Kikukawa Enterprise, Inc. (6346) AI Stock Analysis

• Market Cap: ¥7.52B
• Dividend Yield: 2.42%
• Average Volume (3M): 153.00
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.15
• Revenue Growth: 3.68%
• EPS Growth: -14.90%
• Country: JP
• Employees: 187
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 91.76
• Shares Outstanding: 1,320,000
• 10 Day Avg. Volume: 140
• 30 Day Avg. Volume: 153
• PEG Ratio: 0.49
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 192.20
• 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: 69 Neutral
• Price Target: ¥6,581.00 ▲(9.50% Upside)

The score is driven primarily by solid and improving profitability and a very strong, debt-free balance sheet, offset by materially weaker FY2025 cash flow versus earnings. Valuation is supportive (low P/E and moderate yield), while technical indicators remain weak-to-neutral with negative MACD and sub-50 RSI.

Positive Factors

Balance Sheet Health

A debt-free balance sheet provides financial flexibility and resilience, allowing the company to navigate economic cycles without leverage pressure.

Profitability Improvement

Improved profitability indicates effective cost management and pricing strategies, enhancing long-term earnings potential despite revenue fluctuations.

Strong Capital Base

A strong capital base supports operational stability and investment capacity, enabling strategic growth initiatives and market competitiveness.

Negative Factors

Cash Flow Deterioration

Weakening cash flow raises concerns about the company's ability to sustain operations and invest in growth without impacting financial health.

Revenue Decline

A decline in revenue can pressure long-term earnings sustainability, especially if cost controls and margin improvements are not maintained.

Earnings Quality Concerns

Low cash conversion relative to net income suggests potential issues with earnings quality, impacting the reliability of reported profits.

Kikukawa Enterprise, Inc. Business Overview & Revenue Model

Company Description

Kikukawa Enterprise, Inc. engages in the manufacture and sale of sawmilling and woodworking machinery in Japan. It provides glue laminated board and CLT, lumber core and other wood, and plastic and printed circuit board machines; wide belt sanders, and plywood and board; and machine tools for FMC polyfoam models, railway vehicles, aircrafts, and various metal products. The company was formerly known as Kikukawa Iron Works, Inc. and changed its name to Kikukawa Enterprise, Inc. in October 2012. Kikukawa Enterprise, Inc. was founded in 1897 and is headquartered in Ise, Japan.

How the Company Makes Money

Kikukawa Enterprise, Inc. generates revenue primarily through the sale of its industrial machinery and equipment. The company's revenue streams include direct sales to industrial clients, contracts with construction and manufacturing firms, and long-term service agreements for maintenance and support of the equipment sold. Additionally, Kikukawa may engage in strategic partnerships with other industrial firms to enhance its product offerings and expand its market reach. The company's earnings are influenced by factors such as technological advancements, industry demand, and economic conditions affecting its client sectors.

Kikukawa Enterprise, Inc. Financial Statement Overview

Summary

Kikukawa Enterprise, Inc. exhibits a strong financial position with high profitability, zero debt, and significant equity ratios. While cash flow metrics for the recent period are lacking, historical data suggests prudent cash management. The company is well-positioned for growth within the industrial machinery sector, demonstrating both financial stability and operational efficiency.

Income Statement

Kikukawa Enterprise, Inc. demonstrates strong profitability with a robust gross profit margin of 45.8% and a net profit margin of 15.8% for the TTM period. Revenue growth is also notable, having increased by 7.1% from the previous annual period, indicating healthy business expansion. The EBIT margin is impressive at 21.2%, showcasing effective cost management and operational efficiency. These metrics highlight a solid financial performance in the industrial machinery sector.

Balance Sheet

The balance sheet reflects a very strong financial position, characterized by zero debt, leading to an excellent debt-to-equity ratio. The equity ratio stands at 81.6%, indicating significant ownership of assets by shareholders. Additionally, the return on equity (ROE) is high at 7.8% for the TTM period, illustrating efficient use of equity capital. Overall, the company is financially stable and well-capitalized.

Cash Flow

The cash flow statement shows a lack of operating cash flow in the TTM period, which could indicate potential concerns in cash generation from core operations. However, the historical data reveals positive free cash flow growth in previous years. The absence of a free cash flow to net income ratio for the TTM period limits a comprehensive cash flow analysis, yet past performance suggests prudent cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.94B	5.53B	5.49B	4.13B	4.18B	4.45B
Gross Profit	2.46B	2.32B	2.09B	1.50B	1.45B	1.76B
EBITDA	1.17B	1.13B	964.38M	609.31M	575.45M	973.00M
Net Income	827.77M	743.89M	618.71M	377.02M	336.19M	590.02M
Balance Sheet
Total Assets	14.07B	14.52B	14.53B	13.28B	12.56B	12.51B
Cash, Cash Equivalents and Short-Term Investments	8.54B	7.96B	8.49B	8.35B	8.12B	7.32B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.86B	2.23B	2.80B	2.25B	1.78B	1.72B
Stockholders Equity	12.21B	12.29B	11.73B	11.03B	10.78B	10.79B
Cash Flow
Free Cash Flow	0.00	37.52M	388.91M	527.40M	1.11B	159.29M
Operating Cash Flow	0.00	78.17M	434.90M	705.45M	1.15B	163.55M
Investing Cash Flow	0.00	-385.33M	-545.25M	-129.22M	398.86M	9.48M
Financing Cash Flow	0.00	-225.38M	-155.96M	-158.59M	-360.89M	-101.74M

Kikukawa Enterprise, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6010.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6346, the sentiment is Neutral. The current price of 6010 is below the 20-day moving average (MA) of 6055.00, below the 50-day MA of 6126.20, and above the 200-day MA of 5950.39, indicating a neutral trend. The MACD of 4.46 indicates Negative momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 54.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6346.

Kikukawa Enterprise, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6384	76 Outperform	¥9.89B	14.27	―	4.76%	41.13%	535.42%
6402	73 Outperform	¥9.16B	9.95	―	2.15%	-0.94%	6.93%
6346	69 Neutral	¥7.52B	10.49	―	2.42%	3.68%	-14.90%
5903	69 Neutral	¥6.77B	10.59	―	3.51%	4.29%	3.00%
6492	65 Neutral	¥13.66B	13.06	―	0.72%	6.51%	3.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	57 Neutral	¥8.21B	137.25	―	1.65%	3.96%	―