Kyowa Exeo (1951) AI Stock Analysis

• Market Cap: ¥565.25B
• Dividend Yield: 2.51%
• Average Volume (3M): 510.80K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.58
• Revenue Growth: 15.47%
• EPS Growth: 64.50%
• Country: JP
• Employees: 17,056
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 45.20
• Shares Outstanding: 205,624,830
• 10 Day Avg. Volume: 566,030
• 30 Day Avg. Volume: 510,796
• PEG Ratio: 0.36
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -39.22
• 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): 161
• Revenue Forecast (FY): ¥754.00B

• Rating: 70 Outperform
• Price Target: ¥3,208.00 ▲(23.43% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by improving revenue and margins and a solid equity base, but is held back by the sharp deterioration in cash flow and negative free cash flow. Technically the stock is in a strong uptrend, though overbought signals add near-term risk, while valuation appears reasonable with a moderate dividend yield.

Positive Factors

Revenue & margin improvement

Sustained revenue growth alongside rising gross and net margins indicates structural improvements in pricing, cost control and project execution. Over a multi-month horizon this supports durable earnings power, higher retained earnings for reinvestment, and greater resilience in cyclical demand.

Solid equity ratio / balance sheet

A near-50% equity ratio provides long-term financial flexibility for funding large infrastructure projects and absorbing industry cyclicality. This durable capital buffer lowers refinancing risk, supports counterparty confidence, and enables strategic investments without immediate reliance on volatile external capital.

Improving operating profitability

Rising EBIT and EBITDA margins reflect lasting gains in operational efficiency and project execution. Better underlying margins expand free resources for capex or debt reduction and suggest management is extracting more value from contracts—a structural advantage in a competitive engineering sector.

Negative Factors

Negative free cash flow

A material swing to negative free cash flow versus the prior year undermines self-funded growth and raises funding risk. Persistently negative FCF can force use of debt or equity to finance operations and capex, weakening long-term capital allocation and increasing financing costs.

Weak cash conversion

A sharp deterioration in cash conversion suggests reported profits are not translating into cash, driven by working capital or timing issues. Over months this pressures liquidity, constrains dividend or capex plans, and raises the probability management must tighten operations or seek external funding.

Rising leverage

An increase in leverage, though moderate, reduces financial headroom and raises sensitivity to interest-rate or revenue shocks. For a capital-intensive engineering firm this narrows flexibility for bid financing and acquisitions, and increases refinancing and covenant risk over the medium term.

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 multiple streams, primarily by selling its industrial materials and electronic components to various sectors including electronics, automotive, and manufacturing. The company's revenue model is based on direct sales of products, long-term contracts with major clients, and partnerships with technology firms for co-development projects. Additionally, Kyowa Exeo benefits from research and development collaborations that enhance its product offerings and market reach. The company also explores international markets, which contributes to its overall earnings through export activities. Strategic alliances and joint ventures with other industry players further strengthen its market position and revenue potential.

Kyowa Exeo Financial Statement Overview

Summary

Revenue grew and profitability improved (gross margin 14.98%, net margin 4.00%, higher EBIT/EBITDA margins), and the balance sheet remains solid with a ~50% equity ratio. Offsetting this, free cash flow turned negative in 2025 and operating cash generation weakened sharply versus net income, raising financial risk.

Income Statement

Kyowa Exeo's income statement shows a steady increase in total revenue over the years, with a notable revenue growth rate of 9.24% in 2025. The gross profit margin improved to 14.98% in 2025 from 14.52% in 2024. The net profit margin also increased to 4.00% in 2025 from 3.27% in 2024, indicating enhanced profitability. The EBIT margin rose to 6.33% in 2025, while the EBITDA margin reached 8.88%, reflecting efficient operations. However, the overall profitability remains moderate due to the industry's competitive nature.

