KEIWA Incorporated (4251) AI Stock Analysis

• Market Cap: ¥25.22B
• Dividend Yield: 2.74%
• Average Volume (3M): 86.33K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.91
• Revenue Growth: 6.23%
• EPS Growth: 82.47%
• Country: JP
• Employees: 419
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 45.11
• Shares Outstanding: 19,285,152
• 10 Day Avg. Volume: 64,300
• 30 Day Avg. Volume: 86,333
• PEG Ratio: 0.17
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 5.22
• 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: ¥1,380.00 ▲(10.22% Upside)

KEIWA Incorporated's strong financial performance and attractive valuation are the primary drivers of its overall stock score. The positive technical indicators further support the stock's potential, although the absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong demand for KEIWA's products and effective market penetration, supporting long-term business expansion and competitive positioning.

Cash Flow Management

The significant improvement in free cash flow highlights KEIWA's effective cash management and operational efficiency, ensuring liquidity and financial flexibility for future investments.

Balance Sheet Health

A strong balance sheet with low leverage enhances KEIWA's financial stability and reduces risk, providing a solid foundation for sustainable growth and investment opportunities.

Negative Factors

EPS Decline

The decline in EPS suggests potential challenges in profitability or cost management, which could impact investor confidence and long-term earnings potential if not addressed.

Liability Increase

An increase in liabilities, if unchecked, could strain KEIWA's financial resources, potentially affecting its ability to invest in growth and maintain financial stability.

Profit Margin Pressure

While current profit margins are strong, any future pressure on margins from rising costs or competitive pricing could impact KEIWA's profitability and market competitiveness.

KEIWA Incorporated Business Overview & Revenue Model

Company Description

KEIWA Incorporated manufactures and sells optical sheets and functional products in Japan. The company provides light diffusion sheets used in backlight units of liquid crystal displays of smartphones; components for special optical films, such as protective films of light collecting films, etc.; and advanced functional films and sheets used for display surface protection in the optical systems, as well as other applications. It also offers industrial packaging materials, industrial processing papers, and clean energy materials, as well as other industrial materials, such as construction and agricultural materials. The company was formerly known as KEIWA Commerce and Industry Co., Ltd. and changed its name to KEIWA Incorporated in 1999. KEIWA Incorporated was founded in 1948 and is headquartered in Tokyo, Japan.

How the Company Makes Money

KEIWA Incorporated generates revenue through multiple streams, primarily from the sale of its electronic components and systems to manufacturers in the telecommunications and consumer electronics industries. The company enters into long-term contracts with major clients, ensuring a steady flow of orders and revenue. Additionally, KEIWA offers services such as technical support and product customization, which contribute to its earnings. Strategic partnerships with leading tech firms and participation in joint ventures further enhance its market reach and profitability, allowing the company to tap into new markets and technologies.

KEIWA Incorporated Financial Statement Overview

Summary

KEIWA Incorporated shows strong financial performance with significant revenue growth, improved profit margins, and robust cash flow management. The company's conservative balance sheet and efficient use of equity further enhance its financial stability.

Income Statement

KEIWA Incorporated has demonstrated robust revenue growth, with a significant increase from ¥17.57 billion in 2023 to ¥21.13 billion in 2024, representing a 20.22% growth rate. Gross profit margin improved to 46.77%, and net profit margin reached 13.20%, indicating strong profitability. The EBIT margin of 22.43% and EBITDA margin of 30.62% further underscore operational efficiency. These metrics highlight the company's solid financial performance and competitive positioning within the industry.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.15, reflecting conservative leverage. The equity ratio stands at 71.72%, indicating strong equity financing. Return on Equity (ROE) is at a respectable 12.15%, showcasing effective use of shareholder funds. While the balance sheet is stable, the slight increase in total liabilities requires monitoring to ensure long-term financial health.

