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Kansai Paint Co Ltd (JP:4613)
:4613

Kansai Paint Co (4613) AI Stock Analysis

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JP

Kansai Paint Co

(OTC:4613)

Rating:66Neutral
Price Target:
¥2,220.00
▲(10.70%Upside)
Kansai Paint Co's stock is supported by strong financial performance and attractive valuation with a low P/E ratio and decent dividend yield. However, technical indicators suggest a bearish trend due to the stock trading below major moving averages and negative market momentum.

Kansai Paint Co (4613) vs. iShares MSCI Japan ETF (EWJ)

Kansai Paint Co Business Overview & Revenue Model

Company DescriptionKansai Paint Co., Ltd. (4613) is a leading global manufacturer in the paint and coatings industry. Headquartered in Japan, the company operates across multiple sectors including automotive, industrial, decorative, and protective coatings. Kansai Paint provides a diverse range of high-quality products designed to meet the needs of various industries, emphasizing innovation, sustainability, and customer satisfaction.
How the Company Makes MoneyKansai Paint Co., Ltd. generates revenue primarily through the sale of its paint and coatings products. The company's key revenue streams include automotive coatings, which are supplied to major automobile manufacturers, industrial coatings used in manufacturing and construction, decorative paints for residential and commercial buildings, and protective coatings designed for infrastructure and marine applications. Additionally, Kansai Paint benefits from strategic partnerships and collaborations with companies worldwide, enhancing its market reach and product offerings. The company's focus on research and development allows it to continually innovate and adapt its product lines to meet evolving market demands and environmental regulations.

Kansai Paint Co Financial Statement Overview

Summary
Kansai Paint Co shows strong revenue growth with stable gross margins and healthy EBITDA margins. However, rising debt levels and fluctuating net profit margins present potential risks. The company's ability to generate cash remains robust, though declining free cash flow suggests a need for careful capital management.
Income Statement
75
Positive
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
70
Positive
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
68
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue584.74B588.83B562.28B509.07B419.19B364.62B
Gross Profit183.42B185.71B173.36B137.05B125.01B120.68B
EBITDA90.36B94.16B133.00B51.69B48.11B49.05B
Net Income46.08B38.31B67.11B25.20B26.52B20.03B
Balance Sheet
Total Assets751.31B750.70B689.70B669.46B600.06B606.58B
Cash, Cash Equivalents and Short-Term Investments98.10B109.14B100.80B95.14B68.09B124.45B
Total Debt216.95B218.42B122.56B126.22B73.67B122.92B
Total Liabilities412.10B400.69B309.46B316.44B224.94B267.72B
Stockholders Equity260.73B269.41B309.96B292.91B320.02B286.80B
Cash Flow
Free Cash Flow0.0014.86B47.02B39.12B-313.00M31.33B
Operating Cash Flow0.0034.97B67.08B50.23B15.52B42.65B
Investing Cash Flow0.00-34.89B-9.04B-10.64B-2.09B-507.00M
Financing Cash Flow0.00-12.32B-72.86B-18.30B-64.10B16.83B

Kansai Paint Co Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2005.50
Price Trends
50DMA
2034.39
Negative
100DMA
2094.26
Negative
200DMA
2178.61
Negative
Market Momentum
MACD
-12.06
Negative
RSI
52.68
Neutral
STOCH
58.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4613, the sentiment is Neutral. The current price of 2005.5 is above the 20-day moving average (MA) of 1967.30, below the 50-day MA of 2034.39, and below the 200-day MA of 2178.61, indicating a neutral trend. The MACD of -12.06 indicates Negative momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 58.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4613.

Kansai Paint Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥42.62B8.63
3.87%2.11%25.18%
78
Outperform
¥33.06B3.52
4.20%0.79%104.86%
74
Outperform
$2.79T20.819.03%1.35%10.92%8.62%
73
Outperform
¥5.02B11.56
1.50%2.02%5.55%
70
Neutral
¥174.11B11.046.29%3.52%3.95%5.88%
66
Neutral
$333.57B9.7913.00%2.83%4.72%-30.89%
44
Neutral
¥4.42B20.50
9.52%88.23%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4613
Kansai Paint Co
2,005.50
-489.69
-19.63%
JP:4611
Dai Nippon Toryo Company, Limited
1,207.00
-30.71
-2.48%
JP:4615
Shinto Paint Co., Ltd.
131.00
-3.00
-2.24%
JP:4619
Nihon Tokushu Toryo Co., Ltd.
2,019.00
864.78
74.92%
JP:4624
Isamu Paint Co., Ltd.
3,270.00
-77.13
-2.30%
JP:4612
Nippon Paint Holdings Co
1,189.50
185.92
18.53%

Kansai Paint Co Corporate Events

Kansai Paint Adjusts Conversion Price for Convertible Bonds
Jun 27, 2025

Kansai Paint Co., Ltd. announced an adjustment in the conversion price for its Zero Coupon Convertible Bonds due in 2029 and 2031. This adjustment, effective from April 1, 2025, is due to an extraordinary dividend payment approved at the company’s general meeting, impacting the conversion price and potentially affecting bondholders’ decisions regarding stock acquisition rights.

The most recent analyst rating on (JP:4613) stock is a Hold with a Yen2300.00 price target. To see the full list of analyst forecasts on Kansai Paint Co stock, see the JP:4613 Stock Forecast page.

Kansai Paint Reports Strong Financial Growth and Strategic Expansion
May 12, 2025

Kansai Paint Co., Ltd. announced its consolidated financial results for the fiscal year ended March 31, 2025, reporting a significant increase in net sales and operating income compared to the previous year. The company also revealed plans for dividend payments and noted the addition of 12 new companies to its consolidation scope, indicating strategic expansion efforts. These developments are likely to enhance Kansai Paint’s market position and provide value to its stakeholders.

Kansai Paint Revises Stock-Based Compensation System to Enhance Performance Alignment
May 12, 2025

Kansai Paint Co., Ltd. has announced the continuation and partial revision of its performance-linked, stock-based compensation system for its directors and executive officers. This move aims to align management incentives with the company’s mid-to-long-term performance goals and shareholder value enhancement. The revised system, which includes an Executive Compensation Board Incentive Plan Trust, will be subject to approval at the upcoming General Meeting of Shareholders and is designed to motivate directors to achieve the company’s vision of ‘Enrich Lives with Happiness.’

Kansai Paint Announces Leadership Changes Amid Strategic Corrections
Apr 11, 2025

Kansai Paint Co., Ltd. announced significant changes in its leadership structure, including the resignation of Representative Director and Senior Managing Executive Officer, Nishibayashi Hitoshi, due to health reasons. These changes, effective from April 11, 2025, are part of a broader correction to previously disclosed information, impacting the company’s strategic direction and potentially influencing its market positioning and stakeholder relationships.

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.Date of analysis: May 29, 2025