Kansai Paint Co (4613) AI Stock Analysis

• Market Cap: ¥463.07B
• Dividend Yield: 3.38%
• Average Volume (3M): 678.41K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.47
• Revenue Growth: 0.29%
• EPS Growth: 27.84%
• Country: JP
• Employees: 16,844
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 78.33
• Shares Outstanding: 177,976,270
• 10 Day Avg. Volume: 641,210
• 30 Day Avg. Volume: 678,409
• PEG Ratio: -0.33
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 27.24
• 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: 68 Neutral
• Price Target: ¥2,974.00 ▲(19.03% Upside)
• Action: Downgraded Date: 08/13/25
• Date: Action: Downgraded 08/13/25

Kansai Paint Co's strong financial performance and attractive valuation are key strengths, supported by robust revenue growth and a reasonable P/E ratio. However, technical indicators suggest caution due to overbought conditions, which could lead to short-term volatility. The absence of recent earnings call data and corporate events limits additional insights.

Positive Factors

Sustained Revenue Growth

Multi-year revenue expansion to ¥588.8bn demonstrates durable demand and successful market penetration across segments. That scale supports fixed-cost absorption, ongoing R&D and capacity investment, and improves bargaining leverage with suppliers—strengthening long-term competitive positioning.

Stable Gross Margins

Consistent ~30-31% gross margins signal sustained pricing power and cost management in formulations and manufacturing. Stable unit margins imply the company can preserve profitability through raw material cycles and fund customer service, product innovation, and margin-accretive specialty coatings.

Diversified End Markets & Services

Broad exposure across automotive OEM/refinish, industrial, decorative and protective coatings plus technical/color services reduces revenue cyclicality and raises customer stickiness. Technical support and color development foster long-term OEM and distributor relationships, enhancing recurring revenue.

Negative Factors

Rising Financial Leverage

Higher total debt and a rising debt-to-equity ratio increase interest and refinancing risk, limiting financial flexibility. In a downturn or with raw-material cost shocks, leverage could constrain capacity to invest, pursue M&A, or sustain dividends without raising expensive capital.

Material Drop in Free Cash Flow

A steep FCF decline cuts available internal funding for debt reduction, capex, and shareholder returns. Persistently lower free cash flow increases reliance on external financing for strategic investments and weakens the buffer against cyclical slowdowns or unexpected working-capital needs.

Compressing Net Profitability

A sharp fall in net margin alongside declining EPS reflects pressure on bottom-line conversion of sales, possibly from cost inflation, pricing pressure, or one-offs. Reduced net profitability weakens ROE and cash returns, limiting reinvestment and shareholder value creation over the medium term.

Kansai Paint Co Business Overview & Revenue Model

Company Description

Kansai Paint Co., Ltd. manufactures and sells paints in Japan, India, Asia, Africa, Europe, and internationally. The company offers decorative coatings for protecting exterior and interior of buildings; protective coatings; automotive refinish paints; automotive coatings; industrial coatings that are used in construction machinery, industrial vehicles, steel furniture, external building materials, electronics, and internal coatings and external designs of beverage cans; and marine and protective coatings. It also designs, manufactures, and sells coating equipment; controls and undertakes painting works; and designs color schemes. Kansai Paint Co., Ltd. was founded in 1918 and is headquartered in Osaka, Japan.

How the Company Makes Money

Kansai Paint generates revenue primarily through the sale of its wide array of coatings and paints across multiple sectors. The company's revenue model is built on manufacturing and distributing high-quality paint products, which are sold to both businesses and consumers. Key revenue streams include automotive refinishing, where the company supplies coatings to automotive manufacturers and repair shops, and architectural coatings for residential and commercial properties. Additionally, Kansai Paint has established significant partnerships with various construction and automotive companies, enhancing its market position and sales volume. The company also invests in research and development to innovate its product offerings, which helps maintain its competitive edge and drive revenue growth.

Kansai Paint Co Financial Statement Overview

Summary

Kansai Paint Co demonstrates strong revenue growth and operational efficiency, with consistent gross margins and healthy EBITDA margins. However, rising debt levels and fluctuating net profit margins present potential risks. The company's cash generation is robust, but declining free cash flow suggests a need for careful capital management.

Income Statement

Kansai Paint Co has demonstrated a strong revenue growth rate over the years, increasing from 364.62 billion JPY in 2021 to 588.83 billion JPY in 2025. The gross profit margin has been consistent, averaging around 30-31%, indicating stable cost management. However, the net profit margin has fluctuated, with a notable decrease in 2025 to 6.5% from 11.9% in 2024, suggesting pressure on net income despite revenue growth. EBITDA margin remains healthy, showing operational efficiency.

