Kuramoto Co., Ltd. (5216) AI Stock Analysis

• Market Cap: ¥8.58B
• Dividend Yield: N/A
• Average Volume (3M): 494.52K
• Price to Earnings (P/E): 299.0
• Beta (1Y): 0.87
• Revenue Growth: 105.28%
• EPS Growth: 40.52%
• Country: JP
• Employees: 72
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -4.09
• Shares Outstanding: 47,998,573
• 10 Day Avg. Volume: 375,790
• 30 Day Avg. Volume: 494,523
• PEG Ratio: -2.89
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 6.02
• P/FCF Ratio: -11.27
• 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: ¥202.00
• Price Target Upside: 12.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: ¥202.00 ▲(12.85% Upside)

Kuramoto Co., Ltd.'s overall stock score is primarily impacted by its financial performance and technical analysis. While there is improvement in profitability and equity growth, significant cash flow issues and bearish technical indicators weigh down the score. The negative P/E ratio further suggests valuation concerns.

Kuramoto Co., Ltd. Business Overview & Revenue Model

Company Description

Kuramoto Co., Ltd. engages in the development, processing, and sale of glass substrates. The company's glass substrates are used in flat panel displays, including TFT-LCD, STN-LCD, TN-LCD, EL, and others. It is also involved in the development, processing, and sale of thin film devices; and sale of smart solution equipment. The company was founded in 1975 and is headquartered in Kurihara, Japan.

How the Company Makes Money

Kuramoto Co., Ltd. generates revenue through the sale of its precision glass products, particularly focusing on glass substrates used in electronics and optical industries. The company serves a wide range of clients in sectors such as telecommunications and industrial machinery, where its products are essential for producing displays, sensors, and other optical components. Revenue streams are largely dependent on long-term supply agreements with major electronics manufacturers, alongside partnerships with companies in the telecommunications sector, which ensure consistent demand for its products. The company's earnings are further bolstered by its reputation for high-quality manufacturing standards, which enables it to maintain a competitive edge in the precision glass market.

Kuramoto Co., Ltd. Financial Statement Overview

Summary

Kuramoto Co., Ltd. has shown improvement in profitability and equity growth, with better margins and a solid balance sheet. However, significant challenges in cash flow management, including negative free cash flow and reliance on external financing, weigh heavily on the financial performance score.

Income Statement

Kuramoto Co., Ltd. showed a notable improvement in profitability with a positive net income of ¥31 million in 2024 compared to a significant loss in previous years. The gross profit margin improved to 27% with a recovery in EBIT margin to 6%, indicating better cost management and operational efficiency. However, the revenue growth rate over the years has been inconsistent, with a recent increase to ¥1.57 billion in 2024 from ¥704 million in 2023, highlighting potential volatility in sales performance.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.14, indicating low financial leverage. The return on equity improved significantly, reflecting better utilization of equity in generating profits. However, the equity ratio stands at 80%, suggesting a heavy reliance on equity financing, which may limit financial flexibility. The substantial increase in stockholders' equity to ¥3.74 billion is a positive sign of the company's improved financial health.

Cash Flow

Kuramoto Co., Ltd. faces challenges in cash flow management with negative operating cash flow of ¥373 million and free cash flow of ¥-837 million in 2024, highlighting issues in generating sufficient cash from operations. The free cash flow to net income ratio is unfavorable, and substantial capital expenditures may strain liquidity. Despite a high financing cash flow of ¥1.39 billion, indicating reliance on external funding, the overall cash position is weak.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	704.56M	1.06B	1.03B	1.00B
Gross Profit	424.25M	-185.53M	112.84M	142.77M	-63.22M
EBITDA	185.04M	-465.55M	74.72M	73.07M	797.54M
Net Income	31.13M	-555.26M	744.00K	9.03M	734.87M
Balance Sheet
Total Assets	4.66B	1.12B	1.53B	1.67B	1.26B
Cash, Cash Equivalents and Short-Term Investments	639.93M	51.63M	94.23M	204.92M	154.86M
Total Debt	523.73M	638.08M	670.90M	784.72M	782.57M
Total Liabilities	912.49M	919.56M	842.30M	980.51M	959.01M
Stockholders Equity	3.74B	197.48M	689.05M	688.12M	301.07M
Cash Flow
Free Cash Flow	-837.00M	-173.17M	-17.23M	-266.46M	-329.52M
Operating Cash Flow	-373.00M	-27.09M	230.44M	-223.12M	-305.98M
Investing Cash Flow	-433.72M	-46.13M	-227.31M	-9.00M	-1.30M
Financing Cash Flow	1.40B	30.61M	-113.82M	282.18M	435.11M

Kuramoto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 179.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5216, the sentiment is Negative. The current price of 179 is below the 20-day moving average (MA) of 190.95, below the 50-day MA of 199.96, and below the 200-day MA of 223.38, indicating a bearish trend. The MACD of -5.08 indicates Positive momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 10.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5216.

Kuramoto Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7927	76 Outperform	¥12.04B	8.12	―	6.18%	6.38%	-23.94%
7713	74 Outperform	¥10.47B	11.03	―	2.84%	3.32%	63.26%
6864	68 Neutral	¥9.48B	26.10	―	2.37%	4.03%	-2.88%
6919	65 Neutral	¥9.99B	54.14	―	5.82%	-2.65%	-74.99%
7908	63 Neutral	¥11.60B	13.43	―	3.25%	6.68%	-5.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5216	47 Neutral	¥8.58B	298.95	―	―	105.28%	40.52%