Kunimine Industries Co., Ltd (5388) AI Stock Analysis

• Market Cap: ¥17.00B
• Dividend Yield: 3.47%
• Average Volume (3M): 4.38K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.29
• Revenue Growth: 2.65%
• EPS Growth: 20.98%
• Country: JP
• Employees: 293
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 35.47
• Shares Outstanding: 14,450,000
• 10 Day Avg. Volume: 5,620
• 30 Day Avg. Volume: 4,380
• PEG Ratio: 2.18
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 24.77
• 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: 73 Outperform
• Price Target: ¥1,483.00 ▲(26.54% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

Kunimine Industries scores well due to its strong financial position and attractive valuation. The technical indicators suggest a stable trend, although cash flow management needs improvement. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Balance Sheet Strength

Extremely low leverage and an 83.4% equity ratio provide durable financial flexibility. This reduces refinancing and interest-rate risk, supports capital spending or cyclical downturns, and preserves capacity to fund growth or return capital without needing external debt.

Sustainable Profit Margins

Robust gross and positive net margins indicate the business captures value from its processing and formulations. Margin stability supports consistent internal cash generation, funding of R&D or customization, and resilience across mid-cycle demand swings.

Niche, Application-Focused Business Model

Specialization in bentonite and tailored formulations creates technical know-how and product stickiness with industrial clients. Niche focus supports durable revenue streams across multiple end-markets and raises barriers to entry versus generic material suppliers.

Negative Factors

Weak Cash Conversion

A large drop in operating cash flow and weak cash-to-income conversion erode the firm's ability to self-fund investments or absorb shocks. Persistently weak cash conversion constrains capital allocation, increases reliance on reserves, and limits strategic flexibility over months.

Subpar Operational Efficiency (EBIT)

An EBIT margin lag versus peers suggests weaker operating leverage or higher relative costs. Over the medium term this can compress competitiveness, limit reinvestment capacity, and require either cost actions or scale gains to restore industry-level profitability.

Modest Return on Equity

A 5% ROE on a very strong equity base signals limited capital productivity. Persistently modest ROE can indicate underutilized assets or low-margin growth, which may constrain long-term shareholder returns and make it harder to justify expanding capital intensity.

Kunimine Industries Co., Ltd Business Overview & Revenue Model

Company Description

Kunimine Industries Co., Ltd (5388) is a leading Japanese company specializing in the production and supply of industrial minerals, particularly those derived from clay and non-metallic minerals. The company operates primarily in the sectors of ceramics, electronics, and construction materials, offering a diverse range of products including high-performance clay minerals, kaolin, and various specialty materials tailored for specific industrial applications.

How the Company Makes Money

Kunimine Industries generates revenue through the sale of its industrial mineral products across various sectors. The company primarily earns money by supplying high-quality raw materials to manufacturers in the ceramics and electronics industries, where demand for specialized clay products is significant. Key revenue streams include direct sales to large industrial clients, contracts for ongoing supply agreements, and partnerships with companies in related sectors. Additionally, Kunimine may benefit from fluctuations in global mineral prices, as well as strategic collaborations that enhance its market reach and product offerings.

Kunimine Industries Co., Ltd Financial Statement Overview

Summary

Kunimine Industries presents a stable financial position with commendable profit margins and a solid equity structure. While revenue growth is steady, operational efficiencies can be improved. Cash flow management appears to be an area of concern, but the company remains resilient with a strong balance sheet.

Income Statement

Kunimine Industries has shown consistent revenue with a modest growth rate of 0.21% in the latest year. The gross profit margin is robust at approximately 28.12%, and net profit margin stands at 6.86%, indicating efficient cost management. However, EBIT margin is slightly lower than industry leaders, which suggests room for operational improvement.

Balance Sheet

The company maintains a strong balance sheet with a remarkable equity ratio of 83.40%, indicating a solid equity base. The debt-to-equity ratio is very low at 0.0025, showcasing minimal leverage risk. Return on Equity (ROE) is healthy at 5.00%, reflecting effective utilization of shareholder funds.

Cash Flow

Cash flow from operations has decreased significantly, impacting free cash flow growth negatively by 44.89% compared to the previous year. The operating cash flow to net income ratio is below 1, indicating potential challenges in converting income into cash. However, the company maintains positive free cash flow, highlighting some flexibility in capital allocation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.77B	15.71B	15.68B	15.33B	15.26B	14.59B
Gross Profit	4.45B	4.42B	4.46B	3.88B	4.74B	5.19B
EBITDA	2.32B	2.54B	2.45B	2.20B	2.73B	3.30B
Net Income	1.09B	1.08B	1.04B	842.47M	1.30B	1.68B
Balance Sheet
Total Assets	25.16B	25.84B	25.23B	24.56B	24.85B	24.32B
Cash, Cash Equivalents and Short-Term Investments	8.47B	8.30B	8.64B	8.29B	10.07B	10.10B
Total Debt	549.58M	54.36M	73.97M	96.39M	1.04B	1.10B
Total Liabilities	3.14B	3.49B	3.36B	3.21B	3.87B	4.51B
Stockholders Equity	21.25B	21.55B	21.20B	20.76B	20.51B	19.42B
Cash Flow
Free Cash Flow	0.00	509.21M	923.68M	-522.66M	485.83M	2.67B
Operating Cash Flow	0.00	1.02B	1.92B	234.07M	1.18B	3.23B
Investing Cash Flow	0.00	-769.24M	-1.04B	-569.25M	-1.01B	-488.38M
Financing Cash Flow	0.00	-858.57M	-726.68M	-1.72B	-494.67M	583.22M

Kunimine Industries Co., Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1172.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5388, the sentiment is Neutral. The current price of 1172 is below the 20-day moving average (MA) of 1335.00, below the 50-day MA of 1292.56, and above the 200-day MA of 1147.74, indicating a neutral trend. The MACD of 8.62 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 7.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5388.

Kunimine Industries Co., Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5352	76 Outperform	¥149.14B	8.33	―	2.77%	1.43%	91.97%
5388	73 Outperform	¥17.00B	13.76	―	3.47%	2.65%	20.98%
5357	73 Outperform	¥29.55B	15.65	―	5.04%	-2.29%	-41.92%
5233	67 Neutral	¥499.39B	21.99	7.93%	2.32%	-2.26%	-10.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5232	61 Neutral	$148.41B	17.58	6.98%	3.13%	-2.13%	37.10%
5269	49 Neutral	¥20.09B	-133.31	―	3.24%	-3.73%	-143.19%