Kurita Water Industries (6370) AI Stock Analysis

• Market Cap: ¥866.78B
• Dividend Yield: 1.58%
• Average Volume (3M): 415.64K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 1.22
• Revenue Growth: 5.02%
• EPS Growth: -27.41%
• Country: JP
• Employees: 7,981
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): N/A
• Shares Outstanding: 116,200,690
• 10 Day Avg. Volume: 382,640
• 30 Day Avg. Volume: 415,640
• PEG Ratio: -0.83
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 13.61
• 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: ¥7,100.00
• Price Target Upside: 16.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥8,511.00 ▲(39.66% Upside)

Kurita Water Industries receives a solid overall score driven by strong technical indicators and solid financial performance. The stock's valuation is a concern due to a high P/E ratio, which suggests it may be overvalued. However, the company's stable financial health and bullish technical momentum provide a positive outlook.

Positive Factors

Recurring revenue from chemicals & services

The mix of consumable chemicals plus engineering, installation and long-term operation/maintenance contracts creates recurring, contract-backed revenue. An installed base of systems drives repeat consumable demand and cross‑selling, supporting persistent revenue visibility over months.

Conservative leverage

Low debt relative to equity provides financial flexibility to fund capex, M&A or weather downturns without stressing interest coverage. A conservative capital structure supports investment in maintenance of installed base and longer sales cycles typical in industrial water projects.

Healthy gross and operating margins

Relatively high gross margins reflect pricing power in chemicals and value-added engineering services. Strong operating margins indicate efficient execution and support reinvestment in service capabilities and R&D, aiding long-term competitiveness in specialized water solutions.

Negative Factors

Weak free cash flow conversion

Sub‑par conversion of net income to free cash flow suggests capital intensity, working capital needs, or timing effects from project revenue. Persistently low conversion can constrain dividends, debt reduction, and funding for growth initiatives over the medium term.

Earnings per share decline

A large negative EPS growth indicates earnings volatility or one-off impacts that reduce profit per share. If this trend reflects structural margin pressure or cyclical demand in key end markets, it can impair reinvestment capacity and investor confidence over several quarters.

Modest net profit margin and margin pressure

A low and declining net margin limits buffer against cost inflation, raw material swings, or pricing competition. For a business with project cycles and service commitments, sustained margin pressure would reduce cash available for growth and make returns sensitive to operational disruptions.

Kurita Water Industries Business Overview & Revenue Model

Company Description

Kurita Water Industries Ltd. is a Japanese company specializing in water treatment and chemical solutions. Founded in 1949, the company operates primarily in two main sectors: Water Treatment and Advanced Materials. Its core products and services include industrial water treatment chemicals, wastewater treatment solutions, and specialty chemicals for various industries, including semiconductors and pharmaceuticals. Kurita is committed to providing innovative solutions that enhance water sustainability and efficiency for its clients globally.

How the Company Makes Money

Kurita Water Industries generates revenue through multiple streams, primarily from the sale of water treatment chemicals and services. Their revenue model is centered on long-term contracts with industrial clients for water treatment solutions, which ensures a steady income. Key revenue streams include the provision of specialty chemicals for water treatment, maintenance services, and consulting for water resource management. Additionally, Kurita has formed significant partnerships with various industries, enhancing its market presence and enabling it to offer tailored solutions. The company also invests in research and development to innovate and improve its product offerings, which helps maintain competitive advantage and drive further sales.

Kurita Water Industries Financial Statement Overview

Summary

Kurita Water Industries demonstrates solid financial health with stable revenue growth and efficient operations. The balance sheet reflects a conservative leverage approach, though debt levels have increased slightly. Cash flow generation is strong, but there is potential to enhance free cash flow conversion. Overall, the company is well-positioned, but careful management of profitability and leverage is essential.

Income Statement

Kurita Water Industries shows a stable revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 1.185%. The gross profit margin is healthy at 36.36%, and the net profit margin is modest at 4.98%. EBIT and EBITDA margins are also strong, indicating efficient operations. However, the net profit margin has slightly decreased compared to previous periods, suggesting some pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.31, reflecting a conservative leverage position. Return on equity is moderate at 6.03%, indicating decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced capital structure. However, the slight increase in debt levels could pose a risk if not managed carefully.

