Koatsu Gas Kogyo Co., Ltd. (4097) AI Stock Analysis

• Market Cap: ¥62.82B
• Dividend Yield: 2.88%
• Average Volume (3M): 37.00K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.85
• Revenue Growth: 3.42%
• EPS Growth: 13.37%
• Country: JP
• Employees: 1,896
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 23.68
• Shares Outstanding: 55,577,530
• 10 Day Avg. Volume: 34,490
• 30 Day Avg. Volume: 37,000
• PEG Ratio: 1.64
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 21.72
• 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: 79 Outperform
• Price Target: ¥1,311.00 ▲(25.21% Upside)
• Action: Reiterated Date: 01/07/26
• Date: Action: Reiterated 01/07/26

The score is driven primarily by strong financial performance (solid growth, stable/improving margins, conservative leverage, and good cash conversion). Technicals are supportive due to a clear uptrend, but overbought signals (high RSI) reduce the technical score. Valuation is favorable with a low P/E and a solid dividend yield.

Positive Factors

Conservative leverage / strong balance sheet

Very low leverage and a high equity ratio provide durable financial resilience. This capital structure reduces refinancing and interest rate risk, supports consistent investment in equipment and safety products, and preserves flexibility for long-term strategic initiatives.

Strong cash conversion and FCF growth

Operating cash generation above reported earnings and rising free cash flow underpin sustainable funding for capex, maintenance, dividends and selective investment. Reliable cash conversion supports long-term operational stability and lowers dependence on external financing.

Stable margins and steady revenue growth

Consistent top-line growth and stable gross and EBITDA margins indicate enduring demand and operational efficiency in gas equipment markets. This steadiness supports predictable profitability and reinvestment capacity over multi-year horizons, aiding strategic planning.

Negative Factors

Moderate return on equity

A modest ROE suggests the company converts shareholder capital into profits less efficiently than many peers. Over time this can limit shareholder returns and reflect underutilized assets or conservative capital allocation, constraining long-term value creation.

Variable free cash flow

Volatility in free cash flow creates uncertainty around consistent funding for capex, maintenance and distributions. Structurally, this can weaken the company's ability to commit to long-term projects or smooth dividends, raising execution risk in cyclical periods.

Limited margin expansion / modest growth ceiling

The business appears to operate in mature industrial markets with constrained room for margin improvement. Sustaining only modest revenue CAGR implies scale and pricing power limits, which could cap future profit growth absent product or market diversification.

Koatsu Gas Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Koatsu Gas Kogyo Co., Ltd., together with its subsidiaries, produces and sells industrial gases and chemical products in Japan and internationally. It offers dissolved acetylene gas for welding, cutting, heating, removing glass and copper wire from molds, pharmaceutical synthesis, and carbon raw materials applications; laser gas/mixed gas for various applications, such as laser processing, welding, sterilization, biotechnology, and food products; separated gas used analytical instruments for measuring the concentration of various air pollutants, automobile exhaust gas and flue gas, and calibration of gas detectors; LP gas/LNG for cutting/heating and fuel applications; agricultural carbon dioxide; gas cylinders; and safety systems. The company also offers chemical products, such as adhesives for household and industrial applications; and PEGAR, a synthetic resin emulsion for various applications, such as adhesives, pressure sensitive adhesives, paint binders, and additives for construction materials. In addition, it offers RF tag related devices and their application systems, which used for railway equipment management, management of high-pressure gas cylinders, and recognition of production lines; LSI cards and reader writers; and GNSS receiver modules. Koatsu Gas Kogyo Co., Ltd. was founded in 1958 and is headquartered in Osaka, Japan.

How the Company Makes Money

Koatsu Gas Kogyo Co., Ltd. generates revenue through the sale of its gas equipment and safety products, which are essential for ensuring safe and efficient gas utilization. The company has established key revenue streams from direct sales to end-users, as well as through partnerships with distributors and contractors in the energy sector. Additionally, Koatsu may engage in service contracts for maintenance and installation, further contributing to its income. The company's reputation for reliability and safety in its products helps sustain customer loyalty and repeat business, which are critical factors in its earnings.

Koatsu Gas Kogyo Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals overall: solid revenue growth (5-year CAGR 4.9%), stable gross margin (~26.6%), improving net margin (4.8%) and EBITDA margin (10.2%). Balance sheet leverage is conservative (debt-to-equity 0.15) with a strong equity ratio (64.2%), though ROE is only moderate (6.1%). Cash generation is healthy with strong cash conversion (operating cash flow to net income 1.34) and positive free cash flow growth despite some variability.

