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

• Market Cap: ¥56.81B
• Dividend Yield: 2.88%
• Average Volume (3M): 37.00K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.78
• Revenue Growth: 3.42%
• EPS Growth: 13.37%
• Country: JP
• Employees: 1,896
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 16.84
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,140.00 ▲(9.30% Upside)

Koatsu Gas Kogyo Co., Ltd. has a strong financial foundation with consistent growth and effective cash flow management, which are the most significant factors contributing to the score. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical analysis indicates some caution due to mixed signals, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for the company's products and services, supporting long-term business expansion and stability.

Financial Stability

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and resilience against economic downturns.

Cash Flow Management

Effective cash flow management ensures sufficient liquidity to support capital expenditures and growth initiatives, sustaining long-term operational health.

Negative Factors

Return on Equity

Moderate return on equity indicates that the company may not be fully optimizing its equity base, potentially limiting shareholder value creation over time.

Earnings Growth

Negative EPS growth reflects challenges in increasing profitability, which could impact investor confidence and the company's ability to reinvest in growth opportunities.

Margin Expansion

Stable margins suggest limited ability to expand profitability through cost efficiencies or pricing power, potentially constraining future profit growth.

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

Koatsu Gas Kogyo Co., Ltd. demonstrates strong financial performance with consistent revenue growth and stable margins. The company maintains a robust balance sheet with conservative leverage and a strong equity base. Cash flow management is effective, providing liquidity for future investments. However, there is room for improvement in return on equity and maintaining cash flow stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 1043.00
• 50DMA: Positive
• 100DMA: Negative
• 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 1043 is above the 20-day moving average (MA) of 1042.80, above the 50-day MA of 1037.32, and above the 200-day MA of 1002.05, indicating a bullish trend. The MACD of -2.02 indicates Positive momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 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
4093	77 Outperform	¥12.58B	11.32	―	3.89%	-3.00%	-29.83%
4368	76 Outperform	¥228.38B	17.56	―	1.23%	8.80%	33.39%
4097	74 Outperform	¥56.81B	11.81	―	2.88%	3.42%	13.37%
4041	74 Outperform	¥202.41B	13.04	―	4.09%	1.69%	0.94%
4025	66 Neutral	¥34.31B	11.94	―	0.12%	9.78%	40.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4360	46 Neutral	¥5.57B	-17.87	―	1.93%	13.64%	-151.98%

Koatsu Gas Kogyo Co., Ltd. Corporate Events

Koatsu Gas Kogyo Reports Steady Financial Growth Amidst Market Challenges

Koatsu Gas Kogyo Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in net sales by 0.5% compared to the previous year. Despite a decrease in operating profit by 1.5%, the company saw a 9.1% rise in ordinary profit and a 4.5% increase in profit attributable to owners of the parent. The company’s comprehensive income also saw a significant boost of 56.3%. The financial position remains strong with a slight increase in total assets and net assets, and the equity-to-asset ratio improved to 66.4%. The company announced an increase in annual dividends per share, reflecting confidence in its financial stability and commitment to shareholder returns.