Kitagawa Seiki Co., Ltd. (6327) AI Stock Analysis

• Market Cap: ¥8.21B
• Dividend Yield: 1.17%
• Average Volume (3M): 64.53K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.50
• Revenue Growth: 53.68%
• EPS Growth: 146.92%
• Country: JP
• Employees: 154
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 19.02
• Shares Outstanding: 8,449,600
• 10 Day Avg. Volume: 34,770
• 30 Day Avg. Volume: 64,526
• PEG Ratio: -0.30
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 29.01
• 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: 68 Neutral
• Price Target: ¥1,139.00 ▲(26.98% Upside)

The score is driven primarily by solid financial performance (strong growth and profitability) but held back by weakening operating margins and notably weaker/volatile cash flow. Technicals are positive but appear overextended on RSI/Stochastics, and valuation is reasonable with a supportive P/E but only a modest dividend yield.

Positive Factors

Revenue Growth & Profitability

Consistent strong revenue growth and healthy profitability indicate durable end‑market demand and effective price/cost dynamics. Over a multi‑month horizon this supports reinvestment in capacity and R&D, underpins sustainable cash generation, and strengthens competitive positioning.

Improved Leverage Management

An improving debt‑to‑equity ratio reflects stronger leverage discipline and lowers financial vulnerability. Sustained improvement enhances balance sheet flexibility to fund capex or weather downturns, reducing refinancing risk and supporting strategic investments over the medium term.

Strong Return on Equity

A strong ROE signals efficient capital allocation and persistent profitability versus invested capital. This durability supports long‑term shareholder returns, enables internal funding of growth initiatives, and suggests management effectively monetizes assets across business cycles.

Negative Factors

Declining Operating Margins

Falling EBIT/EBITDA margins point to rising operating costs or pricing pressure that erodes operating leverage. If sustained over months, margin compression reduces free cash flow and reinvestment capacity, constraining profitability resilience and strategic flexibility.

Weakened Operating Cash Flow

A significant decline in operating cash flow weakens liquidity and the firm’s ability to self‑fund operations, capex, and dividends. Over a 2–6 month horizon this raises refinancing and operational risks and limits the company’s scope for opportunistic investment or buffer against shocks.

Volatile Cash Conversion

Positive yet volatile free cash flow and mismatches between cash and reported earnings make cash generation unpredictable. This variability complicates medium‑term planning, may increase reliance on external financing, and elevates execution risk for growth and shareholder return programs.

Kitagawa Seiki Co., Ltd. Business Overview & Revenue Model

Company Description

Kitagawa Seiki Co.,Ltd. engages in the manufacture and sale of press machines, factory automation equipment, and transfer machines. The company offers hot laminating press related machinery used for fabrication of printed circuit boards for use in mobile communication, home appliances, automobiles, satellites, and resin forming applications. It also provides automatic stacking machines for carbon fiber reinforced thermoplastic laminates used in aviation and automobile industries; laminators for laminating solar panels, on-board solar light panels, curved glass, touch panels, decorative glass plates, etc.; and solid stockers, automated warehouse systems, floor lifts, and special machinery. The company was formerly known as Kotobuki Seisakusho Co., Ltd. and changed its name to Kitagawa Seiki Co.,Ltd. in September 1960. Kitagawa Seiki Co.,Ltd. was incorporated in 1957 and is headquartered in Fuchu, Japan.

How the Company Makes Money

Kitagawa Seiki generates revenue through the sale of its precision machinery and components, which are utilized in various manufacturing processes across multiple sectors. The company benefits from a diverse revenue model that includes direct sales to customers, as well as long-term contracts with key clients in the automotive and aerospace industries. Additionally, service and maintenance of machinery, along with the sale of spare parts, contribute to recurring revenue streams. Strategic partnerships with other manufacturers and distributors enhance its market reach and drive sales growth. The company also invests in research and development to innovate new products, which helps maintain its competitive edge and attract new customers.

Kitagawa Seiki Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and healthy profitability support the score, but declining EBIT/EBITDA margins and a significant drop in operating cash flow (with volatile cash conversion vs. earnings) meaningfully temper overall financial quality.

Income Statement

Kitagawa Seiki Co., Ltd. has shown a strong revenue growth rate of 16.19% in the most recent year, indicating a positive trajectory. The gross profit margin and net profit margin are healthy, reflecting good profitability. However, there has been a decline in EBIT and EBITDA margins compared to previous years, which could indicate rising operational costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. The return on equity is strong, showing effective use of shareholder funds. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Operating cash flow has decreased significantly, which is a concern for liquidity. The free cash flow growth rate is positive but volatile, indicating potential instability in cash generation. The ratios of operating and free cash flow to net income suggest that cash generation is not fully aligned with reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.23B	6.23B	5.93B	6.46B	5.03B	4.82B
Gross Profit	1.36B	1.36B	1.43B	1.42B	1.11B	1.10B
EBITDA	710.85M	710.85M	962.50M	907.35M	782.24M	651.78M
Net Income	393.93M	394.69M	632.99M	702.95M	588.02M	492.30M
Balance Sheet
Total Assets	8.59B	8.59B	8.43B	8.99B	8.86B	5.85B
Cash, Cash Equivalents and Short-Term Investments	3.36B	3.36B	3.44B	2.50B	2.61B	1.49B
Total Debt	1.32B	1.32B	1.44B	1.56B	1.69B	1.64B
Total Liabilities	3.51B	3.51B	3.67B	5.49B	6.09B	3.63B
Stockholders Equity	5.08B	5.08B	4.76B	3.50B	2.77B	2.23B
Cash Flow
Free Cash Flow	0.00	173.60M	425.75M	55.38M	1.09B	179.44M
Operating Cash Flow	0.00	323.37M	504.06M	186.69M	1.40B	221.28M
Investing Cash Flow	0.00	-172.28M	-85.61M	-143.24M	-316.38M	-21.73M
Financing Cash Flow	0.00	-202.45M	482.08M	-163.61M	12.77M	-431.61M

Kitagawa Seiki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 897.00
• 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:6327, the sentiment is Positive. The current price of 897 is below the 20-day moving average (MA) of 990.80, below the 50-day MA of 908.78, and above the 200-day MA of 758.64, indicating a bullish trend. The MACD of 43.01 indicates Negative momentum. The RSI at 63.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6327.

Kitagawa Seiki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6391	74 Outperform	¥5.80B	8.85	―	1.19%	-14.09%	-36.08%
6336	72 Outperform	¥6.02B	5.87	―	2.63%	0.59%	53.87%
6346	69 Neutral	¥7.50B	10.47	―	2.42%	3.68%	-14.90%
6327	68 Neutral	¥8.21B	12.78	―	1.17%	53.68%	146.92%
6158	68 Neutral	¥5.90B	19.57	―	4.08%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6292	61 Neutral	¥5.66B	17.15	―	5.22%	-8.98%	4.00%