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

• Market Cap: ¥15.49B
• Dividend Yield: 3.33%
• Average Volume (3M): 8.02K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.17
• Revenue Growth: 0.73%
• EPS Growth: 10.12%
• Country: JP
• Employees: 293
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 15.67
• Shares Outstanding: 14,450,000
• 10 Day Avg. Volume: 8,370
• 30 Day Avg. Volume: 8,016
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,196.00
• Price Target Upside: -0.42% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,196.00 ▼(-0.42% Downside)

The overall score for Kunimine Industries is primarily driven by its strong financial position and attractive valuation metrics. The stable upward trend in technical indicators supports the favorable outlook. However, cash flow management issues and the absence of recent earnings call details slightly temper the positive assessment.

Kunimine Industries Co., Ltd Business Overview & Revenue Model

Company Description

Kunimine Industries Co., Ltd (5388) is a Japanese company primarily engaged in the production and sale of minerals. The company specializes in the extraction and processing of bentonite, a type of clay mineral with a wide range of industrial applications. Kunimine Industries provides products for various sectors, including construction, agriculture, and environmental management, leveraging its expertise in mineral resources to serve diverse market needs.

How the Company Makes Money

Kunimine Industries Co., Ltd generates revenue through the extraction, processing, and sale of bentonite and other mineral products. The company's revenue streams primarily include the supply of its products to industries such as construction, where bentonite is used as a binding agent and sealant, and agriculture, where it serves as a soil conditioner. Additionally, the environmental sector utilizes bentonite for waste management and water filtration. Kunimine Industries may also engage in strategic partnerships with other companies to expand its market reach and enhance its product offerings, contributing to its overall earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.71B	15.71B	15.68B	15.33B	15.26B	14.59B
Gross Profit	4.42B	4.42B	4.46B	3.88B	4.74B	5.19B
EBITDA	2.54B	2.54B	2.45B	2.20B	2.73B	3.30B
Net Income	1.08B	1.08B	1.04B	842.47M	1.30B	1.68B
Balance Sheet
Total Assets	25.84B	25.84B	25.23B	24.56B	24.85B	24.32B
Cash, Cash Equivalents and Short-Term Investments	8.30B	8.30B	8.64B	8.29B	10.07B	10.10B
Total Debt	54.36M	54.36M	73.97M	96.39M	1.04B	1.10B
Total Liabilities	3.49B	3.49B	3.36B	3.21B	3.87B	4.51B
Stockholders Equity	21.55B	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: Positive
• Last Price: 1201.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5388, the sentiment is Positive. The current price of 1201 is above the 20-day moving average (MA) of 1135.91, above the 50-day MA of 1096.03, and above the 200-day MA of 1031.82, indicating a bullish trend. The MACD of 26.20 indicates Negative momentum. The RSI at 78.92 is Negative, neither overbought nor oversold. The STOCH value of 76.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
5284	83 Outperform	¥15.35B	6.42	19.49%	3.67%	14.44%	28.75%
5285	80 Outperform	¥21.46B	9.59	22.83%	2.86%	15.39%	27.17%
5388	75 Outperform	¥15.49B	13.47	―	3.33%	0.73%	10.12%
5268	62 Neutral	¥13.63B	37.47	3.40%	1.35%	-0.66%	-11.08%
5271	60 Neutral	¥3.03B	11.96	8.66%	3.85%	-12.84%	-57.15%
5269	55 Neutral	¥20.14B	-72.02	-0.57%	2.92%	-6.24%	-146.29%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%