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

• Market Cap: ¥24.18B
• Dividend Yield: 0.68%
• Average Volume (3M): 272.50K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.27
• Revenue Growth: 26.89%
• EPS Growth: 151.62%
• Country: JP
• Employees: 308
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 14.55
• Shares Outstanding: 20,840,000
• 10 Day Avg. Volume: 213,450
• 30 Day Avg. Volume: 272,496
• PEG Ratio: 0.71
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 8.50
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,323.00 ▲(7.04% Upside)

Kinjiro Co., Ltd. shows strong financial performance, which is the most significant factor in the overall score. However, technical analysis indicates potential short-term weakness, and the valuation suggests the stock may be overvalued. These factors collectively result in a moderate overall stock score.

Positive Factors

Revenue Growth

Kinjiro Co., Ltd. has shown strong revenue growth, indicating successful market expansion and increased demand for its products, which supports long-term business sustainability and competitive positioning.

Cash Generation

The significant improvement in free cash flow highlights Kinjiro's ability to convert earnings into cash efficiently, providing the company with financial flexibility for investments and debt management.

Balance Sheet Health

Kinjiro's low leverage and strong equity base reflect financial stability, reducing risk and enhancing the company's ability to withstand economic fluctuations.

Negative Factors

Moderate ROE

The moderate ROE suggests that Kinjiro may not be maximizing shareholder returns, indicating potential inefficiencies in capital utilization that could impact long-term growth.

Industry Competition

Operating in highly competitive industries may pressure Kinjiro's margins and market share, requiring continuous innovation and strategic positioning to maintain its competitive edge.

Valuation Concerns

While not a direct fundamental factor, the high valuation may limit future stock appreciation potential, reflecting market expectations that could be challenging to meet if growth slows.

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 primarily through the sale of its chemical products to various industries, with key revenue streams coming from the electronics and automotive sectors. The company leverages its expertise in fine chemicals to provide specialized solutions that command premium pricing. Additionally, Kinjiro engages in long-term contracts and partnerships with major manufacturers, ensuring a steady flow of income. The company's commitment to research and development enables it to innovate and introduce new products, further diversifying its revenue base. Strategic alliances with other firms in related industries also enhance its market reach and profitability.

Kinjiro Co., Ltd. Financial Statement Overview

Summary

Kinjiro Co., Ltd. exhibits a strong financial performance with impressive revenue and profit growth, effective cost management, and operational efficiency. The balance sheet is solid with low leverage and a strong equity base, while the cash flow statement highlights robust cash generation and liquidity. Despite some areas for improvement in return on equity, the overall financial health is commendable.

Income Statement

Kinjiro Co., Ltd. has demonstrated strong revenue growth, with a notable increase from 2023 to 2024. The gross profit margin for 2024 is approximately 60.6%, and the net profit margin is around 10.6%, indicating effective cost management and profitability. The EBIT and EBITDA margins are also healthy, reflecting efficient operations and strong earnings before interest and taxes. Overall, the income statement shows a positive trajectory in revenue and profitability.

Balance Sheet

The balance sheet of Kinjiro Co., Ltd. reflects a solid financial position with a debt-to-equity ratio of approximately 0.23, indicating low leverage and financial stability. The return on equity (ROE) is about 4.9%, which is moderate, suggesting room for improvement in generating returns for shareholders. The equity ratio is strong at 73.1%, highlighting a robust capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow, with a growth rate of approximately 137.1% from 2023 to 2024. The operating cash flow to net income ratio is 2.5, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 2.0, reflecting efficient conversion of earnings into free cash flow. Overall, the cash flow position is strong, with positive trends in cash generation and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.91B	4.38B	3.92B	3.55B	3.32B	3.43B
Gross Profit	3.20B	2.65B	2.49B	2.42B	2.03B	2.27B
EBITDA	2.01B	1.58B	1.21B	787.06M	431.11M	706.01M
Net Income	751.07M	461.85M	370.07M	304.65M	162.92M	329.31M
Balance Sheet
Total Assets	13.09B	12.81B	12.79B	12.65B	9.78B	10.98B
Cash, Cash Equivalents and Short-Term Investments	4.34B	4.23B	4.47B	4.57B	7.63B	9.23B
Total Debt	2.01B	2.18B	2.48B	2.80B	134.45M	139.04M
Total Liabilities	3.37B	3.44B	3.79B	3.90B	924.24M	1.09B
Stockholders Equity	9.72B	9.37B	9.00B	8.76B	8.85B	9.90B
Cash Flow
Free Cash Flow	0.00	940.02M	396.31M	-5.31B	-383.03M	457.15M
Operating Cash Flow	0.00	1.16B	1.47B	410.38M	179.13M	686.67M
Investing Cash Flow	0.00	-957.61M	-1.01B	-5.73B	-587.49M	-96.06M
Financing Cash Flow	0.00	-439.66M	-441.59M	2.25B	-1.21B	7.94B

Kinjiro Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1236.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 1236 is below the 20-day moving average (MA) of 1242.55, below the 50-day MA of 1292.34, and above the 200-day MA of 931.73, indicating a neutral trend. The MACD of 1.96 indicates Negative momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 25.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4013.

Kinjiro Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9702	78 Outperform	¥20.46B	12.06	―	3.17%	9.84%	-19.96%
3648	76 Outperform	¥24.25B	11.99	―	2.23%	21.57%	129.44%
3712	72 Outperform	¥18.42B	15.34	―	1.85%	6.39%	6.38%
2307	70 Outperform	¥16.54B	10.91	―	3.13%	3.58%	0.23%
4013	66 Neutral	¥24.18B	30.98	―	0.68%	26.89%	151.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4192	39 Underperform	¥10.80B	-27.21	―	―	22.18%	28.27%