Kurita Water Industries (6370) AI Stock Analysis

• Market Cap: ¥979.16B
• Dividend Yield: 1.58%
• Average Volume (3M): 415.64K
• Price to Earnings (P/E): 40.6
• Beta (1Y): 1.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 342.46
• Revenue Forecast (FY): ¥423.06B

• Rating: 72 Outperform
• Price Target: ¥9,522.00 ▲(56.25% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven mainly by solid financial stability and profitability, reinforced by strong technical uptrend signals. These positives are tempered by expensive valuation (high P/E, modest yield) and weaker near-term cash flow momentum (lower free cash flow and mixed cash conversion).

Positive Factors

Recurring revenue from chemicals & services

Kurita’s business mixes consumable chemical sales with long-term service and maintenance contracts, creating recurring revenue linked to customers’ operating volumes. This installed-base model increases customer stickiness and predictable revenue streams, supporting durable cash flow and long-term service margins.

High operating profitability

Sustained gross and EBITDA margins reflect strong pricing power and value in bundled chemical, equipment and engineering offerings. High operating profitability provides internal funds for reinvestment, supports margins through cycles, and underpins the company’s ability to invest in technical services and R&D for long-term competitiveness.

Moderate leverage and equity growth

A modest debt-to-equity ratio and rising equity indicate a healthy balance sheet that preserves financial flexibility. This conservatism supports capital investments in engineering projects, ability to fund working capital for large contracts, and resilience to sector cyclicality without heavy refinancing risk.

Negative Factors

Near-term revenue stagnation

A pause in top-line growth suggests project timing, weaker demand in certain end markets, or a slowdown in new system sales. If revenue remains stagnant, it limits operating leverage benefits from high margins and constrains sustainable EBITDA and service expansion over the medium term.

Sharply lower free cash flow

A material drop in free cash flow versus prior year indicates higher working-capital needs or elevated capex and reduces internal funding for dividends, acquisitions, or debt reduction. Lumpy cash from project cycles can pressure liquidity and makes long-term capital allocation less predictable.

Modest and volatile net margins

Despite solid operating margins, net margin volatility points to below-the-line pressures such as interest, tax, or one-off items that can swing reported profits. This variability reduces earnings predictability and may constrain sustained returns on equity and shareholder distributions over time.

Kurita Water Industries Business Overview & Revenue Model

Company Description

Kurita Water Industries Ltd. provides various water treatment solutions in Japan, Asia, North America, South America, Europe, the Middle East, Africa, and internationally. The Water Treatment Chemicals segment offers boiler water treatment chemicals, cooling water treatment chemicals, wastewater treatment chemicals, process treatment chemicals, reverse osmosis membrane water treatment chemicals, automobile paint booth chemicals, biomass generation related chemicals, civil engineering and construction related chemicals, marine vessel related water treatment chemicals, chemical dosing systems/chemical dosing control systems, and packaged contract services. The Water Treatment Facilities segment offers water treatment equipment and facilities; ultrapure water production systems, tool cleaning, plant cleaning, and soil and groundwater contamination remediation services; and swimming pool related equipment services. This segment also provides ultrapure water production systems, wastewater reclamation systems, and wastewater treatment systems and equipment. It also offers soil and groundwater contamination remediation, plant facilities cleaning, and precision tool cleaning services, as well as water treatment equipment for professional use, products for general household's, and swimming pool-related equipment. The company was incorporated in 1949 and is headquartered in Tokyo, Japan.

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

Fundamentals are sound with strong multi-year revenue expansion and solid operating profitability (TTM gross margin ~37%, EBITDA margin ~23%) plus a generally healthy balance sheet (TTM debt-to-equity ~0.37). Offsetting this, TTM revenue is flat versus the last annual period (-0.1%), net margin is modest and volatile (~5.7% TTM), and free cash flow is down sharply (~-33%) with mixed cash conversion.

Income Statement

Revenue expanded strongly from FY2021 to FY2025 (annual reports), but TTM (Trailing-Twelve-Months) revenue is essentially flat versus the last annual period (-0.1%), signaling a near-term pause in growth. Profitability is solid at the operating level with TTM gross margin ~37% and EBITDA margin ~23%, showing good pricing/solution value. However, net margin is modest (~5.7% TTM) and has been volatile (notably higher in FY2024), indicating below-the-line pressure and less consistent earnings conversion than operating performance suggests.

