Kawakami Paint Manufacturing Co., Ltd. (4616) AI Stock Analysis

• Market Cap: ¥2.17B
• Dividend Yield: 2.08%
• Average Volume (3M): 3.77K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.35
• Revenue Growth: -2.27%
• EPS Growth: -12.76%
• Country: JP
• Employees: 137
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 30.57
• Shares Outstanding: 1,000,000
• 10 Day Avg. Volume: 7,060
• 30 Day Avg. Volume: 3,766
• PEG Ratio: -0.56
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -12.09
• 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: 71 Outperform
• Price Target: ¥2,599.00 ▲(24.77% Upside)

The overall stock score of 71 reflects strong technical momentum as the most significant factor, supported by moderate financial performance and valuation. The stock's price is showing strong upward trends, but financial challenges in profitability and cash flow generation suggest caution. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a good balance between debt and equity indicates financial resilience, supporting long-term stability and growth.

Product Innovation

Continuous investment in R&D ensures the company remains competitive by meeting market demands, driving future profitability and market share.

Strategic Partnerships

Strategic alliances enhance sales volumes and foster long-term contracts, contributing to stable revenue growth and market positioning.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash generation after capital expenditures, potentially leading to liquidity pressures if persistent.

Declining Profitability

A decline in profitability margins suggests operational inefficiencies, which could impact the company's ability to sustain earnings growth.

Revenue Decline

Revenue decline indicates potential challenges in market demand or competitive pressures, affecting long-term growth prospects.

Kawakami Paint Manufacturing Co., Ltd. Business Overview & Revenue Model

Company Description

Kawakami Paint Manufacturing Co., Ltd. (4616) is a prominent player in the coatings industry, specializing in the production of high-quality paints and coatings for various applications. The company operates primarily in the manufacturing sector, delivering innovative products that cater to both industrial and consumer markets. Kawakami Paint offers a diverse range of coatings, including architectural paints, automotive coatings, and industrial finishes, which are known for their durability and performance.

How the Company Makes Money

Kawakami Paint Manufacturing Co., Ltd. generates revenue through the sale of its paint and coating products across multiple sectors. The primary revenue streams include direct sales to distributors, retailers, and large industrial clients. The company capitalizes on its reputation for high-quality products, which allows it to command premium pricing in the market. Additionally, Kawakami Paint often engages in partnerships with construction companies and automotive manufacturers, providing customized coatings tailored to specific needs. These strategic alliances not only enhance sales volumes but also foster long-term contracts that contribute to stable revenue growth. The company also invests in research and development to innovate and improve its product offerings, ensuring it meets market demands and remains competitive, thus driving further profitability.

Kawakami Paint Manufacturing Co., Ltd. Financial Statement Overview

Summary

The company demonstrates moderate financial health with stable balance sheet metrics but faces challenges in profitability and cash flow generation. Revenue decline and lower profitability margins suggest potential areas for operational improvements. The balance sheet remains sound, but cash flow management needs attention to support long-term growth.

Income Statement

The company's revenue has shown some volatility with a recent decline in 2024. Gross profit margin has improved slightly, but net profit margin decreased from 3.3% in 2023 to 2.9% in 2024. EBIT margin also saw a decline from 3.1% to 1.6%, and EBITDA margin improved slightly. Overall, the income statement reflects moderate financial health with room for improvement in profitability and margin expansion.

Balance Sheet

The company's balance sheet shows a stable equity ratio of around 38%, indicating a good balance between debt and equity. Debt-to-equity ratio stands at 0.59, reflecting a manageable level of leverage. Return on equity decreased from 6.6% in 2023 to 5.3% in 2024, indicating a slight decline in profitability. Overall, the balance sheet is stable with a sound capital structure.

Cash Flow

Free cash flow has turned negative in 2024, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is negative due to significant capital expenditures. This suggests potential liquidity pressures if negative free cash flow persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.80B	5.91B	6.14B	5.63B	5.31B	4.88B
Gross Profit	952.71M	1.05B	1.10B	1.08B	1.03B	803.57M
EBITDA	294.33M	375.25M	362.13M	343.99M	359.22M	156.58M
Net Income	100.34M	170.58M	203.00M	162.21M	146.16M	-2.51M
Balance Sheet
Total Assets	8.46B	8.46B	8.34B	8.00B	7.65B	7.06B
Cash, Cash Equivalents and Short-Term Investments	2.16B	1.91B	1.90B	2.04B	2.02B	1.67B
Total Debt	2.12B	1.91B	1.86B	1.89B	1.99B	2.00B
Total Liabilities	5.31B	5.24B	5.29B	5.28B	5.12B	4.69B
Stockholders Equity	3.16B	3.22B	3.06B	2.72B	2.53B	2.37B
Cash Flow
Free Cash Flow	0.00	-125.60M	-78.87M	139.36M	402.16M	18.38M
Operating Cash Flow	0.00	139.53M	165.67M	206.13M	447.29M	190.59M
Investing Cash Flow	0.00	-148.76M	-242.76M	-66.87M	-45.54M	-172.48M
Financing Cash Flow	0.00	20.49M	-62.70M	-121.80M	-44.91M	-66.49M

Kawakami Paint Manufacturing Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2083.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4616, the sentiment is Negative. The current price of 2083 is below the 20-day moving average (MA) of 2292.31, below the 50-day MA of 2184.27, and above the 200-day MA of 1806.61, indicating a neutral trend. The MACD of 43.41 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 27.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4616.

Kawakami Paint Manufacturing Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4625	78 Outperform	¥3.61B	12.88	―	2.47%	1.79%	31.63%
4628	74 Outperform	$146.11B	11.33	6.87%	1.30%	2.88%	16.60%
4623	72 Outperform	¥6.55B	9.21	―	3.49%	-8.27%	-3.23%
4616	71 Outperform	¥2.17B	18.09	―	2.08%	-2.27%	-12.76%
4624	66 Neutral	¥5.25B	11.57	―	1.43%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	-16.66	―	―	8.66%	-239.07%