Kurotani Corporation (3168) AI Stock Analysis

• Market Cap: ¥9.67B
• Dividend Yield: 3.37%
• Average Volume (3M): 17.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• 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: 54 Neutral
• Price Target: ¥674.00 ▲(22.77% Upside)

The score is held back primarily by weak financial performance—recent losses, thin margins, and elevated leverage—despite improved 2025 cash flow. Technicals are a clear positive with a strong uptrend, though momentum is stretched. Valuation is mixed, with a decent dividend yield but a negative P/E reflecting the loss year.

Positive Factors

Recycling Operations

Kurotani's recycling operations support environmental sustainability and provide a competitive edge by offering recycled materials, aligning with global green initiatives and potentially attracting eco-conscious clients.

Improving Gross Margins

Improved gross margins suggest effective cost management, enhancing profitability potential. This strengthens the company's ability to withstand market pressures and invest in growth opportunities.

Return on Equity

Improved ROE indicates efficient capital use, enhancing shareholder value and demonstrating management's capability to generate returns on investments, which is crucial for long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk, especially in economic downturns, potentially impacting the company's ability to invest in growth and manage operational costs effectively.

Inconsistent Cash Flows

Inconsistent cash flows can hinder the company's ability to fund operations and growth initiatives, posing a risk to financial stability and limiting strategic flexibility.

Revenue Stability Challenges

Inconsistent revenue growth may indicate market or competitive challenges, potentially affecting long-term profitability and the company's ability to capture market share.

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

Kurotani Corporation presents a moderate financial profile with strengths in improving gross margins and ROE, but faces challenges with revenue stability and cash flow consistency. The high leverage could be a potential risk, and the company needs to focus on enhancing profitability and managing cash flows effectively to improve its financial health.

Income Statement

Kurotani Corporation shows a mixed performance in the income statement. The gross profit margin has improved over the years, indicating better cost management, but the net profit margin remains low. Revenue growth is inconsistent, with a decline in the most recent year, suggesting potential market challenges or competitive pressures. EBIT and EBITDA margins are positive but require improvement for better profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicating significant leverage that could pose risk during economic downturns. However, the return on equity has shown improvement, suggesting effective use of equity capital to generate profits. The equity ratio is relatively stable, reflecting a balanced approach to financing assets with equity.

Cash Flow

Cash flow analysis reveals fluctuations with periods of negative free cash flow, which is concerning for long-term sustainability. The operating cash flow to net income ratio indicates variability in converting income to cash flow. Free cash flow to net income shows inconsistency, highlighting challenges in maintaining positive cash flows.

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: Negative
• 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 661.65, below the 50-day MA of 603.78, and below the 200-day MA of 554.12, indicating a bullish trend. The MACD of 30.59 indicates Negative momentum. The RSI at 76.26 is Negative, neither overbought nor oversold. The STOCH value of 58.49 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	¥10.11B	10.92	―	3.00%	4.22%	13.08%
3945	78 Outperform	¥4.23B	4.30	―	3.33%	1.53%	20.73%
3892	67 Neutral	¥8.85B	10.79	―	3.00%	-2.03%	-23.36%
3895	66 Neutral	¥3.36B	5.04	―	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	56.14	―	2.62%	-1.03%	-43.05%
3168	54 Neutral	¥9.67B	-51.47	―	3.37%	0.48%	-138.12%