Kyowa Exeo (1951) AI Stock Analysis

• Market Cap: ¥519.90B
• Dividend Yield: 2.51%
• Average Volume (3M): 510.80K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.54
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,847.00 ▲(9.54% 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 Trend

Consistent revenue growth indicates durable demand for Kyowa Exeo's communications and social infrastructure services. Sustained top-line expansion supports scale advantages, steadier backlog conversion and longer-term contract visibility, strengthening prospects for margin and cash improvement over months.

Improving Profitability Margins

Sequential margin gains across gross, EBIT and EBITDA reflect better project execution and cost control in a competitive sector. Sustained margin improvement enhances resilience to pricing pressure, funds reinvestment, and supports sustainable operating earnings even in a moderate-growth engineering environment.

Solid Equity Base and ROE Improvement

A near-50% equity ratio provides a stable capital buffer against project and cyclical risks common in construction. Rising ROE shows more efficient use of equity, enabling selective leverage for growth while preserving credit capacity and long-term financial flexibility for infrastructure investments.

Negative Factors

Negative Free Cash Flow

A swing to materially negative free cash flow erodes financial flexibility and may force reliance on external funding for capex, working capital or dividends. Unless operational cash generation reverses, negative FCF is a durable constraint on reinvestment and balance sheet strengthening over coming months.

Weak Cash Conversion of Earnings

A sharp decline in cash conversion signals earnings are not being translated into cash, likely from working capital or collections dynamics. Persistently low conversion raises liquidity risk, undermines trust in reported profits and constrains the company's ability to self-fund projects or service debt.

Rising Leverage Trend

An increasing debt-to-equity ratio indicates growing leverage and interest or refinancing exposure. In the cyclical engineering/construction sector this trend reduces financial headroom, heightens sensitivity to rate or demand shocks, and could limit strategic flexibility if not stabilized.

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: Neutral
• Last Price: 2599.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1951, the sentiment is Neutral. The current price of 2599 is below the 20-day moving average (MA) of 2680.03, above the 50-day MA of 2565.52, and above the 200-day MA of 2126.80, indicating a neutral trend. The MACD of 9.07 indicates Positive momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥571.09B	17.01	―	2.15%	-5.20%	-1.20%
1721	76 Outperform	¥559.86B	17.80	8.34%	2.66%	5.14%	12.52%
1417	76 Outperform	¥307.74B	16.28	8.12%	2.28%	6.50%	53.04%
1951	73 Outperform	¥519.90B	17.33	―	2.51%	15.47%	64.50%
1942	69 Neutral	¥1.14T	20.05	14.15%	2.00%	16.43%	53.76%
1963	65 Neutral	¥547.21B	-344.45	-0.24%	2.10%	-0.41%	80.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kyowa Exeo Corporate Events

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.

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.

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.