Kurotani Corporation (3168) AI Stock Analysis

• Market Cap: ¥24.67B
• Dividend Yield: 3.37%
• Average Volume (3M): 17.45K
• Price to Earnings (P/E): 138.4
• Beta (1Y): 0.89
• 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: 51 Neutral
• Price Target: ¥1,747.00 ▲(218.21% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakened profitability, structurally thin margins, and elevated leverage, with an additional headwind from a very high P/E. These are partly offset by a strong technical uptrend and a notable rebound in operating/free cash flow in the latest year.

Positive Factors

Focused non‑ferrous metals business

A focused business model centered on copper and copper-alloy trading and processing creates durable customer relationships with manufacturers. Specialization supports repeat B2B sales, operational know-how in value-added processing, and defensibility from integrated distribution capabilities over cycles.

Rebound in operating & free cash flow

The strong 2025 cash flow rebound materially improves near-term liquidity and funds working capital, capex, or debt reduction. Reliable cash generation post-recovery increases resilience to commodity swings and supports strategic investments without immediate external financing.

History of prior profitability

A record of prior profitability indicates the business can generate positive margins when conditions normalize. This operational track record implies organizational capability to manage costs, adjust pricing or mix, and regain profitability across metal price and demand cycles.

Negative Factors

Elevated leverage

Sustained debt levels above equity reduce financial flexibility and increase interest exposure during downturns. Elevated leverage limits ability to fund growth or absorb margin compression, raising refinancing and covenant risks if commodity-driven earnings remain volatile.

Structurally thin margins & revenue weakness

Thin gross margins and multi-year revenue declines leave little buffer against input cost or price swings. Persistent low margins constrain reinvestment and profitability recovery, making earnings highly sensitive to commodity cycles and operational disruptions over the medium term.

Inconsistent cash flow & volatile returns

Multi-year cash flow volatility complicates planning and undermines confidence in earnings quality. Inconsistent conversion of profit to cash increases working-capital needs and makes long-term capex, deleveraging, or dividend policies harder to sustain without higher liquidity buffers.

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

Overall fundamentals are mixed: profitability deteriorated into a net loss in 2025 with very thin margins and flat-to-down revenue trends, while leverage remains elevated (debt consistently above equity). Offsetting this, 2025 operating and free cash flow rebounded strongly, improving near-term cash resilience.

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

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 1320.08, below the 50-day MA of 1007.95, and below the 200-day MA of 659.76, indicating a bullish trend. The MACD of 195.00 indicates Negative momentum. The RSI at 74.29 is Negative, neither overbought nor oversold. The STOCH value of 87.41 is Negative, 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	¥9.42B	9.50	―	3.00%	4.22%	13.08%
3945	78 Outperform	¥4.08B	4.78	―	3.33%	1.53%	20.73%
3892	67 Neutral	¥9.70B	12.44	―	3.00%	-2.03%	-23.36%
3895	66 Neutral	¥3.59B	5.98	―	4.43%	-3.73%	-7.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9929	56 Neutral	¥4.92B	60.24	―	2.62%	-1.03%	-43.05%
3168	51 Neutral	¥24.67B	138.37	―	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.