Income Statement

Koatsu Gas Kogyo Co., Ltd. has demonstrated strong revenue growth with a CAGR of 4.9% over the past five years, indicating a positive trend in sales. The gross profit margin has remained relatively stable around 26.6% in 2025. The net profit margin improved to 4.8% in 2025, reflecting effective cost management. EBITDA margin also showed strength at 10.2%. Overall, the company shows strong profitability and growth, though it may face challenges in further margin expansion.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.15 in 2025, indicating conservative leverage. The equity ratio stands at 64.2%, showing a healthy capital structure with a strong equity base. Return on equity, however, is moderate at 6.1%, suggesting potential for improvement in profitability relative to shareholder equity. Overall, the company exhibits stability but could enhance returns on equity.

Cash Flow

Koatsu Gas Kogyo has shown positive free cash flow growth, with an increase from 2024 to 2025. The operating cash flow to net income ratio of 1.34 in 2025 suggests strong cash conversion. There is a slight concern with fluctuating free cash flow, but overall, cash flow management appears effective with sufficient liquidity to cover capital expenditures and support growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	99.61B	98.98B	93.28B	91.47B	82.48B	76.91B
Gross Profit	26.51B	26.32B	25.45B	23.97B	22.81B	21.62B
EBITDA	9.99B	10.07B	9.45B	8.60B	8.61B	7.53B
Net Income	4.58B	4.78B	4.50B	3.94B	4.15B	3.52B
Balance Sheet
Total Assets	122.80B	122.99B	120.18B	107.51B	98.40B	92.41B
Cash, Cash Equivalents and Short-Term Investments	29.48B	29.98B	29.22B	26.26B	23.97B	21.31B
Total Debt	11.65B	11.59B	11.52B	10.07B	5.95B	4.48B
Total Liabilities	41.68B	43.30B	43.73B	38.44B	32.50B	29.00B
Stockholders Equity	80.34B	78.92B	75.72B	68.41B	65.29B	62.81B
Cash Flow
Free Cash Flow	0.00	2.26B	2.60B	-1.29B	1.33B	949.70M
Operating Cash Flow	0.00	6.42B	8.10B	5.65B	5.80B	4.96B
Investing Cash Flow	0.00	-5.09B	-5.79B	-6.67B	-3.82B	-3.58B
Financing Cash Flow	0.00	-1.09B	391.00M	3.23B	583.28M	-988.09M

Koatsu Gas Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1047.00
• 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:4097, the sentiment is Positive. The current price of 1047 is below the 20-day moving average (MA) of 1133.00, below the 50-day MA of 1113.52, and below the 200-day MA of 1055.52, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 42.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4097.

Koatsu Gas Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4097	79 Outperform	¥62.82B	14.80	―	2.88%	3.42%	13.37%
4093	79 Outperform	¥13.98B	11.09	―	3.89%	-3.00%	-29.83%
4041	74 Outperform	¥228.38B	14.98	―	4.09%	1.69%	0.94%
4045	73 Outperform	¥197.65B	15.87	4.41%	3.80%	-1.50%	-32.46%
4091	69 Neutral	¥2.51T	21.98	―	1.11%	2.35%	0.43%
4061	64 Neutral	¥287.14B	-31.24	-4.00%	3.71%	0.24%	-234.36%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Koatsu Gas Kogyo Co., Ltd. Corporate Events

Koatsu Gas Kogyo Posts Softer Nine-Month Profit but Doubles Dividend Forecast

Koatsu Gas Kogyo reported consolidated net sales of ¥73.2 billion for the nine months to Dec. 31, 2025, down 0.9% year on year, with operating profit falling 7.9% to ¥4.3 billion and profit attributable to owners of parent dropping 13.6% to ¥3.4 billion. Despite weaker earnings, total assets rose to ¥125.2 billion and the equity ratio improved to 65.3%, while the company maintained its full-year forecast and signaled shareholder returns with a planned annual dividend of ¥40 per share for the year ending March 31, 2026.

For the current fiscal year, Koatsu Gas Kogyo continues to project net sales of ¥102 billion, up 3%, and operating profit of ¥6.3 billion, with ordinary profit seen rising 6.8% even as full-year profit attributable to owners is expected to decline 5.9%. The uplift in the dividend forecast from ¥20 to ¥40 per share compared with the prior year underscores management’s confidence in its financial base and is likely to be welcomed by shareholders despite the softer interim profit trend.

The most recent analyst rating on (JP:4097) stock is a Hold with a Yen1252.00 price target. To see the full list of analyst forecasts on Koatsu Gas Kogyo Co., Ltd. stock, see the JP:4097 Stock Forecast page.