Cash Flow

Operating cash flow is robust, covering net income comfortably with a ratio of 0.62. Free cash flow has grown by 11.85% TTM, showing positive cash generation. However, the free cash flow to net income ratio is 0.41, indicating room for improvement in converting earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	411.65B	408.89B	384.82B	344.61B	288.21B	267.75B
Gross Profit	151.25B	148.09B	131.84B	119.70B	104.28B	94.68B
EBITDA	90.74B	87.64B	75.15B	60.57B	53.78B	50.14B
Net Income	22.55B	20.30B	29.19B	20.13B	18.47B	19.09B
Balance Sheet
Total Assets	553.93B	548.95B	557.41B	501.54B	469.98B	424.93B
Cash, Cash Equivalents and Short-Term Investments	70.15B	62.95B	54.01B	53.83B	48.80B	65.05B
Total Debt	105.90B	93.47B	101.19B	100.07B	58.68B	51.35B
Total Liabilities	215.22B	210.44B	224.00B	205.78B	192.12B	167.09B
Stockholders Equity	336.14B	336.03B	331.26B	293.98B	271.91B	253.09B
Cash Flow
Free Cash Flow	37.54B	37.90B	18.82B	-6.35B	-28.40B	24.04B
Operating Cash Flow	75.47B	87.76B	50.87B	48.63B	28.74B	40.00B
Investing Cash Flow	-41.40B	-52.07B	-35.80B	-46.27B	-39.93B	-10.77B
Financing Cash Flow	-22.04B	-25.45B	-15.34B	1.10B	-7.93B	-18.85B

Kurita Water Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6094.00
• 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:6370, the sentiment is Positive. The current price of 6094 is below the 20-day moving average (MA) of 7112.30, below the 50-day MA of 6674.02, and above the 200-day MA of 5655.50, indicating a bullish trend. The MACD of 265.02 indicates Negative momentum. The RSI at 75.55 is Negative, neither overbought nor oversold. The STOCH value of 87.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6370.

Kurita Water Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6332	80 Outperform	¥105.86B	7.26	―	3.20%	2.46%	533.70%
9551	76 Outperform	¥119.19B	14.25	12.54%	1.84%	13.86%	51.05%
6368	72 Outperform	¥744.78B	27.09	―	1.43%	7.87%	38.32%
6013	71 Outperform	¥196.72B	18.96	9.02%	3.11%	1.25%	-3.97%
6370	71 Outperform	¥866.78B	37.88	6.61%	1.58%	5.02%	-27.41%
7004	66 Neutral	¥172.24B	9.69	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kurita Water Industries Corporate Events

Kurita Water Industries Shifts Sustainability Strategy Under President After Executive’s Passing

Kurita Water Industries has reassigned responsibilities within its top management, appointing President and Representative Executive Officer Hirohiko Ejiri as Executive General Manager of the Sustainability Corporate Strategy Division, effective December 24, 2025. The move consolidates oversight of sustainability-focused corporate strategy directly under the company’s chief executive following the retirement, due to passing, of Corporate Officer Hisashi Tanabe, signaling an intention to keep its sustainability agenda closely aligned with overall corporate leadership and long-term strategy.

The most recent analyst rating on (JP:6370) stock is a Buy with a Yen7310.00 price target. To see the full list of analyst forecasts on Kurita Water Industries stock, see the JP:6370 Stock Forecast page.

Kurita Water Industries Reports Strong First Half Performance

Kurita Water Industries reported a 1% increase in net sales and an 11% rise in business profit for the first half of the fiscal year ending March 31, 2026, driven by strong performance in recurring contract-based services and maintenance. The company revised its orders forecast upward due to recent trends and construction progress, although net sales forecasts were adjusted downward. Despite additional costs in the first quarter, the business profit forecast remains unchanged, reflecting an improved business mix.

The most recent analyst rating on (JP:6370) stock is a Hold with a Yen5748.00 price target. To see the full list of analyst forecasts on Kurita Water Industries stock, see the JP:6370 Stock Forecast page.

Kurita Water Industries Reports Strong First-Half Financial Results for FY2026

Kurita Water Industries reported a positive financial performance for the first half of the fiscal year ending March 31, 2026, with net sales and profits showing year-on-year growth. The company achieved a 1.4% increase in net sales and significant improvements in business and operating profits, indicating strong operational performance. The results reflect the company’s effective strategies and market positioning, with implications for continued growth and value for stakeholders.

The most recent analyst rating on (JP:6370) stock is a Hold with a Yen5748.00 price target. To see the full list of analyst forecasts on Kurita Water Industries stock, see the JP:6370 Stock Forecast page.