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

• Market Cap: ¥6.18B
• Dividend Yield: 3.15%
• Average Volume (3M): 303.00
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.20
• Revenue Growth: 6.58%
• EPS Growth: 29.17%
• Country: JP
• Employees: 242
• Sector: Industrials
• Sector Strength: 90
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 45.00
• Shares Outstanding: 2,477,435
• 10 Day Avg. Volume: 390
• 30 Day Avg. Volume: 303
• PEG Ratio: -11.35
• Price to Book (P/B): 0.53
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• 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. Business Overview & Revenue Model

Company Description

Kyoto 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 Money

Kyoto 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
8.75B	8.43B	8.40B	7.94B	7.32B	8.26B
	Gross Profit
3.42B	3.34B	3.25B	3.07B	2.64B	3.10B
	EBIT
895.59M	910.21M	793.83M	733.01M	491.25M	667.00M
	EBITDA
1.23B	1.39B	1.19B	1.14B	922.83M	1.09B
	Net Income Common Stockholders
654.45M	645.59M	593.97M	505.42M	340.94M	582.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.39B	3.42B	3.31B	3.72B	3.26B	2.80B
	Total Assets
15.69B	16.62B	14.72B	14.31B	13.52B	13.41B
	Total Debt
900.00M	900.00M	900.00M	927.53M	934.61M	926.00M
	Net Debt
-2.49B	-2.52B	-2.41B	-2.79B	-2.22B	-1.87B
	Total Liabilities
3.45B	4.18B	3.54B	3.61B	3.21B	26.84M
	Stockholders Equity
12.24B	12.43B	11.18B	10.71B	10.31B	9.86B
Cash Flow		Free Cash Flow
0.00	300.23M	-31.35M	630.24M	605.82M	540.00M
	Operating Cash Flow
0.00	503.23M	193.65M	1.03B	789.82M	978.00M
	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 Price: 2541.00
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5966	80 Outperform	¥6.18B	9.45		3.15%	6.58%	29.17%
5956	74 Outperform	¥4.62B	9.21		2.21%	5.48%	72.23%
5967	71 Outperform	¥11.28B	10.08		2.12%	10.47%	48.78%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
5950	58 Neutral	¥2.66B	6.27		2.72%	2.38%	―
5951	58 Neutral	¥10.57B	9.10		3.38%	-5.57%	-1.82%