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

• Market Cap: ¥5.83B
• Dividend Yield: 2.5%
• Average Volume (3M): 583.00
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.27
• Revenue Growth: 7.33%
• EPS Growth: -8.26%
• Country: JP
• Employees: 242
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): N/A
• Shares Outstanding: 2,477,435
• 10 Day Avg. Volume: 730
• 30 Day Avg. Volume: 583
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,729.00
• Price Target Upside: 13.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,729.00 ▲(13.71% Upside)

Kyoto Tool Co., Ltd. has a solid financial foundation with strong revenue growth and efficient operations, contributing significantly to the overall score. The stock's valuation is attractive with a reasonable P/E ratio and a good dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial and valuation aspects.

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

Company Description

Kyoto Tool Co., Ltd. (5966) is a Japanese manufacturer specializing in high-quality tools and equipment for various industries, including automotive, aerospace, and construction. The company focuses on precision engineering and innovation, offering a range of products such as cutting tools, measuring instruments, and machine components. With a commitment to quality and customer satisfaction, Kyoto Tool aims to provide solutions that enhance productivity and efficiency in manufacturing processes.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.05B	9.05B	8.43B	8.40B	7.94B	7.32B
Gross Profit	3.39B	3.37B	3.34B	3.25B	3.07B	2.64B
EBITDA	1.38B	1.29B	1.39B	1.19B	1.14B	922.83M
Net Income	566.00M	544.80M	645.59M	593.97M	505.42M	340.94M
Balance Sheet
Total Assets	16.29B	16.29B	16.62B	14.72B	14.31B	13.52B
Cash, Cash Equivalents and Short-Term Investments	3.04B	3.04B	3.42B	3.31B	3.72B	3.26B
Total Debt	900.00M	900.00M	900.00M	923.90M	927.53M	934.61M
Total Liabilities	4.04B	4.04B	4.18B	3.54B	3.61B	3.21B
Stockholders Equity	12.25B	12.25B	12.43B	11.18B	10.71B	10.31B
Cash Flow
Free Cash Flow	0.00	1.07B	300.23M	-31.35M	630.24M	605.82M
Operating Cash Flow	0.00	1.07B	503.23M	193.65M	1.03B	789.82M
Investing Cash Flow	0.00	-1.25B	-203.71M	-423.79M	-270.14M	-254.75M
Financing Cash Flow	0.00	-318.28M	-182.31M	-181.76M	-193.66M	-179.22M

Kyoto Tool Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2400.00
• 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:5966, the sentiment is Negative. The current price of 2400 is below the 20-day moving average (MA) of 2447.81, below the 50-day MA of 2463.90, and below the 200-day MA of 2557.92, indicating a bearish trend. The MACD of -12.39 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5971	77 Outperform	¥9.46B	10.93	―	1.15%	1.97%	26.03%
5966	71 Outperform	¥5.83B	10.69	―	2.50%	7.33%	-8.26%
5967	70 Outperform	¥14.59B	14.98	―	1.64%	-2.69%	6.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5950	61 Neutral	¥2.76B	28.98	―	12.82%	4.35%	-68.73%
5969	60 Neutral	¥2.29B	188.49	―	2.53%	-5.24%	-96.07%
5990	55 Neutral	¥4.50B	13.84	―	3.58%	-4.75%	-178.91%