Kikukawa Enterprise, Inc. (6346) AI Stock Analysis

• Market Cap: ¥8.42B
• Dividend Yield: 2.13%
• Average Volume (3M): 306.00
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.15
• Revenue Growth: 11.24%
• EPS Growth: 28.61%
• Country: JP
• Employees: 187
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 51.55
• Shares Outstanding: 1,320,000
• 10 Day Avg. Volume: 480
• 30 Day Avg. Volume: 306
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ―

Kikukawa Enterprise, Inc. has a robust financial foundation with high profitability and no debt, complemented by a favorable valuation with a low P/E ratio and solid dividend yield. Despite a lack of recent cash flow data, historical management of cash appears prudent. Technical indicators support a positive long-term trend, though short-term fluctuations are present. The overall score reflects these strengths, positioning Kikukawa as a solid investment in the industrial machinery sector.

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	5.53B	5.53B	5.49B	4.13B	4.18B	4.45B
Gross Profit	2.32B	2.32B	2.09B	1.50B	1.45B	1.76B
EBITDA	1.08B	1.13B	964.38M	609.31M	575.45M	973.00M
Net Income	742.79M	743.89M	618.71M	377.02M	336.19M	590.02M
Balance Sheet
Total Assets	14.52B	14.52B	14.53B	13.28B	12.56B	12.51B
Cash, Cash Equivalents and Short-Term Investments	7.96B	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	2.23B	2.23B	2.80B	2.25B	1.78B	1.72B
Stockholders Equity	12.29B	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: Positive
• Last Price: 6700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6346, the sentiment is Positive. The current price of 6700 is above the 20-day moving average (MA) of 6282.50, above the 50-day MA of 6101.60, and above the 200-day MA of 5644.69, indicating a bullish trend. The MACD of 102.57 indicates Negative momentum. The RSI at 80.02 is Negative, neither overbought nor oversold. The STOCH value of 88.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6346.

Kikukawa Enterprise, Inc. 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%
5802	76 Outperform	¥3.32T	16.83	8.46%	2.14%	4.17%	9.78%
6479	73 Outperform	¥1.14T	20.04	8.00%	1.78%	4.71%	-11.61%
5101	72 Outperform	¥881.25B	13.91	7.34%	1.79%	7.61%	-25.17%
5631	64 Neutral	¥654.34B	34.95	9.30%	0.92%	9.43%	21.15%
5401	63 Neutral	¥3.31T	-10,231.02	6.51%	5.16%	-3.92%	-100.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%