YKT Corporation (2693) AI Stock Analysis

• Market Cap: ¥2.67B
• Dividend Yield: 2.13%
• Average Volume (3M): 20.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 7.62%
• EPS Growth: -104.18%
• Country: JP
• Employees: 128
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 21.56
• Shares Outstanding: 11,906,880
• 10 Day Avg. Volume: 21,640
• 30 Day Avg. Volume: 20,620
• PEG Ratio: 21.23
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -12.27
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥247.00 ▲(5.56% Upside)

The overall stock score is primarily impacted by weak financial performance, with declining revenues and profitability. Technical analysis shows mixed signals, with short-term stability but bearish momentum. Valuation concerns arise from a negative P/E ratio, despite a modest dividend yield.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance YKT's product offerings and market reach, providing a competitive edge and supporting long-term revenue growth.

Product Diversity

A diverse product range allows YKT to cater to multiple industries, reducing dependency on any single sector and stabilizing revenue streams.

Balance Sheet Strength

A strong equity position provides financial stability and flexibility, enabling YKT to invest in growth opportunities and weather economic downturns.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or demand, which could impact long-term profitability and growth prospects.

Negative Cash Flow

Negative cash flow suggests liquidity challenges, limiting YKT's ability to fund operations and invest in future growth without external financing.

Profitability Decline

Decreased profitability margins and net losses indicate operational inefficiencies and cost management issues, which may hinder long-term financial health.

YKT Corporation Business Overview & Revenue Model

Company Description

YKT Corporation, a machinery trading company, imports and exports electronic equipment, machine tools, measuring equipment, welding machines, and industrial machinery in Japan and internationally. It also offers mounting equipment and semiconductor mounting/bonder equipment. In addition, the company provides products for tool production, die and mold production, component production, medical parts production, turbine blade production, quality control, measuring and inspection, and machinery and equipment production. The company was founded in 1924 and is headquartered in Tokyo, Japan.

How the Company Makes Money

YKT Corporation generates revenue primarily through the sale of its security products and solutions, including hardware sales and software subscriptions. The company has established key revenue streams from direct product sales to government agencies, corporations, and private entities that require robust security measures. Additionally, YKT benefits from recurring revenue through service contracts and maintenance agreements with clients, ensuring ongoing support and upgrades for its systems. Strategic partnerships with technology firms and integration with third-party platforms further enhance its offerings, contributing to higher sales volumes and customer retention.

YKT Corporation Financial Statement Overview

Summary

YKT Corporation faces challenges with declining revenues and profitability, as evidenced by deteriorating income and cash flow metrics. While the balance sheet remains relatively robust, the negative trends in cash flow and income signal the need for strategic adjustments to improve financial health.

Income Statement

The company experienced a decline in revenue from 2023 to 2024, with a negative growth rate. Gross profit margin decreased, and the company reported a net loss in 2024. EBIT and EBITDA margins also fell sharply, indicating weakening profitability.

Balance Sheet

The balance sheet shows a strong equity position with a significant equity ratio. However, there is a notable decrease in total assets and cash reserves. Despite this, the debt-to-equity ratio remains manageable, indicating stable financial leverage.

Cash Flow

The cash flow statement reveals negative operating cash flow in 2024, contrasting sharply with positive cash flow in 2023. Free cash flow also turned negative, indicating potential liquidity challenges. The ratio of operating cash flow to net income is unfavorable, reflecting cash flow inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.18B	11.93B	12.88B	22.08B	15.68B	11.78B
Gross Profit	1.80B	2.10B	2.50B	3.36B	2.47B	2.12B
EBITDA	40.19M	222.37M	539.68M	1.32B	715.36M	532.88M
Net Income	-166.01M	-1.45M	304.48M	855.98M	436.64M	313.38M
Balance Sheet
Total Assets	11.87B	11.72B	12.44B	13.66B	14.62B	12.72B
Cash, Cash Equivalents and Short-Term Investments	3.81B	3.85B	4.77B	3.23B	3.26B	3.42B
Total Debt	1.94B	2.21B	2.85B	3.46B	4.50B	3.93B
Total Liabilities	4.12B	3.60B	4.34B	5.87B	7.68B	6.27B
Stockholders Equity	7.71B	8.07B	8.05B	7.75B	6.91B	6.41B
Cash Flow
Free Cash Flow	0.00	-252.57M	2.19B	1.02B	-747.58M	-1.48B
Operating Cash Flow	0.00	-244.78M	2.23B	1.04B	-709.65M	-820.64M
Investing Cash Flow	0.00	-2.62M	-29.07M	-20.55M	-15.05M	-836.44M
Financing Cash Flow	0.00	-763.48M	-716.91M	-1.10B	497.05M	1.82B

YKT Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 234.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2693, the sentiment is Negative. The current price of 234 is below the 20-day moving average (MA) of 240.30, below the 50-day MA of 247.36, and below the 200-day MA of 241.10, indicating a bearish trend. The MACD of -4.22 indicates Positive momentum. The RSI at 22.14 is Positive, neither overbought nor oversold. The STOCH value of 2.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2693.

YKT Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6396	79 Outperform	¥4.72B	11.12	―	1.19%	-6.39%	-3.86%
6248	74 Outperform	¥3.15B	10.01	―	4.50%	4.73%	9.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6217	61 Neutral	¥4.29B	-80.86	―	―	-5.76%	-120.95%
6467	56 Neutral	¥2.99B	-9.99	―	1.81%	-3.20%	-226.19%
2693	47 Neutral	¥2.67B	-813.58	―	2.13%	7.62%	-104.18%
6218	47 Neutral	¥3.31B	-2.11	―	1.93%	-14.00%	-216.77%