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

• Market Cap: ¥6.64B
• Dividend Yield: 1.16%
• Average Volume (3M): 64.53K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.61
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥855.00 ▲(1.18% Upside)

Kitagawa Seiki Co., Ltd. has a balanced score driven by solid financial performance and reasonable valuation. However, technical indicators suggest short-term bearish momentum, and cash flow volatility poses a risk. The stock is fairly valued, offering moderate income potential.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates strong demand for Kitagawa Seiki's products, suggesting effective market penetration and product adoption, which can drive long-term business expansion.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, allowing Kitagawa Seiki to invest in growth opportunities without over-reliance on debt.

Product Quality and Market Position

High-quality products strengthen Kitagawa Seiki's market position and competitive advantage, fostering customer loyalty and enabling premium pricing, which supports sustainable growth.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder Kitagawa Seiki's ability to fund operations and growth initiatives, potentially impacting its financial flexibility and long-term strategic plans.

Declining Operational Margins

Declining margins may indicate rising costs or pricing pressures, which could erode profitability and affect Kitagawa Seiki's ability to sustain its competitive edge over time.

Equity Ratio Concerns

A moderate reliance on debt financing increases financial risk, potentially limiting Kitagawa Seiki's ability to weather economic downturns and invest in future growth without compromising financial health.

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

Kitagawa Seiki Co., Ltd. demonstrates solid revenue growth and profitability, with effective leverage management. However, declining operational margins and cash flow volatility present potential risks. The company should focus on stabilizing cash flows and improving operational efficiency to sustain growth.

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	5.36B	6.23B	5.93B	6.46B	5.03B	4.82B
Gross Profit	1.45B	1.36B	1.43B	1.42B	1.11B	1.10B
EBITDA	879.83M	710.85M	962.50M	907.35M	782.24M	651.78M
Net Income	495.11M	394.69M	632.99M	702.95M	588.02M	492.30M
Balance Sheet
Total Assets	8.38B	8.59B	8.43B	8.99B	8.86B	5.85B
Cash, Cash Equivalents and Short-Term Investments	2.69B	3.36B	3.44B	2.50B	2.61B	1.49B
Total Debt	1.35B	1.32B	1.44B	1.56B	1.69B	1.64B
Total Liabilities	3.44B	3.51B	3.67B	5.49B	6.09B	3.63B
Stockholders Equity	4.95B	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: 845.00
• 50DMA: Positive
• 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:6327, the sentiment is Positive. The current price of 845 is above the 20-day moving average (MA) of 844.80, above the 50-day MA of 827.74, and above the 200-day MA of 689.46, indicating a bullish trend. The MACD of 7.93 indicates Positive momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 11.00 is Positive, 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
6346	80 Outperform	¥7.61B	10.63	―	2.26%	3.68%	-14.90%
6336	72 Outperform	¥5.41B	6.04	―	2.98%	-5.79%	37.86%
6391	69 Neutral	¥5.59B	11.75	―	1.17%	-14.09%	-36.08%
6158	68 Neutral	¥5.52B	14.76	―	4.02%	-11.74%	-46.96%
6327	65 Neutral	¥6.64B	10.33	―	1.16%	53.68%	146.92%
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%

Kitagawa Seiki Co., Ltd. Corporate Events

Kitagawa Seiki Reports Increased Sales but Declining Profits

Kitagawa Seiki Co., Ltd. reported a 4.9% increase in net sales for the fiscal year ending June 2025, reaching 6,227 million yen. However, the company experienced declines in operating profit, ordinary profit, and profit attributable to owners, with respective decreases of 23.5%, 29.6%, and 37.6%. Despite these challenges, the company’s financial position remains strong, with an increase in total assets and net assets, and a capital adequacy ratio of 59.1%.