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

• Market Cap: ¥8.56B
• Dividend Yield: 1.24%
• Average Volume (3M): 11.02K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.61
• Revenue Growth: 11.42%
• EPS Growth: 29.26%
• Country: JP
• Employees: 315
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 21.04
• Shares Outstanding: 8,809,992
• 10 Day Avg. Volume: 9,610
• 30 Day Avg. Volume: 11,016
• PEG Ratio: 1.81
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 7.73
• 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: 65 Neutral
• Price Target: ¥1,073.00 ▲(27.59% Upside)

Kyodo Public Relations Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability, contributing significantly to the overall score. However, the technical analysis indicates bearish momentum, which negatively impacts the stock's attractiveness. The valuation is reasonable, providing a balanced view of the stock's potential. The absence of earnings call and corporate events data did not affect the score.

Positive Factors

Strong balance sheet and low leverage

A high equity ratio and very low debt-to-equity provide durable financial flexibility, reducing refinancing and interest-rate risks. This balance sheet strength supports strategic investments, M&A optionality, and resilience through cyclical downturns over the next several months.

Robust cash generation and rising free cash flow

Material improvement in free cash flow and strong operating-cash-to-income conversion indicate sustainable internal funding for capex, digital investment, or shareholder returns. Reliable cash conversion reduces dependency on external financing and supports strategic execution.

Healthy and stable profitability margins

Strong gross and operating margins reflect pricing power and efficient cost structure in service delivery. Margin durability supports reinvestment in capabilities and protects profitability against modest revenue volatility, underpinning sustainable earnings quality over months.

Negative Factors

Limited investor communications / earnings disclosure

Absence of earnings-call engagement and limited public guidance reduces visibility into management priorities and execution risks. For institutional investors this persistent transparency gap can hinder monitoring of strategy and slow market confidence rebuilding over time.

Room to optimize cash utilization

While cash generation is strong, management flagged suboptimal cash deployment. Persistently inefficient use of cash can lower return on invested capital and limit the pace of strategic investments or shareholder distributions, constraining longer-term value creation.

Relatively small employee base may limit scalability

With a headcount of ~315, scaling large, multi-region campaigns or rapidly expanding client mandates could strain capacity. Consulting and PR businesses rely on talent scale; limited workforce size may slow revenue diversification and large-account wins over the coming months.

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

Kyodo Public Relations Co., Ltd. showcases strong financial health with impressive revenue growth and profitability margins. The balance sheet is robust with low leverage and high equity ratio, complemented by strong cash flow generation. These factors position the company well within the advertising industry, although attention to optimizing cash utilization could enhance its financial performance further.

Income Statement

Kyodo Public Relations Co., Ltd. demonstrated strong revenue growth with a 6.20% increase from 2023 to 2024. The gross profit margin for 2024 is solid at 45.25%, and the net profit margin improved to 7.18%, indicating enhanced profitability. The EBIT margin of 14.66% and EBITDA margin of 17.45% further reflect effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 61.12%, highlighting financial stability. The debt-to-equity ratio is low at 0.15, indicating conservative leverage. Return on equity (ROE) is respectable at 14.81%, demonstrating effective use of shareholders' capital.

Cash Flow

The free cash flow increased by 22.38% in 2024, signifying improved cash generation. The operating cash flow to net income ratio of 1.73 indicates robust cash flow relative to profits. However, the free cash flow to net income ratio of 1.67 suggests efficient cash utilization but room for further optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.71B	7.32B	6.90B	5.26B	5.61B	4.99B
Gross Profit	3.46B	3.31B	3.00B	2.42B	3.00B	2.62B
EBITDA	1.34B	1.24B	1.09B	910.72M	356.24M	118.55M
Net Income	617.19M	526.17M	487.60M	520.42M	131.95M	12.65M
Balance Sheet
Total Assets	5.87B	5.81B	5.43B	5.01B	3.54B	3.05B
Cash, Cash Equivalents and Short-Term Investments	3.42B	3.26B	2.69B	2.32B	1.94B	1.53B
Total Debt	444.85M	539.07M	766.55M	966.79M	590.75M	523.57M
Total Liabilities	1.78B	1.92B	2.10B	2.23B	1.60B	1.24B
Stockholders Equity	3.79B	3.55B	3.09B	2.60B	1.94B	1.81B
Cash Flow
Free Cash Flow	0.00	877.95M	717.38M	479.21M	286.15M	354.54M
Operating Cash Flow	0.00	911.15M	770.91M	546.46M	441.54M	384.35M
Investing Cash Flow	0.00	-36.59M	-34.56M	-397.03M	-25.56M	-101.80M
Financing Cash Flow	0.00	-310.73M	-374.78M	220.00M	15.55M	241.83M

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 978.49, below the 50-day MA of 913.49, and below the 200-day MA of 864.05, indicating a bullish trend. The MACD of 24.46 indicates Positive momentum. The RSI at 60.31 is Neutral, neither overbought nor oversold. The STOCH value of 77.12 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
6038	77 Outperform	¥4.68B	10.28	―	2.38%	-2.25%	116.29%
7370	77 Outperform	¥6.04B	11.89	―	5.56%	-9.76%	-24.52%
7050	73 Outperform	¥13.73B	12.40	―	4.08%	51.26%	296.98%
2436	65 Neutral	¥8.56B	12.76	―	1.24%	11.42%	29.26%
9162	61 Neutral	¥7.99B	18.06	―	―	26.73%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9625	54 Neutral	¥6.04B	-9.79	―	2.25%	36.93%	-2016.27%

Kyodo Public Relations Co., Ltd. Corporate Events

Kyodo PR Reports Strong Financial Growth for Nine Months Ending September 2025

Kyodo Public Relations Co., Ltd. reported a significant increase in its financial performance for the nine months ending September 30, 2025, with net sales rising by 13.8% and profit attributable to owners of the parent increasing by 39.8% compared to the previous year. The company’s improved financial results highlight its strong market positioning and operational efficiency, which are expected to positively impact stakeholders and enhance its competitive edge in the industry.

The most recent analyst rating on (JP:2436) stock is a Hold with a Yen949.00 price target. To see the full list of analyst forecasts on Kyodo Public Relations Co., Ltd. stock, see the JP:2436 Stock Forecast page.