Kandatsushinki Ltd. (1992) AI Stock Analysis

• Market Cap: ¥6.64B
• Dividend Yield: 2.45%
• Average Volume (3M): 270.00
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.27
• Revenue Growth: -7.69%
• EPS Growth: -47.27%
• Country: JP
• Employees: 249
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 56.73
• 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: 70 Outperform
• Price Target: ¥2,982.00 ▲(9.92% Upside)

Kandatsushinki Ltd. demonstrates strong financial performance with consistent revenue growth and solid profitability margins, contributing significantly to the overall score. The technical analysis indicates a bearish trend, which slightly dampens the score. Valuation is reasonable with a fair P/E ratio and attractive dividend yield, supporting the stock's appeal.

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. exhibits strong financial performance with consistent revenue growth and solid profitability margins. The balance sheet's low leverage and strong equity base add stability, while cash flow generation remains positive despite some fluctuations. Attention to cash flow consistency and ROE improvement could enhance financial strength further.

Income Statement

Kandatsushinki Ltd. has demonstrated strong revenue growth over the years with a notable increase from 2023 to 2025. The gross profit margin remains healthy, indicative of effective cost management, while the net profit margin shows slight volatility due to fluctuations in net income. The EBIT and EBITDA margins are robust, highlighting operational efficiency.

Balance Sheet

The company's balance sheet reflects solid financial health with a commendable equity ratio, indicating a strong equity foundation. The debt-to-equity ratio is low, suggesting conservative use of leverage. Return on equity is positive but has shown some decline, indicating room for improvement in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals positive free cash flow, with growth over the years, though there was a decline in 2025. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests variability in cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	751.90M	738.51M	850.70M	631.35M	510.71M	569.14M
Net Income	429.79M	431.63M	545.18M	383.80M	563.03M	331.86M
Balance Sheet
Total Assets	9.11B	9.49B	9.46B	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	348.32M	354.76M	389.42M	412.61M	471.72M
Total Liabilities	3.07B	3.37B	3.69B	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	462.71M	38.60M	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: Positive
• Last Price: 2713.00
• 50DMA: Positive
• 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:1992, the sentiment is Positive. The current price of 2713 is below the 20-day moving average (MA) of 2748.50, below the 50-day MA of 2719.04, and above the 200-day MA of 2711.31, indicating a neutral trend. The MACD of 10.14 indicates Positive momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 4.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1992.

Kandatsushinki Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1992	70 Outperform	¥6.64B	16.42	―	2.45%	-7.69%	-47.27%
6822	64 Neutral	¥5.12B	3.93	―	0.53%	4.93%	23.92%
6778	63 Neutral	¥5.56B	29.76	―	3.54%	19.28%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	53 Neutral	¥4.04B	9.92	―	2.01%	13.56%	―
6696	52 Neutral	¥1.49B	-36.45	―	―	10.83%	-1827.49%