Cominix Co.,Ltd. (3173) AI Stock Analysis

• Market Cap: ¥6.83B
• Dividend Yield: 3.91%
• Average Volume (3M): 2.77K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.36
• Revenue Growth: 21.23%
• EPS Growth: -112.48%
• Country: JP
• Employees: 472
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 42.44
• Shares Outstanding: 6,868,840
• 10 Day Avg. Volume: 2,410
• 30 Day Avg. Volume: 2,773
• PEG Ratio: -1.77
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -34.34
• 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: 60 Neutral
• Price Target: ¥1,041.00 ▲(18.16% Upside)
• Action: Reiterated Date: 06/27/25
• Date: Action: Reiterated 06/27/25

Cominix Co.,Ltd. receives a moderate overall score primarily driven by its mixed financial performance and technical analysis. The company's high leverage and weak cash flow generation pose risks, while technical indicators suggest potential short-term volatility. The high P/E ratio indicates overvaluation, partially offset by a stable dividend yield. Investors should be cautious of financial leverage and market momentum before making investment decisions.

Positive Factors

Niche business model and technical support

Cominix's focused model serving machining and factory consumables creates durable demand from manufacturing customers. Technical support and tooling selection services raise switching costs, promote repeat purchases of consumables, and support steady revenue from industrial clients over time.

Strong recent revenue growth

A ~36% reported revenue increase indicates expanding product adoption or market share in its core segments. Sustained top-line momentum provides capacity to invest in distribution, inventory, and technical services, supporting long-term competitiveness if margins and cash conversion are improved.

Reasonable equity position on balance sheet

Maintaining a stable equity base gives the company financial cushioning versus peers, supporting creditor access and capital spending. A reasonable equity ratio underpins long-term financing flexibility, enabling investment in inventory, tooling relationships, and service capabilities despite cyclical end markets.

Negative Factors

Rising leverage

Increasing leverage raises interest burden and reduces financial flexibility. For a distributor with working capital needs, higher debt limits ability to fund growth and absorb manufacturing cyclicality, making capital structure management a persistent strategic risk over the medium term.

Weak cash generation

Recent negative free cash flow and poor operating cash conversion signal difficulty turning accounting profits into liquidity. This undermines sustainable reinvestment, dividend coverage and debt repayment capacity, forcing reliance on external financing or asset management to fund operations long-term.

Declining profit margins

Falling EBIT and net margins reduce the company's ability to generate surplus from sales. Persistent margin erosion weakens resilience to cost inflation or pricing pressure, limits reinvestment and returns on capital, and heightens sensitivity to competitive and cyclical shocks.

Cominix Co.,Ltd. Business Overview & Revenue Model

Company Description

Cominix Co., Ltd. (3173) is a leading company based in Japan that specializes in the manufacturing and distribution of advanced electronic components and systems. The company operates within the electronics sector, focusing on various products including semiconductors, electronic circuits, and specialized components for industrial and consumer applications. Cominix is committed to innovation and quality, serving a diverse clientele across multiple industries, including automotive, telecommunications, and consumer electronics.

How the Company Makes Money

Cominix generates revenue primarily through the sale of its electronic components and systems. The company's revenue model includes direct sales to manufacturers and distributors, as well as long-term contracts with key clients in the automotive and telecommunications sectors. Significant revenue streams include the production of semiconductors and specialized electronic components, which are in high demand for various applications. Additionally, Cominix may benefit from partnerships with technology firms and research institutions that enhance its product offerings and market reach. The company's commitment to R&D and continuous innovation also drives its competitive advantage, positioning it favorably in the rapidly evolving electronics market.

Cominix Co.,Ltd. Financial Statement Overview

Summary

Cominix Co.,Ltd. shows a mixed financial performance. While revenue growth is positive, declining profit margins and increased leverage pose challenges. The balance sheet remains relatively strong with sufficient equity, but rising debt levels could impact future operations. Cash flow generation is currently weak, necessitating improved cash management. Overall, the company maintains a stable but cautious outlook, with potential risks due to financial leverage and cash flow constraints.

Income Statement

Cominix Co.,Ltd. has demonstrated moderate revenue growth over recent years, with a notable increase from 2024 to 2025. However, profit margins have seen a decline, with the latest figures showing a significant drop in net income and EBIT margins. Despite these challenges, the company has maintained a positive gross profit margin, indicating efficiency in production and sales.

Balance Sheet

The company's balance sheet shows a stable equity position, but there is a noticeable increase in debt levels which may present a risk if not managed carefully. The debt-to-equity ratio has increased over the years, indicating a higher leverage, which could affect future financial flexibility. Nevertheless, the equity ratio remains reasonable, suggesting a balanced asset financing structure.

Cash Flow

Cash flow statements reveal a concerning trend with negative free cash flow in the latest period, largely due to increased capital expenditures and negative operating cash flows. The operating cash flow to net income ratio is unfavorable, suggesting difficulties in converting accounting profits into actual cash flow. Despite these issues, previous years have shown the company's capability to generate positive free cash flow, reflecting potential for recovery.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	32.41B	30.13B	28.64B	28.85B	26.93B	20.99B
Gross Profit	7.08B	6.64B	6.35B	6.30B	5.59B	4.29B
EBITDA	789.50M	621.00M	1.11B	1.40B	1.74B	620.37M
Net Income	40.00M	37.00M	539.00M	742.00M	888.00M	295.12M
Balance Sheet
Total Assets	24.77B	25.83B	18.46B	18.55B	18.66B	18.14B
Cash, Cash Equivalents and Short-Term Investments	4.52B	4.82B	3.38B	2.72B	2.85B	2.99B
Total Debt	10.16B	10.34B	4.69B	5.21B	5.03B	6.04B
Total Liabilities	17.15B	17.98B	10.62B	11.26B	11.98B	12.36B
Stockholders Equity	7.59B	7.82B	7.82B	7.27B	6.65B	5.74B
Cash Flow
Free Cash Flow	0.00	-178.00M	1.32B	-200.00M	-357.43M	292.92M
Operating Cash Flow	0.00	-96.00M	1.57B	68.00M	-152.00M	330.65M
Investing Cash Flow	0.00	-2.21B	-3.00M	-235.00M	1.23B	-268.25M
Financing Cash Flow	0.00	3.64B	-849.00M	-103.00M	-1.32B	631.95M

Cominix Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 881.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3173, the sentiment is Positive. The current price of 881 is below the 20-day moving average (MA) of 972.10, below the 50-day MA of 930.40, and above the 200-day MA of 878.68, indicating a bullish trend. The MACD of 21.42 indicates Positive momentum. The RSI at 59.58 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3173.

Cominix Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6157	77 Outperform	¥22.84B	14.20	―	3.31%	0.97%	-10.47%
5966	67 Neutral	¥6.15B	8.03	―	3.24%	1.16%	-31.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7726	63 Neutral	¥5.45B	-14.04	―	2.05%	-6.69%	-80.28%
3173	60 Neutral	¥6.83B	5.29	―	3.91%	21.23%	-112.48%
6156	55 Neutral	¥8.16B	67.72	―	5.64%	-0.91%	-319.62%
5990	54 Neutral	¥4.61B	32.98	―	3.60%	-4.75%	-178.90%