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

• Market Cap: ¥2.23B
• Dividend Yield: 1.34%
• Average Volume (3M): 1.38K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.36
• Revenue Growth: -5.28%
• EPS Growth: -45.77%
• Country: JP
• Employees: 137
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 3.50
• Shares Outstanding: 1,000,000
• 10 Day Avg. Volume: 2,090
• 30 Day Avg. Volume: 1,383
• 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: ¥1,914.00
• Price Target Upside: -14.55% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥1,914.00 ▼(-14.55% Downside)

Kawakami Paint Manufacturing Co., Ltd. receives an overall score of 65, reflecting moderate financial health with stable balance sheet metrics, but challenges in cash flow and profitability. The technical analysis indicates strong price momentum, although the overbought RSI suggests caution. Valuation is reasonable, providing a moderate income return through dividends. The lack of recent earnings call data and corporate events means these components were excluded from the score.

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

Company Description

Kawakami Paint Manufacturing Co., Ltd. (4616) is a Japan-based company engaged in the manufacturing and distribution of industrial and architectural paints. The company specializes in a wide range of coatings, including protective coatings, decorative paints, and specialized functional coatings designed to meet the needs of various industries. With an emphasis on innovation and quality, Kawakami Paint Manufacturing Co., Ltd. serves both domestic and international markets, offering products that enhance durability, aesthetics, and environmental performance.

How the Company Makes Money

Kawakami Paint Manufacturing Co., Ltd. generates revenue primarily through the sale of its paint and coating products. The company's revenue streams include direct sales to industrial clients, sales through distributors and retailers for consumer markets, and specialized contracts for custom coating solutions. By continuously investing in research and development, the company is able to offer new and improved products that meet the evolving needs of its customers. Additionally, Kawakami Paint Manufacturing may engage in strategic partnerships with other companies or entities to expand its product offerings and distribution networks, further contributing to its revenue growth.

Kawakami Paint Manufacturing Co., Ltd. Financial Statement Overview

Summary

Kawakami Paint Manufacturing Co., Ltd. demonstrates moderate financial health with a stable balance sheet 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: Positive
• Last Price: 2240.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4616, the sentiment is Positive. The current price of 2240 is above the 20-day moving average (MA) of 2133.90, above the 50-day MA of 2021.00, and above the 200-day MA of 1717.32, indicating a bullish trend. The MACD of 66.95 indicates Negative momentum. The RSI at 68.54 is Neutral, neither overbought nor oversold. The STOCH value of 81.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
4624	77 Outperform	¥5.53B	12.18	―	1.34%	1.47%	17.40%
4625	75 Outperform	¥3.61B	12.88	―	2.57%	0.68%	5.33%
4628	74 Outperform	$137.12B	14.06	5.49%	1.34%	3.44%	-28.70%
4623	73 Outperform	¥6.54B	9.20	―	3.46%	-4.33%	58.53%
4616	65 Neutral	¥2.23B	22.26	―	1.34%	-5.28%	-45.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.36B	20.50	―	―	8.91%	-42.21%