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

• Market Cap: ¥9.73B
• Dividend Yield: N/A
• Average Volume (3M): 465.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• 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: 54 Neutral
• Price Target: ¥207.00 ▲(42.76% Upside)

The score is driven primarily by mixed fundamentals: improved profitability and a low-leverage balance sheet are offset by very weak operating/free cash flow and reliance on financing. Technicals are strong but look overextended (RSI > 80), while valuation is pressured by a negative P/E and no stated dividend yield.

Positive Factors

Return to profitability

The company returned to net profitability with improved gross (27%) and EBIT (6%) margins, reflecting better cost control and pricing. Sustained margins can fund reinvestment, reduce reliance on external capital, and provide a firmer base for continued operational improvement over months.

Low financial leverage

A very low debt-to-equity ratio and large equity base give the company balance sheet resilience. This reduces refinancing and interest burden risk, allowing strategic flexibility and capacity to absorb shocks or fund growth without immediate solvency pressure over the medium term.

Strong recent top-line growth

A near-120% revenue increase indicates meaningful demand recovery or market traction. If growth persists, the company can realize operating leverage, improve fixed-cost coverage and support margin sustainability, enhancing long-term profitability prospects beyond short-term spikes.

Negative Factors

Weak cash generation

Negative operating and free cash flow show earnings are not converting to cash, undermining liquidity and internal funding capacity. Over months this constrains capex, R&D, and dividend options, and forces dependence on external financing to support ongoing operations and growth.

Reliance on external financing

Significant financing inflows indicate the company depends on capital markets or equity/debt raises to cover cash shortfalls. Persistent reliance increases refinancing and dilution risk, which can restrict strategic choices and raise funding costs if market conditions tighten over the medium term.

Inconsistent revenue history

Volatile historical revenue creates uncertainty in demand and customer stability. Such inconsistency complicates capacity planning, resource allocation and margin forecasting; if recurring, it threatens to reverse recent profitability gains and hinder steady long-term value creation.

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

Profitability improved with a return to positive net income and better gross/EBIT margins, and the balance sheet shows low leverage (debt-to-equity 0.14). However, cash generation is a major weakness with negative operating cash flow (¥-373M) and deeply negative free cash flow (¥-837M), alongside 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: Neutral
• Last Price: 145.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5216, the sentiment is Neutral. The current price of 145 is below the 20-day moving average (MA) of 170.95, below the 50-day MA of 156.50, and below the 200-day MA of 194.25, indicating a neutral trend. The MACD of 16.79 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 42.02 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	74 Outperform	¥16.05B	9.03	―	5.18%	4.04%	12.46%
7713	71 Outperform	¥11.10B	11.51	―	2.77%	3.32%	63.26%
6919	66 Neutral	¥11.05B	33.65	―	5.75%	-0.23%	-32.32%
7908	63 Neutral	¥11.93B	14.46	―	3.17%	0.30%	4.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5216	54 Neutral	¥9.73B	-25.66	―	―	119.98%	-5.60%
6864	51 Neutral	¥8.34B	-305.63	―	2.85%	10.27%	-106.32%