Kyowanissei Co., Ltd. (1981) AI Stock Analysis

• Market Cap: ¥16.96B
• Dividend Yield: 2.42%
• Average Volume (3M): 570.00
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.29
• Revenue Growth: 7.88%
• EPS Growth: 55.16%
• Country: JP
• Employees: 1,046
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 31.09
• Shares Outstanding: 10,746,300
• 10 Day Avg. Volume: 640
• 30 Day Avg. Volume: 570
• PEG Ratio: 1.43
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 15.54
• 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: ¥1,751.00 ▲(11.53% Upside)

Kyowanissei Co., Ltd. receives a solid score due to its stable financial performance and attractive valuation. The company's strong balance sheet and low debt levels provide financial stability, while the positive technical indicators suggest a favorable market trend. The stock's undervaluation and reasonable dividend yield further enhance its attractiveness. However, the moderate cash flow performance and below-average profitability margins indicate areas for potential improvement.

Positive Factors

Revenue Growth

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

Balance Sheet Strength

A low debt-to-equity ratio enhances financial flexibility and reduces risk, allowing for strategic investments and resilience in economic downturns.

Cash Generation

Positive free cash flow growth indicates efficient cash management, enabling the company to fund operations, pay dividends, and invest in growth opportunities.

Negative Factors

Profitability Margins

Low profitability margins suggest challenges in cost management and pricing power, potentially limiting the company's ability to maximize shareholder value.

Operating Cash Flow

Declining operating cash flow may indicate inefficiencies in converting revenue into cash, which could impact the company's ability to fund operations and growth.

Profitability Margins

Relatively low margins compared to peers could hinder competitive positioning and profitability, requiring strategic initiatives to enhance operational efficiency.

Kyowanissei Co., Ltd. Business Overview & Revenue Model

Company Description

Kyowanissei Co.,Ltd. engages in the construction and civil engineering business in Japan. The company operates in four segments: Building Equipment Business, Gas Equipment Business, Gas Pipe Business, and Electrical Construction and Civil Engineering Business. Its businesses cover gas equipment construction; heating, hot water supply, and air conditioning equipment construction; solar cells, fuel cells, and storage battery systems construction; gas pipeline laying work; road paving work related to gas pipeline work; and maintenance services in the areas of commercial air conditioners, gas pipeline repair work, and gas leakage. The company is also involved in water supply/hot water supply, drainage, air-conditioning ventilation equipment, gas hot water systems, sprinkler and inert gas fire extinguishing equipment, and factory plant construction; air conditioning installation work; and water supply, hot water supply, drainage, aeration, and other maintenance of various facilities maintenance. In addition, it undertakes electric construction, installation, and maintenance works comprising general civil engineering works, such as water supply construction and road paving repair works; and irrigation works. Further, the company is involved in the floor heating work, gas equipment installation work, propane gas work, and exterior work; inspection of pipes; vehicle leasing; and non-life insurance agency businesses. Kyowanissei Co.,Ltd. was founded in 1887 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kyowanissei Co., Ltd. generates revenue through multiple key streams. The primary source of income comes from the sales of its pharmaceutical products, which are distributed to hospitals, clinics, and pharmacies both domestically and internationally. Additionally, the company earns revenue from the sale of medical devices, which are often sold in conjunction with its pharmaceutical offerings. Strategic partnerships with healthcare providers and research institutions also contribute to revenue through collaborative projects and co-development of new products. Furthermore, the company invests in research and development to create innovative therapies, which can lead to new product launches and increased market share, thereby enhancing overall profitability.

Kyowanissei Co., Ltd. Financial Statement Overview

Summary

Kyowanissei Co., Ltd. demonstrates stable financial performance with consistent revenue growth and strong balance sheet metrics. The company maintains low leverage, minimizing financial risk. However, there are areas for improvement in cash flow generation and profitability margins, which have shown slight declines.

Income Statement

Kyowanissei Co., Ltd. shows a stable revenue growth rate of 2.54% in the TTM period, with consistent gross and net profit margins. The gross profit margin is at 9.87%, and the net profit margin is 3.03%, indicating moderate profitability. The EBIT and EBITDA margins are 4.42% and 5.15%, respectively, reflecting efficient operational management. However, the margins have slightly decreased compared to previous years, suggesting potential pressure on profitability.

Balance Sheet

The company maintains a strong balance sheet with a very low debt-to-equity ratio of 0.0019, indicating minimal leverage and financial risk. The return on equity (ROE) is 6.12%, which is stable but shows room for improvement. The equity ratio stands at 66.37%, reflecting a solid capital structure with a high proportion of equity financing.

Cash Flow

Kyowanissei Co., Ltd. experienced a decline in free cash flow growth by 27.07% in the TTM period, which could indicate challenges in cash generation. The operating cash flow to net income ratio is 0.12, and the free cash flow to net income ratio is 0.80, suggesting that while the company generates sufficient cash to cover its net income, there is a need to improve cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.71B	37.42B	35.89B	34.47B	34.24B	34.49B
Gross Profit	4.11B	3.63B	3.67B	3.50B	3.55B	3.94B
EBITDA	2.38B	1.95B	1.73B	1.53B	1.70B	2.72B
Net Income	1.42B	1.13B	1.06B	933.61M	1.08B	1.74B
Balance Sheet
Total Assets	27.80B	28.36B	28.65B	26.39B	26.26B	26.11B
Cash, Cash Equivalents and Short-Term Investments	5.94B	6.78B	7.93B	7.63B	8.16B	8.33B
Total Debt	34.48M	36.67M	39.89M	37.79M	159.11M	360.63M
Total Liabilities	9.19B	9.49B	9.85B	8.75B	8.64B	9.21B
Stockholders Equity	18.60B	18.87B	18.80B	17.64B	17.62B	16.89B
Cash Flow
Free Cash Flow	660.65M	944.45M	463.98M	590.56M	699.43M	830.67M
Operating Cash Flow	791.71M	1.11B	1.37B	1.11B	769.44M	1.15B
Investing Cash Flow	-571.77M	-1.04B	-713.13M	-575.07M	-142.26M	615.54M
Financing Cash Flow	-1.84B	-1.22B	-359.13M	-966.40M	-598.75M	-525.77M

Kyowanissei Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1570.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1981, the sentiment is Positive. The current price of 1570 is below the 20-day moving average (MA) of 1590.80, below the 50-day MA of 1578.78, and above the 200-day MA of 1474.87, indicating a bullish trend. The MACD of 16.37 indicates Negative momentum. The RSI at 65.84 is Neutral, neither overbought nor oversold. The STOCH value of 84.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1981.

Kyowanissei Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5284	77 Outperform	¥15.46B	6.53	―	3.95%	11.85%	27.06%
1981	73 Outperform	¥16.96B	11.92	―	2.42%	7.88%	55.16%
5268	69 Neutral	¥13.73B	64.30	―	1.24%	-2.82%	-44.93%
5285	67 Neutral	¥21.82B	9.37	―	3.10%	18.19%	27.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5271	54 Neutral	¥3.08B	28.56	―	3.85%	0.29%	-45.50%
5269	49 Neutral	¥19.30B	-150.65	―	3.24%	-3.73%	-143.19%