Kogi Corp (5603) AI Stock Analysis

• Market Cap: ¥5.27B
• Dividend Yield: 4.79%
• Average Volume (3M): 5.56K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.73
• Revenue Growth: -0.27%
• EPS Growth: 59.50%
• Country: JP
• Employees: 743
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 21.11
• Shares Outstanding: 3,362,163
• 10 Day Avg. Volume: 5,430
• 30 Day Avg. Volume: 5,563
• PEG Ratio: 0.11
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.13
• 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: 76 Outperform
• Price Target: ¥1,797.00 ▲(39.30% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

Kogi Corp's overall stock score is driven by its strong financial performance and attractive valuation. The company's efficient cash flow management and stable balance sheet are significant strengths. The technical analysis supports a positive outlook with bullish momentum. The low P/E ratio and high dividend yield further enhance the stock's appeal, making it an attractive investment opportunity.

Positive Factors

Cash generation ability

A sustained turnaround to positive free cash flow and an operating cash flow to net income ratio of 6.02 indicates durable cash conversion. This strengthens liquidity, funds capex/dividends without heavy borrowing, and provides a buffer in cyclical demand, supporting long-term financial flexibility.

Balanced capital structure

A moderate debt-to-equity ratio and ~42.6% equity ratio signal a stable balance sheet that tempers refinancing risk while enabling growth financing. This balanced structure supports investment capacity and resiliency to interest rate moves, preserving strategic optionality over months ahead.

Operational margin resilience

Healthy gross and EBITDA margins suggest the company operates with structural cost efficiency and pricing power within metal fabrication. Sustained mid-single-digit EBIT and double-digit EBITDA margins support internal funding for maintenance capex and product quality, aiding competitiveness over time.

Negative Factors

Low net profitability

A net margin near 3% leaves limited room to absorb input cost inflation or invest materially from earnings. Over the medium term this constrains retained earnings growth, limits debt payoff speed and dividend sustainability if margins fail to improve or revenue growth stalls.

Earnings decline risk

A near 40% EPS contraction indicates volatile earnings power or one-off hits that weaken profit quality. Persistent EPS volatility undermines management's ability to fund initiatives from earnings and raises execution risk for improving margins or sustaining shareholder distributions over coming quarters.

Modest revenue expansion

Low single-digit top-line growth limits scale economies and the pace at which margins and returns can materially improve. Over a 2-6 month horizon, modest revenue momentum makes it harder to leverage fixed costs and achieve meaningful margin expansion absent product or market-share gains.

Kogi Corp Business Overview & Revenue Model

Company Description

Kogi Corporation engages in casting roll-related, and machinery and environment-related businesses in Japan. The company offers various rolling rolls, steel castings, etc.; castings for steel ingot molds, automobile press dies, and industrial machinery; and public civil engineering castings, such as ground manholes, grating, iron lids for electric wire utility tunnels, etc. It also provides industrial castings, including water and sewerage, railway, and industrial machinery related parts; and continuous cast-iron rods comprising ordinary cast iron, ductile cast iron, ni-resist cast iron, and special alloy cast iron materials. In addition, the company offers blowers, transvectors, vortex schoolers, etc.; KC metal fibers and KC carbon ceramics; and stoker type waste incinerators, recycling equipment, various deodorization equipment, superheated steam application drying and carbonization equipment, etc. Kogi Corporation was founded in 1916 and is headquartered in Himeji, Japan.

Kogi Corp Financial Statement Overview

Summary

Kogi Corp demonstrates a solid financial performance with strong revenue growth and efficient cash flow management. The company maintains a stable balance sheet with moderate leverage. While profitability margins could be improved, the consistent revenue growth and positive cash flow trajectory are promising. The company should focus on enhancing net profit margins and managing debt levels to sustain long-term growth.

Income Statement

Kogi Corp's income statement reflects a solid performance with a gross profit margin of 16.39% and a net profit margin of 3.03% for the latest year. The company has shown a consistent increase in revenue, with a growth rate of 1.36% from the previous year. EBIT and EBITDA margins are healthy at 4.45% and 10.73%, respectively, indicating efficient operations. However, the net profit margin remains relatively low, which could be an area for improvement.

Balance Sheet

The balance sheet of Kogi Corp shows a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. The return on equity stands at 5.56%, reflecting a reasonable return for shareholders. The equity ratio is 42.59%, suggesting a balanced capital structure. While the company maintains a healthy equity base, the debt level could pose risks if not managed carefully.

Cash Flow

Kogi Corp's cash flow statement highlights strong cash generation capabilities, with a significant improvement in free cash flow from negative to positive territory. The operating cash flow to net income ratio is 6.02, indicating robust cash conversion. The free cash flow to net income ratio is 4.71, showcasing efficient cash management. The company has effectively turned around its cash flow position, which is a positive sign for future liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.09B	26.32B	25.96B	26.73B	23.12B	18.07B
Gross Profit	4.36B	4.31B	3.63B	3.65B	2.80B	2.65B
EBITDA	2.90B	2.83B	2.39B	2.35B	1.58B	1.90B
Net Income	966.00M	798.00M	538.00M	466.00M	43.00M	285.00M
Balance Sheet
Total Assets	33.61B	33.71B	35.27B	32.71B	31.47B	27.81B
Cash, Cash Equivalents and Short-Term Investments	2.98B	3.17B	2.64B	2.10B	3.12B	2.60B
Total Debt	9.43B	9.12B	12.02B	9.53B	9.19B	7.74B
Total Liabilities	15.95B	15.66B	18.43B	17.67B	17.68B	14.55B
Stockholders Equity	14.12B	14.36B	13.52B	11.82B	11.04B	10.80B
Cash Flow
Free Cash Flow	0.00	3.76B	-1.29B	-1.30B	-518.00M	1.00B
Operating Cash Flow	0.00	4.81B	-53.00M	-119.00M	1.03B	2.09B
Investing Cash Flow	0.00	-1.03B	-1.62B	-1.15B	-1.55B	-1.10B
Financing Cash Flow	0.00	-3.29B	2.20B	238.00M	1.02B	-510.00M

Kogi Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5603, the sentiment is Positive. The current price of 1290 is below the 20-day moving average (MA) of 1399.90, below the 50-day MA of 1375.54, and above the 200-day MA of 1253.26, indicating a bullish trend. The MACD of 45.26 indicates Negative momentum. The RSI at 69.36 is Neutral, neither overbought nor oversold. The STOCH value of 88.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5603.

Kogi Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6998	78 Outperform	¥11.45B	7.66	―	3.48%	0.24%	20.23%
5603	76 Outperform	¥5.27B	15.34	―	4.79%	-0.27%	59.50%
5644	72 Outperform	¥15.72B	4.33	―	2.87%	2.38%	-5.80%
5994	69 Neutral	¥6.70B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥21.07B	3.53	―	4.33%	5.12%	―
6433	51 Neutral	¥10.37B	-20.41	―	0.11%	-10.82%	-69.03%