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KURABO INDUSTRIES LTD. (JP:3106)
:3106
Japanese Market

KURABO INDUSTRIES LTD. (3106) AI Stock Analysis

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JP

KURABO INDUSTRIES LTD.

(3106)

Rating:71Outperform
Price Target:
¥8,170.00
▲(8.93%Upside)
Kurabo Industries Ltd. has a strong financial foundation with improving profitability and solid cash flow management. The technical analysis suggests a bullish trend, although caution is advised due to overbought signals. The stock is fairly valued, providing a reasonable investment outlook.

KURABO INDUSTRIES LTD. (3106) vs. iShares MSCI Japan ETF (EWJ)

KURABO INDUSTRIES LTD. Business Overview & Revenue Model

Company DescriptionKurabo Industries Ltd. is a diversified Japanese corporation engaged in the manufacturing and distribution of a wide range of products across various sectors including textiles, chemicals, machinery, and real estate. Founded in 1888, the company has evolved from its origins in the textile industry to become a multifaceted enterprise. Its core product lines include advanced textile materials, synthetic fibers, and a variety of chemical products. Kurabo also provides high-precision machinery and engineering solutions, and it has interests in real estate development and management.
How the Company Makes MoneyKurabo Industries Ltd. generates revenue through multiple streams aligned with its diverse product offerings. In the textile sector, the company earns money from the sale of textile materials and synthetic fibers, catering to both domestic and international markets. Its chemical segment contributes to revenue through the production and sale of specialty chemicals and materials used in industries ranging from electronics to agriculture. The machinery division provides income by manufacturing and selling industrial machinery and systems, often involving specialized engineering services. Additionally, Kurabo's real estate operations add to its earnings through the development, leasing, and management of residential and commercial properties. Strategic partnerships and joint ventures in various sectors further enhance the company's revenue-generating capabilities.

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 are areas that need monitoring.
Income Statement
78
Positive
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
75
Positive
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
72
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue150.20B150.66B151.31B153.52B132.22B122.18B
Gross Profit30.99B31.66B30.33B29.45B27.35B22.38B
EBITDA15.30B17.25B15.97B13.86B12.72B8.32B
Net Income8.47B9.01B6.74B5.52B5.60B2.21B
Balance Sheet
Total Assets199.48B190.53B192.79B174.08B167.28B170.43B
Cash, Cash Equivalents and Short-Term Investments14.39B15.19B16.16B10.39B14.12B22.12B
Total Debt11.79B10.95B12.34B15.41B13.20B22.99B
Total Liabilities76.61B69.34B74.71B71.18B69.87B75.43B
Stockholders Equity121.59B119.81B116.85B101.33B96.02B93.40B
Cash Flow
Free Cash Flow0.005.46B8.27B-2.02B5.76B2.69B
Operating Cash Flow0.0011.05B12.86B2.52B9.25B8.07B
Investing Cash Flow0.00-2.99B-387.00M-2.97B-3.34B-3.26B
Financing Cash Flow0.00-9.04B-6.95B-3.58B-14.06B-1.32B

KURABO INDUSTRIES LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7500.00
Price Trends
50DMA
6744.20
Positive
100DMA
6270.61
Positive
200DMA
5675.47
Positive
Market Momentum
MACD
217.85
Positive
RSI
65.42
Neutral
STOCH
48.72
Neutral
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 7500 is above the 20-day moving average (MA) of 7430.50, above the 50-day MA of 6744.20, and above the 200-day MA of 5675.47, indicating a bullish trend. The MACD of 217.85 indicates Positive momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥225.24B8.20
3.93%6.59%18.36%
80
Outperform
¥99.54B8.55
4.10%1.25%21.02%
76
Outperform
¥90.99B10.52
2.37%15.78%20.79%
76
Outperform
¥46.30B10.68
3.30%-21.30%-13.68%
72
Outperform
€143.35B8.336.67%3.95%-2.43%
71
Outperform
¥127.03B14.45
2.40%-0.43%42.04%
71
Outperform
¥255.65B12.968.49%3.12%6.31%12.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3106
KURABO INDUSTRIES LTD.
7,500.00
2,643.22
54.42%
JP:8014
Chori Co., Ltd.
3,950.00
494.20
14.30%
JP:8020
Kanematsu Corporation
2,697.00
112.01
4.33%
JP:8057
Uchida Yoko Co., Ltd.
9,310.00
1,171.92
14.40%
JP:8157
Tsuzuki Denki Co., Ltd.
2,813.00
426.76
17.88%
JP:3105
Nisshinbo Holdings
918.00
-134.78
-12.80%

KURABO INDUSTRIES LTD. Corporate Events

Kurabo Industries Ltd. Considers Investment Unit Reduction
Jun 27, 2025

Kurabo Industries Ltd. is considering reducing its investment unit to less than ¥500,000 to broaden its investor base and improve the investment environment. The company is evaluating factors such as market trends and shareholder composition, but no specific measures or timing have been decided yet.

