Kyokuto Co., Ltd. (2300) AI Stock Analysis

• Market Cap: ¥2.60B
• Dividend Yield: 2.11%
• Average Volume (3M): 2.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• Revenue Growth: 0.33%
• EPS Growth: -80.32%
• Country: JP
• Employees: 253
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -11.80
• Shares Outstanding: 5,551,230
• 10 Day Avg. Volume: 2,250
• 30 Day Avg. Volume: 2,566
• PEG Ratio: -1.03
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 7.37
• 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: 61 Neutral
• Price Target: ¥525.00 ▲(1.74% Upside)
• Action: Reiterated Date: 08/05/25
• Date: Action: Reiterated 08/05/25

The overall stock score of 61 reflects solid financial performance and positive technical indicators, but is tempered by a high P/E ratio suggesting potential overvaluation. The lack of earnings call and corporate events data limits insights into future guidance or strategic shifts.

Positive Factors

Revenue Growth

Sustained revenue growth indicates a strong market position and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing for investment in growth opportunities and resilience against market fluctuations.

Gross Profit Margin

A high gross profit margin reflects efficient production processes and pricing power, contributing to sustainable profitability over time.

Negative Factors

Net Profit Margin Decline

A declining net profit margin indicates pressure on profitability, which could impact long-term earnings potential and shareholder returns.

Low Return on Equity

Low return on equity suggests inefficient use of shareholder funds, potentially limiting attractiveness to investors and affecting capital raising capabilities.

Decreased EPS Growth

A sharp decline in EPS growth reflects challenges in maintaining earnings momentum, which could undermine investor confidence and future valuation.

Kyokuto Co., Ltd. Business Overview & Revenue Model

Company Description

Kyokuto Co., Ltd. is a prominent Japanese company specializing in the manufacturing and distribution of automotive components, primarily focusing on tires and other rubber products. Established in the automotive sector, the company has expanded its operations to include various other segments, such as industrial materials and machinery. With a commitment to innovation and quality, Kyokuto has positioned itself as a key player in both domestic and international markets, catering to a diverse clientele that includes major automotive manufacturers.

How the Company Makes Money

Kyokuto Co., Ltd. generates revenue primarily through the sale of its automotive components, particularly tires and rubber products. The company operates on a business-to-business (B2B) model, supplying its products to automotive manufacturers and distributors around the world. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers) and aftermarket sales through various distribution channels. Additionally, Kyokuto benefits from strategic partnerships with automotive companies and suppliers, enhancing its market reach and product offerings. The company's focus on research and development also allows it to innovate and introduce new products that meet evolving consumer demands, further driving revenue growth.

Kyokuto Co., Ltd. Financial Statement Overview

Summary

Kyokuto Co., Ltd. demonstrates solid financial health with improving revenue and operational performance. Gross profit margin is strong, but net profit margin decreased, reflecting pressure on profitability. Cash flow improvements are notable, indicating strong cash generation and efficient management.

Income Statement

The company has shown a positive revenue growth rate of 6.07% from 2024 to 2025, indicating an upward trend in sales. Gross profit margin is strong at 70.09% for 2025, reflecting efficient production processes. However, the net profit margin decreased to 1.54% due to a decline in net income. EBIT margin improved to 1.73%, showing better operational performance compared to previous years.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.58, illustrating a balanced approach to leveraging. Return on equity is low at 3.88%, indicating modest profitability relative to shareholders' equity. The equity ratio of 48.69% suggests a robust equity base, supporting financial stability.

Cash Flow

Significant improvement in free cash flow to net income ratio, with free cash flow reaching ¥351 million in 2025, indicating strong cash generation. Operating cash flow to net income ratio is robust at 4.74, reflecting efficient cash flow management. The turnaround from negative free cash flow in 2024 to positive in 2025 highlights effective capital management.

Breakdown	Feb 2025	Feb 2025	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	5.38B	4.92B	4.69B	4.58B	4.88B
Gross Profit	3.77B	3.42B	3.31B	3.14B	3.23B
EBITDA	208.95M	166.99M	-62.05M	-344.56M	-515.21M
Net Income	83.05M	119.01M	-169.78M	-784.15M	-756.56M
Balance Sheet
Total Assets	4.40B	4.33B	3.78B	3.78B	4.18B
Cash, Cash Equivalents and Short-Term Investments	469.53M	415.08M	497.74M	395.74M	463.68M
Total Debt	1.24B	1.30B	625.14M	834.05M	675.84M
Total Liabilities	2.26B	2.22B	2.00B	1.86B	1.47B
Stockholders Equity	2.14B	2.12B	1.78B	1.93B	2.71B
Cash Flow
Free Cash Flow	351.11M	-605.25M	155.18M	-226.98M	-588.04M
Operating Cash Flow	393.42M	-287.22M	249.87M	-135.95M	-499.97M
Investing Cash Flow	-85.67M	-438.57M	100.15M	-46.20M	-34.53M
Financing Cash Flow	-253.29M	643.13M	-248.02M	114.22M	237.15M

Kyokuto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 516.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2300, the sentiment is Negative. The current price of 516 is above the 20-day moving average (MA) of 502.61, above the 50-day MA of 512.88, and above the 200-day MA of 503.32, indicating a bearish trend. The MACD of -5.13 indicates Positive momentum. The RSI at 36.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2300.

Kyokuto Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7502	64 Neutral	¥1.71B	12.62	―	2.62%	11.55%	28.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2300	61 Neutral	¥2.60B	-11.02	―	2.11%	0.33%	-80.32%
2305	58 Neutral	¥32.76B	5.66	―	2.48%	-4.39%	31.40%
6537	54 Neutral	¥2.54B	247.24	―	―	27.27%	―
3041	49 Neutral	¥2.12B	42.21	―	1.19%	6.83%	1654.82%
4679	47 Neutral	¥2.59B	11.92	―	―	-6.45%	99.39%