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

• Market Cap: ¥5.87B
• Dividend Yield: 5.45%
• Average Volume (3M): 5.58K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.48
• Revenue Growth: -13.64%
• EPS Growth: -36.27%
• Country: JP
• Employees: 809
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 37.34
• Shares Outstanding: 7,210,000
• 10 Day Avg. Volume: 8,620
• 30 Day Avg. Volume: 5,576
• PEG Ratio: -0.37
• Price to Book (P/B): 0.39
• 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: ¥763.00
• Price Target Upside: -9.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: ¥899.00 ▲(6.90%Upside)

Kawata Mfg. Co., Ltd.'s stock score is driven by a stable financial structure with some profitability and cash flow concerns, strong technical momentum tempered by overbought conditions, and an attractive valuation with a low P/E ratio and high dividend yield. The exclusion of earnings call and corporate events components has been accounted for in the adjusted weight distribution.

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

Company Description

Kawata Mfg. Co., Ltd. (6292) is a Japan-based company that specializes in the manufacturing and sale of equipment and systems used in the processing of plastics and other materials. The company operates primarily in the industrial machinery sector, offering a range of products including conveying systems, drying systems, blending systems, and other peripheral equipment necessary for plastics molding and processing.

How the Company Makes Money

Kawata Mfg. Co., Ltd. generates revenue through the sale of its machinery and equipment used in the plastics processing industry. The company offers a comprehensive suite of systems that support various stages of plastics manufacturing, such as conveying, drying, and blending, catering to the needs of manufacturers looking for efficient processing solutions. Revenue streams include direct sales to manufacturers, as well as potential service and maintenance contracts for the installed equipment. Additionally, the company may engage in partnerships or collaborations with other industrial machinery providers or technology firms to enhance its product offerings and expand its market reach.

Kawata Mfg. Co., Ltd. Financial Statement Overview

Summary

Kawata Mfg. Co., Ltd. demonstrates a stable financial structure with mixed profitability trends. The income statement highlights pressures on net profitability, while the balance sheet remains stable with manageable leverage. Cash flow volatility poses a risk, requiring strategic focus for long-term stability.

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

Kawata Mfg. Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 841.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6292, the sentiment is Positive. The current price of 841 is above the 20-day moving average (MA) of 735.25, above the 50-day MA of 730.98, and above the 200-day MA of 759.58, indicating a neutral trend. The MACD of 4.12 indicates Negative momentum. The RSI at 79.52 is Negative, neither overbought nor oversold. The STOCH value of 86.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	84 Outperform	¥5.65B	8.09		3.64%	0.58%	-16.60%
6391	74 Outperform	¥6.01B	10.66		1.11%	0.55%	-19.84%
6408	72 Outperform	¥5.67B	4.88		1.32%	0.96%	―
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
6292	64 Neutral	¥5.87B	8.49		5.45%	-13.64%	-36.27%
6155	51 Neutral	¥5.37B	―		2.00%	-2.05%	-14.86%
6495	51 Neutral	¥5.47B	―		1.72%	10.20%	-142.32%

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.