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

• Market Cap: ¥6.01B
• Dividend Yield: 2.43%
• Average Volume (3M): 533.00
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.20
• 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: 460
• 30 Day Avg. Volume: 533
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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. 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 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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
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
EBITDA	1.41B	1.39B	1.19B	1.14B	922.83M	1.09B
Net Income	654.45M	645.59M	593.97M	505.42M	340.94M	582.00M
Balance Sheet
Total Assets	15.69B	16.62B	14.72B	14.31B	13.52B	13.41B
Cash, Cash Equivalents and Short-Term Investments	3.39B	3.42B	3.31B	3.72B	3.26B	2.80B
Total Debt	900.00M	900.00M	923.90M	927.53M	934.61M	926.00M
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: 2474.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 2474 is below the 20-day moving average (MA) of 2485.35, below the 50-day MA of 2524.06, and below the 200-day MA of 2594.30, indicating a bearish trend. The MACD of -8.85 indicates Negative momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 40.57 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	¥6.01B	11.02	―	2.43%	7.33%	-8.26%
5956	74 Outperform	¥5.03B	7.61	3.40%	1.78%	6.36%	163.79%
5967	70 Outperform	¥14.05B	16.75	6.97%	1.70%	0.17%	-16.55%
5950	61 Neutral	¥2.84B	29.88	22.30%	12.56%	4.35%	-68.73%
5951	58 Neutral	¥14.24B	11.12	―	2.50%	4.20%	46.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%