Kitagawa Corporation (6317) AI Stock Analysis

• Market Cap: ¥16.45B
• Dividend Yield: 3.49%
• Average Volume (3M): 40.74K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.91
• Revenue Growth: -3.27%
• EPS Growth: 572.42%
• Country: JP
• Employees: 2,535
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 40.09
• Shares Outstanding: 9,650,803
• 10 Day Avg. Volume: 35,980
• 30 Day Avg. Volume: 40,736
• PEG Ratio: -5.23
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 3.79
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,884.00 ▲(6.86% Upside)

Kitagawa Corporation's stock is rated positively due to its strong technical indicators and attractive valuation, despite some challenges in financial performance. The stock's low P/E ratio and high dividend yield make it appealing for value and income investors. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability and low leverage, providing the company with flexibility to invest in growth opportunities without excessive financial risk.

Cash Generation Ability

A strong operating cash flow relative to net income suggests robust cash generation, enabling the company to fund operations, invest in growth, and return capital to shareholders.

Strategic Partnerships

Partnerships with technology leaders enhance market reach and product adoption, ensuring steady demand and positioning the company well in evolving high-tech markets.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term planning and investment, potentially impacting the company's ability to scale and compete effectively in its industry.

Volatile Cash Flows

Volatility in cash flows can create uncertainty in financial planning, affecting the company's ability to consistently fund operations and strategic initiatives.

Low Profit Margins

Low profit margins indicate limited profitability, which may restrict the company's ability to reinvest in the business and improve shareholder returns over the long term.

Kitagawa Corporation Business Overview & Revenue Model

Company Description

Kitagawa Corporation (6317) is a leading Japanese company specializing in the manufacturing and sale of precision machinery and equipment, primarily for the semiconductor and electronics industries. The company operates in various sectors, including industrial automation, precision machinery, and materials handling. Kitagawa's core products include chucks, fixtures, and other precision components that are essential for manufacturing processes in high-tech industries.

How the Company Makes Money

Kitagawa Corporation generates revenue primarily through the sale of its precision machinery and components to various sectors, including semiconductor manufacturing, automotive, and general industrial applications. The company has established a strong revenue model based on direct sales, distribution through partnerships, and long-term contracts with major clients in the electronics industry. Key revenue streams include the sale of chucks and fixtures, which are critical for machining operations and precision handling. Additionally, Kitagawa benefits from ongoing maintenance and service contracts, providing a continuous revenue flow. Strategic partnerships with leading technology firms and participation in global supply chains also contribute significantly to its earnings, ensuring a steady demand for its products in rapidly evolving markets.

Kitagawa Corporation Financial Statement Overview

Summary

Kitagawa Corporation has a strong balance sheet with low leverage and solid equity, but faces challenges in consistent revenue growth and profitability. Cash flows are improving but remain volatile.

Income Statement

Kitagawa Corporation has shown a mixed performance on its income statement. The gross profit margin for the latest year was 15.66%, indicating moderate profitability. The net profit margin was 2.18%, reflecting a modest level of net income relative to revenue. Revenue growth has been inconsistent, with a slight decline in the latest period. EBIT and EBITDA margins are relatively stable, but overall profitability could be improved.

Balance Sheet

The balance sheet of Kitagawa Corporation is quite strong with a debt-to-equity ratio of 0.34, indicating low leverage and a solid financial structure. The equity ratio stands at 50.91%, which demonstrates financial stability. Return on Equity (ROE) was 2.99%, which suggests room for improvement in generating returns for shareholders.

Cash Flow

The cash flow statement shows positive trends with free cash flow turning positive in the latest year. The operating cash flow to net income ratio is favorable at 4.94, indicating strong cash generation relative to net income. However, the free cash flow growth rate is volatile, reflecting potential challenges in maintaining consistent cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.08B	57.28B	61.57B	59.70B	58.68B	48.75B
Gross Profit	9.34B	8.97B	8.47B	6.51B	8.35B	6.50B
EBITDA	7.77B	5.91B	6.29B	3.63B	3.29B	4.66B
Net Income	2.89B	1.25B	1.27B	-418.00M	-951.00M	244.00M
Balance Sheet
Total Assets	81.36B	82.00B	80.14B	74.48B	73.31B	72.90B
Cash, Cash Equivalents and Short-Term Investments	12.08B	11.50B	10.65B	8.41B	8.85B	10.58B
Total Debt	13.82B	14.04B	16.24B	13.82B	13.40B	13.19B
Total Liabilities	38.26B	40.26B	40.11B	37.41B	36.58B	34.55B
Stockholders Equity	43.10B	41.73B	40.03B	36.86B	36.33B	37.18B
Cash Flow
Free Cash Flow	0.00	2.94B	1.93B	-171.00M	-1.15B	-478.00M
Operating Cash Flow	0.00	6.15B	4.88B	2.81B	3.50B	3.10B
Investing Cash Flow	0.00	-2.73B	-3.08B	-2.80B	-4.70B	-3.30B
Financing Cash Flow	0.00	-2.84B	292.00M	-686.00M	-675.00M	1.10B

Kitagawa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1763.00
• 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:6317, the sentiment is Positive. The current price of 1763 is above the 20-day moving average (MA) of 1700.90, above the 50-day MA of 1661.12, and above the 200-day MA of 1398.69, indicating a bullish trend. The MACD of 32.35 indicates Negative momentum. The RSI at 61.17 is Neutral, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6317.

Kitagawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6373	79 Outperform	¥14.64B	12.42	―	1.81%	1.61%	117.39%
6317	78 Outperform	¥16.45B	5.03	―	3.49%	-3.27%	572.42%
6496	76 Outperform	¥20.46B	14.74	―	1.83%	34.70%	-8.44%
6312	67 Neutral	¥18.00B	11.00	―	1.86%	17.61%	211.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥13.60B	-28.46	―	5.18%	1.46%	89.88%
6203	53 Neutral	¥13.56B	42.77	―	1.81%	26.09%	―

Kitagawa Corporation Corporate Events

Kitagawa Corporation Reports Q1 2025 Financial Results with Improved Profit Margins

Kitagawa Corporation reported its consolidated financial results for the three months ended June 30, 2025, showing a slight decrease in net sales compared to the previous year. Despite this, the company saw significant increases in operating and ordinary profits, indicating improved operational efficiency. The financial forecast for the fiscal year ending March 31, 2026, remains unchanged, with expectations of modest growth in net sales and profits. This stability in forecasts suggests confidence in the company’s strategic direction and operational capabilities.