Kawata Mfg. Co., Ltd. (6292) AI Stock Analysis

• Market Cap: ¥5.08B
• Dividend Yield: 5.63%
• Average Volume (3M): 9.26K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.66
• Revenue Growth: -15.22%
• EPS Growth: -37.99%
• Country: JP
• Employees: 809
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 25.62
• Shares Outstanding: 7,210,000
• 10 Day Avg. Volume: 5,520
• 30 Day Avg. Volume: 9,260
• PEG Ratio: -0.48
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.25
• 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: 61 Neutral
• Price Target: ¥763.00 ▲(4.81%Upside)

Kawata Mfg. Co., Ltd.'s overall stock score is primarily influenced by its stable financial performance, despite some concerns about cash flow volatility. The technical analysis indicates bearish momentum, adding downside pressure. However, its strong valuation with a low P/E ratio and high dividend yield provides a positive offset.

Kawata Mfg. Co., Ltd. Business Overview & Revenue Model

Company Description

Kawata Mfg. Co., Ltd. (6292) is a Japanese manufacturing company that specializes in the production of industrial equipment for the plastics and chemical industries. The company is known for its comprehensive range of products, including material handling systems, drying and dehumidifying equipment, mixing and blending systems, and temperature control units. Kawata Mfg. Co., Ltd. serves a diverse clientele by providing innovative solutions tailored to enhance the efficiency and productivity of manufacturing processes in various industrial sectors.

How the Company Makes Money

Kawata Mfg. Co., Ltd. generates revenue primarily through the sale of its industrial equipment and systems to businesses in the plastics and chemical industries. The company’s core revenue streams include the manufacturing and distribution of material handling solutions, such as conveyors and storage systems, alongside drying and dehumidifying equipment that are critical in maintaining material quality. Additionally, Kawata offers mixing and blending systems designed to optimize production processes. The company also provides temperature control units that ensure precise manufacturing conditions. Kawata Mfg. Co., Ltd. may also engage in service contracts and maintenance agreements, further contributing to its revenue. Strategic partnerships and collaborations with other industrial technology firms and clients play a significant role in expanding their market reach and enhancing their growth potential.

Kawata Mfg. Co., Ltd. Financial Statement Overview

Summary

Kawata Mfg. Co., Ltd. demonstrates a stable financial structure with mixed profitability trends and cash flow volatility. The income statement reflects moderate operating efficiency, the balance sheet shows a solid equity position, but cash flow fluctuations present a risk.

Income Statement

Kawata Mfg. Co., Ltd. has shown a mixed performance in its income statement. The gross profit margin is relatively stable, but the net profit margin has seen a decline over the years, indicating pressure on net profitability. Revenue growth has been inconsistent, with a notable decrease in the most recent year. EBIT and EBITDA margins suggest moderate operating efficiency but indicate room for improvement.

Balance Sheet

The company's balance sheet reflects a stable financial position with a healthy equity ratio. The debt-to-equity ratio has remained within reasonable limits, which indicates manageable leverage. However, the return on equity has been decreasing, pointing to declining efficiency in generating returns for shareholders.

Cash Flow

Cash flow analysis presents a challenging picture for Kawata Mfg. Co., Ltd. While operating cash flow has been positive, free cash flow has fluctuated significantly, impacting the company's ability to sustain capital expenditures. The operating cash flow to net income ratio suggests a disconnect between earnings and cash generation, requiring attention to improve cash flow stability.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
21.13B	20.77B	24.49B	18.83B	18.38B	16.79B
	Gross Profit
6.14B	6.25B	6.24B	5.30B	5.16B	4.58B
	EBIT
1.06B	1.02B	1.25B	638.70M	760.61M	506.19M
	EBITDA
1.41B	1.53B	1.82B	1.04B	1.27B	973.30M
	Net Income Common Stockholders
758.37M	576.13M	929.10M	351.29M	540.83M	296.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.47B	6.87B	7.13B	7.25B	6.76B	6.67B
	Total Assets
24.76B	25.30B	26.74B	25.17B	22.04B	20.91B
	Total Debt
6.60B	6.11B	7.02B	5.95B	4.92B	5.82B
	Net Debt
134.00M	-755.60M	-116.48M	-1.30B	-1.84B	-846.49M
	Total Liabilities
11.82B	11.82B	14.10B	13.41B	10.71B	10.29B
	Stockholders Equity
12.68B	13.22B	12.41B	11.54B	11.12B	10.43B
Cash Flow		Free Cash Flow
0.00	628.37M	-900.95M	-391.13M	1.21B	1.72B
	Operating Cash Flow
0.00	1.12B	-139.91M	554.91M	1.60B	1.87B
	Investing Cash Flow
0.00	-455.10M	-653.48M	-1.03B	-416.68M	-159.77M
	Financing Cash Flow
0.00	-1.22B	738.58M	760.92M	-1.23B	-589.20M

Kawata Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 728.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6292, the sentiment is Neutral. The current price of 728 is above the 20-day moving average (MA) of 727.05, below the 50-day MA of 737.56, and below the 200-day MA of 772.76, indicating a neutral trend. The MACD of -3.43 indicates Negative momentum. The RSI at 45.89 is Neutral, neither overbought nor oversold. The STOCH value of 48.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6292.

Kawata Mfg. Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6267	79 Outperform	¥4.98B	7.12		2.84%	0.58%	-16.60%
6391	76 Outperform	¥5.60B	9.67		1.18%	-3.54%	0.10%
6408	72 Outperform	¥5.18B	4.46		1.45%	0.96%	―
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
6292	61 Neutral	¥5.08B	8.82		5.63%	-15.22%	-37.99%
6495	54 Neutral	¥5.09B	―		1.89%	10.20%	-142.31%
6155	49 Neutral	¥5.06B	―		2.15%	-2.05%	-14.82%

Kawata Mfg. Co., Ltd. Corporate Events

Kawata Mfg. Co., Ltd. Reports Decline in Fiscal Year 2025 Financial Results

Kawata Mfg. Co., Ltd. reported a decline in its financial performance for the fiscal year ended March 31, 2025, with net sales decreasing by 15.2% and net income attributable to owners dropping by 38% compared to the previous year. Despite the downturn, the company maintained its dividend payout, reflecting a commitment to shareholder returns, although the payout ratio increased significantly. The financial forecast for the next fiscal year indicates further declines in sales and income, suggesting ongoing challenges in the market.