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Kyowakogyosyo Co., Ltd. (JP:5971)
:5971
Japanese Market
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Kyowakogyosyo Co., Ltd. (5971) AI Stock Analysis

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JP:5971

Kyowakogyosyo Co., Ltd.

(5971)

Rating:77Outperform
Price Target:
Kyowakogyosyo Co., Ltd. scores well due to its strong financial foundation, marked by high profitability and low leverage. Technical indicators show some short-term bearish trends, but the stock remains near critical support levels. The valuation metrics are appealing, with a reasonable P/E ratio and dividend yield.

Kyowakogyosyo Co., Ltd. (5971) vs. iShares MSCI Japan ETF (EWJ)

Kyowakogyosyo Co., Ltd. Business Overview & Revenue Model

Company DescriptionKyowakogyosyo Co., Ltd. (5971) is a Japan-based company primarily engaged in the manufacturing and sale of industrial machinery components and equipment. The company operates in sectors including automotive, construction, and various industrial applications. Its core products include precision machinery parts, metal products, and related components that are essential for the operation and assembly of machinery across different industries.
How the Company Makes MoneyKyowakogyosyo Co., Ltd. generates revenue through the production and sale of its precision machinery parts and metal products. The company primarily earns income from supplying these components to manufacturers in the automotive, construction, and other industrial sectors. Key revenue streams include direct sales to industrial manufacturers, as well as partnerships and contracts with companies that require specific machinery parts for their production needs. Additionally, the company's ability to maintain quality and innovate in machinery components contributes significantly to its earnings by attracting and retaining customers who prioritize reliability and performance in their operations.

Kyowakogyosyo Co., Ltd. Financial Statement Overview

Summary
Kyowakogyosyo Co., Ltd. demonstrates strong financial stability with high profitability and minimal leverage. Despite revenue challenges, effective cost and cash flow management provide a robust foundation for future stability and growth.
Income Statement
77
Positive
Kyowakogyosyo Co., Ltd. has shown mixed results in revenue growth, with revenues declining from the previous year. However, the company maintains strong profitability metrics, with a net profit margin of 13.16% and a gross profit margin of 19.51% for the latest year. The EBIT and EBITDA margins are also solid at 9.25% and 20.27% respectively, indicating effective cost management despite revenue pressures.
Balance Sheet
85
Very Positive
The balance sheet reflects a strong equity position with an equity ratio of 86.84%, underscoring financial stability. The debt-to-equity ratio of 0.0002 is exceptionally low, indicating minimal leverage and limited financial risk. Return on equity stands at 9.28%, suggesting efficient use of shareholder equity to generate profits.
Cash Flow
80
Positive
Cash flow analysis reveals robust operational cash generation, with a healthy operating cash flow to net income ratio of 1.15. Although free cash flow decreased compared to the previous year, the company demonstrates adequate cash flow management with a free cash flow to net income ratio of 0.42, indicating sufficient liquidity to cover operational needs and investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.25B10.46B10.97B13.21B11.66B8.08B
Gross Profit1.87B1.99B2.14B2.45B2.80B1.63B
EBITDA1.24B1.30B2.22B1.87B1.85B1.14B
Net Income620.01M708.29M1.44B1.09B1.08B571.84M
Balance Sheet
Total Assets17.77B18.15B17.90B17.14B16.36B14.45B
Cash, Cash Equivalents and Short-Term Investments8.38B9.27B8.44B8.08B7.07B6.87B
Total Debt335.10M0.002.50M104.50M230.50M178.00M
Total Liabilities2.15B2.50B2.36B2.68B3.03B2.21B
Stockholders Equity15.62B15.66B15.55B14.46B13.33B12.25B
Cash Flow
Free Cash Flow0.001.28B611.47M795.73M490.38M824.35M
Operating Cash Flow0.001.42B1.66B1.09B927.11M912.23M
Investing Cash Flow0.00-1.13B-2.58B422.86M-975.57M324.61M
Financing Cash Flow0.00-391.86M-214.14M-266.56M-60.24M-362.74M

Kyowakogyosyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6010.00
Price Trends
50DMA
5652.60
Positive
100DMA
5568.28
Positive
200DMA
5319.24
Positive
Market Momentum
MACD
101.45
Positive
RSI
66.95
Neutral
STOCH
83.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5971, the sentiment is Positive. The current price of 6010 is above the 20-day moving average (MA) of 5883.00, above the 50-day MA of 5652.60, and above the 200-day MA of 5319.24, indicating a bullish trend. The MACD of 101.45 indicates Positive momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5971.

Kyowakogyosyo 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
¥6.05B9.26
3.21%6.58%29.17%
77
Outperform
¥8.16B9.42
1.33%1.97%26.03%
71
Outperform
¥13.31B15.86
1.65%0.17%-16.55%
66
Neutral
$2.65B14.3813.52%3.54%2.94%43.39%
60
Neutral
¥2.36B194.06
2.46%-5.24%-96.07%
57
Neutral
¥7.26B133.81
5.68%-0.67%-283.43%
51
Neutral
¥4.48B13.84
3.61%-4.17%-175.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5971
Kyowakogyosyo Co., Ltd.
6,010.00
1,156.51
23.83%
JP:5966
Kyoto Tool Co., Ltd.
2,466.00
-69.72
-2.75%
JP:5967
TONE Co. Ltd.
583.00
-1.21
-0.21%
JP:5969
Lobtex Co., Ltd.
1,218.00
-5.28
-0.43%
JP:5990
Super Tool Co., Ltd.
1,945.00
41.74
2.19%
JP:6156
A-One Seimitsu, Inc.
1,792.00
131.79
7.94%
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.Date of analysis: Apr 08, 2025