Kurimoto,Ltd. (5602) AI Stock Analysis

• Market Cap: ¥97.54B
• Dividend Yield: 3.92%
• Average Volume (3M): 1.16M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.81
• Revenue Growth: 1.06%
• EPS Growth: 45.19%
• Country: JP
• Employees: 2,121
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 41.89
• Shares Outstanding: 63,992,450
• 10 Day Avg. Volume: 758,840
• 30 Day Avg. Volume: 1,162,803
• PEG Ratio: 0.31
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -9.72
• 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): 128.5
• Revenue Forecast (FY): ¥125.00B

• Rating: 78 Outperform
• Price Target: ¥1,762.00 ▲(5.19% Upside)
• Action: Upgraded Date: 11/30/25
• Date: Action: Upgraded 11/30/25

Kurimoto, Ltd. benefits from strong profitability and a solid balance sheet, which are slightly offset by cash flow volatility. The stock's reasonable valuation and high dividend yield are significant positives. Technical indicators suggest a positive trend, but caution is advised due to potential bearish momentum and overbought signals.

Positive Factors

Balance Sheet Strength

A large equity base and low debt-to-equity ratio provide lasting financial flexibility. With a 57.9% equity ratio and conservative leverage, Kurimoto can fund capex, withstand industry downturns and maintain operations without forcing distressed asset sales, supporting multi‑month resilience.

Improving Profitability and Margins

Sustained margin improvement signals durable operational efficiency across production and services. Higher gross and EBITDA margins create structural earnings power, enabling reinvestment and dividend support even amid normal industry cycles, anchoring medium‑term cash generation potential.

Diversified Industrial Business Model

A multi‑segment industrial footprint (pipes, machinery, engineering services) spreads revenue across infrastructure and industrial end markets. This diversification reduces reliance on any single product cycle and aligns the company to structural infrastructure demand, supporting steadier revenue over months.

Negative Factors

Cash Flow Volatility

Large swings from positive to negative free cash flow indicate challenges converting accounting profits into cash. Persistent cash volatility can strain funding for capex, dividends and working capital, increasing refinancing and operational risk across the next several quarters if not stabilized.

Cyclical Industry Exposure

Exposure to the cyclical steel and construction markets makes revenue and margins sensitive to macro shifts. Even with current margin improvement, demand swings can quickly reverse results, complicating medium‑term planning for capacity, pricing and investment decisions over 2–6 months.

Rising Debt in 2025

An uptick in total debt weakens the prior conservative leverage profile and raises interest and refinancing exposure. If cyclical headwinds coincide with higher debt, financial flexibility and ability to sustain dividends or fund projects could be impaired across upcoming quarters.

Kurimoto,Ltd. Business Overview & Revenue Model

Company Description

Kurimoto, Ltd. manufactures and sells ductile iron pipes, valves, and construction materials in Japan and internationally. The company offers ductile iron pipes related products and disaster prevention products; resilient seated gate, butterfly, emergency shutting-off, water level control and pressure regulating auto, orifice, float type, air, reversing, spherical, sleeve, slide gate, hot blast, link seal, goggle, and blow off valves; and sewerage, agricultural water, and well pipes. It also provides pit cover plates, brake discs, and power cable protection pipes, as well as automotive related manufacturing equipment; electricity, gas, petroleum, coal, and energy products comprising industrial valves, sound proof and noise reduction products, secondary battery related manufacturing equipment, plant engineering, crushers, pulverizers/mills, classifiers, dryers, calciners/kilns, heat/abrasion-resistant casting products, and fiber reinforced plastic products; mixers, kneaders, reactors, granulators, dryers, solvent recovery, deodoridising, and flue gas treatment equipment; forging and other presses, peripheral devices, and bending rolls; and high function casting products. In addition, the company offers separating and conveying products; dredge pumps; sanitary and air conditioning equipment, civil engineering material products, and construction materials; winding core pipes; fiber reinforced plastics; and pharmaceutical equipment. Further, it provides railroad car brake components, crushers, pulverizers, conveyors, wear/heat-resistant castings for industrial equipment, wear-resistant pumps, and classifiers; fiberglass-reinforced plastic mortar (FRPM) pipes, fiberglass-reinforced plastic (FRP) pipes, FRPM panels, FRP pultrusion products, various synthetic resin molded products FRP core; and FRP parts for machinery, equipment, and vehicles. The company was founded in 1909 and is headquartered in Osaka, Japan.