Balance Sheet

The balance sheet of Kyowa Exeo highlights a robust equity position, with an equity ratio of 49.96% in 2025. The debt-to-equity ratio increased to 0.40 in 2025 from 0.33 in 2024, indicating a rise in leverage but still maintaining a manageable level. Return on equity improved slightly to 8.36% in 2025 from 6.40% in 2024, demonstrating efficient use of equity. The company's financial stability is reinforced by a solid equity base, although increasing debt levels pose a potential risk.

Cash Flow

Kyowa Exeo's cash flow statement reveals challenges in maintaining free cash flow, which turned negative at -8.91 billion JPY in 2025, down from a positive 22.13 billion JPY in 2024. The operating cash flow to net income ratio decreased significantly to 0.25 in 2025 from 2.09 in 2024, suggesting less cash generation from operations relative to net income. The company's ability to generate stable cash flows is a concern, warranting attention to operational efficiencies and cost management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	684.01B	670.82B	614.10B	627.61B	594.84B	573.34B
Gross Profit	104.04B	100.48B	89.16B	81.84B	84.32B	75.86B
EBITDA	61.74B	59.57B	50.46B	50.37B	51.75B	47.47B
Net Income	27.52B	26.86B	20.06B	22.23B	27.77B	24.19B
Balance Sheet
Total Assets	572.61B	642.50B	591.64B	577.94B	535.62B	491.57B
Cash, Cash Equivalents and Short-Term Investments	50.39B	40.01B	48.25B	51.72B	55.61B	43.70B
Total Debt	111.17B	129.19B	102.39B	112.38B	78.76B	56.35B
Total Liabilities	252.94B	315.72B	272.58B	270.00B	228.57B	202.69B
Stockholders Equity	314.61B	321.14B	313.21B	303.36B	303.55B	285.92B
Cash Flow
Free Cash Flow	0.00	-8.92B	22.13B	-8.25B	6.24B	-3.86B
Operating Cash Flow	0.00	6.84B	41.90B	5.48B	26.41B	6.30B
Investing Cash Flow	0.00	-18.43B	-13.59B	-13.33B	-20.39B	-9.25B
Financing Cash Flow	0.00	2.89B	-30.55B	3.30B	5.02B	-1.75B

Kyowa Exeo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2599.00
• 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 2599 is below the 20-day moving average (MA) of 2817.00, below the 50-day MA of 2719.69, and above the 200-day MA of 2246.80, indicating a bullish trend. The MACD of 69.98 indicates Negative momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 65.45 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
1941	76 Outperform	¥271.14B	15.55	9.20%	2.78%	1.31%	59.20%
1417	76 Outperform	¥322.85B	15.35	8.12%	2.28%	6.50%	53.04%
1721	74 Outperform	¥645.70B	19.66	8.34%	2.66%	5.14%	12.52%
1949	74 Outperform	¥345.09B	19.93	12.41%	1.68%	8.09%	20.78%
1959	74 Outperform	¥718.73B	21.41	―	2.15%	-5.20%	-1.20%
1951	70 Outperform	¥565.25B	16.83	―	2.51%	15.47%	64.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kyowa Exeo Corporate Events

EXEO Group to Cancel 3 Million Treasury Shares to Boost Capital Efficiency

EXEO Group, Inc. has resolved at its board meeting on February 6, 2026, to cancel 3,000,000 of its treasury shares, equivalent to 1.44% of its outstanding shares prior to the cancellation, with the effective date set for February 27, 2026. Following the cancellation, the company will have 205,624,838 shares outstanding, a move that is expected to enhance capital efficiency and shareholder value by reducing the total number of shares in circulation and signaling disciplined balance sheet management.

The most recent analyst rating on (JP:1951) stock is a Hold with a Yen2821.00 price target. To see the full list of analyst forecasts on Kyowa Exeo stock, see the JP:1951 Stock Forecast page.

EXEO Group Launches ¥4 Billion Share Buyback to Boost Capital Efficiency

EXEO Group’s board of directors has approved a share buyback program, authorizing the repurchase of up to 2 million shares, or about 0.98% of its outstanding common stock, for a maximum total of ¥4 billion through market purchases on the Tokyo Stock Exchange between February 9 and June 30, 2026. The company aims to use the treasury share acquisition to enhance shareholder returns, provide flexibility in capital policy, and improve capital efficiency, signaling a shareholder-friendly stance that may support its stock valuation and optimize its capital structure.

