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

• Market Cap: ¥5.20B
• Dividend Yield: 4.41%
• Average Volume (3M): 12.76K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.35
• Revenue Growth: -8.98%
• EPS Growth: 4.00%
• Country: JP
• Employees: 809
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -19.04
• Shares Outstanding: 7,210,000
• 10 Day Avg. Volume: 12,720
• 30 Day Avg. Volume: 12,756
• PEG Ratio: -0.25
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.64
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ¥786.00 ▲(3.01% Upside)

Kawata Mfg. Co., Ltd. has a stable financial position with some profitability concerns and cash flow volatility. The technical indicators suggest a bearish trend, but the stock appears undervalued with a low P/E ratio and high dividend yield. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Stable Financial Position

A stable financial position with a healthy equity ratio indicates that Kawata Mfg. Co., Ltd. has a solid foundation to support its operations and strategic initiatives, which is crucial for long-term business sustainability.

Advanced Technologies

Kawata Mfg. Co., Ltd.'s focus on advanced technologies and innovative solutions positions it well in the high-tech manufacturing sector, enabling it to meet evolving industry demands and maintain competitive advantages.

Partnerships in Semiconductor Industry

Partnerships with major semiconductor and electronics players provide Kawata Mfg. Co., Ltd. with recurring business opportunities and long-term contracts, enhancing revenue stability and growth potential.

Negative Factors

Revenue Decline

The recent decline in revenue growth highlights challenges in market demand or competitive pressures, which could impact Kawata Mfg. Co., Ltd.'s ability to maintain its market position and profitability.

Cash Flow Volatility

Significant fluctuations in free cash flow can hinder Kawata Mfg. Co., Ltd.'s ability to invest in growth opportunities and maintain operational efficiency, posing a risk to long-term financial health.

Declining Profit Margins

A declining net profit margin indicates increasing cost pressures or pricing challenges, which could affect Kawata Mfg. Co., Ltd.'s profitability and ability to reinvest in business growth.

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

Company Description

Kawata Mfg. Co., Ltd. (6292) is a Japanese manufacturing company specializing in the production of precision machinery and equipment, primarily for the semiconductor and electronic components industries. The company is known for its advanced technologies and innovative solutions that cater to the needs of high-tech manufacturing processes. Kawata Mfg. Co., Ltd. operates within sectors such as industrial machinery, electrical equipment, and automation, focusing on providing high-quality products that enhance productivity and efficiency for its clients.

How the Company Makes Money

Kawata Mfg. Co., Ltd. generates revenue primarily through the sale of its precision machinery and equipment, which includes products such as semiconductor manufacturing tools, automation systems, and other specialized industrial machines. The company's revenue model is based on direct sales to clients in various sectors, including electronics and manufacturing, supplemented by after-sales services and support. Key revenue streams include the sales of machinery, maintenance services, and the provision of customized solutions tailored to meet specific customer requirements. Significant partnerships with major players in the semiconductor and electronics industries also contribute to its earnings, as these collaborations often lead to long-term contracts and recurring business opportunities.

Kawata Mfg. Co., Ltd. Financial Statement Overview

Summary

Kawata Mfg. Co., Ltd. demonstrates a stable financial structure with some areas of concern. The income statement reflects mixed profitability trends, while the balance sheet shows a solid equity position. Cash flow volatility presents a risk that requires strategic focus to ensure long-term financial health and operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.77B	20.77B	24.49B	18.83B	18.38B	16.79B
Gross Profit	6.52B	6.25B	6.24B	5.30B	5.16B	4.58B
EBITDA	1.50B	1.53B	1.82B	1.04B	1.27B	973.30M
Net Income	691.51M	576.13M	929.10M	351.29M	540.83M	296.57M
Balance Sheet
Total Assets	24.61B	25.30B	26.74B	25.17B	22.04B	20.91B
Cash, Cash Equivalents and Short-Term Investments	7.15B	6.87B	7.13B	7.25B	6.76B	6.67B
Total Debt	5.98B	6.11B	7.02B	5.95B	4.92B	5.82B
Total Liabilities	11.27B	11.82B	14.10B	13.41B	10.71B	10.29B
Stockholders Equity	13.10B	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: Negative
• Last Price: 763.00
• 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 Negative. The current price of 763 is above the 20-day moving average (MA) of 762.45, below the 50-day MA of 832.17, and below the 200-day MA of 774.41, indicating a bearish trend. The MACD of -19.92 indicates Negative momentum. The RSI at 36.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	81 Outperform	¥6.79B	8.47	―	2.93%	2.58%	11.36%
6391	69 Neutral	¥5.67B	11.90	―	1.17%	-14.09%	-36.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6292	61 Neutral	¥5.20B	9.23	―	4.41%	-8.98%	4.00%
6408	61 Neutral	¥5.37B	4.86	―	1.39%	-3.05%	―
6155	58 Neutral	¥5.21B	-8.31	―	2.04%	-0.59%	89.24%
6495	50 Neutral	¥5.52B	81.52	―	1.77%	3.96%	―

Kawata Mfg. Co., Ltd. Corporate Events

Kawata Mfg. Co., Ltd. Reports Q1 2025 Financial Results with Stable Sales and Increased Income

Kawata Mfg. Co., Ltd. reported stable net sales for the three months ending June 30, 2025, with significant increases in operating and ordinary income compared to the previous year. Despite a forecasted decline in net sales and income for the fiscal year ending March 31, 2026, the company maintained its dividend forecast, indicating a stable financial strategy.