How the Company Makes Money

Kurimoto, Ltd. generates revenue through multiple streams, primarily by selling its industrial products, including steel castings and ceramic materials, to various sectors such as construction, mining, and energy. The company’s revenue model is built on direct sales, long-term contracts, and partnerships with other manufacturers and suppliers that help expand its distribution channels. Additionally, Kurimoto may engage in providing maintenance and support services for its products, which further contributes to its earnings. Strategic partnerships and collaborations with other companies also play a significant role in enhancing its market presence and revenue potential.

Kurimoto,Ltd. Financial Statement Overview

Summary

Kurimoto, Ltd. shows strong profitability and balance sheet stability with consistent revenue growth and solid margins. However, cash flow volatility, particularly the negative free cash flow in 2025, poses concerns that slightly weaken the overall financial health.

Income Statement

Kurimoto, Ltd. has demonstrated a robust performance with steady revenue growth over the past years, reaching JPY 126.67 billion in 2025. The gross profit margin improved to 26.3%, and the net profit margin increased to 5.5%, indicating strong profitability. The EBIT margin rose to 6.3%, and the EBITDA margin was 10.1%, reflecting efficient operational management. These factors contribute to a solid income statement score, although the steel industry’s cyclical nature poses potential risks.

Balance Sheet

The company's balance sheet reveals a strong equity base with JPY 87.69 billion, providing an equity ratio of 57.9%. The debt-to-equity ratio stands at 0.23, suggesting a conservative leverage approach. Return on equity is at 7.9%, indicating effective utilization of equity capital. However, the total debt increased in 2025, which may warrant monitoring in a volatile steel market.

Cash Flow

Cash flow performance shows volatility, with operating cash flow declining to JPY -2.34 billion in 2025. Despite a strong free cash flow of JPY 7.9 billion in 2024, the free cash flow in 2025 turned negative at JPY -5.69 billion. The operating cash flow to net income ratio indicates challenges in converting profits to cash. This cash flow instability slightly weakens the overall financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.37B	126.67B	125.92B	124.83B	105.95B	116.60B
Gross Profit	33.60B	33.28B	31.46B	29.35B	25.34B	26.01B
EBITDA	14.17B	12.79B	11.04B	9.96B	7.25B	7.19B
Net Income	7.50B	6.91B	5.47B	4.73B	2.92B	3.17B
Balance Sheet
Total Assets	149.26B	151.54B	151.18B	145.16B	139.72B	134.48B
Cash, Cash Equivalents and Short-Term Investments	21.89B	15.73B	19.37B	20.33B	21.36B	20.42B
Total Debt	20.12B	20.42B	15.04B	21.56B	24.29B	22.85B
Total Liabilities	61.65B	62.86B	68.45B	72.20B	72.11B	69.37B
Stockholders Equity	86.62B	87.69B	81.74B	71.61B	66.34B	63.97B
Cash Flow
Free Cash Flow	0.00	-5.69B	7.90B	2.69B	325.00M	1.64B
Operating Cash Flow	0.00	-2.34B	10.28B	5.06B	2.81B	5.91B
Investing Cash Flow	0.00	-3.57B	-2.69B	-1.74B	-2.46B	-4.03B
Financing Cash Flow	0.00	2.19B	-8.60B	-4.50B	482.00M	-1.81B

Kurimoto,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1675.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5602, the sentiment is Negative. The current price of 1675 is below the 20-day moving average (MA) of 1701.10, below the 50-day MA of 1746.86, and above the 200-day MA of 1562.86, indicating a bearish trend. The MACD of -21.72 indicates Positive momentum. The RSI at 31.36 is Neutral, neither overbought nor oversold. The STOCH value of 26.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5602.

