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): 0.61
• 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: 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

• 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.

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

Company Description

Koken Boring Machine Co.,Ltd. manufactures and sells drilling and grouting machines, and associated equipment in Japan and internationally. It offers rotary percussion drill, horizontal drilling machine, track-mounted water well rig, full automated cement mixing plant, grouting pump, grouting mixer, logging device/flow meter, and drilling tool products. The company also engages in the pump equipment installation, groundwater utilization, environmental, and hot spring well maintenance and development businesses; and rock drilling works, as well as offers geothermal utilization systems. In addition, it provides contracting services for drilling and grouting works; consulting services for civil engineering; and consulting and contracting for groundwater development. The company was incorporated in 1947 and is headquartered in Tokyo, Japan.

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 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	10.97B	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: Positive
• 200DMA: Positive
• MACD: Negative
• 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 757.90, above the 50-day MA of 758.64, and above the 200-day MA of 595.76, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 57.11 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	84 Outperform	¥4.79B	5.41	―	6.92%	-28.71%	-31.89%
6297	71 Outperform	¥6.39B	15.98	―	1.98%	22.88%	71.56%
6494	68 Neutral	¥5.26B	49.84	―	―	-2.34%	-87.12%
6292	64 Neutral	¥6.10B	8.83	―	4.47%	-13.64%	-36.27%
6757	64 Neutral	¥4.78B	90.14	―	4.31%	-0.15%	27.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%