Kose (4922) AI Stock Analysis

• Market Cap: ¥304.42B
• Dividend Yield: 2.61%
• Average Volume (3M): 501.01K
• Price to Earnings (P/E): 40.9
• Beta (1Y): 0.52
• Revenue Growth: 1.37%
• EPS Growth: -5.60%
• Country: JP
• Employees: 8,130
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 40.14
• Shares Outstanding: 60,592,540
• 10 Day Avg. Volume: 1,058,140
• 30 Day Avg. Volume: 501,006
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥7,138.61
• Price Target Upside: 33.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥5,236.00 ▼(-2.42% Downside)

Kose's overall stock score is primarily influenced by its strong financial stability and robust balance sheet, despite challenges in net profitability and cash flow. Technical indicators reflect bearish momentum, and the high P/E ratio suggests potential overvaluation. The dividend yield offers some compensation for investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market presence and product demand, supporting long-term business expansion prospects.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability and provides flexibility for strategic investments and growth.

Operational Cash Flow

Strong operational cash flow relative to net income indicates efficient cash generation, supporting sustainable business operations.

Negative Factors

Net Profitability Decline

Declining net profitability can impact long-term earnings potential and shareholder returns, posing a risk to financial health.

Free Cash Flow Challenges

Negative free cash flow indicates potential issues in cash generation, which could limit investment capacity and financial flexibility.

Return on Equity

Low return on equity suggests inefficiencies in generating profits from shareholder investments, potentially affecting investor confidence.

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 generates revenue through multiple streams, primarily by selling its beauty and skincare products through various distribution channels, including department stores, drugstores, and online platforms. The company's strong brand recognition and wide product range allow it to capture a diverse customer base, contributing significantly to its sales. Additionally, Kose engages in strategic partnerships with retailers and distributors to expand its market reach and enhance its product visibility. The company also invests in research and development to innovate new products and improve existing ones, thus driving consumer interest and sales. Revenue is further bolstered by seasonal promotions and marketing campaigns that enhance brand appeal and drive purchases.

Kose Financial Statement Overview

Summary

Kose shows strong revenue growth and gross profitability, supported by a robust balance sheet with minimal leverage. However, declining net profitability and negative free cash flow pose risks. The company is financially stable with low debt, but improving net margins and addressing cash flow issues are crucial for long-term growth.

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	324.15B	322.76B	300.41B	289.14B	299.98B	279.39B
Gross Profit	221.31B	222.57B	211.20B	205.51B	204.15B	201.92B
EBITDA	25.91B	29.55B	30.10B	38.63B	39.70B	30.68B
Net Income	3.00B	7.51B	11.66B	18.77B	17.79B	11.99B
Balance Sheet
Total Assets	368.34B	383.12B	371.66B	359.60B	320.02B	308.39B
Cash, Cash Equivalents and Short-Term Investments	91.35B	113.97B	132.85B	116.53B	105.28B	103.39B
Total Debt	10.10B	11.22B	10.21B	9.98B	1.42B	8.53B
Total Liabilities	78.22B	92.49B	88.62B	84.25B	65.75B	67.09B
Stockholders Equity	270.14B	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: 5366.00
• 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:4922, the sentiment is Positive. The current price of 5366 is above the 20-day moving average (MA) of 5261.65, below the 50-day MA of 5493.40, and below the 200-day MA of 5780.35, indicating a neutral trend. The MACD of -9.63 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 49.85 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
4928	76 Outperform	¥156.78B	19.57	―	5.00%	1.41%	0.75%
4912	76 Outperform	¥454.19B	15.82	9.77%	1.73%	2.18%	60.81%
4527	71 Outperform	¥607.68B	17.05	13.22%	1.53%	18.35%	31.87%
4927	68 Neutral	¥291.14B	29.37	6.05%	3.92%	-1.16%	36.30%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4922	57 Neutral	¥304.42B	40.91	2.72%	2.61%	1.37%	-5.60%
4911	49 Neutral	¥942.79B	-17.07	―	2.12%	-1.20%	-2896.72%

Kose Corporate Events

KOSÉ Corporation Reports Q3 2025 Financial Results with Mixed Performance

KOSÉ Corporation reported its financial results for the third quarter of fiscal year 2025, noting a slight increase in net sales by 0.7% compared to the previous year. However, the company experienced a significant decrease in operating profit by 27.8% and ordinary profit by 34.5%, which may impact its market positioning and stakeholder confidence. Despite these challenges, the company maintains its dividend forecast and anticipates a full-year net sales increase of 4.1%.

KOSÉ Corporation to Transition to Holding Company Structure with Leadership Changes

KOSÉ Corporation announced plans to transition to a pure holding company structure, renaming itself KOSÉ Holdings Corporation by January 1, 2026. This strategic move aims to enhance its management framework and global operations, with Koichi Shibusawa appointed as the new President to drive growth and corporate value. The transition reflects KOSÉ’s commitment to its long-term vision for sustained growth and increased corporate value, with changes in leadership roles to support these objectives.