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Kuramoto Co., Ltd. (JP:5216)
:5216
Japanese Market
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Kuramoto Co., Ltd. (5216) AI Stock Analysis

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JP:5216

Kuramoto Co., Ltd.

(5216)

Rating:50Neutral
Price Target:
¥229.00
▲(13.93% Upside)
Kuramoto Co., Ltd.'s stock score is primarily influenced by financial performance and technical analysis. While profitability and equity growth are positives, cash flow issues and a negative P/E ratio are significant concerns. Technical indicators suggest moderate trading strength but do not offset valuation drawbacks.

Kuramoto Co., Ltd. (5216) vs. iShares MSCI Japan ETF (EWJ)

Kuramoto Co., Ltd. Business Overview & Revenue Model

Company DescriptionKuramoto Co., Ltd. (5216) is a Japanese company primarily engaged in the manufacturing and sale of precision glass products. The company specializes in producing glass substrates which are crucial components in various optical and electronic applications. Its sectors include electronics, telecommunications, and industrial machinery, where high-quality glass materials are required for performance and innovation.
How the Company Makes MoneyKuramoto 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. shows improved profitability and equity growth with better margins and a strong balance sheet. However, significant cash flow management issues persist, with negative free cash flow and reliance on external financing, impacting the overall financial health.
Income Statement
65
Positive
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
58
Neutral
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
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.57B704.56M1.06B1.03B1.00B
Gross Profit424.25M-185.53M112.84M142.77M-63.22M
EBITDA185.04M-465.55M74.72M73.07M797.54M
Net Income31.13M-555.26M744.00K9.03M734.87M
Balance Sheet
Total Assets4.66B1.12B1.53B1.67B1.26B
Cash, Cash Equivalents and Short-Term Investments639.93M51.63M94.23M204.92M154.86M
Total Debt523.73M638.08M670.90M784.72M782.57M
Total Liabilities912.49M919.56M842.30M980.51M959.01M
Stockholders Equity3.74B197.48M689.05M688.12M301.07M
Cash Flow
Free Cash Flow-837.00M-173.17M-17.23M-266.46M-329.52M
Operating Cash Flow-373.00M-27.09M230.44M-223.12M-305.98M
Investing Cash Flow-433.72M-46.13M-227.31M-9.00M-1.30M
Financing Cash Flow1.40B30.61M-113.82M282.18M435.11M

Kuramoto Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price201.00
Price Trends
50DMA
218.10
Negative
100DMA
222.57
Negative
200DMA
227.29
Negative
Market Momentum
MACD
-3.14
Negative
RSI
58.33
Neutral
STOCH
44.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5216, the sentiment is Positive. The current price of 201 is below the 20-day moving average (MA) of 203.45, below the 50-day MA of 218.10, and below the 200-day MA of 227.29, indicating a neutral trend. The MACD of -3.14 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 44.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5216.

Kuramoto Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥12.33B8.31
5.43%6.38%-23.94%
75
Outperform
¥10.52B57.01
5.51%-2.65%-74.99%
75
Outperform
¥12.35B14.31
3.05%6.68%-5.98%
74
Outperform
¥10.73B10.88
2.77%3.28%43.48%
61
Neutral
$35.56B8.62-10.46%1.86%8.47%-8.26%
61
Neutral
¥8.96B24.69
2.51%4.03%-2.88%
50
Neutral
¥9.63B298.95
105.28%40.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5216
Kuramoto Co., Ltd.
216.00
-125.00
-36.66%
JP:6864
NF Holdings Corporation
1,340.00
457.07
51.77%
JP:6919
KEL Corporation
1,453.00
-74.50
-4.88%
JP:7713
Sigma Koki Co., Ltd.
1,522.00
129.29
9.28%
JP:7908
Kimoto Co., Ltd.
261.00
28.98
12.49%
JP:7927
Muto Seiko Co.
1,721.00
163.03
10.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 02, 2025