Kyowa Exeo (1951) AI Stock Analysis

• Market Cap: ¥503.48B
• Dividend Yield: 2.6%
• Average Volume (3M): 510.80K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.52
• Revenue Growth: 15.47%
• EPS Growth: 64.50%
• Country: JP
• Employees: 17,056
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 31.94
• Shares Outstanding: 208,624,830
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,464.00 ▲(0.08% Upside)

Kyowa Exeo's overall stock score is driven by strong technical indicators and solid financial performance, despite some financial risks related to cash flow and leverage. The valuation is moderate, offering a reasonable dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, positioning Kyowa Exeo well for long-term expansion and competitiveness.

Profitability Margins

Improved profit margins reflect enhanced operational efficiency and cost management, contributing to stronger financial health and shareholder value.

Equity Position

A strong equity position provides financial stability and flexibility, enabling Kyowa Exeo to invest in growth opportunities and withstand market fluctuations.

Negative Factors

Rising Leverage

Increasing leverage can heighten financial risk, potentially impacting cash flow and limiting the company's ability to invest in future growth initiatives.

Negative Free Cash Flow

Negative free cash flow suggests challenges in cash generation, which may hinder Kyowa Exeo's ability to fund operations and strategic investments without increasing debt.

Cash Generation Efficiency

Reduced cash generation efficiency indicates potential issues in operational performance, necessitating improvements in cost management and revenue collection processes.

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

Kyowa Exeo shows positive revenue growth and improved profitability margins, reflecting strong operational performance. However, increased leverage and negative free cash flow highlight potential financial risks. The company should focus on strengthening cash flow generation and managing debt levels to ensure long-term financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 2462.00
• 50DMA: Positive
• 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:1951, the sentiment is Positive. The current price of 2462 is above the 20-day moving average (MA) of 2438.25, above the 50-day MA of 2315.68, and above the 200-day MA of 1978.50, indicating a bullish trend. The MACD of 43.88 indicates Positive momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 67.54 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
1959	79 Outperform	¥545.02B	17.75	―	2.14%	-5.20%	-1.20%
1721	76 Outperform	¥514.68B	16.36	8.34%	2.71%	5.14%	12.52%
1417	76 Outperform	¥283.18B	14.98	8.12%	2.34%	6.50%	53.04%
1951	73 Outperform	¥503.48B	16.78	―	2.60%	15.47%	64.50%
1942	69 Neutral	¥1.03T	20.01	14.15%	2.00%	16.43%	53.76%
1963	65 Neutral	¥473.19B	-299.04	-0.24%	2.14%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kyowa Exeo Corporate Events

Kyowa Exeo Reports Strong Financial Growth for First Half of 2025

Kyowa Exeo reported significant growth in its financial results for the six months ending September 30, 2025, with a 17.5% increase in net sales and a 59.1% rise in operating profit compared to the previous year. This robust performance indicates a strong market position and potential positive implications for stakeholders, as the company also forecasts continued growth for the fiscal year ending March 31, 2026.