Kioxia Holdings Corporation (285A) AI Stock Analysis

• Market Cap: ¥6.17T
• Dividend Yield: N/A
• Average Volume (3M): 19.22M
• Price to Earnings (P/E): 39.6
• Beta (1Y): 1.16
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 15,249
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 75.36
• Shares Outstanding: 540,631,900
• 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: ¥7,000.00
• Price Target Upside: -38.68% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥8,931.00 ▼(-21.76% Downside)

Kioxia Holdings Corporation's overall stock score reflects a strong financial recovery and solid cash flow generation, which are the most significant factors. However, the high leverage and moderate overvaluation weigh down the score. Technical analysis suggests mixed momentum, with some recent weakness but an overall upward trend.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market demand for Kioxia's products, enhancing its competitive position and supporting long-term business sustainability.

Cash Flow Generation

Robust cash flow generation provides financial flexibility for investments and debt servicing, supporting strategic growth initiatives and operational resilience.

Profitability Improvement

Improved profitability margins reflect operational efficiency and effective cost management, enhancing Kioxia's ability to sustain growth and invest in innovation.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting Kioxia's ability to invest in growth opportunities and weather economic downturns.

Historical Profitability Volatility

Volatile profitability could impact investor confidence and hinder strategic planning, affecting Kioxia's long-term financial performance and market competitiveness.

Equity Ratio

A moderate equity ratio indicates potential vulnerability to financial stress, which could impact Kioxia's ability to finance operations and growth initiatives sustainably.

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

Kioxia Holdings Corporation has demonstrated a strong recovery in financial performance, with significant improvements in revenue growth and profitability. The income statement shows robust sales performance and operational efficiency, while the cash flow statement highlights strong cash generation. However, the balance sheet indicates high leverage, which needs careful management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	1.59T	1.71T	1.08T	1.28T	1.53T	987.23B
Gross Profit	409.71B	569.43B	-52.35B	126.66B	413.97B	670.00M
EBITDA	613.46B	767.76B	51.11B	274.54B	645.95B	242.33B
Net Income	155.28B	272.31B	-243.73B	-138.14B	105.92B	-166.69B
Balance Sheet
Total Assets	2.98T	2.92T	2.86T	2.97T	3.07T	2.72T
Cash, Cash Equivalents and Short-Term Investments	239.47B	167.93B	187.59B	261.35B	469.81B	219.66B
Total Debt	1.33T	999.52B	1.29T	1.27T	1.25T	1.27T
Total Liabilities	2.16T	2.18T	2.42T	2.32T	2.27T	2.02T
Stockholders Equity	819.20B	737.57B	449.63B	658.07B	793.86B	699.15B
Cash Flow
Free Cash Flow	129.98B	252.57B	-109.33B	-167.28B	151.58B	-197.65B
Operating Cash Flow	409.70B	476.42B	195.11B	339.10B	549.13B	159.12B
Investing Cash Flow	-217.05B	-173.01B	-274.85B	-498.56B	-400.30B	-352.39B
Financing Cash Flow	-102.97B	-322.68B	3.24B	-50.79B	-93.28B	154.30B

Kioxia Holdings Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11415.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 11415 is above the 20-day moving average (MA) of 9676.70, above the 50-day MA of 9871.76, and above the 200-day MA of 4535.77, indicating a bullish trend. The MACD of 278.50 indicates Negative momentum. The RSI at 62.69 is Neutral, neither overbought nor oversold. The STOCH value of 91.70 is Negative, 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	67 Neutral	¥2.71T	28.54	53.12%	1.11%	32.51%	57.19%
6479	67 Neutral	¥1.27T	20.35	8.05%	1.58%	0.96%	3.22%
285A	63 Neutral	¥6.17T	39.64	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3436	55 Neutral	¥502.49B	191.32	―	1.14%	0.66%	-87.63%
6976	54 Neutral	¥444.20B	102.72	―	2.57%	4.81%	-49.43%