Kyodo Public Relations Co., Ltd. (2436) AI Stock Analysis

• Market Cap: ¥8.75B
• Dividend Yield: 1.24%
• Average Volume (3M): 11.02K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.54
• Revenue Growth: 11.42%
• EPS Growth: 29.26%
• Country: JP
• Employees: 315
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 37.16
• Shares Outstanding: 8,814,992
• 10 Day Avg. Volume: 9,610
• 30 Day Avg. Volume: 11,016
• PEG Ratio: 0.16
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 10.75
• 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: 80 Outperform
• Price Target: ¥1,208.00 ▲(43.64% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by strong financial performance: improving margins, very low leverage, and good cash conversion. Technicals add support with an established uptrend and constructive momentum. Valuation is also supportive given the low P/E and modest dividend yield.

Positive Factors

Improving profitability

Margins have recovered materially—operating margin ~15.2% and net margin ~10.1% in 2025 after weaker years. This indicates stronger pricing power and operating leverage within the PR services model, supporting sustainable cash generation, reinvestment capacity and higher returns on equity over the medium term.

Conservative balance sheet

Very low and improving leverage reduces solvency and refinancing risk, giving management flexibility to fund growth, return capital, or weather downturns. Steady equity growth and a strong ROE (~19.9%) suggest capital is being deployed effectively without relying on high debt levels.

High free cash conversion

Free cash flow closely tracking earnings (~94% of net income) signals earnings quality and effective conversion to cash. That durable cash generation supports shareholder returns, working-capital flexibility and the ability to fund investments or acquisitions without materially increasing leverage.

Negative Factors

Gross margin volatility

Volatile gross margins imply sensitivity to client mix, pricing or delivery costs in the services model. If client demand shifts or input costs rise, margin compression could persist, challenging sustainable operating profitability and forcing trade-offs between margin protection and revenue retention.

Operating cash flow variability

A decline in operating cash flow relative to revenue suggests working-capital timing or collection variability. Persistent OCF swings can constrain short-term liquidity and investment pacing, making the firm more reliant on year-specific FCF outcomes despite strong headline FCF in 2025.

Earlier revenue unevenness

Historical revenue declines in 2020 and 2022 show exposure to cyclical client spend in advertising and PR. While recent growth is positive, recurrence of such downturns would undermine predictability of cash flows and returns, complicating strategic planning and investment decisions.

Kyodo Public Relations Co., Ltd. Business Overview & Revenue Model

Company Description

Kyodo Public Relations Co., Ltd. (2436) is a leading public relations firm based in Japan, specializing in a wide range of services designed to enhance corporate communication and brand reputation. The company operates primarily in the public relations sector, offering services such as media relations, crisis management, event planning, and digital communication strategies. With a strong focus on client engagement and tailored solutions, Kyodo serves various industries, including technology, healthcare, and consumer goods, helping organizations to effectively convey their messages and connect with their target audiences.

How the Company Makes Money

Kyodo Public Relations Co., Ltd. generates revenue primarily through its diverse range of public relations services, which are billed to clients on a project basis or through retainer agreements. Key revenue streams include fees for media relations, strategic communication consulting, event management, and crisis communication services. The company may also derive income from training programs and workshops aimed at enhancing clients' communication skills. Additionally, strategic partnerships with media outlets and other marketing firms can enhance service offerings and attract new clients, contributing to overall earnings.

Kyodo Public Relations Co., Ltd. Financial Statement Overview

Summary

Strong and improving profitability (net margin ~10.1% and operating margin ~15.2% in 2025) with solid recent revenue growth (~10.9% in 2025). Balance sheet is conservatively financed with very low and improving leverage (debt-to-equity ~0.08) and strong ROE (~19.9%). Cash conversion is generally good (FCF ~94% of net income in 2025), though operating cash flow shows some variability and gross margin has been volatile.

Income Statement

Profitability has strengthened meaningfully over time: net margin improved from near break-even in 2020 to ~10.1% in 2025, and operating profitability expanded as well (operating margin ~15.2% in 2025). Revenue growth has been solid recently (about 10.9% in 2025) following a more uneven earlier period (declines in 2020 and 2022). A key watch item is gross margin volatility (peaked in 2021, then normalized), suggesting some sensitivity to pricing and delivery costs in the business mix.

