Kose (4922) AI Stock Analysis

• Market Cap: $334.88B
• Dividend Yield: 2.34%
• Average Volume (3M): 210.54K
• Price to Earnings (P/E): 112.2
• Beta (1Y): 0.52
• Revenue Growth: 2.82%
• EPS Growth: -79.45%
• Country: JP
• Employees: 8,130
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 31.61
• Shares Outstanding: 60,592,540
• 10 Day Avg. Volume: 236,020
• 30 Day Avg. Volume: 210,536
• PEG Ratio: -1.53
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -153.55
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 1.17
• Enterprise Value/Ebitda: 9.34
• 1Y Price Target: $6,384.06
• Price Target Upside: 6.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: ¥6,335.00 ▲(6.01% Upside)

Kose's overall stock score is driven by strong financial stability and positive technical indicators. However, high valuation and declining net profitability weigh down the score. Addressing cash flow challenges and improving net margins are crucial for future growth.

Kose Business Overview & Revenue Model

Company Description

KOSÉ Corporation, together with its subsidiaries, manufactures, markets, and sells cosmetics primarily in Asia, the United States, and internationally. It offers cleansing, facial wash, toner, emulsion, cream, gel/serum, pack mask, lip care, and massage products. The company also provides sunscreen, fragrance, makeup goods, hair products, beauty supplements, and other cosmetics. It offers its cosmetics under the DECORTÉ, JILLSTUART, ADDICTION, INFINITY, Awake, tarte, ALBION, MIYABI, Paul & Joe, IGNIS, Elegance, INFIORE, ANNA SUI, Predia, iMPREA, X-Barrier, ACNEO, ASTALUXE, MAIHADA, LECHÉRI, ESPRIQUE, SEKKISEI, ONE BY KOSÉ, Visée, FASIO, NAILHOLIC, BIOLISS, Magnifique, CLEAR TURN, BIOLISS, Je l'aime, softymo, SUNCUT, MAKE KEEP MIST, and GRACE ONE brands. It offers its products through specialty cosmetic stores, department stores, cosmetics stores, mass retailers, drugstores, convenience stores, and other retail outlets, as well as e-commerce. KOSÉ Corporation was founded in 1946 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kose Corporation generates revenue primarily through the sale of its cosmetics and skincare products. The company's key revenue streams include domestic sales in Japan and international sales across Asia, North America, and Europe. Kose utilizes a multi-channel distribution approach, selling products through department stores, specialty cosmetic shops, and online platforms. Strategic partnerships and collaborations with other brands and retailers also play a significant role in expanding its market reach and driving sales. Additionally, Kose invests in research and development to continuously innovate and enhance its product offerings, which helps maintain its competitive edge in the global beauty industry.

Kose Financial Statement Overview

Summary

Kose shows strong revenue growth and gross profitability with a robust balance sheet and minimal leverage. However, declining net profitability and challenges in free cash flow sustainability are concerns.

Income Statement

Kose experienced a moderate revenue growth of 7.42% from 2023 to 2024, but this was lower compared to its growth in previous years. The gross profit margin for 2024 was 68.95%, indicating strong profitability in production. However, the net profit margin decreased to 2.33% in 2024 from 3.88% in 2023, signaling a decline in net profitability. The EBITDA margin was 9.15%, showing stable operational efficiency, though it has decreased compared to previous periods. Overall, Kose's income statement reflects strong revenue growth and gross profitability, but declining net profitability poses a risk.

Balance Sheet

Kose's balance sheet remains robust with an equity ratio of 71.05% in 2024, indicating strong financial stability and low reliance on debt. The debt-to-equity ratio is very low at 0.04, showing minimal leverage. The return on equity was 2.76% for 2024, indicating a decrease in profitability from equity compared to previous years. Kose's financial position is stable, with excellent equity health and low debt levels, though there's room for improvement in equity returns.

Cash Flow

The cash flow statement shows a significant decline in free cash flow from 2023 to 2024, turning negative at -2.67 billion, reflecting potential issues in cash generation. The operating cash flow to net income ratio is strong at 2.45, indicating good cash generation from operations relative to net income. However, the free cash flow to net income ratio is negative, highlighting potential cash flow challenges. Overall, Kose's cash flow statement indicates strong operational cash flows but highlights concerns over free cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	324.17B	322.76B	300.41B	289.14B	299.98B	279.39B
Gross Profit	223.08B	222.57B	211.20B	205.51B	204.15B	201.92B
EBITDA	28.03B	29.55B	30.10B	38.63B	39.70B	30.68B
Net Income	5.86B	7.51B	11.66B	18.77B	17.79B	11.99B
Balance Sheet
Total Assets	377.27B	383.12B	371.66B	359.60B	320.02B	308.39B
Cash, Cash Equivalents and Short-Term Investments	98.56B	113.97B	132.85B	116.53B	105.28B	103.39B
Total Debt	10.39B	11.22B	10.21B	9.98B	1.42B	8.53B
Total Liabilities	88.67B	92.49B	88.62B	84.25B	65.75B	67.09B
Stockholders Equity	270.38B	272.30B	266.16B	258.99B	238.36B	225.50B
Cash Flow
Free Cash Flow	0.00	-2.67B	24.92B	13.16B	12.99B	12.54B
Operating Cash Flow	0.00	18.38B	30.44B	20.26B	17.80B	23.28B
Investing Cash Flow	0.00	-8.93B	-11.23B	-6.31B	-4.72B	-5.85B
Financing Cash Flow	0.00	-8.68B	-9.68B	-7.31B	-14.30B	-7.36B

Kose Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5976.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4922, the sentiment is Positive. The current price of 5976 is above the 20-day moving average (MA) of 5842.80, above the 50-day MA of 5814.30, and below the 200-day MA of 6101.40, indicating a neutral trend. The MACD of 38.11 indicates Negative momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 42.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4922.

Kose Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4527	76 Outperform	585.27B	16.90	11.92%	1.43%	15.90%	13.60%
4928	70 Outperform	162.41B	21.20	15.26%	4.73%	-1.63%	1.81%
4912	69 Neutral	422.71B	20.63	7.05%	1.85%	1.29%	4.72%
4927	68 Neutral	299.65B	46.62	5.63%	3.87%	-0.89%	-34.14%
4922	62 Neutral	$334.88B	112.20	1.11%	2.34%	2.82%	-79.45%
4911	55 Neutral	1.03T	-793.23	-0.21%	1.95%	-3.60%	-112.93%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Kose Corporate Events

KOSÉ Corporation Reports Decline in Profits Despite Increased Sales

KOSÉ Corporation reported its financial results for the second quarter of fiscal year 2025, showing a slight increase in net sales by 0.9% compared to the previous year. However, there was a significant decline in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 17.7%, 49.1%, and 38.9% respectively. The company’s comprehensive income also dropped by 86.7%. Despite these declines, the equity ratio improved to 73.3%, indicating a stronger financial position. The company maintained its dividend forecast and did not revise its consolidated forecast for the full year of 2025.

The most recent analyst rating on (JP:4922) stock is a Hold with a Yen7000.00 price target. To see the full list of analyst forecasts on Kose stock, see the JP:4922 Stock Forecast page.