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

• Market Cap: ¥6.37B
• Dividend Yield: 1.98%
• Average Volume (3M): 3.69K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.63
• Revenue Growth: 22.88%
• EPS Growth: 71.56%
• Country: JP
• Employees: 306
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -14.53
• Shares Outstanding: 8,970,111
• 10 Day Avg. Volume: 2,810
• 30 Day Avg. Volume: 3,686
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥715.00
• Price Target Upside: -5.55% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥715.00 ▼(-5.55% Downside)

Koken Boring Machine Co., Ltd. achieves a strong overall stock score driven primarily by its solid financial performance and attractive valuation. The technical analysis indicates strong momentum, though there are signs of overbought conditions. The absence of earnings call data and corporate events means these factors do not influence the score.

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

Company Description

Koken Boring Machine Co., Ltd. (6297) is a Japan-based company that specializes in the development, manufacturing, and distribution of boring machines. These machines are primarily used in the construction and mining sectors, serving a critical role in drilling operations. The company offers a diverse range of products including rotary drilling rigs, core drilling machines, and various other equipment designed for geological surveys and infrastructure development projects.

How the Company Makes Money

Koken Boring Machine Co., Ltd. generates revenue primarily through the sale of its drilling and boring machinery. This includes both standard products and customized solutions tailored to the specific needs of their clients in construction and mining. Additionally, the company may engage in service contracts for maintenance and repair of machinery, providing an additional revenue stream. Partnerships with construction firms and mining companies, as well as government contracts for infrastructure projects, can significantly contribute to the company's earnings, ensuring steady demand for their equipment and services.

Koken Boring Machine Co., Ltd. Financial Statement Overview

Summary

Koken Boring Machine Co., Ltd. has shown 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.

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	10.61B	10.61B	9.53B	8.21B	7.34B	7.54B
Gross Profit	3.08B	3.09B	2.89B	2.18B	2.07B	2.03B
EBITDA	975.52M	972.59M	845.60M	588.00M	445.64M	1.26B
Net Income	455.77M	456.45M	299.72M	185.82M	293.04M	835.85M
Balance Sheet
Total Assets	13.94B	13.94B	13.49B	12.89B	11.63B	9.23B
Cash, Cash Equivalents and Short-Term Investments	1.80B	1.80B	1.68B	1.32B	1.23B	1.42B
Total Debt	5.44B	5.44B	5.70B	5.70B	2.89B	1.44B
Total Liabilities	8.60B	8.60B	8.51B	8.19B	7.04B	4.55B
Stockholders Equity	5.35B	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: Neutral
• Last Price: 757.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6297, the sentiment is Neutral. The current price of 757 is below the 20-day moving average (MA) of 758.70, below the 50-day MA of 759.68, and above the 200-day MA of 569.07, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 48.70 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	84 Outperform	¥4.79B	5.33	12.95%	7.02%	-28.71%	-31.89%
6297	79 Outperform	¥6.37B	15.94	―	1.98%	22.88%	71.56%
6494	68 Neutral	¥5.41B	52.20	2.05%	―	-2.34%	-87.12%
6292	64 Neutral	¥6.32B	9.15	4.36%	4.36%	-13.64%	-36.27%
6757	55 Neutral	¥4.82B	90.92	1.32%	4.31%	-0.15%	27.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%