KURABO INDUSTRIES LTD. (3106) AI Stock Analysis

• Market Cap: ¥133.84B
• Dividend Yield: 2.77%
• Average Volume (3M): 44.95K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.90
• Revenue Growth: -1.63%
• EPS Growth: 67.13%
• Country: JP
• Employees: 3,899
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 76.28
• Shares Outstanding: 17,000,000
• 10 Day Avg. Volume: 38,850
• 30 Day Avg. Volume: 44,950
• PEG Ratio: 0.27
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 19.05
• 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: 77 Outperform
• Price Target: ¥8,660.00 ▲(3.71% Upside)

Kurabo Industries Ltd. scores well due to its strong financial performance and bullish technical indicators. The stock's attractive valuation further supports its investment potential. However, attention should be given to operational efficiency and cash flow volatility.

Positive Factors

Revenue Growth

Positive revenue growth indicates strong market performance and the ability to capture demand across its diversified sectors, supporting long-term business expansion.

Cash Flow Management

Consistent positive free cash flow reflects effective cash management, enabling the company to fund operations and invest in growth without relying on external financing.

Profitability Improvement

Improving net profit margins suggest enhanced cost efficiency and revenue generation, strengthening the company's financial health and competitive position.

Negative Factors

Operational Challenges

Variability in EBIT and EBITDA margins points to operational challenges that could affect profitability and require strategic management focus to stabilize.

Cash Flow Volatility

Volatility in cash flow ratios suggests potential inconsistencies in cash generation, which may impact the company's ability to sustain operations and growth.

Debt Fluctuations

Fluctuating debt levels could indicate financial management challenges, potentially impacting leverage and financial stability if not addressed.

KURABO INDUSTRIES LTD. Business Overview & Revenue Model

Company Description

Kurabo Industries Ltd. engages in textile, chemical, technology, food and service, and real estate businesses in Japan and internationally. The company manufactures and sells cotton, synthetic, wool, and other materials, including yarns, fabrics, knits, and secondary products. It is also involved in dyeing, treatment, and finishing of cotton and synthetic woven, and knitted fabrics. In addition, the company manufactures, processes, and sells polyurethane foam products, synthetic woods, inorganic building materials, functional films, microfiltration equipment, and engineering plastics, as well as non-woven fabrics and reinforcing nets. Further, it manufactures, sells, and maintains electronics-related products; designs, manufactures, constructs, and sells environmental and energy-related plants and equipment; generates biomass power; and manufactures and sells biomedical and its related products, as well as machine tools, such as boring and milling machines, and CAD/CAM systems. Additionally, the company manufactures and sells freeze-dried food; engages in the management of hotel, driving school, and other facilities; and leases real estate properties. Kurabo Industries Ltd. was founded in 1888 and is headquartered in Osaka, Japan.

How the Company Makes Money

KURABO INDUSTRIES LTD. generates revenue through multiple streams, primarily from the sale of textiles and synthetic fibers, which are sold to manufacturers in various industries including apparel and automotive. The company also produces specialty chemicals, contributing to its earnings by serving sectors like healthcare and electronics. Additionally, Kurabo has strategic partnerships with other companies, enhancing its market reach and product offerings. The company's focus on research and development allows it to create innovative products that can command higher prices and access new markets, thus contributing to its overall revenue growth.

KURABO INDUSTRIES LTD. Financial Statement Overview

Summary

Kurabo Industries Ltd. presents a strong financial outlook with improving profitability, efficient capital structure, and robust cash flow management. The company's growth trajectory is positive, with increasing revenue and net income. However, operational efficiency and cash flow volatility need monitoring.

Income Statement

Kurabo Industries Ltd. shows a consistent improvement in profitability over the years. The Gross Profit Margin is healthy, and the Net Profit Margin has been improving, indicating effective cost management and revenue generation. The company has also shown a positive Revenue Growth Rate in the latest year, suggesting strong market performance. However, there are fluctuations in EBIT and EBITDA Margins over the years, indicating some operational challenges.

Balance Sheet

The Balance Sheet of Kurabo Industries Ltd. demonstrates a solid financial position with a low Debt-to-Equity Ratio, suggesting conservative leverage. The Return on Equity is satisfactory and shows an improving trend, which is favorable for equity investors. The Equity Ratio is also robust, indicating a strong capital structure. However, the total debt levels, while manageable, have fluctuated over the years.

