Kansai Paint Co (4613) AI Stock Analysis

• Market Cap: $335.09B
• Dividend Yield: 2.82%
• Average Volume (3M): 736.71K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.50
• Revenue Growth: 4.72%
• EPS Growth: -30.40%
• Country: JP
• Employees: 16,844
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 31.89
• Shares Outstanding: 177,976,270
• 10 Day Avg. Volume: 728,100
• 30 Day Avg. Volume: 736,710
• PEG Ratio: 12.79
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.01
• 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: $2,545.11
• Price Target Upside: 28.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: ¥2,220.00 ▲(11.78%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 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 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

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 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
584.74B	588.83B	562.28B	509.07B	419.19B	364.62B
	Gross Profit
183.42B	185.71B	173.36B	137.05B	125.01B	120.68B
	EBIT
49.45B	52.05B	51.59B	32.08B	30.10B	31.23B
	EBITDA
90.36B	94.16B	133.00B	51.69B	48.11B	49.05B
	Net Income Common Stockholders
46.08B	38.31B	67.11B	25.20B	26.52B	20.03B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.10B	109.14B	100.80B	95.14B	68.09B	124.45B
	Total Assets
751.31B	750.70B	689.70B	669.46B	600.06B	606.58B
	Total Debt
216.95B	218.42B	122.56B	126.22B	73.67B	122.92B
	Net Debt
150.84B	141.76B	45.97B	39.25B	8.99B	8.63B
	Total Liabilities
412.10B	400.69B	309.46B	316.44B	224.94B	267.72B
	Stockholders Equity
260.73B	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: Negative
• Last Price: 1986.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1986 is below the 20-day moving average (MA) of 2038.08, below the 50-day MA of 2087.86, and below the 200-day MA of 2233.36, indicating a bearish trend. The MACD of -26.27 indicates Negative momentum. The RSI at 39.02 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4613.

Kansai Paint Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4613	66 Neutral	$335.09B	9.83	13.00%	2.82%	4.72%	-30.40%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%
NPCPF		$17.94B	20.54	9.03%	<0.01%	―	―
4619	81 Outperform	¥38.69B	7.84		4.27%	2.11%	25.18%
4624	75 Outperform	¥4.93B	11.37		1.53%	2.02%	5.55%
4611	73 Outperform	¥32.64B	3.48		4.25%	0.79%	104.91%
4615	46 Neutral	¥4.49B	20.50		―	9.52%	88.23%

Kansai Paint Co Corporate Events

Kansai Paint Reports Strong Financial Growth and Strategic Expansion

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

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

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.

Kansai Paint Completes Share Cancellation to Optimize Capital Structure

Kansai Paint Co., Ltd. has completed the cancellation of 8,962,690 of its own common shares, amounting to 4.79% of its total issued shares, as per the decision made in a management meeting. This move is likely to impact the company’s share value and market positioning by potentially increasing shareholder value and optimizing its capital structure.

Kansai Paint to Cancel 4.79% of Issued Shares to Boost Shareholder Value

Kansai Paint Co., Ltd. has announced the cancellation of 8,962,690 of its own common shares, representing 4.79% of the total issued shares before cancellation, as part of a strategy to increase capital efficiency and enhance shareholder returns. This move, effective March 31, 2025, is expected to positively impact the company’s financial structure and provide greater value to its shareholders.