Kurabo Industries Expands Share-Based Compensation Plan
Jun 25, 2025

Kurabo Industries Ltd. has announced a decision to make additional financial commitments to its share-based compensation plan for its directors and executive officers. This move, resolved at a recent board meeting, involves the acquisition of up to 70,000 common shares, with a maximum total acquisition cost of 350 million yen, through stock market transactions. The plan, initially introduced in 2019, aims to align the interests of the company’s leadership with its long-term performance goals.

Kurabo Industries Faces Lawsuit Over Logistics Facility Fire
Jun 4, 2025

Kurabo Industries Ltd. announced that a lawsuit has been filed against it by Sompo Japan Insurance Inc. for damages related to a fire at a logistics facility where Kurabo’s Chemical Products Division had conducted work. The lawsuit seeks damages under insurance subrogation, with the amount claimed totaling ¥3,660,498,560. The company is currently assessing the claims and potential financial impact, with no clear outcome at this time.

Kurabo Industries Ltd. Announces Share Repurchase
Jun 2, 2025

Kurabo Industries Ltd. announced the repurchase of 70,700 shares of its common stock, amounting to 452,976,000 yen, as part of a broader share buyback program authorized by its board. This move is part of a strategic effort to enhance shareholder value and optimize capital structure, reflecting the company’s commitment to returning capital to its shareholders.

Kurabo Industries Reports ¥4,337 Million Gain from Securities Sale
May 22, 2025

Kurabo Industries Ltd. has announced the completion of a sale of investment securities, resulting in an extraordinary income gain of ¥4,337 million. This financial move is expected to positively impact the company’s financials for the first quarter of the fiscal year ending March 31, 2026, potentially enhancing its market positioning and stakeholder value.

Kurabo Industries to Record Extraordinary Income from Securities Sale
May 14, 2025

Kurabo Industries Ltd. announced its decision to sell certain investment securities as part of its strategy to reduce cross-shareholdings, expecting to record an extraordinary income of approximately ¥4.0 billion from this sale. This move is aligned with the company’s medium-term management plan ‘Accelerate ’27’ and is anticipated to impact the financial results for the fiscal year ending March 31, 2026, by incorporating the gain into the consolidated financial forecast.

Kurabo Industries Extends Takeover Response Policy with Amendments
May 14, 2025

Kurabo Industries Ltd. has decided to continue its takeover response policy with amendments, subject to shareholder approval at the upcoming Ordinary General Meeting of Shareholders. The plan, aimed at protecting corporate value and shareholder interests, includes revised definitions and clearer terms to facilitate understanding, extending its effective period until June 2028.

Kurabo Industries Announces Leadership Changes to Strengthen Management
May 14, 2025

Kurabo Industries Ltd. has announced changes in its leadership, with new appointments and retirements among its Directors and Executive Officers. These changes, effective from June 25, 2025, are part of the company’s ongoing efforts to strengthen its management team and enhance its strategic planning capabilities, potentially impacting its operations and market positioning.

Kurabo Industries Unveils ‘Accelerate ’27’ Plan to Boost Growth and Value
May 14, 2025

Kurabo Industries Ltd. has announced its new medium-term management plan, ‘Accelerate ’27,’ which is part of its Long-term Vision 2030. The plan focuses on accelerating growth in high-profit businesses and increasing corporate value through efficient management of resources. Key strategies include reforming the business portfolio, investing in human resources, and implementing capital policies to enhance corporate value. The plan also outlines financial targets and policies, such as maintaining a stable dividend on equity ratio and reducing cross-shareholdings, which are expected to strengthen the company’s market position and stakeholder confidence.

Kurabo Industries Reports Strong Profit Growth Despite Slight Sales Decline
May 14, 2025

Kurabo Industries Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight decrease in net sales by 0.4% compared to the previous year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 12.3%, 15.6%, and 33.8% respectively. The company also announced a substantial increase in dividends, reflecting a positive outlook for stakeholders.

Kurabo Industries Announces Increased Dividend Payout
May 14, 2025

Kurabo Industries Ltd. announced an increase in its dividend payout, with a fiscal year-end dividend of ¥120 per share, up from the previously forecasted ¥90. This decision reflects the company’s commitment to providing stable returns to shareholders and is based on a comprehensive evaluation of its profitability and corporate culture.

Kurabo Industries Announces Share Repurchase to Boost Shareholder Value
May 2, 2025

Kurabo Industries Ltd. has announced the repurchase of 82,700 shares of its common stock, amounting to 477,436,500 yen, as part of a broader share buyback program authorized by its board of directors. This move is part of a strategic effort to enhance shareholder value and optimize capital structure, reflecting the company’s commitment to returning capital to shareholders while maintaining its market position.

Kurabo Industries Ltd. Announces Share Repurchase
Apr 1, 2025

Kurabo Industries Ltd. announced the repurchase of 55,100 shares of its common stock, amounting to 339,430,000 yen, between March 1 and March 31, 2025. This move is part of a broader strategy approved by the board to repurchase up to 1,300,000 shares by October 31, 2025, reflecting the company’s commitment to enhancing shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025