Kao Corp. (JP:4452)
:4452
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Kao
(4452)
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Rating:70Outperform
Price Target:
¥7,182.00
▲(14.56% Upside)
Action:UpgradedDate:02/07/26
The score is driven primarily by improving profitability and returns alongside steady cash generation, supporting a solid financial backdrop. Technicals remain constructive with the stock above major moving averages, but overbought RSI/Stoch readings temper the outlook. Valuation is a mild headwind given the ~25x P/E, with the ~2.36% dividend providing only partial support.
Positive Factors
Revenue Growth
Consistent revenue growth indicates Kao's ability to maintain market demand and expand its consumer base, supporting long-term business sustainability.
Negative Factors
Free Cash Flow Decline
Declining free cash flow growth may limit Kao's ability to reinvest in business expansion and innovation, potentially impacting future growth prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue growth indicates Kao's ability to maintain market demand and expand its consumer base, supporting long-term business sustainability.
Read all positive factors
Kao (4452) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.72T
Dividend Yield2.41%
Average Volume (3M)1.47M
Price to Earnings (P/E)24.1
Beta (1Y)0.24
Revenue Growth4.62%
EPS Growth47.68%
CountryJP
Employees32,566
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)77.66
Shares Outstanding453,600,000
10 Day Avg. Volume1,645,420
30 Day Avg. Volume1,466,456
Financial Highlights & Ratios
PEG Ratio1.97
Price to Book (P/B)2.71
Price to Sales (P/S)1.71
P/FCF Ratio20.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥7,761.43Price Target Upside23.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)297.12
Revenue Forecast (FY)¥1.76T
Kao Business Overview & Revenue Model
Company Description
Kao Corporation develops and sells cosmetic, skin/hair care, human health care, fabric and home care, and chemical products. It operates through five segments: Hygiene and Living Care Business, Health and Beauty Care Business, Life Care Business, ...
How the Company Makes Money
Kao generates revenue through multiple key streams, primarily from the sale of its consumer products across various categories. The Beauty Care segment, which includes cosmetics, skincare, and haircare products, contributes significantly to its ea...
Kao Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong growth in sales and operating income, improvements in key business segments, and effective cost management. However, challenges such as overseas market competition, U.S. tariffs, and raw material price increases introduce some risk factors.Positive Updates
Strong Sales and Operating Income Growth
Net sales increased by 6.6% to ¥389.9 billion, with operating income reaching ¥31.2 billion. Operating margin improved significantly to 8%.
Negative Updates
Challenges in Overseas Markets
Overseas sales fell by 1.9%, with issues arising from intensified competition in the Americas and Europe.
Read all updates
Q1-2025 Updates
Positive
Negative
Strong Sales and Operating Income Growth
Net sales increased by 6.6% to ¥389.9 billion, with operating income reaching ¥31.2 billion. Operating margin improved significantly to 8%.
Read all positive updates
Company Guidance
In the first quarter of fiscal year 2025, the company demonstrated solid progress toward its K27 target by achieving both sales growth and an increase in operating margin. Net sales increased by 6.6% to ¥389.9 billion, with a 6% rise on a like-for-like basis, excluding currency impacts. The operating income reached ¥31.2 billion, marking a significant improvement in operating margin to 8%, while net income attributable to owners of the parent rose by 38.7% to ¥22.8 billion. Earnings per share saw a substantial increase of 38.9% year-on-year, reaching ¥49.19. The growth margin improved by 0.5 percentage points to 38%. The company's GC business, excluding the beverage segment, achieved a 4% increase in net sales, with operating income rising significantly by ¥8.2 billion to ¥22.8 billion, improving the operating margin by 2.6 points to 7.9%. The cosmetics segment made notable progress, achieving an increase of ¥4.2 billion in operating income, while the operating margin improved by 4.4 points in the sanitary products segment. Despite challenges from U.S. tariff policy, the company expects the impact to be limited, maintaining its fiscal year 2025 earnings forecast.Kao Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
76
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.69T | 1.63T | 1.53T | 1.55T | 1.42T |
| Gross Profit | 640.98B | 638.40B | 560.43B | 548.34B | 573.19B |
| EBITDA | 256.11B | 233.44B | 189.81B | 203.47B | 240.08B |
| Net Income | 120.08B | 107.77B | 43.87B | 86.04B | 109.64B |
Balance Sheet | |||||
| Total Assets | 1.88T | 1.87T | 1.77T | 1.73T | 1.70T |
| Cash, Cash Equivalents and Short-Term Investments | 323.28B | 357.71B | 291.66B | 268.25B | 336.07B |
| Total Debt | 243.14B | 245.33B | 261.07B | 262.89B | 268.68B |
| Total Liabilities | 780.35B | 768.40B | 757.70B | 730.97B | 720.13B |
| Stockholders Equity | 1.06T | 1.07T | 983.66B | 972.06B | 965.14B |
Cash Flow | |||||
| Free Cash Flow | 138.47B | 144.18B | 148.31B | 65.39B | 115.57B |
| Operating Cash Flow | 199.68B | 201.59B | 202.48B | 130.91B | 175.52B |
| Investing Cash Flow | -69.77B | -45.90B | -109.30B | -74.91B | -67.23B |
| Financing Cash Flow | -175.13B | -104.58B | -79.98B | -139.31B | -141.57B |
Kao Technical Analysis
Negative
6269.00
Price Trends
6353.82
Negative
6330.81
Negative
6423.97
Negative
Market Momentum
-103.40
Positive
34.13
Neutral
5.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4452, the sentiment is Negative. The current price of 6269 is below the 20-day moving average (MA) of 6326.40, below the 50-day MA of 6353.82, and below the 200-day MA of 6423.97, indicating a bearish trend. The MACD of -103.40 indicates Positive momentum. The RSI at 34.13 is Neutral, neither overbought nor oversold. The STOCH value of 5.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4452.
Kao Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥1.66T | 23.99 | 10.79% | 3.47% | -1.56% | -1.15% | |
76 Outperform | ¥433.02B | 16.53 | 9.09% | 1.73% | 2.18% | 60.81% | |
71 Outperform | ¥544.30B | 13.97 | 12.66% | 1.53% | 18.35% | 31.87% | |
70 Outperform | ¥2.72T | 24.05 | 11.50% | 2.41% | 4.62% | 47.68% | |
69 Neutral | ¥331.52B | 19.79 | 2.72% | 2.61% | 1.37% | -5.60% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | ¥1.17T | -22.37 | ― | 2.11% | -1.20% | -2896.72% |
* Consumer Defensive Sector Average
JP:4452
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Kao Corporate Events
Kao Announces FY2025 Results and Issues FY2026 Forecast with Revised Segment Reporting
Feb 5, 2026
Kao Corporation released its consolidated financial results for the year ended December 31, 2025 and provided a forecast for fiscal 2026, emphasizing like-for-like net sales growth metrics and restated segment data to reflect organizational change...
Kao Lifts Profit and Dividend, Announces Share Split and Upbeat 2026 Outlook
Feb 5, 2026
Kao Corporation reported solid results for the fiscal year ended December 31, 2025, with net sales rising 3.7% year on year to ¥1.69 trillion and operating income up 11.9% to ¥164.1 billion, while net income attributable to owners of the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.