Kurotani Corporation (3168) AI Stock Analysis

• Market Cap: ¥15.89B
• Dividend Yield: 3.37%
• Average Volume (3M): 17.45K
• Price to Earnings (P/E): 85.9
• Beta (1Y): 0.93
• Revenue Growth: 0.48%
• EPS Growth: -138.12%
• Country: JP
• Employees: 126
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 28.80
• Shares Outstanding: 14,337,200
• 10 Day Avg. Volume: 32,300
• 30 Day Avg. Volume: 17,446
• PEG Ratio: 0.27
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 4.89
• 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: 52 Neutral
• Price Target: ¥1,049.00 ▲(91.07% Upside)

The score is held back primarily by weakened financial performance (loss-making year, thin margins, and high leverage) and a demanding valuation (very high P/E). These are partially offset by strong technical momentum and an improved 2025 cash-flow profile.

Positive Factors

Improved cash generation

The 2025 rebound to ~¥2.3B operating cash flow and ~¥1.6B free cash flow improves near-term liquidity. Durable positive cash generation would allow the firm to service debt, fund working capital through commodity cycles, and support modest capex or deleveraging without frequent external financing.

Value-added processing & distribution

The company's processing, cutting, inventory and logistics services create recurring, service-oriented revenue beyond raw commodity trading. These capabilities foster customer stickiness, enable higher per-unit margins when utilized, and provide structural differentiation versus pure traders over multi-month horizons.

Core exposure to copper industrial demand

Specialization in copper and copper-alloy products tied to manufacturing and industrial applications gives the company exposure to long-run structural demand drivers (infrastructure and manufacturing). This end-market linkage supports baseline volumes and relevance even through cyclical episodes.

Negative Factors

Elevated leverage

Debt consistently exceeding equity (debt-to-equity ~1.3–1.5) reduces financial flexibility. High leverage increases interest burden sensitivity and limits the company's ability to absorb commodity-driven margin shocks, invest in growth, or execute strategic initiatives without adding refinancing or equity.

Weak and volatile profitability

Margins are thin and volatile—transitioning to a net loss in 2025—limiting retained earnings and the capacity to rebuild buffers. Persistent low gross margins make earnings highly sensitive to input price swings and constrain long-term return on equity and reinvestment potential.

Revenue softness

Sustained flat-to-declining revenue weakens scale economics and makes fixed costs and inventory funding more onerous. If volume or market share pressures persist, margin recovery and deleveraging will be harder, increasing reliance on operational improvements to restore profitability.

Kurotani Corporation Business Overview & Revenue Model

Company Description

Kurotani Corporation (3168) is a Japan-based company primarily engaged in the wholesale distribution of non-ferrous metal products. The company specializes in providing a wide range of metal materials, including copper, aluminum, and nickel products, to various industries. In addition to its core metal business, Kurotani Corporation is involved in recycling operations, contributing to sustainable practices by processing and reusing metal resources.

How the Company Makes Money

Kurotani Corporation generates revenue primarily through the sale of non-ferrous metal products to industrial clients. The company's key revenue streams include the wholesale distribution of metals such as copper and aluminum, which are integral to manufacturing processes in sectors like automotive, electronics, and construction. Additionally, Kurotani Corporation benefits from its recycling operations, which allow it to offer recycled metal materials back to the market. This dual approach not only aids in revenue generation but also supports environmental sustainability. Strategic partnerships with suppliers and clients further enhance Kurotani's market reach and sales capabilities.

Kurotani Corporation Financial Statement Overview

Summary

Financial quality is mixed: profitability deteriorated into a 2025 net loss with very thin margins and recent revenue softness, while leverage remains elevated (debt consistently above equity). Offsetting this, 2025 operating and free cash flow rebounded meaningfully, supporting a mid-to-low score rather than a worst-case outcome.

Income Statement

Profitability has weakened materially: the company moved from a small profit in 2024 (net margin ~0.65%) to a net loss in 2025 (net margin ~-0.25%), with operating profitability also compressing sharply (EBIT near breakeven). Revenue has been broadly flat to down over the last several years, including declines in 2023–2025, and gross margins remain thin (roughly ~2%–4% in most years after 2021). Strengths include a history of profitability in most years shown, but the recent earnings deterioration and structurally low margins weigh on the score.