The most recent analyst rating on (JP:1951) stock is a Hold with a Yen2821.00 price target. To see the full list of analyst forecasts on Kyowa Exeo stock, see the JP:1951 Stock Forecast page.

EXEO Group Lifts FY2026 Earnings Outlook on Strong Nine-Month Performance

EXEO Group reported strong results for the nine months ended 31 December 2025, with net sales up 18.6% year on year to ¥520.9 billion and profit attributable to owners of parent surging 70.1% to ¥19.5 billion, reflecting significant margin improvement and more than doubling of comprehensive income. The company maintained a solid financial position with total assets of ¥659.4 billion and an equity ratio of 49.7%, increased its interim dividend to ¥33 per share and plans a full-year dividend of ¥66, and revised its full-year forecast upward to net sales of ¥760 billion and profit attributable to owners of parent of ¥32 billion, underscoring sustained earnings momentum and a continued commitment to shareholder returns through both dividends and share buybacks, as implied by the rise in treasury shares.

The most recent analyst rating on (JP:1951) stock is a Hold with a Yen2821.00 price target. To see the full list of analyst forecasts on Kyowa Exeo stock, see the JP:1951 Stock Forecast page.

EXEO Group Upgrades Full-Year Earnings Forecast on Strong System Solutions and Telecom Margins

EXEO Group has raised its consolidated full-year forecasts for the fiscal year ending March 31, 2026, projecting net sales of ¥760 billion and profit attributable to owners of parent of ¥32 billion, representing year-on-year growth and notable increases of 7.0% in sales and 6.7% in bottom-line profit versus its previous guidance. The upgrade is driven by stronger-than-expected orders in its System Solutions business and improved margins, particularly in the Telecom Carriers segment, signaling healthier profitability and operational momentum. Non-consolidated projections were also slightly revised upward for sales and ordinary profit, underscoring steady performance in the parent company’s operations and suggesting a modestly stronger earnings outlook for shareholders and other stakeholders.

The most recent analyst rating on (JP:1951) stock is a Hold with a Yen2821.00 price target. To see the full list of analyst forecasts on Kyowa Exeo stock, see the JP:1951 Stock Forecast page.

EXEO Group Nears Completion of ¥3 Billion Share Buyback Program

EXEO Group has completed a board-approved share buyback program, acquiring 167,200 of its own shares on the Tokyo Stock Exchange between January 1 and January 26, 2026 for a total of ¥451.72 million. Under the broader authorization granted in May 2025, the company has cumulatively repurchased 1,306,200 shares for approximately ¥2.9996 billion, nearly exhausting the maximum ¥3 billion budget and signaling an ongoing capital allocation policy aimed at enhancing shareholder value and optimizing its capital structure.

The most recent analyst rating on (JP:1951) stock is a Hold with a Yen2973.00 price target. To see the full list of analyst forecasts on Kyowa Exeo stock, see the JP:1951 Stock Forecast page.

EXEO Group Nears Limit of Share Buyback Authorization

EXEO Group has reported the latest progress of its ongoing share buyback program, conducted under the authority granted by its Articles of Incorporation and a board resolution. Between December 1 and December 31, 2025, the company repurchased 207,900 shares on the Tokyo Stock Exchange for a total of approximately 509.8 million yen, as part of a broader authorization valid from July 1, 2025 to March 31, 2026 that permits buybacks of up to 2.4 million shares or 3 billion yen. As of December 31, 2025, cumulative repurchases under this program have reached 1,139,000 shares for about 2.55 billion yen, indicating that EXEO Group is approaching the upper limit of its approved budget, a move that can support its capital efficiency, shareholder returns, and share price stability.

The most recent analyst rating on (JP:1951) stock is a Buy with a Yen2464.00 price target. To see the full list of analyst forecasts on Kyowa Exeo stock, see the JP:1951 Stock Forecast page.