KLASS Corporation (6233) AI Stock Analysis

• Market Cap: ¥2.37B
• Dividend Yield: 2.28%
• Average Volume (3M): 5.56K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.49
• Revenue Growth: -1.74%
• EPS Growth: 507.58%
• Country: JP
• Employees: 300
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -4.29
• Shares Outstanding: 5,391,000
• 10 Day Avg. Volume: 4,130
• 30 Day Avg. Volume: 5,560
• 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: ¥475.00
• Price Target Upside: 8.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥475.00 ▲(8.20% Upside)

KLASS Corporation's overall stock score is driven by a balanced valuation and strong cash flow generation. However, technical indicators suggest caution due to bearish momentum. The company's high leverage and profitability challenges are key risks.

KLASS Corporation Business Overview & Revenue Model

Company Description

KLASS Corporation manufactures and sells professional machines and tools in Japan. Its Professional segment offers interior construction equipment, such as automatic wallpaper gluing machines; sign/display related equipment that comprise film laminating machines; tapes for interior work and related tools; computer software; and Tatami manufacturing equipment, which include computerized Tatami manufacturing system, as well as related tools/auxiliary materials. The company's Consumer segment engages in the sale of interior products, such as special function tatami mats; provision of replacement of tatami mats and sliding doors for general households; and sale and installation of industrial and residential solar power generation systems, etc. and storage batteries, as well as offers house renovation work. Its Industry segment designs, develops, and manufactures industrial equipment; and sells food equipment for kitchen comprising multi-dispensers. The company was formerly known as Kyokuto Sanki Co.,Ltd. and changed its name to KLASS Corporation in October 2023. KLASS Corporation was incorporated in 1948 and is headquartered in Tatsuno, Japan.

How the Company Makes Money

KLASS Corporation generates revenue primarily through its asset management fees, which are charged as a percentage of the assets under management (AUM). This creates a steady income stream as clients invest in various financial products managed by the firm. In addition to management fees, the company also earns performance fees based on the success of its investment strategies, aligning its interests with those of its clients. Additional revenue streams include advisory fees for financial planning services, transaction fees for trades executed on behalf of clients, and commissions from selling investment products. Strategic partnerships with financial institutions and technology providers enhance its service offerings and attract new clients, further contributing to its earnings.

KLASS Corporation Financial Statement Overview

Summary

KLASS Corporation demonstrates a mixed financial performance. Strengths include improved cash flow generation and stable gross profit margins. However, challenges in profitability and high leverage remain, necessitating improvements in operational efficiency and debt management.

Income Statement

KLASS Corporation's revenue has shown fluctuations over the years, with a recent decline from 2023 to 2024. The gross profit margin remains relatively stable, indicating consistent cost management. However, the net profit margin has decreased, reflecting challenges in maintaining profitability. EBIT and EBITDA margins have also declined, suggesting operational inefficiencies or increased costs.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks if not managed properly. However, the equity ratio remains stable, suggesting a balanced asset structure. Return on equity has decreased, highlighting a need for better utilization of shareholder funds.

Cash Flow

KLASS Corporation has shown improvement in free cash flow, turning positive in 2024 after negative figures in previous years. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. However, the company needs to maintain this positive trend to ensure long-term financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.96B	9.78B	9.89B	9.66B	9.17B	8.01B
Gross Profit	3.12B	2.93B	3.08B	2.91B	2.83B	2.47B
EBITDA	593.76M	389.31M	450.91M	420.80M	432.29M	260.72M
Net Income	236.98M	76.27M	102.31M	143.42M	189.53M	67.69M
Balance Sheet
Total Assets	10.18B	10.12B	10.58B	10.43B	8.63B	7.59B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.48B	1.20B	1.50B	1.56B	1.43B
Total Debt	3.98B	4.14B	4.36B	3.87B	3.04B	2.38B
Total Liabilities	7.12B	7.19B	7.66B	7.59B	5.84B	4.92B
Stockholders Equity	3.06B	2.93B	2.92B	2.84B	2.78B	2.67B
Cash Flow
Free Cash Flow	0.00	572.30M	-661.88M	-819.89M	-124.55M	63.33M
Operating Cash Flow	0.00	705.57M	-162.26M	263.06M	460.77M	124.06M
Investing Cash Flow	0.00	-161.02M	-512.18M	-1.09B	-794.81M	-32.34M
Financing Cash Flow	0.00	-282.90M	390.09M	757.70M	442.78M	-70.96M

KLASS Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 439.00
• 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:6233, the sentiment is Positive. The current price of 439 is above the 20-day moving average (MA) of 435.90, above the 50-day MA of 438.70, and above the 200-day MA of 416.97, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 52.15 is Neutral, neither overbought nor oversold. The STOCH value of 68.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6233.

KLASS Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6248	79 Outperform	3.33B	9.98	10.94%	3.09%	11.28%	19.84%
6396	73 Outperform	3.61B	7.30	11.82%	1.53%	-4.62%	21.46%
6233	68 Neutral	¥2.37B	12.47		2.28%	-1.74%	507.58%
6158	68 Neutral	5.73B	15.38	4.24%	3.83%	-4.13%	-39.40%
6217	54 Neutral	2.27B	-62.99	17.97%	―	-12.77%	-114.94%
6218	47 Neutral	3.47B	-1.90	-21.78%	1.81%	-10.87%	-3485.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%