Balance Sheet

Leverage is elevated for the profile, with debt consistently above equity (debt-to-equity ~1.3–1.5 in 2021–2025), which reduces financial flexibility during down cycles. Equity has been relatively stable, but returns on equity have swung from strong levels in 2021 to modest in 2022–2024 and negative in 2025 due to the loss. The balance sheet is not distressed based on the data provided, but the combination of high leverage and volatile returns is a key risk.

Cash Flow

Cash generation improved in the most recent year: 2025 shows solid positive operating cash flow (~¥2.3B) and positive free cash flow (~¥1.6B), a notable rebound versus negative operating/free cash flow in 2021–2022. However, cash flow has been inconsistent across years, and free cash flow has not reliably tracked earnings (including years with negative cash flow despite positive net income). Overall, the latest year is encouraging, but the multi-year volatility keeps the score in the mid-range.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	82.41B	82.41B	82.07B	84.59B	89.10B	62.06B
Gross Profit	2.33B	2.33B	3.12B	2.09B	2.57B	4.58B
EBITDA	321.76M	347.34M	1.28B	606.90M	1.15B	2.35B
Net Income	-203.91M	-203.00M	532.50M	170.26M	547.08M	1.35B
Balance Sheet
Total Assets	25.70B	25.70B	26.61B	25.07B	25.73B	23.64B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.64B	1.54B	1.26B	1.28B	1.81B
Total Debt	13.17B	13.17B	12.79B	12.68B	13.63B	11.48B
Total Liabilities	16.49B	16.49B	17.13B	15.97B	16.51B	14.96B
Stockholders Equity	9.22B	9.22B	9.48B	9.10B	9.22B	8.68B
Cash Flow
Free Cash Flow	0.00	1.57B	539.95M	1.25B	-2.30B	-4.11B
Operating Cash Flow	0.00	2.32B	828.00M	1.60B	-2.07B	-3.90B
Investing Cash Flow	0.00	-1.98B	-206.10M	57.24M	-343.58M	31.34M
Financing Cash Flow	0.00	-29.59M	-172.29M	-1.38B	1.67B	3.83B

Kurotani Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 549.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3168, the sentiment is Positive. The current price of 549 is below the 20-day moving average (MA) of 924.50, below the 50-day MA of 739.90, and below the 200-day MA of 591.44, indicating a bullish trend. The MACD of 97.24 indicates Negative momentum. The RSI at 66.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3168.

Kurotani Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3955	79 Outperform	¥9.55B	9.39	―	3.00%	4.22%	13.08%
3945	78 Outperform	¥4.30B	4.32	―	3.33%	1.53%	20.73%
3892	67 Neutral	¥8.66B	10.77	―	3.00%	-2.03%	-23.36%
3895	66 Neutral	¥3.43B	5.14	―	4.43%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9929	56 Neutral	¥4.48B	55.05	―	2.62%	-1.03%	-43.05%
3168	52 Neutral	¥15.89B	85.93	―	3.37%	0.48%	-138.12%

Kurotani Corporation Corporate Events

MERF Swings to Strong Profit in First Quarter as Earnings Recovery Takes Hold

MERF Inc. reported consolidated net sales of ¥21.1 billion for the three months ended November 30, 2025, down 1.2% year on year, but achieved a sharp turnaround in profitability with operating profit rising to ¥737 million and profit attributable to owners of parent climbing to ¥407 million, compared with ¥32 million a year earlier, boosting basic earnings per share to ¥28.80. The company’s financial position remained solid, with total assets increasing to ¥27.1 billion and equity rising to ¥9.55 billion, while it maintained its annual dividend forecast of ¥20 per share and left full-year 2026 earnings guidance unchanged, signaling confidence in sustained profit recovery despite modest top-line growth expectations.

The most recent analyst rating on (JP:3168) stock is a Hold with a Yen651.00 price target. To see the full list of analyst forecasts on Kurotani Corporation stock, see the JP:3168 Stock Forecast page.