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

• Market Cap: ¥6.65B
• Dividend Yield: 1.21%
• Average Volume (3M): 127.28K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.74
• Revenue Growth: 4.94%
• EPS Growth: -43.00%
• Country: JP
• Employees: 154
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 12.92
• Shares Outstanding: 8,449,600
• 10 Day Avg. Volume: 69,490
• 30 Day Avg. Volume: 127,283
• 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: ¥981.00
• Price Target Upside: 18.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥981.00 ▲(18.91% Upside)

Kitagawa Seiki Co., Ltd. has a strong technical outlook with bullish momentum, which is the most significant factor driving the score. Financial performance is solid but hampered by cash flow volatility and declining margins. Valuation is reasonable but not compelling, limiting the stock's upside potential.

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

Company Description

Kitagawa Seiki Co., Ltd. (6327) is a Japanese manufacturing company specializing in precision machinery and components. The company operates primarily in the industrial machinery sector, where it designs, develops, and produces a wide range of products, including machine tool accessories, workholding devices, and automated systems. Kitagawa Seiki is known for its high-quality products that serve various industries, including automotive, aerospace, and electronics, helping to enhance the efficiency and precision of manufacturing processes.

How the Company Makes Money

Kitagawa Seiki Co., Ltd. generates revenue primarily through the sale of its precision machinery and components. The company's key revenue streams include the manufacturing and distribution of machine tool accessories such as chucks and rotary tables, which are essential for enhancing the productivity of CNC machines. Additionally, Kitagawa Seiki offers customized workholding solutions that cater to specific client needs, further contributing to its income. The company maintains significant partnerships with industrial clients across different sectors, ensuring a stable demand for its products. By continuously investing in research and development, Kitagawa Seiki enhances its product offerings and maintains its competitive edge, thereby sustaining its revenue growth.

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: 825.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 825 is below the 20-day moving average (MA) of 842.20, above the 50-day MA of 745.08, and above the 200-day MA of 626.58, indicating a neutral trend. The MACD of 20.50 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 53.10 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
6346	80 Outperform	¥8.42B	9.97	―	2.13%	11.24%	28.61%
6336	74 Outperform	¥5.55B	6.20	8.09%	2.94%	-5.79%	37.86%
6327	73 Outperform	¥6.65B	17.44	―	1.21%	4.94%	-43.00%
6158	68 Neutral	¥5.96B	15.92	4.24%	3.68%	-4.13%	-39.40%
6391	68 Neutral	¥5.68B	10.09	7.40%	1.16%	0.55%	-19.84%
6292	64 Neutral	¥6.32B	9.15	4.36%	4.36%	-13.64%	-36.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%