Kanefusa Corporation (5984) AI Stock Analysis

• Market Cap: ¥9.62B
• Dividend Yield: 3.69%
• Average Volume (3M): 12.32K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.35
• Revenue Growth: -0.33%
• EPS Growth: 390.98%
• Country: JP
• Employees: 1,235
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 16.83
• Shares Outstanding: 14,310,000
• 10 Day Avg. Volume: 7,460
• 30 Day Avg. Volume: 12,320
• PEG Ratio: 0.86
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -109.21
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥735.00 ▲(8.73% 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.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt levels provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Revenue Growth

Consistent revenue growth indicates a stable demand for the company's products, supporting long-term business sustainability and market presence.

Operational Efficiency

Healthy profit margins reflect effective cost management and operational efficiency, which are crucial for maintaining profitability and competitive advantage.

Negative Factors

Negative Free Cash Flow

Negative free cash flow due to high capital expenditures can strain financial resources, potentially limiting the company's ability to invest in new opportunities or return capital to shareholders.

Cash Flow Management

Challenges in cash flow management, especially regarding capital expenditures, can impact the company's ability to generate sufficient cash for operations and growth initiatives.

Operational Profitability

While operational efficiency is present, the need for improved profitability suggests potential challenges in optimizing cost structures or pricing strategies, which could affect long-term margins.

Kanefusa Corporation Business Overview & Revenue Model

Company Description

Kanefusa Corporation (5984) is a leading Japanese manufacturer specializing in cutting tools and precision blades for various industries, including woodworking, metalworking, and food processing. Established in 1919, the company has expanded its product offerings to include a wide range of saw blades, knives, and other cutting tools designed to enhance operational efficiency and product quality across its sectors. With a strong emphasis on innovation and technology, Kanefusa aims to provide high-performance solutions tailored to meet the specific needs of its global customer base.

How the Company Makes Money

Kanefusa Corporation generates revenue primarily through the sale of its cutting tools and precision blades. The company's revenue model is based on direct sales to manufacturers and distributors in various industries, including woodworking, metalworking, and food processing. Key revenue streams include the sale of high-quality saw blades, knives, and custom cutting solutions. Additionally, Kanefusa benefits from long-term partnerships with equipment manufacturers and distributors, which help to expand its market reach and ensure a steady flow of orders. The company's focus on research and development allows it to introduce innovative products, further driving sales and enhancing its competitive edge in the market.

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	20.16B	20.23B	20.08B	21.12B	19.67B	16.03B
Gross Profit	5.67B	5.69B	6.00B	6.40B	6.31B	4.56B
EBITDA	3.40B	3.55B	3.26B	3.62B	3.54B	2.48B
Net Income	797.94M	984.45M	886.44M	1.28B	1.35B	448.52M
Balance Sheet
Total Assets	36.96B	38.47B	34.77B	33.87B	31.61B	27.52B
Cash, Cash Equivalents and Short-Term Investments	7.53B	8.06B	5.54B	6.84B	7.16B	4.92B
Total Debt	3.16B	3.27B	1.50B	1.44B	1.28B	81.13M
Total Liabilities	7.34B	7.91B	6.34B	6.47B	6.07B	3.85B
Stockholders Equity	29.62B	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: 676.00
• 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 676 is below the 20-day moving average (MA) of 685.25, below the 50-day MA of 679.33, and above the 200-day MA of 663.77, indicating a bullish trend. The MACD of 5.10 indicates Negative momentum. The RSI at 56.51 is Neutral, neither overbought nor oversold. The STOCH value of 45.02 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	79 Outperform	¥11.32B	11.08	―	2.87%	7.10%	18.03%
6492	78 Outperform	¥13.72B	13.12	―	0.74%	6.51%	3.68%
6161	74 Outperform	¥9.78B	8.58	―	2.67%	-0.63%	4.07%
6159	73 Outperform	¥10.50B	10.76	―	0.94%	23.05%	89.17%
5984	70 Outperform	¥9.62B	7.73	―	3.69%	-0.33%	390.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6208	63 Neutral	¥9.57B	27.74	―	0.61%	27.58%	-19.61%