KIKUCHI SEISAKUSHO CO., LTD. (3444) AI Stock Analysis

• Market Cap: ¥13.84B
• Dividend Yield: 1.56%
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.55
• Revenue Growth: 11.20%
• EPS Growth: N/A
• Country: JP
• Employees: 364
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 10.02
• Shares Outstanding: 12,337,700
• 10 Day Avg. Volume: 2,332,860
• 30 Day Avg. Volume: 1,431,386
• PEG Ratio: -0.75
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -4.46
• 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: ¥1,152.00 ▲(254.46% Upside)

The score is held back primarily by weak financial quality—thin profitability and negative operating/free cash flow—despite improved leverage. Technicals are strong with the price above all major moving averages and positive MACD, but overbought RSI/Stoch increases near-term risk. Valuation is moderate-to-high with a low dividend yield, offering limited support.

Positive Factors

Diversified B2B End Markets

Serving automotive, aerospace and industrial customers provides durable demand diversification across cyclical sectors. Long-term contracts and bespoke precision work reduce single-market dependency and support steady order flow and resilience through sector-specific cycles.

Improved Leverage

Low and improving leverage increases financial flexibility for capex or R&D without overburdening interest costs. A 0.16 debt/equity ratio strengthens the balance sheet, supporting sustained investment in precision tooling and cushioning against downturns.

Moderate Gross Margin

An 18% gross margin indicates operational efficiency in manufacturing and pricing power for specialized components. Sustained gross margins enable reinvestment in process improvements and R&D, supporting long-term competitiveness in precision machining.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flow constrain the company’s ability to fund capex, R&D, and working capital from internal resources. Over months, this can force external financing, restrict growth initiatives, or pressure margins if borrowing costs rise.

Weak Profitability

Very low net margin and negative EBIT suggest limited pricing or cost control levers and minimal earnings cushion. Over the medium term, weak operating profitability hampers retained earnings, slows balance sheet recovery, and reduces ability to fund strategic investments.

Low Return on Equity

A ROE near zero signals inefficient use of shareholder capital and weak value creation. Structurally low ROE makes it harder to attract capital and justify reinvestment, risking stagnation in product development and competitiveness versus higher-return peers.

KIKUCHI SEISAKUSHO CO., LTD. Business Overview & Revenue Model

Company Description

Kikuchi Seisakusho Co., Ltd. engages in design, processing, manufacture, and sale of metal and plastic products in Japan. It processes and manufactures various tools and dies. The company is also involved in the metal and plastic injection, magnesium thxio, insert, cleaning, and aluminum hot diecast molding; and sheet metal fabrication and press processing activities. In addition, it engages in the manufacture and sale of devices, such as assembly and inspection equipment; design, manufactures, and sale of machine tool; and machining plastic parts, as well as the provision of special joins of metallic and resin parts, and vacuum casting services. Kikuchi Seisakusho Co., Ltd. was founded in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KIKUCHI SEISAKUSHO generates revenue through the production and sale of precision machinery and components to various industries, including automotive, aerospace, and industrial sectors. The company operates on a business-to-business (B2B) model, where it collaborates with manufacturers to supply essential components that meet specific requirements. Key revenue streams include custom machinery orders, ongoing contracts for precision mold and die production, and maintenance services for the machinery provided. Additionally, strategic partnerships with leading manufacturers in the automotive and aerospace sectors enhance its market reach and contribute to stable revenue generation. The company's commitment to quality and innovation allows it to command premium pricing for its products, further bolstering its earnings.

KIKUCHI SEISAKUSHO CO., LTD. Financial Statement Overview

Summary

KIKUCHI SEISAKUSHO CO., LTD. shows modest revenue growth and improved leverage, but profitability and cash flow remain significant concerns. The company needs to enhance operational efficiency and cash generation to improve financial health.

Income Statement

The company shows a slight revenue growth of 2.8% in the latest year, but profitability remains a concern with a low net profit margin of 0.79% and negative EBIT margin. The gross profit margin is moderate at 18.35%, indicating some efficiency in production, but overall profitability is weak.

Balance Sheet

The debt-to-equity ratio has improved to 0.16, indicating a decrease in leverage, which is positive. However, the return on equity is low at 0.85%, suggesting limited profitability from shareholders' investments. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

The company faces challenges with negative operating cash flow and free cash flow, indicating liquidity issues. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income, but overall cash flow health is poor.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.48B	5.46B	5.21B	5.10B	5.05B	4.47B
Gross Profit	924.35M	1.00B	1.02B	708.80M	672.18M	527.70M
EBITDA	273.90M	243.28M	-493.14M	-773.43M	-519.47M	-704.96M
Net Income	180.70M	43.01M	-818.09M	-1.10B	-669.71M	-934.23M
Balance Sheet
Total Assets	8.08B	8.56B	8.82B	9.07B	9.77B	10.76B
Cash, Cash Equivalents and Short-Term Investments	1.88B	2.45B	1.72B	1.75B	1.72B	1.61B
Total Debt	406.00M	812.65M	1.76B	1.98B	1.48B	1.01B
Total Liabilities	2.85B	3.16B	4.43B	4.45B	3.90B	3.62B
Stockholders Equity	4.97B	5.07B	4.39B	4.59B	5.87B	7.12B
Cash Flow
Free Cash Flow	0.00	-758.27M	-745.61M	-820.82M	-437.33M	-386.91M
Operating Cash Flow	0.00	-663.91M	-493.50M	-658.63M	-281.15M	5.64M
Investing Cash Flow	0.00	834.00M	181.17M	-75.89M	56.22M	-884.62M
Financing Cash Flow	0.00	574.05M	210.94M	742.99M	294.73M	-9.72M

KIKUCHI SEISAKUSHO CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 325.00
• 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:3444, the sentiment is Positive. The current price of 325 is below the 20-day moving average (MA) of 708.05, below the 50-day MA of 524.64, and below the 200-day MA of 365.05, indicating a bullish trend. The MACD of 128.63 indicates Negative momentum. The RSI at 84.99 is Negative, neither overbought nor oversold. The STOCH value of 88.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3444.

KIKUCHI SEISAKUSHO CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6396	79 Outperform	¥4.82B	11.34	―	1.19%	-6.39%	-3.86%
6334	68 Neutral	¥4.27B	13.22	―	1.22%	12.31%	138.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6166	57 Neutral	¥3.02B	16.62	―	―	-7.98%	-52.68%
6467	56 Neutral	¥3.11B	-10.42	―	1.81%	-3.20%	-226.19%
3444	51 Neutral	¥13.84B	26.09	―	1.56%	11.20%	―
6218	47 Neutral	¥3.42B	-2.18	―	1.93%	-14.00%	-216.77%