Koike Sanso Kogyo Co., Ltd. (6137) AI Stock Analysis

• Market Cap: ¥27.15B
• Dividend Yield: 3.58%
• Average Volume (3M): 53.89K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.70
• Revenue Growth: 5.98%
• EPS Growth: -0.49%
• Country: JP
• Employees: 1,034
• Sector: Industrials
• Sector Strength: 78
• Industry: Industrial - Machinery
• EPS (TTM): 17.17
• Shares Outstanding: 22,614,664
• 10 Day Avg. Volume: 96,260
• 30 Day Avg. Volume: 53,890
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥1,414.00
• Price Target Upside: 14.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥1,414.00 ▲(14.96% Upside)

Koike Sanso Kogyo Co., Ltd. scores well due to its strong financial performance and attractive valuation, making it a potentially undervalued investment. However, technical indicators suggest caution due to current bearish trends, though the stock may soon be oversold.

Koike Sanso Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Koike Sanso Kogyo Co., Ltd. (6137) is a Japanese industrial company that specializes in the manufacturing and distribution of cutting and welding equipment. It operates primarily in the machinery sector, offering a range of products that includes gas cutting machines, welding machines, and related accessories. The company is known for its advanced technology and quality products, serving various industries such as construction, automotive, and shipbuilding.

How the Company Makes Money

Koike Sanso Kogyo Co., Ltd. generates revenue through the sale of its cutting and welding machines and equipment. This includes both direct sales to end-users and through a network of distributors. The company also offers maintenance and repair services for its products, providing an additional revenue stream. Key revenue streams include the domestic Japanese market as well as international markets, where the company exports its products. Strategic partnerships with other industrial firms and participation in industry exhibitions and trade shows also contribute to its business growth and revenue.

Koike Sanso Kogyo Co., Ltd. Financial Statement Overview

Summary

Koike Sanso Kogyo Co., Ltd. demonstrates strong financial performance with consistent revenue growth, robust profit margins, low leverage, and healthy equity ratios. However, the company faces challenges such as a temporary dip in free cash flow generation and potential external economic pressures.

Income Statement

Koike Sanso Kogyo Co., Ltd. has shown consistent revenue growth over the past few years, with a revenue growth rate of 7.43% from 2024 to 2025. The gross profit margin is robust at 31.49%, indicating effective cost management. The net profit margin has improved to 6.58%, reflecting solid profitability. EBIT and EBITDA margins are also strong at 9.87% and 13.92%, respectively, highlighting operational efficiency. However, maintaining these margins amidst industry volatility remains a challenge.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio of 0.17, indicating low leverage and financial prudence. The return on equity stands at 8.54%, and the equity ratio is a healthy 56.94%, demonstrating strong shareholder equity. However, the company must be vigilant about potential external economic pressures that could affect asset and equity valuations.

Cash Flow

Koike Sanso Kogyo Co., Ltd. has shown a free cash flow growth rate of -22.83% from 2024 to 2025, indicating a temporary dip in cash generation. The operating cash flow to net income ratio is 1.01, suggesting adequate cash conversion from profits. The free cash flow to net income ratio of 0.65 points to a good balance between cash flow and profitability. Continued focus on cash management is crucial to sustain financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	55.21B	51.39B	47.87B	41.83B	39.25B
Gross Profit	17.39B	15.64B	14.02B	12.21B	11.48B
EBITDA	7.69B	6.62B	4.92B	3.32B	2.83B
Net Income	3.63B	3.06B	2.06B	995.00M	-61.00M
Balance Sheet
Total Assets	74.73B	73.48B	64.93B	59.94B	56.22B
Cash, Cash Equivalents and Short-Term Investments	16.98B	16.58B	14.99B	12.75B	11.54B
Total Debt	7.23B	7.25B	7.55B	7.76B	8.61B
Total Liabilities	29.16B	31.09B	28.86B	26.25B	24.31B
Stockholders Equity	42.56B	39.34B	33.21B	30.78B	29.44B
Cash Flow
Free Cash Flow	2.38B	3.08B	4.50B	2.87B	1.56B
Operating Cash Flow	3.67B	4.46B	5.64B	3.78B	3.14B
Investing Cash Flow	-1.32B	-1.43B	-2.04B	-712.00M	-2.16B
Financing Cash Flow	-2.22B	-1.50B	-1.69B	-1.51B	318.00M

Koike Sanso Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1230.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6137, the sentiment is Negative. The current price of 1230 is below the 20-day moving average (MA) of 1348.30, below the 50-day MA of 1302.42, and above the 200-day MA of 1211.14, indicating a neutral trend. The MACD of -10.88 indicates Positive momentum. The RSI at 36.37 is Neutral, neither overbought nor oversold. The STOCH value of 5.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6137.

Koike Sanso Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6144	80 Outperform	¥30.28B	12.20		4.19%	4.62%	39.04%
6137	78 Outperform	¥27.15B	7.97		3.58%	5.98%	-0.49%
6125	71 Outperform	¥30.17B	12.31		3.49%	-2.14%	-47.09%
6149	69 Neutral	¥13.57B	6.92		2.12%	65.63%	103.99%
6405	68 Neutral	¥20.41B	18.16		2.09%	2.25%	-17.39%
6151	65 Neutral	¥35.26B	64.32		2.08%	1.69%	-67.19%
Sector *	59 Neutral	AU$1.66B	11.44	-7.29%	3.55%	7.56%	6.20%