Balance Sheet

The balance sheet looks healthy with moderate leverage: debt-to-equity is ~0.37 in TTM (Trailing-Twelve-Months), and equity has grown over the period, supporting financial flexibility. Returns on equity are steady but not high (about 6–9% historically; ~6.7% TTM), suggesting the company is solidly profitable but not generating standout shareholder returns. A watch item is the step-up in total debt in the latest TTM versus recent annual levels, which slightly reduces balance sheet conservatism.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months) with operating cash flow and free cash flow both in the black, but free cash flow is down sharply versus the last annual period (about -33%), pointing to higher working-capital needs and/or elevated investment. Cash conversion is also mixed: operating cash flow is only about half of net income in TTM, and free cash flow covers less than half of net income, implying earnings quality is decent but not strong. The history also shows occasional negative free cash flow (FY2022–FY2023), reinforcing that cash flow can be lumpy.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	411.65B	408.89B	384.82B	344.61B	288.21B	267.75B
Gross Profit	152.76B	148.09B	131.84B	119.70B	104.28B	94.68B
EBITDA	93.16B	87.64B	75.15B	60.57B	53.78B	50.14B
Net Income	23.47B	20.30B	29.19B	20.13B	18.47B	19.09B
Balance Sheet
Total Assets	571.19B	548.95B	557.41B	501.54B	469.98B	424.93B
Cash, Cash Equivalents and Short-Term Investments	65.85B	62.95B	54.01B	53.83B	48.80B	65.05B
Total Debt	130.66B	93.47B	101.19B	100.07B	58.68B	51.35B
Total Liabilities	218.45B	210.44B	224.00B	205.78B	192.12B	167.09B
Stockholders Equity	349.91B	336.03B	331.26B	293.98B	271.91B	253.09B
Cash Flow
Free Cash Flow	25.03B	37.90B	18.82B	-6.35B	-28.40B	24.04B
Operating Cash Flow	58.77B	87.76B	50.87B	48.63B	28.74B	40.00B
Investing Cash Flow	-38.33B	-52.07B	-35.80B	-46.27B	-39.93B	-10.77B
Financing Cash Flow	-18.05B	-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 8087.60, below the 50-day MA of 7361.04, and above the 200-day MA of 5995.13, indicating a bullish trend. The MACD of 346.82 indicates Negative momentum. The RSI at 78.07 is Negative, neither overbought nor oversold. The STOCH value of 93.97 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
6331	79 Outperform	¥89.41B	13.22	16.37%	2.79%	31.48%	16.11%
9551	76 Outperform	¥151.46B	18.11	12.54%	1.84%	13.86%	51.05%
6370	72 Outperform	¥979.16B	40.64	6.61%	1.58%	5.02%	-27.41%
6368	71 Outperform	¥796.17B	28.30	―	1.43%	7.87%	38.32%
6013	69 Neutral	¥240.39B	20.13	9.02%	3.11%	1.25%	-3.97%
7004	66 Neutral	¥183.36B	17.59	―	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 Overhauls Top Executive Lineup Ahead of New Fiscal Year

Kurita Water Industries has announced a leadership reshuffle effective April 1, 2026, as it prepares a new operational execution structure. The move underscores a reallocation of responsibilities across top management ahead of the company’s 90th Ordinary General Meeting of Shareholders in June.

Engineering chief and Chief Technology Officer Kunihiro Kuse will be promoted to Representative Managing Executive Officer, reflecting the strategic importance of technology and engineering within Kurita’s growth plans. At the same time, Director Shuji Shirode will step down from his role as Representative Senior Managing Executive Officer and CFO, with Takehiro Nozue advancing to Executive Officer and CFO to oversee the newly defined Group Corporate Control and Administration Division.

President and Representative Executive Officer Hirohiko Ejiri will retain his top role while also formally taking on responsibility as Executive General Manager of the Sustainability Corporate Strategy Division. The concentration of sustainability, technology, and financial oversight in newly configured roles indicates a governance realignment aimed at reinforcing Kurita’s strategic direction and operational control, with potential implications for future investment, innovation priorities, and regional management.

The most recent analyst rating on (JP:6370) stock is a Hold with a Yen9202.00 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 Posts Higher Margins and Refines Segment Reporting in 3Q FY2026

Kurita Water Industries released supplemental financial data for the third quarter of the fiscal year ending March 31, 2026, showing year-on-year growth in orders, net sales, and profitability, with operating profit margins improving across the consolidated business and both the Electronics and General Industry segments. The company also reclassified its Europe and North America electronics facility business from the General Industry segment to the Electronics segment, restating prior-year figures for comparability; combined with exchange-rate movements and a reduced average share count due to share buybacks, these changes clarify segment performance and support higher earnings per share, underscoring stronger operational efficiency and a more electronics-focused portfolio.

The most recent analyst rating on (JP:6370) stock is a Buy with a Yen8568.00 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 Stays on Track With FY2026 Targets as Profit Climbs

Kurita Water Industries reported modest year-on-year growth for the first nine months of the fiscal year ending March 31, 2026, with orders up 0.5%, net sales up 0.9% and business profit rising 10.1%, keeping overall progress broadly on track with its full-year forecast. In the general industry segment, net sales fell on weaker facilities and precision tool cleaning sales, but business profit held roughly flat versus the prior year thanks to a better cost of sales ratio, while orders and net sales are expected to stay strong in the fourth quarter on large project wins and construction progress; in the electronics industry segment, higher facilities and maintenance sales and an improved cost structure, underpinned by the steady expansion of the CSV business, drove increases in both net sales and business profit, reinforcing the company’s operational resilience and positioning for continued performance in the remainder of the fiscal year.

The most recent analyst rating on (JP:6370) stock is a Buy with a Yen8568.00 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 Lifts Profits and Maintains Strong Outlook as Dividend Rises

Kurita Water Industries reported modest top-line growth but solid profit expansion for the first nine months of the fiscal year ending March 31, 2026, with net sales inching up 0.9% year-on-year to ¥303.6 billion while business profit rose 10.1% and operating profit climbed 15.9%. Profit attributable to owners of parent increased 13.1% to ¥27.4 billion, driving basic earnings per share up to ¥249.32, and total equity attributable to owners of the parent also strengthened alongside a stable equity ratio of just over 61%. The company kept its full-year forecast unchanged, projecting a 3.9% rise in net sales to ¥425 billion and a near 79% surge in profit attributable to owners of parent to ¥36.3 billion, supported by a sharp expected increase in operating profit, and signaled continued shareholder returns by maintaining its dividend forecast at ¥112 per share for the year, up from ¥92 in the prior fiscal year. Kurita is also executing capital management through higher treasury share holdings, which, together with earnings growth and a rising dividend, underpins shareholder value and suggests improving profitability and financial resilience in a competitive water treatment market.

The most recent analyst rating on (JP:6370) stock is a Buy with a Yen8568.00 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 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.