KLASS Corporation (6233) AI Stock Analysis

• Market Cap: ¥2.36B
• Dividend Yield: 2.28%
• Average Volume (3M): 8.87K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.56
• Revenue Growth: 1.40%
• EPS Growth: N/A
• Country: JP
• Employees: 300
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): 31.53
• Shares Outstanding: 5,391,000
• 10 Day Avg. Volume: 13,450
• 30 Day Avg. Volume: 8,866
• PEG Ratio: 0.09
• Price to Book (P/B): 0.77
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥449.00 ▲(3.94%Upside)

KLASS Corporation presents a stable financial foundation with solid gross margins but struggles with profitability and cash flow consistency. Technical analysis suggests positive short-term momentum, and the stock appears fairly valued with a reasonable P/E ratio and dividend yield. The lack of recent earnings call or significant corporate events does not impact the current outlook.

KLASS Corporation Business Overview & Revenue Model

Company Description

KLASS Corporation (6233) is a company engaged in the manufacturing and distribution of industrial scaffolding systems and related safety equipment. Operating primarily in the construction and maintenance sectors, KLASS Corporation provides a comprehensive range of scaffolding solutions designed to enhance workplace safety and efficiency. The company's products are utilized in various industries, including construction, energy, and infrastructure development, where safe and reliable access solutions are critical.

How the Company Makes Money

KLASS Corporation generates revenue through the sale and rental of its industrial scaffolding systems and safety equipment. The company capitalizes on long-term contracts with construction firms, energy companies, and governmental infrastructure projects, providing both standard and customized scaffolding solutions. Additionally, KLASS Corporation offers training and consulting services to ensure the proper installation and use of its products, adding a service-based revenue stream. Strategic partnerships with construction and engineering firms allow KLASS Corporation to expand its market reach and enhance its brand presence in the industry.

KLASS Corporation Financial Statement Overview

Summary

KLASS Corporation shows stable operational performance with solid gross margins. However, it faces challenges in converting revenue into net income, as indicated by low net profit margins. The balance sheet suggests a balanced leverage strategy, but high debt levels could pose risks. Cash flow issues, such as zero free cash flow, highlight potential liquidity management challenges.

Income Statement

The company's income statement shows reasonable profitability and stable revenue. The Gross Profit Margin for TTM is 30.22% and the Net Profit Margin is 1.17%, indicating efficient cost management but lower net profitability. Revenue growth has been modest, with a slight decline compared to the previous year. The EBIT margin is 1.7%, reflecting operational challenges, while the EBITDA margin of 3.56% suggests that depreciation and amortization are significant components of costs.

Balance Sheet

The balance sheet reveals a moderate financial position with a Debt-to-Equity ratio of 1.4, indicating a balanced approach to leveraging. The Return on Equity (ROE) is 3.96%, suggesting limited returns to shareholders. With an Equity Ratio of 29.15%, the company maintains a decent level of equity relative to total assets. However, high total debt levels could pose a risk in volatile markets.

Cash Flow

Cash flow analysis highlights some concerns, as the Free Cash Flow is zero for the TTM period. Previously, there was a negative Free Cash Flow, pointing to potential issues in generating cash after capital expenditures. The Operating Cash Flow to Net Income ratio is unavailable, but historical data shows fluctuations, indicating inconsistency in cash generation.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	9.78B	9.89B	9.66B	9.17B	8.01B
Gross Profit	2.93B	3.08B	2.91B	2.83B	2.47B
EBITDA	389.31M	565.00M	420.80M	432.29M	260.72M
Net Income	76.27M	102.31M	143.42M	189.53M	67.69M
Balance Sheet
Total Assets	10.12B	10.58B	10.43B	8.63B	7.59B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.20B	1.50B	1.56B	1.43B
Total Debt	4.14B	4.36B	3.87B	3.04B	2.38B
Total Liabilities	7.19B	7.66B	7.59B	5.84B	4.92B
Stockholders Equity	2.93B	2.92B	2.84B	2.78B	2.67B
Cash Flow
Free Cash Flow	572.30M	-661.88M	-819.89M	-124.55M	63.33M
Operating Cash Flow	705.57M	-162.26M	263.06M	460.77M	124.06M
Investing Cash Flow	-161.02M	-512.18M	-1.09B	-794.81M	-32.34M
Financing Cash Flow	-282.90M	390.09M	757.70M	442.78M	-70.96M

KLASS Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 432.00
• 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 432 is above the 20-day moving average (MA) of 427.50, above the 50-day MA of 423.46, and above the 200-day MA of 410.14, indicating a bullish trend. The MACD of 2.46 indicates Negative momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 36.54 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	¥2.86B	8.86		3.61%	11.07%	17.66%
6396	73 Outperform	¥3.27B	8.24		1.69%	-10.20%	-6.44%
6233	71 Outperform	¥2.36B	9.93		2.28%	1.40%	―
6158	70 Outperform	¥5.61B	12.99		4.14%	0.20%	-40.35%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%
6217	64 Neutral	¥2.26B	3.31		―	-12.77%	-114.94%
6218	55 Neutral	¥2.71B	―		2.33%	-9.15%	-1123.11%