Balance Sheet

The company's balance sheet shows a significant increase in total assets, reaching 750.70 billion JPY in 2025. The debt-to-equity ratio has risen due to increased total debt, indicating higher financial leverage. Despite this, the equity ratio remains stable at around 35-40%, suggesting a balanced capital structure. The return on equity has decreased slightly, reflecting the impact of lower net income on shareholders' return.

Cash Flow

Kansai Paint Co's cash flow from operations has been positive, but free cash flow has decreased significantly from 47.02 billion JPY in 2024 to 14.86 billion JPY in 2025. The operating cash flow to net income ratio shows strong cash generation relative to net income, although the free cash flow to net income ratio has weakened, indicating reduced cash available after capital expenditures. This highlights potential challenges in maintaining liquidity amidst capital investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	588.11B	588.83B	562.28B	509.07B	419.19B	364.62B
Gross Profit	185.40B	185.71B	173.36B	137.05B	125.01B	120.68B
EBITDA	74.81B	94.16B	133.00B	64.41B	48.11B	60.23B
Net Income	34.91B	38.31B	67.11B	25.20B	26.52B	20.03B
Balance Sheet
Total Assets	744.94B	750.70B	689.70B	669.46B	600.06B	606.58B
Cash, Cash Equivalents and Short-Term Investments	102.19B	109.14B	100.80B	95.14B	68.09B	124.45B
Total Debt	213.42B	218.42B	122.56B	126.22B	73.67B	122.92B
Total Liabilities	409.46B	400.69B	309.46B	318.94B	224.94B	267.72B
Stockholders Equity	260.45B	269.41B	309.96B	292.91B	320.02B	286.80B
Cash Flow
Free Cash Flow	0.00	14.86B	47.02B	39.12B	-313.00M	31.33B
Operating Cash Flow	0.00	34.97B	67.08B	50.23B	15.52B	42.65B
Investing Cash Flow	0.00	-34.89B	-9.04B	-10.64B	-2.09B	-507.00M
Financing Cash Flow	0.00	-12.32B	-72.86B	-18.30B	-64.10B	16.83B

Kansai Paint Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2498.50
• 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:4613, the sentiment is Positive. The current price of 2498.5 is below the 20-day moving average (MA) of 2628.47, below the 50-day MA of 2542.97, and above the 200-day MA of 2318.90, indicating a bullish trend. The MACD of 67.67 indicates Negative momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 70.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4613.

Kansai Paint Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4403	75 Outperform	¥706.52B	20.15	12.15%	1.58%	2.62%	2.81%
4628	74 Outperform	¥170.18B	14.61	6.87%	1.11%	2.88%	16.60%
4611	74 Outperform	¥41.39B	5.38	―	3.70%	14.83%	51.42%
4612	69 Neutral	¥2.91T	16.16	10.44%	1.52%	9.81%	32.64%
4613	68 Neutral	¥463.07B	13.68	13.71%	3.38%	0.29%	27.84%
4631	65 Neutral	¥402.95B	12.46	8.14%	2.61%	-1.45%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Kansai Paint Co Corporate Events

Kansai Paint Holds Earnings Steady as Sales Dip, Affirms Higher Dividend for FY2025

Kansai Paint reported consolidated net sales of ¥442.4 billion for the nine months to December 31, 2025, a slight 0.5% decline year-on-year, while operating profit was broadly flat at ¥39.0 billion and ordinary profit rose 8.6% to ¥45.4 billion. Profit attributable to owners of parent fell 8.9% to ¥30.0 billion despite stable earnings per share, as comprehensive income decreased and net assets and the equity ratio edged higher amid continued share buybacks.

The company kept its full-year forecast unchanged, projecting marginally higher net sales of ¥590.0 billion and ordinary profit growth of 12.0%, but expects operating profit and bottom-line profit to decline versus the prior year. Kansai Paint also maintained its dividend guidance, targeting a sharp year-on-year increase to a total annual dividend of ¥110 per share for the fiscal year ending March 31, 2026, signaling continued shareholder returns despite softer profit outlook.

Total assets rose to ¥786.3 billion and equity improved to ¥285.8 billion, lifting the equity-to-asset ratio to 36.4% and underscoring a slightly stronger balance sheet. The number of shares outstanding declined compared with the previous year due to higher treasury stock, which supported basic earnings per share even as aggregate profit softened, an outcome that may be welcomed by existing shareholders but points to limited underlying growth in core operations.

The most recent analyst rating on (JP:4613) stock is a Hold with a Yen2871.00 price target. To see the full list of analyst forecasts on Kansai Paint Co stock, see the JP:4613 Stock Forecast page.