Koken Boring Machine Co., Ltd. (6297) AI Stock Analysis

• Market Cap: ¥6.39B
• Dividend Yield: 1.98%
• Average Volume (3M): 5.69K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.59
• Revenue Growth: 18.82%
• EPS Growth: 27.67%
• Country: JP
• Employees: 306
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 5.63
• Shares Outstanding: 8,970,111
• 10 Day Avg. Volume: 11,290
• 30 Day Avg. Volume: 5,686
• PEG Ratio: 0.16
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 8.07
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥838.00 ▲(10.41% Upside)

Koken Boring Machine Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability. The technical indicators suggest a stable price trend with potential for upward movement. The valuation is reasonable, offering a moderate dividend yield. These factors collectively contribute to a solid overall stock score.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Profitability

Enhanced profitability through cost management strengthens the company's financial health, enabling reinvestment in core operations and competitive positioning.

Negative Factors

Debt Levels

Moderate leverage can limit financial flexibility, potentially constraining the company's ability to pursue aggressive growth strategies or manage downturns.

Equity Ratio

A lower equity ratio suggests reliance on debt, which can increase financial risk and impact the company's ability to sustain operations during economic challenges.

Market Dependency

High dependency on specific sectors can expose the company to cyclical risks, impacting revenue stability during downturns in construction or mining industries.

Koken Boring Machine Co., Ltd. Business Overview & Revenue Model

Company Description

Koken Boring Machine Co., Ltd. (6297) is a leading manufacturer and supplier in the precision boring machinery sector, specializing in high-quality boring machines and related equipment. The company operates primarily in the industrial machinery sector, providing solutions for various applications including construction, automotive, and manufacturing industries. Koken is known for its commitment to innovation and quality, offering a range of products designed to meet the evolving needs of its global clientele.

How the Company Makes Money

Koken Boring Machine Co., Ltd. generates revenue primarily through the sale of its precision boring machines and associated equipment. The company employs a revenue model based on direct sales to industrial customers, along with providing maintenance and support services for its products. Key revenue streams include the initial sales of machinery, aftermarket services, and component sales. Significant partnerships with industrial distributors and manufacturers enhance Koken's market reach and contribute to its earnings, as these collaborations facilitate access to new markets and customer segments, driving overall sales growth.

Koken Boring Machine Co., Ltd. Financial Statement Overview

Summary

Koken Boring Machine Co., Ltd. has shown a commendable financial performance with strong revenue growth and improved profitability. The balance sheet reflects moderate leverage and a stable equity position. Cash flow metrics indicate efficient cash management and conversion. Overall, the company is on a positive trajectory with strong operational efficiency.

Income Statement

Koken Boring Machine Co., Ltd. has demonstrated strong revenue growth with a 11.36% increase in the most recent year. The gross profit margin is healthy at 29.07%, showing efficient production operations. The net profit margin improved to 4.30%, indicating better cost management and profitability. EBIT and EBITDA margins are 6.16% and 9.16% respectively, showcasing a solid operating performance.

Balance Sheet

The company's debt-to-equity ratio stands at 1.02, reflecting moderate leverage. Return on equity is 8.54%, illustrating reasonable efficiency in utilizing equity to generate profit. An equity ratio of 38.34% indicates a balanced capital structure, though there is room for improvement in reducing liabilities.

Cash Flow

Free cash flow grew by 15.47%, suggesting improved cash management. The operating cash flow to net income ratio is 1.16, indicating strong cash generation relative to net income. The free cash flow to net income ratio is at 1.06, highlighting robust cash conversion from net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.97B	10.61B	9.53B	8.21B	7.34B	7.54B
Gross Profit	3.17B	3.09B	2.89B	2.18B	2.07B	2.03B
EBITDA	910.98M	972.59M	845.60M	588.00M	445.64M	1.26B
Net Income	401.74M	456.45M	299.72M	185.82M	293.04M	835.85M
Balance Sheet
Total Assets	13.98B	13.94B	13.49B	12.89B	11.63B	9.23B
Cash, Cash Equivalents and Short-Term Investments	2.33B	1.80B	1.68B	1.32B	1.23B	1.42B
Total Debt	5.56B	5.44B	5.70B	5.70B	2.89B	1.44B
Total Liabilities	8.88B	8.60B	8.51B	8.19B	7.04B	4.55B
Stockholders Equity	5.09B	5.35B	4.97B	4.70B	4.56B	4.65B
Cash Flow
Free Cash Flow	0.00	485.10M	419.96M	-2.23B	-1.22B	-1.36B
Operating Cash Flow	0.00	529.73M	473.06M	-610.87M	142.32M	-48.79M
Investing Cash Flow	0.00	53.90M	-37.27M	-1.69B	-1.36B	39.26M
Financing Cash Flow	0.00	-461.32M	-82.61M	2.38B	1.05B	298.63M

Koken Boring Machine Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 759.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6297, the sentiment is Positive. The current price of 759 is above the 20-day moving average (MA) of 758.85, above the 50-day MA of 758.40, and above the 200-day MA of 622.67, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6297.

Koken Boring Machine Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6360	79 Outperform	¥5.17B	7.06	―	6.50%	-30.65%	-46.85%
6297	71 Outperform	¥6.39B	15.98	―	1.98%	18.82%	27.67%
6494	71 Outperform	¥6.19B	38.27	―	―	9.59%	54.63%
6757	64 Neutral	¥4.92B	92.78	―	4.11%	-0.15%	27.85%
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%