Kurimoto,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5406	80 Outperform	¥807.65B	9.48	10.78%	4.68%	-1.97%	47.63%
5602	78 Outperform	¥97.54B	10.00	―	3.92%	1.06%	45.19%
5463	74 Outperform	¥376.80B	12.83	―	3.26%	-7.77%	58.84%
5471	74 Outperform	¥454.88B	9.05	6.84%	2.99%	-0.02%	-40.45%
5451	74 Outperform	¥253.74B	14.50	6.87%	5.25%	-1.43%	171.44%
5482	67 Neutral	¥211.59B	11.58	5.06%	1.80%	4.10%	152.90%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Kurimoto,Ltd. Corporate Events

Kurimoto Reshapes Executive Lineup Across Core Industrial Divisions

Kurimoto, Ltd. has approved a slate of executive officer changes effective April 1, 2026, as resolved by its Board of Directors on February 25, 2026. The reshuffle realigns leadership across key divisions such as construction materials, valve systems, plant engineering and machinery, plastic products, and corporate planning.

Several current executive officers, including those overseeing the Valve Systems, Construction Materials, and Plant Engineering & Machinery divisions, will retire or move to advisory or subsidiary roles, while new executive officers are promoted internally from assistant general manager and department head positions. The reorganization also elevates certain executives to senior executive officer posts and adjusts responsibilities at group companies KURIMOTO TRADING CO., LTD. and MOTOYAMA ENG. WORKS, LTD., signaling a broader effort to strengthen governance and operational oversight across the group.

The most recent analyst rating on (JP:5602) stock is a Buy with a Yen2165.00 price target. To see the full list of analyst forecasts on Kurimoto,Ltd. stock, see the JP:5602 Stock Forecast page.

Kurimoto to Dispose of Treasury Shares for Expanded Board Stock Incentive Plan

Kurimoto, Ltd. has approved the disposal of 344,000 treasury shares, worth approximately ¥601.7 million, via a third-party allotment to a trust account as part of its Board Benefit Trust–Restricted Stock (BBT-RS) share-based remuneration plan for internal directors, executive officers, and fellows. The shares, representing about 0.54% of total shares outstanding and 0.57% of total voting rights, are intended to cover expected stock grants over three fiscal years through March 31, 2027, with the company emphasizing that the resulting dilution is limited and justified as it strengthens long-term incentives and performance alignment for management under the revised compensation framework.

The most recent analyst rating on (JP:5602) stock is a Buy with a Yen2165.00 price target. To see the full list of analyst forecasts on Kurimoto,Ltd. stock, see the JP:5602 Stock Forecast page.

Kurimoto Posts Higher Earnings per Share Despite Softer Sales and Confirms Full-Year Outlook

Kurimoto reported consolidated net sales of ¥93.35 billion for the nine months ended 31 December 2025, down 0.8% year on year, with operating profit falling 5.7% to ¥5.65 billion and ordinary profit down 9.1% to ¥5.64 billion, while profit attributable to owners of parent rose 7.7% to ¥5.56 billion, lifting basic earnings per share to ¥91.61 despite the impact of a 5-for-1 stock split. Total assets increased to ¥156.01 billion and equity to ¥89.75 billion, while the equity-to-asset ratio stayed solid at 57.5%; the company maintained its full-year forecast, calling for a slight decline in net sales but higher profits and basic EPS of ¥115.40, and outlined its dividend policy post–stock split, signaling continued shareholder returns alongside cautious growth expectations.

The most recent analyst rating on (JP:5602) stock is a Buy with a Yen2165.00 price target. To see the full list of analyst forecasts on Kurimoto,Ltd. stock, see the JP:5602 Stock Forecast page.

Kurimoto to Absorb Sankyo Machinery to Strengthen Recycling-Oriented Plant Business

Kurimoto, Ltd. has approved an absorption-type merger of its wholly owned subsidiary Sankyo Machinery, Ltd., which designs, manufactures, distributes and installs asphalt and concrete crushing plants and related machinery, with Kurimoto as the surviving entity and Sankyo Machinery to be dissolved on April 1, 2026. By integrating Sankyo Machinery’s recycled aggregate-related technologies into Kurimoto’s operating divisions via a simplified, short-form merger with no share or cash consideration, the group aims to streamline management resources, improve operational efficiency and profitability, and strengthen its position in recycling-oriented infrastructure and construction markets through enhanced synergies in environmental and plant-related businesses.

The most recent analyst rating on (JP:5602) stock is a Buy with a Yen2055.00 price target. To see the full list of analyst forecasts on Kurimoto,Ltd. stock, see the JP:5602 Stock Forecast page.