Cash Flow

KEIWA Incorporated reported a remarkable improvement in free cash flow, from a negative ¥0.52 billion in 2023 to a positive ¥3.71 billion in 2024, signifying strong cash flow management. The operating cash flow to net income ratio is 2.12, indicating robust cash generation relative to earnings. The free cash flow to net income ratio of 1.33 further highlights efficient capital expenditure and liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.40B	21.13B	17.57B	21.10B	18.13B	14.74B
Gross Profit	9.86B	9.88B	7.24B	10.19B	7.21B	4.23B
EBITDA	5.62B	5.69B	4.38B	8.26B	4.67B	2.07B
Net Income	1.91B	2.79B	1.98B	4.86B	2.57B	740.82M
Balance Sheet
Total Assets	29.97B	32.01B	29.27B	29.33B	28.77B	17.66B
Cash, Cash Equivalents and Short-Term Investments	9.52B	11.44B	8.65B	10.29B	9.03B	3.99B
Total Debt	2.50B	3.09B	3.89B	4.64B	6.02B	5.19B
Total Liabilities	8.12B	9.05B	8.91B	10.43B	14.62B	10.44B
Stockholders Equity	21.84B	22.96B	20.36B	18.91B	14.15B	7.21B
Cash Flow
Free Cash Flow	0.00	3.71B	-520.21M	2.19B	-457.81M	-445.77M
Operating Cash Flow	0.00	5.92B	2.45B	6.76B	2.18B	1.22B
Investing Cash Flow	0.00	-2.72B	-3.91B	-4.00B	-2.27B	-1.68B
Financing Cash Flow	0.00	-1.35B	-1.55B	-1.68B	4.95B	1.59B

KEIWA Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1252.00
• 50DMA: Positive
• 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:4251, the sentiment is Positive. The current price of 1252 is above the 20-day moving average (MA) of 1241.23, above the 50-day MA of 1184.66, and above the 200-day MA of 1077.32, indicating a bullish trend. The MACD of 32.56 indicates Negative momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 74.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4251.

KEIWA Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.54B	12.89	―	2.89%	6.15%	2.98%
4251	79 Outperform	¥25.22B	7.86	―	2.74%	6.23%	82.47%
6653	77 Outperform	¥31.53B	17.15	―	1.91%	3.14%	11.04%
6848	73 Outperform	¥16.96B	16.53	―	2.59%	1.66%	-12.21%
6853	72 Outperform	¥19.14B	18.58	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥22.98B	10.14	―	2.84%	8.78%	16.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

KEIWA Incorporated Corporate Events

KEIWA Incorporated Announces Increased Dividend for FY2025

KEIWA Incorporated announced an increase in its dividend forecast for FY2025, raising the year-end dividend per share from 35 yen to 40 yen. This decision reflects the company’s commitment to returning profits to shareholders and aligns with its strategy to implement stable dividends based on medium- to long-term earnings outlook and business strategy.

The most recent analyst rating on (JP:4251) stock is a Buy with a Yen1380.00 price target. To see the full list of analyst forecasts on KEIWA Incorporated stock, see the JP:4251 Stock Forecast page.

KEIWA Incorporated’s Strategic Plan to Enhance Corporate Value

KEIWA Incorporated, a company listed on the TSE Prime Market, is focused on achieving sustainable growth and enhancing corporate value. The company has identified issues such as a price-to-book ratio below 1.0 and aims to improve this by implementing a Mid-Term Management Plan targeting a return on equity of 15% or higher. The company attributes its current challenges to high business performance volatility and insufficient disclosure in its core optical products business.

The most recent analyst rating on (JP:4251) stock is a Buy with a Yen1380.00 price target. To see the full list of analyst forecasts on KEIWA Incorporated stock, see the JP:4251 Stock Forecast page.

KEIWA Incorporated Expands Global Presence with New Overseas Bases

KEIWA Incorporated has announced plans to establish new overseas bases in Vietnam, Germany, and the USA as part of its Mid-Term Management Plan (FY2025-FY2028). The expansion aims to strengthen its management foundation and enhance its global network, particularly in the mobility-related business sector. The impact on the company’s consolidated financial results is expected to be negligible.

The most recent analyst rating on (JP:4251) stock is a Buy with a Yen1380.00 price target. To see the full list of analyst forecasts on KEIWA Incorporated stock, see the JP:4251 Stock Forecast page.

KEIWA Incorporated Reports Increased Profitability Amidst Stable Financial Position

KEIWA Incorporated reported a modest increase in net sales by 1.4% for the nine months ending September 30, 2025, compared to the same period in 2024. Despite a slight decline in ordinary income, the company saw a significant rise in profit attributable to owners of the parent by 31.7%, indicating improved profitability. The financial position remains robust with a high equity ratio of 76.2%, although total assets have decreased slightly. The company maintains its dividend forecast, reflecting stability in shareholder returns.

The most recent analyst rating on (JP:4251) stock is a Buy with a Yen1380.00 price target. To see the full list of analyst forecasts on KEIWA Incorporated stock, see the JP:4251 Stock Forecast page.