Kanefusa Corporation (5984) AI Stock Analysis

• Market Cap: ¥9.44B
• Dividend Yield: 3.39%
• Average Volume (3M): 5.80K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.36
• Revenue Growth: 0.42%
• EPS Growth: 14.24%
• Country: JP
• Employees: 1,235
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 4.74
• Shares Outstanding: 14,310,000
• 10 Day Avg. Volume: 5,310
• 30 Day Avg. Volume: 5,803
• 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: ¥735.00
• Price Target Upside: 8.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥735.00 ▲(8.25% Upside)

Kanefusa Corporation's overall stock score is driven by its strong financial performance and attractive valuation. The robust balance sheet and effective profitability are significant strengths, while the technical analysis presents a neutral outlook. The absence of earnings call data and corporate events does not impact the score.

Kanefusa Corporation Business Overview & Revenue Model

Company Description

Kanefusa Corporation (5984) is a Japanese company that specializes in the production and distribution of industrial cutting tools. Their product lineup includes saw blades, cutters, and machine knives, which cater to a variety of industries such as woodworking, metalworking, and paper processing. As a leader in precision tool manufacturing, Kanefusa is known for its high-quality products that enhance operational efficiency and productivity for its clients worldwide.

How the Company Makes Money

Kanefusa Corporation generates revenue primarily through the sale of its industrial cutting tools. By providing essential tools for industries like woodworking, metalworking, and paper processing, the company taps into a consistent demand for precision and durability in manufacturing processes. Additionally, Kanefusa maintains a competitive edge through innovation and quality, often forming partnerships with distributors and manufacturers who rely on their cutting tools for optimized performance. The company's earnings are further supported by its global presence, allowing it to serve a diverse client base and explore new market opportunities.

Kanefusa Corporation Financial Statement Overview

Summary

Kanefusa Corporation maintains a strong financial position with a robust balance sheet and stable income statement performance. The company demonstrates effective profitability and operational efficiency, supported by a firm equity base and low leverage. However, the cash flow statement highlights areas for improvement, particularly in managing capital expenditures to enhance free cash flow.

Income Statement

Kanefusa Corporation demonstrates a stable income statement performance. The gross profit margin remains healthy, indicating good cost management. The net profit margin has shown improvement, reflecting enhanced profitability. Revenue growth is moderate, with a slight increase over the past year. The EBIT and EBITDA margins illustrate operational efficiency, although there is room for further enhancement in operational profitability.

Balance Sheet

The balance sheet of Kanefusa Corporation is robust, with a strong equity base and low debt levels. The debt-to-equity ratio is low, highlighting a conservative leverage approach. The return on equity shows a positive trend, indicating effective use of equity. The equity ratio signifies a solid financial structure, with a substantial portion of assets financed by equity, reducing financial risk.

Cash Flow

The cash flow statement reveals a mixed performance. Operating cash flow shows stability, underpinning the company’s ability to generate cash from operations. However, the free cash flow is negative, indicating heavy capital expenditures. The ratio of operating cash flow to net income is strong, suggesting effective cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.23B	20.23B	20.08B	21.12B	19.67B	16.03B
Gross Profit	5.69B	5.69B	6.00B	6.40B	6.31B	4.56B
EBITDA	3.47B	3.55B	3.26B	3.62B	3.54B	2.48B
Net Income	984.03M	984.45M	886.44M	1.28B	1.35B	448.52M
Balance Sheet
Total Assets	38.47B	38.47B	34.77B	33.87B	31.61B	27.52B
Cash, Cash Equivalents and Short-Term Investments	8.06B	8.06B	5.54B	6.84B	7.16B	4.92B
Total Debt	3.27B	3.27B	1.50B	1.44B	1.28B	53.13M
Total Liabilities	7.91B	7.91B	6.34B	6.47B	6.07B	3.85B
Stockholders Equity	30.56B	30.56B	28.43B	27.40B	25.54B	23.67B
Cash Flow
Free Cash Flow	0.00	-86.55M	-1.06B	-466.39M	1.14B	1.95B
Operating Cash Flow	0.00	2.64B	1.43B	2.22B	1.91B	2.74B
Investing Cash Flow	0.00	-1.75B	-2.46B	-2.28B	-764.12M	-623.05M
Financing Cash Flow	0.00	1.41B	-548.53M	-500.37M	881.49M	-259.27M

Kanefusa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 679.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5984, the sentiment is Positive. The current price of 679 is above the 20-day moving average (MA) of 674.85, above the 50-day MA of 670.90, and above the 200-day MA of 663.05, indicating a bullish trend. The MACD of 2.84 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5984.

Kanefusa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6488	80 Outperform	¥11.79B	12.41	5.55%	2.78%	12.13%	-4.46%
6492	78 Outperform	¥14.30B	12.34	9.86%	0.83%	6.51%	3.68%
6161	74 Outperform	¥10.09B	8.33	11.39%	2.65%	19.26%	16.97%
6159	73 Outperform	¥10.15B	18.92	3.68%	0.74%	27.24%	-53.52%
5984	70 Outperform	¥9.44B	11.83	―	3.39%	0.42%	14.24%
6208	68 Neutral	¥10.02B	17.71	7.86%	0.64%	26.23%	81.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%