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

• Market Cap: ¥22.10B
• Dividend Yield: 0.68%
• Average Volume (3M): 272.50K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥1,170.00 ▼(-4.72% Downside)

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 Trend

Sustained revenue growth of ~27% signals expanding product adoption across semiconductor and precision machinery markets. Durable top-line expansion supports scale economics, funds ongoing R&D and capacity investments, and improves resilience across 2–6 months as industrial customers increase integration.

Cash Flow Generation

Strong cash generation—FCF up ~137% and operating cash flow 2.5x net income—indicates high conversion of earnings into liquidity. This durable cash strength funds capex, R&D, working capital and potential returns to shareholders while reducing refinancing and liquidity risk over the medium term.

Low Leverage / Capital Strength

A low debt-to-equity ratio (~0.23) and high equity ratio (73.1%) point to a conservative, resilient balance sheet. This structural financial strength provides flexibility to weather downturns, pursue strategic investments, and preserve credit capacity without short-term refinancing pressure.

Negative Factors

Modest Return on Equity

Return on equity near 4.9% reveals limited capital efficiency relative to peers. Persistently low ROE can constrain shareholder value creation unless offset by stronger growth or improved capital allocation, a structural challenge that affects long-term returns even with sound margins and cash flow.

Cyclical End-Market Exposure

Concentration in automotive, telecom and consumer electronics ties demand to cyclical capital spending and product cycles. Structural exposure to these volatile end markets can cause pronounced revenue swings and makes medium-term forecasting and capacity planning more challenging for durable growth.

Conservative Capital Structure May Limit Returns

A high equity ratio enhances stability but can indicate under-leveraging. Conservatism in financing may reduce ROE and limit accelerated scaling or strategic M&A funded with modest leverage. Over the medium term this can cap return amplification even if profitability and cash flow remain solid.

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

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: Negative
• Last Price: 1228.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1225.70, below the 50-day MA of 1230.15, and above the 200-day MA of 1077.51, indicating a bearish trend. The MACD of -42.70 indicates Positive momentum. The RSI at 25.41 is Positive, neither overbought nor oversold. The STOCH value of 7.37 is Positive, 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
3712	80 Outperform	¥21.64B	18.14	―	1.81%	6.39%	6.38%
9702	78 Outperform	¥20.79B	14.54	―	3.01%	9.84%	-19.96%
3648	76 Outperform	¥24.25B	11.30	―	2.40%	21.57%	129.44%
2307	70 Outperform	¥15.82B	10.39	―	3.14%	3.58%	0.23%
4013	66 Neutral	¥22.10B	22.16	―	0.68%	26.89%	151.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4192	41 Neutral	¥10.79B	-27.12	―	―	22.18%	28.27%

Kinjiro Co., Ltd. Corporate Events

Kinjiro Co., Ltd. Reports Robust Financial Growth in 2025

Kinjiro Co., Ltd. reported a strong financial performance for the nine months ended September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s net sales rose by 28.2%, while operating profit surged by 192.7%, indicating robust growth and improved operational efficiency. This financial upturn positions Kinjiro favorably within its industry, potentially enhancing shareholder value and market confidence.

The most recent analyst rating on (JP:4013) stock is a Hold with a Yen1323.00 price target. To see the full list of analyst forecasts on Kinjiro Co., Ltd. stock, see the JP:4013 Stock Forecast page.