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

• Market Cap: ¥9.84B
• Dividend Yield: N/A
• Average Volume (3M): 465.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: 119.98%
• EPS Growth: -5.60%
• Country: JP
• Employees: 72
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -56.48
• Shares Outstanding: 48,109,776
• 10 Day Avg. Volume: 355,920
• 30 Day Avg. Volume: 465,466
• PEG Ratio: <0.01
• Price to Book (P/B): 9.16
• Price to Sales (P/S): 3.34
• P/FCF Ratio: -11.71
• 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: 46 Neutral
• Price Target: ¥203.00 ▲(40.00% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by weak financial performance, highlighted by a 2025 net loss and ongoing cash burn despite some balance-sheet de-leveraging. Technicals are moderately supportive (above key longer-term moving averages with positive MACD), but valuation remains pressured due to loss-making earnings and no dividend yield data.

Positive Factors

Top-line growth

A sustained rebound in revenue through 2024–2025 indicates underlying demand resilience and market traction for the company's products. Durable top-line strength improves the potential to recover margins and cash generation if cost structure is controlled, supporting longer-term operational recovery.

Balance-sheet de-leveraging

Material reduction in leverage versus 2023 meaningfully lowers financial vulnerability and interest burden risk. A more balanced debt/equity profile enhances financing optionality and gives management more time to execute turnarounds without immediate solvency pressure, a durable improvement to stability.

Strong revenue growth rate

A near 28% reported revenue growth metric signals scalable demand and expanding sales footprint versus prior periods. Sustained double-digit top-line growth provides a structural base to leverage fixed costs and improve long-term margin recovery if management sustains pricing and volume mix.

Negative Factors

Profitability deterioration

A large 2025 net loss and deeply negative operating profitability materially erode retained earnings and raise questions about the core business economics. Persistent unprofitability undermines reinvestment capacity, increases refinancing reliance, and poses a multi-quarter risk to sustainable recovery.

Negative cash generation

Consistently negative operating and free cash flow means the company is not self-funding operations or investments. Reliance on external financing raises liquidity and dilution risk, constrains capex or R&D, and limits the firm's ability to withstand cyclical stress over the medium term.

Equity erosion & shrinking assets

Sharp declines in equity and assets weaken the capital base and reduce financial flexibility. A smaller asset base limits operational scale and bargaining leverage, while eroded equity increases insolvency risk if adverse trends continue, constraining strategic options over several quarters.

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

Overall financial quality is pressured by sharply deteriorating profitability (large net loss in 2025) and consistently negative operating/free cash flow. While leverage improved versus 2023, equity fell sharply in 2025 and assets declined, keeping financial risk elevated.

Income Statement

Revenue rebounded strongly in 2024 and remained higher in 2025, but profitability deteriorated sharply. 2025 shows very weak earnings with a large net loss and deeply negative operating profitability, following a modestly profitable 2024. Margins have been volatile across years (including loss-making periods), which reduces confidence in the sustainability of the earnings profile despite the top-line improvement.

Balance Sheet

Leverage improved materially versus the very high debt burden seen in 2023, with debt now closer to equity in 2025, which is a step toward balance-sheet stabilization. However, equity fell sharply from 2024 to 2025 alongside heavy losses, weakening the capital base and increasing risk if losses persist. Overall assets also declined significantly year over year, pointing to a smaller and potentially less flexible balance sheet.

Cash Flow

Cash generation is a key concern: operating cash flow is negative in most years shown and remained negative in 2024–2025, indicating the core business has struggled to consistently produce cash. Free cash flow is also consistently negative, and while the cash outflow improved in 2025 versus 2024, the company is still funding operations/investment with external sources rather than internally generated cash, which heightens liquidity and financing risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.01B	1.57B	704.56M	1.06B	1.03B
Gross Profit	572.29M	424.25M	-185.53M	112.84M	142.77M
EBITDA	-974.89M	185.04M	-465.55M	74.72M	73.07M
Net Income	-3.08B	31.13M	-555.26M	744.00K	9.03M
Balance Sheet
Total Assets	1.82B	4.66B	1.12B	1.53B	1.67B
Cash, Cash Equivalents and Short-Term Investments	97.12M	639.93M	51.63M	94.23M	204.92M
Total Debt	659.85M	523.73M	638.08M	670.90M	784.72M
Total Liabilities	1.09B	912.49M	919.56M	842.30M	980.51M
Stockholders Equity	732.93M	3.74B	197.48M	689.05M	688.12M
Cash Flow
Free Cash Flow	-573.87M	-837.00M	-173.17M	-17.23M	-266.46M
Operating Cash Flow	-225.93M	-373.00M	-27.09M	230.44M	-223.12M
Investing Cash Flow	-451.25M	-433.72M	-46.13M	-227.31M	-9.00M
Financing Cash Flow	134.38M	1.40B	30.61M	-113.82M	282.18M

Kuramoto Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 145.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 145 is below the 20-day moving average (MA) of 211.85, below the 50-day MA of 179.74, and below the 200-day MA of 192.26, indicating a neutral trend. The MACD of 3.17 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 26.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	¥17.43B	9.58	―	5.18%	4.04%	12.46%
7713	77 Outperform	¥14.44B	14.97	―	2.77%	3.32%	63.26%
7908	69 Neutral	¥14.00B	16.98	―	3.17%	0.30%	4.85%
6919	66 Neutral	¥11.49B	51.14	―	5.75%	-0.23%	-32.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6864	51 Neutral	¥9.88B	-351.84	―	2.85%	10.27%	-106.32%
5216	46 Neutral	¥9.84B	-3.06	―	―	119.98%	-5.60%