Kinjiro Co., Ltd. (4013) AI Stock Analysis

• Market Cap: ¥15.14B
• Dividend Yield: 0.68%
• Average Volume (3M): 272.50K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.14
• Revenue Growth: 26.89%
• EPS Growth: 151.62%
• Country: JP
• Employees: 308
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 12.52
• Shares Outstanding: 20,840,000
• 10 Day Avg. Volume: 213,450
• 30 Day Avg. Volume: 272,496
• PEG Ratio: 0.20
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 4.50
• P/FCF Ratio: 11.30
• 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: 67 Neutral
• Price Target: ¥789.00 ▼(-35.75% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily supported by strong recent financial performance (accelerating growth, materially higher margins, improved leverage and ROE) and a reasonable valuation (P/E ~14 with a ~1.38% yield). This is offset by very weak technicals, with the stock in a pronounced downtrend and negative momentum despite oversold readings.

Positive Factors

Expanded Profitability Margins

The step-up to high gross and EBIT margins reflects stronger pricing power and/or a favorable product mix in advanced substrates and materials. Sustainably higher margins support reinvestment in R&D, better cash generation and resilience to cost swings, improving long-term operating leverage.

Strengthened Cash Generation

Free cash flow roughly matching net income signals quality of reported earnings and funds internal growth, capex, dividends or debt paydown. Durable FCF capacity increases strategic optionality and reduces reliance on external financing during industry cycles, bolstering long-term stability.

Conservative and Improving Leverage

Declining leverage and a growing equity base enhance financial flexibility to fund innovation or withstand demand shocks. An improving balance sheet lowers refinancing risk and supports higher investment in product development and partnerships that sustain competitive advantage over multiple cycles.

Negative Factors

Historical Profitability and Cash-Flow Volatility

Past swings in margins and cash conversion indicate execution and demand sensitivity risks. Volatility makes forecasting harder, can constrain capital allocation decisions, and raises the chance that recent margin gains may reverse if sales mix or cost control weakens, affecting long-term earnings predictability.

Cyclicality from End-Market Concentration

Heavy exposure to automotive and electronics end markets ties revenue to cyclical capex and consumer cycles. Downturns in these sectors can materially reduce demand for components and slow long-term growth, making durable revenue expansion contingent on smoothing demand or diversifying customer end-markets.

Returns Still Moderate; Absolute Debt Material

While ROE has improved, it remains modest, limiting the firm's ability to generate high excess returns. The pack notes absolute debt is still material; that level can constrain strategic investments or increase vulnerability if earnings decline, tempering long-term growth optionality despite leverage improvement.

Kinjiro Co., Ltd. Business Overview & Revenue Model

Company Description

Kinjiro Co.,Ltd. provides human resource management (HRM) solution services. The company develops integrated HRM package software, including employment, human resource, payroll, healthcare, and labor cost management system solutions. It also offers support services comprising operational consulting, system introduction, and post-installation support; undertakes time recorder/working terminal installation, LAN wiring, and electrical facility construction works; and TV conference/rental conference room services. The company was formerly known as Nittsusystem Co.,Ltd. and changed its name to Kinjiro Co.,Ltd. in 2021. Kinjiro Co.,Ltd. was incorporated in 1981 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kinjiro Co., Ltd. generates revenue through several key channels, primarily by selling its electronic components and materials to various industrial clients. The company operates a B2B model, focusing on long-term contracts and relationships with manufacturers in the automotive and electronics sectors. Revenue streams include direct sales of products, custom manufacturing services, and licensing agreements for proprietary technologies. Additionally, strategic partnerships with major corporations in technology and automotive industries enhance Kinjiro's market reach and stability. The company's commitment to research and development enables it to maintain a competitive edge and innovate new products that align with market demands, further contributing to its financial growth.

Kinjiro Co., Ltd. Financial Statement Overview

Summary

Strong recent improvement: ~9.5% revenue growth in 2025 with sharply higher profitability (gross margin ~68%, net margin ~18.9%, EBIT margin ~28.3%) and better ROE (~9.9%). Balance sheet leverage is conservative and improving (debt-to-equity ~0.18). Main risk is historical volatility in profitability and cash flow, which reduces confidence in consistency.

Income Statement

Revenue growth has accelerated meaningfully over the last few years, culminating in a strong 2025 year with ~9.5% growth. Profitability has expanded sharply: gross margin improved to ~68% and net margin rose to ~18.9%, with EBIT margin up to ~28.3%—a sizable step-up from 2024. The main weakness is historical volatility (notably weaker profitability in 2021–2022 vs. the current run-rate), which suggests execution risk if growth or cost discipline softens.

Balance Sheet

Leverage looks conservative for the business profile, with debt-to-equity improving to ~0.18 in 2025 (down from ~0.32 in 2022), alongside a growing equity base. Returns on equity have also improved to ~9.9% in 2025 versus ~4–5% in 2023–2024, indicating better capital efficiency. The key watch item is the absolute debt level remaining material even as it trends down, and returns are improved but not yet consistently high across the full period.

