Kyoto Tool Co., Ltd. (5966) AI Stock Analysis

• Market Cap: ¥6.19B
• Dividend Yield: 3.24%
• Average Volume (3M): 583.00
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.32
• Revenue Growth: 1.16%
• EPS Growth: -31.17%
• Country: JP
• Employees: 242
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 77.93
• Shares Outstanding: 2,477,435
• 10 Day Avg. Volume: 730
• 30 Day Avg. Volume: 583
• PEG Ratio: -1.93
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 5.87
• 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: 67 Neutral
• Price Target: ¥2,654.00 ▲(6.33% Upside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Kyoto Tool Co., Ltd. demonstrates strong financial performance with consistent revenue growth and a solid balance sheet. Technical indicators show a neutral to slightly bullish trend, while valuation metrics suggest the stock is fairly valued with an attractive dividend yield. The absence of recent earnings call data and corporate events limits the analysis to these factors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Cash Generation

Improved cash flow generation supports operational needs and potential strategic investments, contributing to long-term financial health.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin could indicate rising costs, which may pressure profitability if not managed effectively.

Earnings Volatility

Negative EPS growth suggests earnings instability, which can affect investor confidence and long-term valuation.

Free Cash Flow Consistency

Inconsistent free cash flow can limit the company's ability to reinvest in growth opportunities and manage financial obligations.

Kyoto Tool Co., Ltd. Business Overview & Revenue Model

Company Description

Kyoto Tool Co., Ltd. produces and sells work tools for automobile maintenance, other general tools, and relative apparatus in Japan and internationally. The company provides precision molded tools; and high-precision machine tool parts and industrial machine parts. Its products include ratchet handles, T-Handles and T-Wrenches, sockets/box wrenches, screwdrivers, tool sets, tool storage products, and automotive special tools under the Nepros brand. The company was incorporated in 1950 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Kyoto Tool Co., Ltd. generates revenue primarily through the sale of its tools and equipment to various industrial sectors. The company operates on a B2B model, supplying products to manufacturers, construction companies, and automotive firms. Key revenue streams include direct sales from their product lines, as well as partnerships with distributors and retailers that expand their market reach. Additionally, the company may benefit from after-sales services and support, which provide recurring income. Strategic collaborations with other manufacturers and technology partners can also enhance their product offerings and drive additional sales.

Kyoto Tool Co., Ltd. Financial Statement Overview

Summary

Kyoto Tool Co., Ltd. exhibits strong financial health with consistent revenue growth and efficient operations. The balance sheet is solid with low leverage, and cash flow generation is improving. While profitability margins are generally healthy, there is a slight decline in net profit margin that warrants attention. Overall, the company is well-positioned in its industry with a stable financial foundation.

Income Statement

Kyoto Tool Co., Ltd. has shown consistent revenue growth over the years, with a 3.34% increase in the latest period. The gross profit margin remains strong, indicating efficient production processes. However, the net profit margin has slightly decreased, suggesting increased costs or expenses. The EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating conservative financial leverage and strong equity backing. Return on equity is stable, showing effective use of shareholder funds. The equity ratio is robust, highlighting a solid financial structure with a high proportion of equity financing.

Cash Flow

Operating cash flow has improved significantly, demonstrating strong cash generation capabilities. The free cash flow growth rate is exceptionally high, but this is due to a low base effect from the previous period. The ratios of operating and free cash flow to net income suggest good cash conversion, although there is room for improvement in free cash flow consistency.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.05B	8.43B	8.40B	7.94B	7.32B
Gross Profit	3.37B	3.34B	3.25B	3.07B	2.64B
EBITDA	1.29B	1.39B	1.19B	1.14B	922.83M
Net Income	544.80M	645.59M	593.97M	505.42M	340.94M
Balance Sheet
Total Assets	16.29B	16.62B	14.72B	14.31B	13.52B
Cash, Cash Equivalents and Short-Term Investments	3.04B	3.42B	3.31B	3.72B	3.26B
Total Debt	900.00M	900.00M	923.90M	927.53M	934.61M
Total Liabilities	4.04B	4.18B	3.54B	3.61B	3.21B
Stockholders Equity	12.25B	12.43B	11.18B	10.71B	10.31B
Cash Flow
Free Cash Flow	1.07B	300.23M	-31.35M	630.24M	605.82M
Operating Cash Flow	1.07B	503.23M	193.65M	1.03B	789.82M
Investing Cash Flow	-1.25B	-203.71M	-423.79M	-270.14M	-254.75M
Financing Cash Flow	-318.28M	-182.31M	-181.76M	-193.66M	-179.22M

Kyoto Tool Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2496.00
• 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:5966, the sentiment is Positive. The current price of 2496 is below the 20-day moving average (MA) of 2534.95, below the 50-day MA of 2515.90, and above the 200-day MA of 2484.37, indicating a bullish trend. The MACD of 2.46 indicates Positive momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 23.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5966.

Kyoto Tool Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5945	81 Outperform	¥25.96B	13.22	―	3.89%	1.33%	29.73%
5957	77 Outperform	¥28.03B	11.97	―	2.76%	7.69%	-0.40%
6278	76 Outperform	¥252.23B	24.11	―	1.17%	29.51%	48.81%
6136	72 Outperform	¥238.44B	13.29	7.86%	2.55%	0.57%	4.54%
5966	67 Neutral	¥6.19B	8.03	―	3.24%	1.16%	-31.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6474	62 Neutral	¥115.71B	17.03	2.64%	2.30%	-4.11%	46.76%