ktk Inc. (3035) AI Stock Analysis

• Market Cap: ¥3.68B
• Dividend Yield: 2.48%
• Average Volume (3M): 5.63K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.44
• Revenue Growth: 5.99%
• EPS Growth: -2.02%
• Country: JP
• Employees: 302
• Sector: Industrials
• Sector Strength: 92
• Industry: Business Equipment & Supplies
• EPS (TTM): 23.40
• Shares Outstanding: 5,725,000
• 10 Day Avg. Volume: 8,560
• 30 Day Avg. Volume: 5,633
• PEG Ratio: -4.49
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.80
• 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: ¥680.00
• Price Target Upside: -0.73% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥680.00 ▼(-0.73%Downside)

ktk Inc. benefits from strong financial performance and favorable valuation metrics, suggesting financial stability and potential undervaluation. However, the absence of technical analysis data limits insight into market sentiment and momentum, impacting the overall score.

ktk Inc. Business Overview & Revenue Model

Company Description

KTK Inc. (3035) is a Japanese company primarily engaged in the manufacture and sale of railway components and industrial machinery. The company operates in various sectors, including transportation, manufacturing, and engineering, focusing on delivering high-quality products and solutions that enhance the safety and efficiency of railway systems and industrial operations.

How the Company Makes Money

KTK Inc. generates revenue through the production and sale of railway components such as seats, interior fittings, and electrical equipment for trains. The company also manufactures industrial machinery and equipment, particularly for use in railway construction and maintenance. Key revenue streams include direct sales to railway operators and industrial companies, as well as long-term contracts for supply and maintenance services. Significant factors contributing to its earnings include strategic partnerships with major railway companies and a strong reputation for reliability and innovation in its product offerings.

ktk Inc. Financial Statement Overview

Summary

ktk Inc. demonstrates strong financial health with a robust revenue growth of 2.83% year-on-year, effective cost management, and stable profitability margins. The balance sheet shows a solid equity base and low leverage, while cash flow management needs improvement despite adequate cash generation relative to net income.

Income Statement

ktk Inc.'s income statement shows strong financial health, with a consistent year-on-year revenue growth reaching 2.83% over the previous year. The gross profit margin stands at 23.4% and the net profit margin at 1.9%, indicating effective cost management and profitability. The EBIT margin is at 2.12% and EBITDA margin at 3.7%, both stable and showing resilience in operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.21, showcasing low leverage and reduced financial risk. With a return on equity of 8.2% and an equity ratio of 47.5%, the company demonstrates effective utilization of shareholders' funds and financial stability. However, there can be caution on maintaining asset growth in line with liabilities.

Cash Flow

The cash flow statement shows a decline in free cash flow growth rate due to decreased operating cash flow. However, the operating cash flow to net income ratio is 0.82, and the free cash flow to net income ratio is 0.64, indicating adequate cash generation relative to net income. The trend suggests a need for improvement in cash management strategies.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	13.80B	18.11B	17.61B	17.20B	17.29B	16.66B
Gross Profit	3.25B	4.24B	3.98B	3.73B	3.67B	3.47B
EBITDA	465.27M	670.65M	638.67M	605.97M	589.85M	444.03M
Net Income	241.51M	345.33M	310.19M	315.33M	333.02M	233.56M
Balance Sheet
Total Assets	9.31B	8.87B	8.45B	8.38B	8.45B	8.45B
Cash, Cash Equivalents and Short-Term Investments	2.49B	2.26B	2.24B	2.22B	2.65B	2.72B
Total Debt	1.49B	897.09M	908.40M	1.14B	968.94M	1.32B
Total Liabilities	5.11B	4.66B	4.58B	4.76B	5.04B	5.32B
Stockholders Equity	4.20B	4.21B	3.88B	3.62B	3.41B	3.12B
Cash Flow
Free Cash Flow	0.00	222.00M	310.67M	-226.87M	315.52M	505.12M
Operating Cash Flow	0.00	282.79M	405.50M	-188.60M	400.04M	546.92M
Investing Cash Flow	0.00	-143.75M	-46.35M	-291.69M	-52.86M	107.03M
Financing Cash Flow	0.00	-132.30M	-345.40M	63.47M	-412.27M	-70.62M

ktk Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 685.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3035, the sentiment is Positive. The current price of 685 is above the 20-day moving average (MA) of 659.95, above the 50-day MA of 637.98, and above the 200-day MA of 582.42, indicating a bullish trend. The MACD of 12.83 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 88.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3035.

ktk Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7999	74 Outperform	¥12.13B	8.87		3.08%	6.17%	67.31%
Sector *	71 Outperform	¥254.22B	13.37	8.49%	3.04%	6.33%	12.89%
7975	70 Neutral	¥3.95B	10.47		2.15%	4.21%	―
7957	68 Neutral	¥2.25B	5.21		5.31%	12.55%	―
3035	66 Neutral	¥3.68B	11.34		2.48%	5.99%	-2.02%
7314	59 Neutral	¥3.40B	12.34		2.63%	47.88%	-21.61%
7992	45 Neutral	¥3.65B	―		―	6.93%	33.43%