Cash Flow	0.00	1.01B	135.00M	71.00M	-977.00M	2.62B
Operating Cash Flow	0.00	1.12B	190.00M	123.00M	-589.00M	2.85B
Investing Cash Flow	0.00	-249.00M	13.00M	238.00M	986.00M	-2.96B
Financing Cash Flow	0.00	-1.08B	-418.00M	-411.00M	-534.00M	-417.00M

Kodensha,Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1948, the sentiment is Positive. The current price of 3220 is above the 20-day moving average (MA) of 2857.50, above the 50-day MA of 2661.20, and above the 200-day MA of 2306.42, indicating a bullish trend. The MACD of 131.26 indicates Negative momentum. The RSI at 81.04 is Negative, neither overbought nor oversold. The STOCH value of 95.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1948.

Kodensha,Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1780	80 Outperform	¥27.26B	9.06	―	2.01%	26.15%	64.47%
1948	78 Outperform	¥26.43B	8.94	―	3.62%	14.48%	122.79%
1827	78 Outperform	¥31.79B	12.55	―	2.02%	2.55%	-14.37%
1828	73 Outperform	¥25.25B	9.46	―	3.64%	-5.43%	34.48%
1866	72 Outperform	¥32.03B	9.67	―	8.44%	-3.21%	-45.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	59 Neutral	¥17.63B	23.15	―	5.20%	-3.19%	109.84%