Kandatsushinki Ltd. (1992) AI Stock Analysis

• Market Cap: ¥6.88B
• Dividend Yield: 2.45%
• Average Volume (3M): 270.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: -7.69%
• EPS Growth: -47.27%
• Country: JP
• Employees: 249
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -28.34
• Shares Outstanding: 2,623,227
• 10 Day Avg. Volume: 330
• 30 Day Avg. Volume: 270
• PEG Ratio: -0.73
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 17.23
• 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: 64 Neutral
• Price Target: ¥2,895.00 ▲(6.71% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Kandatsushinki Ltd. receives an overall stock score of 64, driven primarily by stable financial performance with a strong balance sheet but tempered by stagnant revenue growth and declining cash flow. Valuation metrics are reasonably attractive with a moderate P/E ratio and decent dividend yield, while technical indicators suggest neutral to slightly bearish momentum.

Positive Factors

Strong Financial Health

A strong equity foundation and low leverage enhance financial stability, providing resilience against economic fluctuations and supporting long-term growth.

Operational Efficiency

High operational efficiency indicates effective cost management and productivity, which can sustain profitability and competitive advantage over time.

Positive Cash Flow

Consistent positive cash flow supports reinvestment in business operations and innovation, ensuring long-term sustainability and financial flexibility.

Negative Factors

Revenue Decline

A decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting future profitability and market position.

Earnings Decline

A significant drop in earnings per share suggests declining profitability, which may affect investor confidence and the company's ability to fund future growth.

Cash Flow Variability

Variability in cash flow can hinder strategic planning and investment, potentially limiting the company's ability to capitalize on growth opportunities.

Kandatsushinki Ltd. Business Overview & Revenue Model

Company Description

Kandatsushinki Ltd., established in 1992, operates primarily in the manufacturing and distribution sectors, focusing on high-quality electronic components and industrial machinery. The company specializes in producing precision-engineered parts for various industries, including automotive, telecommunications, and consumer electronics. With a commitment to innovation and sustainability, Kandatsushinki Ltd. leverages cutting-edge technology to enhance product performance and efficiency, catering to a diverse clientele worldwide.

How the Company Makes Money

Kandatsushinki Ltd. generates revenue through multiple key streams, primarily by selling its manufactured electronic components and machinery to businesses in various sectors. The company employs a business-to-business (B2B) model, establishing long-term contracts with manufacturers who require reliable components for their production lines. Additionally, Kandatsushinki Ltd. offers maintenance and support services, which provide recurring revenue opportunities. Strategic partnerships with key players in the automotive and telecommunications industries further bolster its market presence, allowing for collaborative projects and bulk orders that enhance profitability. Furthermore, the company's focus on research and development enables it to innovate and introduce new products, ensuring sustained growth and competitiveness in the market.

Kandatsushinki Ltd. Financial Statement Overview

Summary

Kandatsushinki Ltd. shows a stable but underwhelming financial profile with a score of 67. The balance sheet is a strength with a low Debt-to-Equity Ratio of 0.06 and a solid Equity Ratio of 64.5%, indicating financial stability. However, the income statement reflects minimal revenue growth of 0.38% and declining Net Profit Margin to 6.0%, while cash flow performance is concerning with a 20.7% drop in Free Cash Flow.

Income Statement

Kandatsushinki Ltd. shows moderate performance in its income statement. Revenue growth from 2024 to 2025 was minimal at 0.38%, indicating stagnant top-line growth. Gross Profit Margin improved slightly to 30.9% in 2025 from 30.5% in 2024, reflecting decent cost control. However, Net Profit Margin declined to 6.0% in 2025 from 7.6% in 2024 due to a drop in Net Income. EBIT Margin also decreased to 8.7% from 10.1%, signaling reduced operating efficiency. While the company maintains profitability, the lack of robust growth and declining margins are areas of concern.

Balance Sheet

The balance sheet of Kandatsushinki Ltd. reflects strong financial stability. The Debt-to-Equity Ratio is low at 0.06 in 2025, indicating minimal leverage and a conservative approach to debt. Return on Equity (ROE) decreased to 7.1% in 2025 from 9.5% in 2024, reflecting lower profitability relative to equity. However, the Equity Ratio remains solid at 64.5% in 2025, up from 61.0% in 2024, showing a strong capital base. Overall, the balance sheet is healthy with low risk from debt, though returns could be improved.

Cash Flow

Cash flow performance for Kandatsushinki Ltd. is mixed. Free Cash Flow declined significantly by 20.7% from 2024 to 2025, reflecting challenges in generating cash after capital expenditures. Operating Cash Flow to Net Income Ratio improved slightly to 1.09 in 2025 from 0.91 in 2024, indicating better cash conversion from earnings. However, Free Cash Flow to Net Income Ratio dropped to 0.85 in 2025 from 0.85 in 2024, showing weaker cash generation relative to profits. While the company generates positive cash flow, the declining trend in free cash flow raises concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.14B	7.18B	7.15B	5.98B	5.95B	6.55B
Gross Profit	2.14B	2.22B	2.18B	1.83B	1.69B	1.82B
EBITDA	631.82M	746.84M	764.73M	522.35M	412.36M	536.71M
Net Income	429.79M	431.63M	545.18M	383.80M	563.03M	331.86M
Balance Sheet
Total Assets	9.11B	9.88B	9.73B	8.60B	8.35B	8.13B
Cash, Cash Equivalents and Short-Term Investments	3.68B	2.76B	2.90B	2.72B	2.80B	2.69B
Total Debt	354.38M	405.86M	417.20M	464.93M	484.56M	543.34M
Total Liabilities	3.07B	3.77B	3.96B	3.32B	3.34B	3.66B
Stockholders Equity	6.03B	6.12B	5.77B	5.28B	5.02B	4.47B
Cash Flow
Free Cash Flow	0.00	367.02M	477.33M	40.66M	117.51M	1.38B
Operating Cash Flow	0.00	471.66M	497.18M	43.63M	133.71M	1.38B
Investing Cash Flow	0.00	-80.76M	-20.19M	91.27M	208.40M	49.10M
Financing Cash Flow	0.00	-424.50M	-297.96M	-217.63M	-233.86M	-104.53M

Kandatsushinki Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2713.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1992, the sentiment is Neutral. The current price of 2713 is below the 20-day moving average (MA) of 2833.55, below the 50-day MA of 2801.26, and below the 200-day MA of 2755.72, indicating a neutral trend. The MACD of 10.58 indicates Positive momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 91.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1992.

Kandatsushinki Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6718	81 Outperform	¥42.93B	71.35	―	4.43%	0.63%	-24.87%
6675	79 Outperform	¥36.50B	310.64	―	2.26%	20.13%	33.43%
6820	70 Outperform	¥41.62B	14.45	―	2.93%	-0.90%	-13.24%
6703	70 Outperform	¥213.90B	6.34	12.24%	2.31%	-2.36%	-61.50%
6835	68 Neutral	¥27.51B	9.33	14.95%	0.77%	6.43%	368.06%
1992	64 Neutral	¥6.88B	-24.71	―	2.45%	-7.69%	-47.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%