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

• Market Cap: ¥6.95B
• Dividend Yield: N/A
• Average Volume (3M): 465.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: 119.98%
• EPS Growth: -5.60%
• Country: JP
• Employees: 72
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -2.05
• Shares Outstanding: 47,998,573
• 10 Day Avg. Volume: 355,920
• 30 Day Avg. Volume: 465,466
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥204.00 ▲(40.69% Upside)

Kuramoto Co., Ltd. demonstrates strong technical momentum, which is a positive indicator for short-term performance. However, significant concerns in cash flow management and a negative P/E ratio suggest potential financial instability and overvaluation. The lack of earnings call data and corporate events limits further insights into the company's strategic direction.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and the company's ability to capture market share, supporting long-term expansion.

Profitability Improvement

Improved profitability and margins suggest better cost management and operational efficiency, enhancing long-term financial health.

Low Financial Leverage

Low leverage reduces financial risk, providing stability and flexibility to invest in growth opportunities without excessive debt burden.

Negative Factors

Cash Flow Challenges

Negative cash flow highlights difficulties in generating cash from operations, potentially limiting investment in growth and innovation.

Reliance on External Financing

Dependence on external financing can strain financial flexibility and increase vulnerability to market conditions, affecting long-term stability.

Equity Financing Reliance

High equity financing reliance may limit financial flexibility and shareholder returns, impacting strategic investment capabilities.

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 manufacturing and sale of its electronic components, which are essential in a wide array of electronic devices. The company's primary revenue streams include direct sales to manufacturers of consumer electronics, automotive parts, and industrial equipment. Additionally, Kuramoto Co., Ltd. benefits from economies of scale in production, allowing for competitive pricing and higher margins. Strategic partnerships with major electronics manufacturers and participation in industry trade shows further enhance their market presence and revenue potential. The company also invests in research and development to innovate new products, which helps to capture additional market share and attract new clients.

Kuramoto Co., Ltd. Financial Statement Overview

Summary

Kuramoto Co., Ltd. has shown commendable progress in profitability and equity growth, with improved margins and a solid balance sheet. However, cash flow management remains a significant area of concern, with negative free cash flow and reliance on external financing.

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: 145.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 145 is below the 20-day moving average (MA) of 148.30, below the 50-day MA of 146.18, and below the 200-day MA of 197.17, indicating a bearish trend. The MACD of -2.03 indicates Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, 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	74 Outperform	¥15.12B	8.51	―	5.18%	4.04%	12.46%
7713	71 Outperform	¥10.98B	11.38	―	2.77%	3.32%	63.26%
6919	66 Neutral	¥10.78B	32.85	―	5.75%	-0.23%	-32.32%
7908	63 Neutral	¥12.64B	12.25	―	3.17%	0.30%	4.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5216	56 Neutral	¥6.95B	-19.48	―	―	119.98%	-5.60%
6864	51 Neutral	¥8.06B	-397.73	―	2.85%	10.27%	-106.32%