Kurotani Corporation (3168) AI Stock Analysis

• Market Cap: ¥7.60B
• Dividend Yield: 3.74%
• Average Volume (3M): 6.76K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.62
• Revenue Growth: 14.31%
• EPS Growth: 57.25%
• Country: JP
• Employees: 126
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Industrial Materials
• EPS (TTM): 24.21
• Shares Outstanding: 14,337,200
• 10 Day Avg. Volume: 7,390
• 30 Day Avg. Volume: 6,763
• PEG Ratio: -0.73
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.87
• 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

• Rating: 63 Neutral
• Price Target: ¥575.00 ▲(8.08%Upside)

The overall stock score is primarily influenced by the financial performance, which shows improvements in certain areas but needs attention in profitability and cash flow management. Technical analysis provides a mixed view, with a lack of strong momentum. The valuation is reasonable, offering a moderate P/E ratio and a solid dividend yield.

Kurotani Corporation Business Overview & Revenue Model

Company Description

Kurotani Corporation (3168) operates primarily in the wholesale trade sector, specializing in the distribution of industrial materials and equipment. The company offers a diverse range of products including metals, machinery, and electronic components, catering to various industries. Kurotani Corporation is known for its extensive network and capability to supply high-quality products efficiently to meet the demands of its clients.

How the Company Makes Money

Kurotani Corporation generates its revenue primarily through the wholesale distribution of industrial materials and equipment. The company's key revenue streams include sales of metals, machinery, and electronic components to a wide array of industrial clients. By leveraging its established supply chain and distribution network, Kurotani Corporation is able to procure products at competitive prices and sell them with a markup. Additionally, the company may engage in strategic partnerships with manufacturers and suppliers to secure exclusive distribution rights or favorable pricing terms, further enhancing its profitability. Factors such as the demand in industrial sectors, price fluctuations of raw materials, and the economic environment can significantly impact the company's earnings.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
85.68B	82.07B	84.59B	89.10B	62.06B	42.75B
	Gross Profit
2.95B	3.12B	2.09B	2.57B	4.58B	1.92B
	EBIT
1.23B	1.45B	532.83M	862.07M	3.20B	646.82M
	EBITDA
1.20B	1.28B	606.90M	1.15B	2.35B	853.56M
	Net Income Common Stockholders
443.95M	532.50M	170.26M	547.08M	1.35B	378.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.11B	1.54B	1.26B	1.28B	1.81B	2.09B
	Total Assets
27.50B	26.61B	25.07B	25.73B	23.64B	16.74B
	Total Debt
14.79B	12.79B	12.68B	13.63B	11.48B	7.40B
	Net Debt
12.68B	11.55B	11.42B	12.35B	9.68B	5.31B
	Total Liabilities
18.35B	17.13B	15.97B	16.51B	14.96B	9.19B
	Stockholders Equity
9.15B	9.48B	9.10B	9.22B	8.68B	7.55B
Cash Flow		Free Cash Flow
0.00	539.95M	1.25B	-2.30B	-4.11B	1.36B
	Operating Cash Flow
0.00	828.00M	1.60B	-2.07B	-3.90B	1.50B
	Investing Cash Flow
0.00	-206.10M	57.24M	-343.58M	31.34M	-97.84M
	Financing Cash Flow
0.00	-172.29M	-1.38B	1.67B	3.83B	-1.32B

Kurotani Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 532.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3168, the sentiment is Negative. The current price of 532 is below the 20-day moving average (MA) of 546.15, above the 50-day MA of 529.26, and below the 200-day MA of 544.74, indicating a neutral trend. The MACD of 2.09 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3168.

Kurotani Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3892	83 Outperform	¥7.17B	8.47		2.09%	1.53%	-36.83%
3945	79 Outperform	¥3.79B	3.76		0.60%	2.76%	16.03%
3955	78 Outperform	¥10.21B	10.44		2.95%	3.97%	4.71%
3895	68 Neutral	¥3.49B	5.13		0.45%	1.50%	-0.74%
3168	63 Neutral	¥7.60B	22.09		3.74%	14.31%	57.25%
9929	57 Neutral	¥4.14B	34.68		2.80%	-0.57%	-14.16%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%