Balance Sheet

The balance sheet looks conservatively financed and improving: leverage is low and trending better, with debt-to-equity falling to ~0.08 in 2025 from ~0.37 in 2022. Equity has grown steadily alongside asset growth, and profitability on shareholder capital is strong (return on equity ~19.9% in 2025). Overall financial risk from debt appears limited; the main risk is less about solvency and more about maintaining returns if industry demand softens.

Cash Flow

Cash generation is generally healthy, with free cash flow closely tracking earnings (free cash flow running at ~94% of net income in 2025; similarly strong in prior years). However, operating cash flow relative to revenue is moderate and not consistently rising (about 0.48 in 2025 vs ~0.58 in 2024), indicating some working-capital or timing variability. Free cash flow growth was strong in 2022–2024 but isn’t provided for 2025, so recent momentum on that specific trend can’t be fully confirmed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.71B	8.55B	7.32B	6.90B	5.26B	5.61B
Gross Profit	3.46B	3.79B	3.31B	3.00B	2.42B	3.00B
EBITDA	1.34B	1.49B	1.24B	1.09B	910.72M	356.24M
Net Income	617.19M	863.21M	526.17M	487.60M	520.42M	131.95M
Balance Sheet
Total Assets	5.87B	6.66B	5.81B	5.43B	5.01B	3.54B
Cash, Cash Equivalents and Short-Term Investments	3.42B	3.58B	3.26B	2.69B	2.32B	1.94B
Total Debt	444.85M	356.90M	539.07M	766.55M	966.79M	590.75M
Total Liabilities	1.78B	1.96B	1.92B	2.10B	2.23B	1.60B
Stockholders Equity	3.79B	4.34B	3.55B	3.09B	2.60B	1.94B
Cash Flow
Free Cash Flow	0.00	804.30M	877.95M	717.38M	479.21M	286.15M
Operating Cash Flow	0.00	855.40M	911.15M	770.91M	546.46M	441.54M
Investing Cash Flow	0.00	-108.56M	-36.59M	-34.56M	-397.03M	-25.56M
Financing Cash Flow	0.00	-427.98M	-310.73M	-374.78M	220.00M	15.55M

Kyodo Public Relations Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 841.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2436, the sentiment is Positive. The current price of 841 is below the 20-day moving average (MA) of 1009.85, below the 50-day MA of 1008.84, and below the 200-day MA of 912.11, indicating a bullish trend. The MACD of 3.67 indicates Positive momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 37.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2436.

Kyodo Public Relations Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2436	80 Outperform	¥8.75B	10.35	―	1.24%	11.42%	29.26%
2180	79 Outperform	¥14.99B	9.76	―	2.60%	16.35%	57.53%
2461	69 Neutral	¥31.03B	24.21	―	5.08%	3.22%	13.97%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2433	58 Neutral	¥428.78B	20.55	3.96%	2.75%	-8.56%	-47.89%
4324	48 Neutral	¥746.89B	-2.28	-34.34%	4.19%	0.24%	-731.34%
2656	46 Neutral	¥3.76B	-3.97	―	―	34.64%	8.49%

Kyodo Public Relations Co., Ltd. Corporate Events

Kyodo Public Relations Lifts Profit 64% and Plans Higher Dividend on Strong 2025 Results

Kyodo Public Relations reported strong results for the fiscal year ended December 31, 2025, with net sales rising 16.8% year on year to ¥8.55 billion and operating profit climbing 21.2% to ¥1.30 billion. Profit attributable to owners of parent surged 64.1% to ¥863 million, lifting basic earnings per share to ¥98.96 and pushing the equity-to-asset ratio up to 62.9%, supported by robust operating cash flow and an expanded net asset base.

The company increased its annual dividend from ¥12.00 to ¥14.00 per share for 2025 and plans a further hike to ¥16.00 in 2026, while keeping a conservative payout ratio. For the fiscal year ending December 31, 2026, Kyodo Public Relations forecasts continued growth, targeting ¥10.0 billion in net sales and ¥1.6 billion in operating profit, implying double-digit top-line and profit expansion, which underscores management’s confidence in sustained demand for its PR and communications services and a stable return to shareholders.

The most recent analyst rating on (JP:2436) stock is a Hold with a Yen1119.00 price target. To see the full list of analyst forecasts on Kyodo Public Relations Co., Ltd. stock, see the JP:2436 Stock Forecast page.