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

• Market Cap: ¥14.86B
• Dividend Yield: 3.47%
• Average Volume (3M): 4.38K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.20
• Revenue Growth: 2.65%
• EPS Growth: 20.98%
• Country: JP
• Employees: 293
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 18.89
• 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: ¥1,295.00 ▲(10.49% Upside)

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

Strong Balance Sheet

A strong balance sheet with a high equity ratio and low debt-to-equity ratio provides financial stability and reduces leverage risk, supporting long-term growth.

Revenue Diversification

Diverse revenue streams across multiple industries reduce dependency on a single sector, enhancing resilience against market fluctuations and supporting sustainable growth.

Profit Margins

Strong profit margins indicate effective cost management and pricing strategies, contributing to financial health and the ability to reinvest in business operations.

Negative Factors

Cash Flow Management

Declining operational cash flow suggests challenges in converting income into cash, which could limit the company's ability to fund growth initiatives and manage liabilities.

Operational Efficiency

Lower EBIT margins compared to peers indicate potential inefficiencies in operations, which could hinder competitive positioning and profitability over time.

Revenue Growth

Modest revenue growth may indicate limited market expansion or competitive pressures, potentially impacting long-term revenue potential and market share.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 1172.00
• 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:5388, the sentiment is Positive. The current price of 1172 is above the 20-day moving average (MA) of 1155.60, above the 50-day MA of 1147.44, and above the 200-day MA of 1079.84, indicating a neutral trend. The MACD of 5.29 indicates Positive momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 20.26 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	77 Outperform	¥14.27B	6.03	―	3.95%	11.85%	27.06%
5388	73 Outperform	¥14.86B	12.48	―	3.47%	2.65%	20.98%
5268	69 Neutral	¥14.83B	69.48	―	1.24%	-2.82%	-44.93%
5285	67 Neutral	¥19.82B	8.51	―	3.10%	18.19%	27.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5271	54 Neutral	¥3.03B	12.45	―	3.85%	0.29%	-45.50%
5269	49 Neutral	¥18.18B	-143.21	―	3.24%	-3.73%	-143.19%