Cash Flow

Cash generation strengthened substantially in 2024–2025: operating cash flow rose to ~¥2.2B in 2025 and free cash flow reached ~¥2.14B, with free cash flow roughly matching net income (~0.97x), supporting earnings quality. However, cash flow has been notably volatile historically, including a large free-cash-flow deficit in 2022 and weaker conversion in earlier years, which lowers confidence in consistency through a full cycle.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.91B	5.37B	4.38B	3.92B	3.55B	3.32B
Gross Profit	3.20B	3.66B	2.65B	2.49B	2.42B	2.03B
EBITDA	2.01B	2.43B	1.58B	1.21B	787.06M	431.11M
Net Income	751.07M	1.01B	461.85M	370.07M	304.65M	162.92M
Balance Sheet
Total Assets	13.09B	13.73B	12.81B	12.79B	12.65B	9.78B
Cash, Cash Equivalents and Short-Term Investments	4.34B	4.99B	4.23B	4.47B	4.57B	7.63B
Total Debt	2.01B	1.87B	2.18B	2.48B	2.80B	134.45M
Total Liabilities	3.37B	3.48B	3.44B	3.79B	3.90B	924.24M
Stockholders Equity	9.72B	10.25B	9.37B	9.00B	8.76B	8.85B
Cash Flow
Free Cash Flow	0.00	2.14B	940.02M	396.31M	-5.31B	-383.03M
Operating Cash Flow	0.00	2.20B	1.16B	1.47B	410.38M	179.13M
Investing Cash Flow	0.00	-3.00B	-957.61M	-1.01B	-5.73B	-587.49M
Financing Cash Flow	0.00	-429.59M	-439.66M	-441.59M	2.25B	-1.21B

Kinjiro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1228.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4013, the sentiment is Negative. The current price of 1228 is above the 20-day moving average (MA) of 826.80, above the 50-day MA of 1070.37, and above the 200-day MA of 1093.37, indicating a bearish trend. The MACD of -111.73 indicates Negative momentum. The RSI at 30.31 is Neutral, neither overbought nor oversold. The STOCH value of 56.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4013.

Kinjiro Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2307	70 Outperform	¥15.54B	10.03	―	3.14%	3.58%	0.23%
4446	69 Neutral	¥17.49B	206.15	―	―	14.10%	-53.62%
4397	68 Neutral	¥7.04B	17.46	―	―	11.32%	―
4013	67 Neutral	¥15.14B	14.40	―	0.68%	26.89%	151.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥13.02B	60.03	―	―	14.63%	-760.87%
4484	55 Neutral	¥5.10B	26.11	―	―	4.36%	-0.02%

Kinjiro Co., Ltd. Corporate Events

Kinjiro Outlines FY2025 Results, FY2026 Plan and Growth Strategy

Kinjiro Co., Ltd. has issued briefing materials covering its financial results for the fiscal year ended December 31, 2025, alongside plans for the fiscal year ending December 31, 2026. The release also outlines the company’s broader growth strategy and key topics for the Kinjiro Group, signaling a structured approach to performance reporting and forward planning for stakeholders.

While the document is primarily an index-style outline rather than detailed metrics, it highlights management’s intent to communicate both historical performance and future direction. By bundling financial results, upcoming year plans, and growth strategy, Kinjiro underlines its focus on transparency and long-term positioning, which can help investors and internal audiences assess its operational and strategic trajectory.

The most recent analyst rating on (JP:4013) stock is a Hold with a Yen1102.00 price target. To see the full list of analyst forecasts on Kinjiro Co., Ltd. stock, see the JP:4013 Stock Forecast page.

Kinjiro Doubles Profit and Lifts Dividend on Strong FY2025 Results

Kinjiro Co., Ltd. reported robust consolidated results for the fiscal year ended Dec. 31, 2025, with net sales rising 22.7% year on year to ¥5.37 billion and operating profit more than doubling to ¥1.52 billion. Profit attributable to owners of parent climbed 119.4% to ¥1.01 billion, driving basic earnings per share to ¥51.52 and lifting return on equity to 10.3%.

The company’s financial position strengthened further, as total assets increased to ¥13.73 billion and equity reached ¥10.25 billion, keeping the equity ratio at a solid 74.6%. Kinjiro will raise its annual dividend from ¥8.50 to ¥10.00 per share for 2025, while forecasts for 2026 point to continued, but more moderate, growth with full-year sales projected at ¥6.0 billion and profit attributable to owners of parent at ¥1.05 billion.

The most recent analyst rating on (JP:4013) stock is a Hold with a Yen1102.00 price target. To see the full list of analyst forecasts on Kinjiro Co., Ltd. stock, see the JP:4013 Stock Forecast page.