Kyowa Exeo (1951) AI Stock Analysis

• Market Cap: ¥336.66B
• Dividend Yield: 3.71%
• Average Volume (3M): 537.64K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.58
• Revenue Growth: 5.92%
• EPS Growth: -6.78%
• Country: JP
• Employees: 17,056
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 24.88
• Shares Outstanding: 208,624,830
• 10 Day Avg. Volume: 421,230
• 30 Day Avg. Volume: 537,640
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,550.00
• Price Target Upside: -7.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Kyowa Exeo's overall score reflects strong financial performance, with solid revenue growth and a robust balance sheet. However, technical analysis indicates potential short-term challenges, as the stock is trading below key moving averages. The valuation remains attractive with a moderate P/E ratio and a high dividend yield, appealing for income-focused investors. The lack of earnings call data and corporate events does not contribute to the score.

Kyowa Exeo Business Overview & Revenue Model

Company Description

EXEO Group, Inc. provides telecommunication carrier, urban infrastructure, and system solutions in Japan and internationally. It plans, designs, constructs, operates, and maintains various telecommunications equipment of telecom carriers, such as access networks fiber optic cables, network facilities, electric power equipment, outdoor and indoor mobile communication base station, and base station equipment. The company also designs, constructs, and maintains cable television and railroad communication facilities, electricity for office buildings, and data centers, as well as various infrastructure works, including related facilities and urban civil engineering for pole-free facilities; and solar power generation facilities and biomass boilers for renewable energy facilities. In addition, it engages in the development, maintenance, and operation of cloud-based enterprise communications network systems and various enterprise systems for telecom carriers and companies in finance and manufacturing sectors; and construction and operation of water treatment facilities. The company was formerly known as Kyowa Exeo Corporation and changed its name to EXEO Group, Inc. in October 2021. EXEO Group, Inc. was incorporated in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kyowa Exeo generates revenue through its diverse portfolio of engineering and construction services. The company earns money primarily by undertaking projects in telecommunications infrastructure, where it designs and builds networks and communication systems for both private and public sector clients. Additionally, Kyowa Exeo offers electrical and civil engineering services, which include the construction and maintenance of buildings, roads, and bridges. Environmental solutions, such as water treatment and waste management projects, also contribute to its income. The company leverages strategic partnerships and collaborations with technology firms and government entities to enhance its service offerings and secure large-scale projects, thereby ensuring a steady stream of revenue.

Kyowa Exeo Financial Statement Overview

Summary

Kyowa Exeo shows strong revenue growth and stable profitability margins, with a robust balance sheet. However, cash flow volatility and recent declines in operating cash flow are concerns, affecting short-term liquidity.

Income Statement

Kyowa Exeo demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 5.85% compared to the previous year. The gross profit margin stands at 14.41%, and the net profit margin is 3.16%, indicating efficient cost management and stable profitability. The EBIT margin of 5.96% and EBITDA margin of 7.89% further reflect operational efficiency. However, the decline in net income over the past year suggests potential challenges in maintaining profitability.

Balance Sheet

The company's balance sheet is robust, with a moderate debt-to-equity ratio of 0.46, indicating a balanced capital structure. The equity ratio is 51.26%, showcasing a strong financial foundation. Return on equity (ROE) is 6.71%, reflecting satisfactory shareholder returns. Although debt levels have increased, they remain manageable relative to equity.

Cash Flow

Cash flow analysis reveals significant fluctuations, with operating cash flow dropping to zero in the latest TTM period. The free cash flow has improved over the last year but shows volatility, impacting the free cash flow to net income ratio. The lack of operating cash flow in the TTM period raises concerns about short-term liquidity and cash management.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
614.10B	627.61B	594.84B	573.34B	524.57B
	Gross Profit
89.16B	81.84B	84.32B	75.86B	68.33B
	EBIT
34.12B	32.55B	42.38B	36.62B	31.10B
	EBITDA
50.46B	44.85B	51.75B	45.28B	39.56B
	Net Income Common Stockholders
20.06B	22.23B	27.77B	24.19B	15.60B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.25B	51.72B	55.61B	43.70B	48.45B
	Total Assets
591.64B	577.94B	535.62B	491.57B	444.90B
	Total Debt
102.39B	112.38B	78.76B	56.35B	45.78B
	Net Debt
54.14B	60.93B	23.90B	13.56B	-1.77B
	Total Liabilities
272.58B	270.00B	228.57B	202.69B	174.80B
	Stockholders Equity
313.21B	303.36B	303.55B	285.92B	266.77B
Cash Flow		Free Cash Flow
22.13B	-8.25B	6.24B	-3.86B	2.78B
	Operating Cash Flow
41.90B	5.48B	26.41B	6.30B	17.30B
	Investing Cash Flow
-13.59B	-13.33B	-20.39B	-9.25B	-17.09B
	Financing Cash Flow
-30.55B	3.30B	5.02B	-1.75B	4.23B

Kyowa Exeo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1671.00
• 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:1951, the sentiment is Positive. The current price of 1671 is above the 20-day moving average (MA) of 1633.18, below the 50-day MA of 1677.66, and above the 200-day MA of 1612.28, indicating a bullish trend. The MACD of 2.75 indicates Negative momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 71.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1951.

Kyowa Exeo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1951	69 Neutral	¥336.66B	17.03		3.71%	5.92%	-6.78%
Sector *	58 Neutral	$935.58M	12.97	1.95%	3.97%	11.62%	-82.15%

Kyowa Exeo Corporate Events

EXEO Group Announces Leadership Change at C-CUBE

EXEO Group announced a change in leadership at its subsidiary, C-CUBE Corporation, with Akira Shirahase appointed as the new President and Representative Director. This leadership change is aimed at strengthening the management structure and enhancing corporate value amidst a changing business environment.