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Kyoto Tool Co., Ltd. (JP:5966)
:5966
Japanese Market

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

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JP

Kyoto Tool Co., Ltd.

(5966)

Rating:80Outperform
Price Target:
Kyoto Tool Co., Ltd. scores an 80, reflecting strong financial performance with consistent revenue growth and a robust balance sheet, though recent cash flow management issues pose some risk. The stock's technical indicators and low P/E ratio indicate positive momentum and potential undervaluation, making it an attractive investment opportunity in the manufacturing sector.

Kyoto Tool Co., Ltd. (5966) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionKyoto Tool Co., Ltd. (5966) is a leading Japanese manufacturer and supplier of high-quality hand tools and automotive specialty tools. Established in 1950, the company caters primarily to the automotive maintenance and repair industry, providing a wide range of products such as torque wrenches, socket tools, and precision measuring equipment. Kyoto Tool Co. is renowned for its commitment to innovation, quality, and reliability, serving both domestic and international markets.
How the Company Makes MoneyKyoto Tool Co., Ltd. generates revenue through the design, manufacture, and sale of a comprehensive range of hand tools and automotive specialty tools. The company's primary revenue streams include the direct sale of tools to automotive repair shops, dealerships, and maintenance businesses, as well as distribution through various retail channels. Kyoto Tool Co. also benefits from partnerships with automotive manufacturers and aftermarket service providers who require specialized tools for vehicle maintenance and repair. Additionally, the company's focus on quality and innovation helps maintain strong customer loyalty and repeat business, contributing significantly to its earnings.

Kyoto Tool Co., Ltd. Financial Statement Overview

Summary
Kyoto Tool Co., Ltd. has demonstrated strong financial health with consistent revenue and profitability growth, supported by a stable balance sheet with a low debt-to-equity ratio and high equity ratio. However, recent cash flow issues indicate potential challenges in cash management that may affect future financial flexibility.
Income Statement
82
Very Positive
Kyoto Tool Co., Ltd. has demonstrated strong profitability with a consistent increase in gross profit and net profit margins over the years. The TTM (Trailing-Twelve-Months) gross profit margin is impressive, and the company has shown solid revenue growth. However, EBIT and EBITDA margins indicate room for operational efficiency improvements.
Balance Sheet
88
Very Positive
The balance sheet is robust with a low debt-to-equity ratio, indicating financial stability. The equity ratio is strong, reflecting a well-capitalized structure. Return on equity has improved, signifying effective utilization of shareholder's funds. Overall, the company's balance sheet reflects financial prudence and stability.
Cash Flow
65
Positive
The cash flow statement shows some concerns with the recent absence of operating and free cash flow in the TTM period. Historically, free cash flow has been positive with substantial growth, but the lack of recent data suggests potential cash flow management issues that need to be addressed.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
8.75B8.43B8.40B7.94B7.32B8.26B
Gross Profit
3.42B3.34B3.25B3.07B2.64B3.10B
EBIT
895.59M910.21M793.83M733.01M491.25M667.00M
EBITDA
1.23B1.39B1.19B1.14B922.83M1.09B
Net Income Common Stockholders
654.45M645.59M593.97M505.42M340.94M582.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.39B3.42B3.31B3.72B3.26B2.80B
Total Assets
15.69B16.62B14.72B14.31B13.52B13.41B
Total Debt
900.00M900.00M900.00M927.53M934.61M926.00M
Net Debt
-2.49B-2.52B-2.41B-2.79B-2.22B-1.87B
Total Liabilities
3.45B4.18B3.54B3.61B3.21B26.84M
Stockholders Equity
12.24B12.43B11.18B10.71B10.31B9.86B
Cash FlowFree Cash Flow
0.00300.23M-31.35M630.24M605.82M540.00M
Operating Cash Flow
0.00503.23M193.65M1.03B789.82M978.00M
Investing Cash Flow
0.00-203.71M-423.79M-270.14M-254.75M-289.00M
Financing Cash Flow
0.00-182.31M-181.76M-193.66M-179.22M-166.00M

Kyoto Tool Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2541.00
Price Trends
50DMA
2597.66
Negative
100DMA
2625.52
Negative
200DMA
2599.33
Negative
Market Momentum
MACD
-13.25
Positive
RSI
34.36
Neutral
STOCH
65.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5966, the sentiment is Negative. The current price of 2541 is below the 20-day moving average (MA) of 2614.95, below the 50-day MA of 2597.66, and below the 200-day MA of 2599.33, indicating a bearish trend. The MACD of -13.25 indicates Positive momentum. The RSI at 34.36 is Neutral, neither overbought nor oversold. The STOCH value of 65.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5966.

Kyoto Tool Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥6.18B9.45
3.15%6.58%29.17%
74
Outperform
¥4.62B9.21
2.21%5.48%72.23%
71
Outperform
¥11.28B10.08
2.12%10.47%48.78%
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
58
Neutral
¥2.66B6.27
2.72%2.38%
58
Neutral
¥10.57B9.10
3.38%-5.57%-1.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5966
Kyoto Tool Co., Ltd.
2,541.00
-124.65
-4.68%
JP:5950
Japan Power Fastening Co., Ltd.
186.00
81.98
78.81%
JP:5951
Dainichi Co., Ltd.
653.00
-1.84
-0.28%
JP:5956
Toso Company, Limited
516.00
-17.80
-3.33%
JP:5967
TONE Co. Ltd.
483.00
-56.16
-10.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.