Cash Flow

The company has shown consistent operating cash flow, which is a positive sign of financial health. The Free Cash Flow has been positive in recent years, indicating good cash management and the ability to fund operations without relying on external financing. The Operating Cash Flow to Net Income Ratio is strong, reflecting the company's efficient conversion of income to cash. However, Free Cash Flow to Net Income Ratio has varied over the years, pointing to some volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.53B	150.66B	151.31B	153.52B	132.22B	122.18B
Gross Profit	31.92B	31.66B	30.33B	29.45B	27.35B	22.38B
EBITDA	20.22B	17.25B	15.97B	13.15B	13.80B	9.12B
Net Income	12.25B	9.01B	6.74B	5.52B	5.60B	2.21B
Balance Sheet
Total Assets	188.47B	190.53B	192.79B	174.08B	167.28B	170.43B
Cash, Cash Equivalents and Short-Term Investments	15.84B	15.19B	16.16B	10.39B	14.12B	22.12B
Total Debt	10.27B	10.95B	12.34B	15.41B	13.20B	22.99B
Total Liabilities	67.30B	69.34B	74.71B	71.18B	69.87B	75.43B
Stockholders Equity	119.86B	119.81B	116.85B	101.33B	96.02B	93.40B
Cash Flow
Free Cash Flow	0.00	5.46B	8.27B	-2.02B	5.76B	2.69B
Operating Cash Flow	0.00	11.05B	12.86B	2.52B	9.25B	8.07B
Investing Cash Flow	0.00	-2.99B	-387.00M	-2.97B	-3.34B	-3.26B
Financing Cash Flow	0.00	-9.04B	-6.95B	-3.58B	-14.06B	-1.32B

KURABO INDUSTRIES LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8350.00
• 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:3106, the sentiment is Positive. The current price of 8350 is above the 20-day moving average (MA) of 7846.50, above the 50-day MA of 7352.20, and above the 200-day MA of 6918.00, indicating a bullish trend. The MACD of 316.65 indicates Negative momentum. The RSI at 72.91 is Negative, neither overbought nor oversold. The STOCH value of 86.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3106.

KURABO INDUSTRIES LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3106	77 Outperform	¥133.84B	11.83	―	2.77%	-1.63%	67.13%
8014	73 Outperform	¥100.77B	10.37	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥291.14B	10.19	―	3.16%	1.50%	9.82%
3105	70 Outperform	¥203.32B	9.83	8.35%	2.78%	3.35%	810.44%
8057	68 Neutral	¥100.31B	9.22	―	2.93%	31.48%	83.15%
8157	68 Neutral	¥53.83B	10.70	―	2.94%	-5.63%	52.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

KURABO INDUSTRIES LTD. Corporate Events

Kurabo Industries Announces Strategic Share Repurchase

Kurabo Industries Ltd. announced the repurchase of 299,100 shares of its common stock, amounting to approximately 2.11 billion yen, as part of its strategic financial management. This move, conducted through market purchases on the Tokyo Stock Exchange, is part of a broader plan approved by the Board of Directors to repurchase up to 1,000,000 shares, aiming to enhance shareholder value and optimize capital structure.

Kurabo Industries Announces Share Repurchase to Boost Shareholder Value

Kurabo Industries Ltd. announced the repurchase of 257,000 of its own shares for approximately 1.8 billion yen as part of its strategy to enhance shareholder returns and improve capital efficiency. This move is part of a broader plan approved by the board to repurchase up to 1,000,000 shares by September 2026, reflecting the company’s commitment to its financial and capital policies.

Kurabo Industries Initiates Share Repurchase Program

Kurabo Industries Ltd. announced a resolution to repurchase up to 500,000 of its own shares through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System. This strategic move, involving a total cost of up to 3.52 billion yen, is part of a broader plan to repurchase up to 1,000,000 shares by September 2026, potentially impacting the company’s stock value and shareholder returns.

Kurabo Industries Announces Share Repurchase and Cancellation Plan

Kurabo Industries Ltd. has announced a strategic decision to repurchase up to 1,000,000 of its own shares and subsequently cancel them, as part of its medium-term management plan. This move aims to enhance shareholder returns and improve capital efficiency, reflecting the company’s ongoing efforts to optimize its financial structure and market positioning.

Kurabo Industries Reports Mixed Financial Results with Increased Dividends

Kurabo Industries Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a decline in net sales and operating profit compared to the previous year. Despite these decreases, the company experienced a significant increase in profit attributable to owners of the parent, largely due to improved comprehensive income. The company also announced a substantial increase in annual dividends per share, reflecting confidence in its financial stability and future performance.

Kurabo Industries Completes Share Repurchase Program

Kurabo Industries Ltd. has completed a share repurchase program, acquiring 42,200 shares of its common stock for 305,026,000 yen through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan authorized by the Board of Directors to repurchase up to 1,300,000 shares, with the aim of optimizing capital structure and enhancing shareholder value.