Kioxia Holdings Corporation (285A) AI Stock Analysis

• Market Cap: ¥12.14T
• Dividend Yield: N/A
• Average Volume (3M): 19.22M
• Price to Earnings (P/E): 69.5
• Beta (1Y): 1.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 15,249
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 162.41
• Shares Outstanding: 545,070,100
• 10 Day Avg. Volume: 16,419,819
• 30 Day Avg. Volume: 19,224,136
• PEG Ratio: -0.02
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 4.95
• 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: ¥21,680.00
• Price Target Upside: 2.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 811.99
• Revenue Forecast (FY): ¥2.16T

• Rating: 72 Outperform
• Price Target: ¥22,822.00 ▲(7.45% Upside)
• Action: Upgraded Date: 02/14/26
• Date: Action: Upgraded 02/14/26

The score is driven primarily by a strong financial recovery (improving profitability and very strong cash flow) and bullish technical momentum (price above key moving averages with positive MACD). These positives are partially offset by elevated valuation (high P/E) and balance-sheet leverage risk (debt-to-equity 1.35).

Positive Factors

Revenue and margin recovery

A pronounced revenue rebound and restored margins indicate the company has improved pricing, yield or mix dynamics and regained operational discipline. Sustained positive margins give room for reinvestment in manufacturing and R&D, supporting competitiveness over the next several quarters.

Robust cash generation

Material improvement in free cash flow and strong cash conversion enhances financial flexibility to fund capex, process-node ramps and debt servicing without equity issuance. Reliable cash generation helps the business withstand NAND cycle troughs and finance strategic investments.

Strategic NAND/SSD market position & partner scale

A focused product set (3D NAND, SSDs) plus joint manufacturing with Western Digital provides scale, shared technology development and manufacturing synergies. Serving consumer, PC and data-center markets diversifies end-market exposure and supports durable revenue streams.

Negative Factors

High leverage

A debt-to-equity ratio at this level raises refinancing and interest-rate risk, reducing financial flexibility. In a capital-intensive memory business, elevated leverage can constrain investment timing and heighten the impact of downturns despite recent profit improvements.

Limited equity cushion

A relatively low equity ratio means a thinner capital buffer against cyclical downturns or large capex programs. For an industry that requires continuous plant investment, a smaller equity base increases vulnerability to shocks and may force conservative growth or heavier reliance on debt.

Cyclicality and product-mix sensitivity

Revenue and margins remain exposed to memory pricing cycles and product-mix shifts; successful ramps of new process generations are critical. This structural cyclicality can produce volatile earnings and requires sustained capex and execution to avoid margin erosion over medium-term cycles.

Kioxia Holdings Corporation Business Overview & Revenue Model

Company Description

Kioxia Holdings Corp. engages in the supervision and management of its subsidiaries that deals with memory storage business. It also handles the formulation of management strategies for the entire group. The company was founded on March 1, 2019 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kioxia generates revenue primarily through the sale of its NAND flash memory products and SSDs. The company's revenue model is based on selling these products to a diverse range of customers, including major tech companies, manufacturers of consumer electronics, and enterprises that require high-capacity storage solutions. Key revenue streams include direct sales to original equipment manufacturers (OEMs), partnerships with technology firms, and contracts with data center operators. Additionally, Kioxia benefits from economies of scale in production and strategic collaborations with other tech companies to enhance its product offerings, which contribute to its overall earnings.

Kioxia Holdings Corporation Financial Statement Overview

Summary

Strong turnaround: revenue growth of 58.56% and profitability rebounded (gross margin 33.35%, net margin 15.96%, EBIT margin 25.86%). Cash flow is a key strength with sharply improved free cash flow growth (331.05%) and strong cash conversion (operating cash flow to net income 1.75). Main constraint is balance-sheet leverage (debt-to-equity 1.35) despite improved ROE (36.92%).

Income Statement

Kioxia Holdings has shown a significant turnaround in its income statement metrics. The latest year saw a strong recovery with a gross profit margin of 33.35% and a net profit margin of 15.96%, compared to negative figures in the prior years. The revenue growth rate improved significantly by 58.56% from the previous year, indicating robust sales performance. EBIT and EBITDA margins also turned positive at 25.86% and 44.98%, respectively, highlighting operational efficiency. However, historical volatility in profitability remains a concern.

Balance Sheet

The balance sheet indicates a relatively high debt-to-equity ratio of 1.35, reflecting significant leverage, which could be a risk if not managed carefully. However, the return on equity has improved to 36.92%, showcasing effective use of shareholders' funds in the latest year. The equity ratio stands at 25.26%, suggesting a moderate level of financial stability. The company needs to maintain its debt levels under control to ensure long-term financial health.

Cash Flow

Kioxia Holdings exhibits strong cash flow performance. The free cash flow growth rate was impressive, moving from negative in previous years to a positive 331.05%, indicating improved cash generation. The operating cash flow to net income ratio of 1.75 reflects robust cash conversion ability. The free cash flow to net income ratio of 0.93 also demonstrates efficient cash management. This financial strength provides a cushion for future investments and debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2020
Income Statement
Total Revenue	1.68T	1.71T	1.08T	1.28T	1.53T	987.23B
Gross Profit	433.97B	569.43B	-52.35B	126.66B	413.97B	670.00M
EBITDA	630.97B	767.76B	51.11B	274.54B	645.95B	242.33B
Net Income	167.02B	272.31B	-243.73B	-138.14B	105.92B	-166.69B
Balance Sheet
Total Assets	3.19T	2.92T	2.86T	2.97T	3.07T	2.72T
Cash, Cash Equivalents and Short-Term Investments	281.53B	167.93B	187.59B	261.35B	469.81B	219.66B
Total Debt	1.47T	999.52B	1.29T	1.27T	1.25T	1.27T
Total Liabilities	2.22T	2.18T	2.42T	2.32T	2.27T	2.02T
Stockholders Equity	978.50B	737.57B	449.63B	658.07B	793.86B	699.15B
Cash Flow
Free Cash Flow	133.49B	252.57B	-109.33B	-167.28B	151.58B	-197.65B
Operating Cash Flow	426.02B	476.42B	195.11B	339.10B	549.13B	159.12B
Investing Cash Flow	-225.44B	-173.01B	-274.85B	-498.56B	-400.30B	-352.39B
Financing Cash Flow	-94.05B	-322.68B	3.24B	-50.79B	-93.28B	154.30B

Kioxia Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21240.00
• 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:285A, the sentiment is Positive. The current price of 21240 is above the 20-day moving average (MA) of 20703.75, above the 50-day MA of 16268.24, and above the 200-day MA of 7764.10, indicating a bullish trend. The MACD of 1419.94 indicates Positive momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 39.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:285A.

Kioxia Holdings Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6920	81 Outperform	¥2.88T	33.01	53.12%	1.11%	32.51%	57.19%
285A	72 Outperform	¥12.14T	69.47	―	―	―	―
6479	64 Neutral	¥1.34T	20.45	8.05%	1.58%	0.96%	3.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	56 Neutral	¥624.42B	91.69	―	2.57%	4.81%	-49.43%
3436	50 Neutral	¥581.98B	-49.28	―	1.14%	0.66%	-87.63%