Kurita Water Industries (6370) AI Stock Analysis

• Market Cap: $596.96B
• Dividend Yield: 1.73%
• Average Volume (3M): 417.58K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 1.27
• Revenue Growth: 6.25%
• EPS Growth: -30.43%
• Country: JP
• Employees: 7,981
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 82.72
• Shares Outstanding: 116,200,690
• 10 Day Avg. Volume: 224,690
• 30 Day Avg. Volume: 417,580
• PEG Ratio: 3.76
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -106.84
• 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: $7,099.75
• Price Target Upside: 33.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: ¥6,027.00 ▲(13.46%Upside)

Kurita Water Industries demonstrates strong financial performance with robust cash flow and healthy leverage, contributing significantly to its overall score. The stock's technical indicators show bullish momentum, but valuations appear expensive, which slightly tempers the overall assessment. The absence of recent earnings call insights or corporate events means these elements did not influence the score.

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 focusing on its water treatment chemicals and facilities. The water treatment chemicals segment involves the sale of chemicals that help in purifying and managing water quality for industrial clients, contributing significantly to the company's earnings. The water treatment facilities segment includes the design, construction, and installation of systems that treat and recycle water, which also forms a substantial part of the revenue. Additionally, Kurita offers maintenance services, ensuring the longevity and efficiency of its systems, which provides a recurring revenue stream. The company benefits from long-term contracts with industrial and municipal clients and strategic partnerships that enhance its market presence and technological capabilities.

Kurita Water Industries Financial Statement Overview

Summary

Kurita Water Industries exhibits strong growth and operational efficiency, with robust cash flow generation and prudent leverage. While profitability is solid, the decrease in net income and relatively moderate ROE highlight areas for potential improvement. The company's financial health is supported by a robust balance sheet and efficient cash management.

Income Statement

Kurita Water Industries shows strong revenue growth with a 6.3% increase from 2024 to 2025. The Gross Profit Margin stands at 36.2%, and the Net Profit Margin is 5.0%, indicating profitability, though there was a decline in net income. The EBIT margin of 12.0% and EBITDA margin of 21.4% reflect operational efficiency.

Balance Sheet

The company has a stable balance sheet with a Debt-to-Equity Ratio of 0.28, indicating prudent leverage. ROE is at 6.0%, which shows moderate return on equity, while the Equity Ratio of 61.2% suggests strong equity capitalization compared to its assets.

Cash Flow

Operating cash flow has improved significantly, with a 72.6% increase from 2024 to 2025. The Free Cash Flow to Net Income Ratio is 1.87, showing strong free cash generation relative to net income, and the Operating Cash Flow to Net Income Ratio is 4.32, highlighting robust cash flow generation from operations.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
408.89B	384.82B	344.61B	288.21B	267.75B
	Gross Profit
148.09B	131.84B	119.70B	104.28B	94.68B
	EBIT
49.19B	42.06B	29.06B	35.73B	31.53B
	EBITDA
87.64B	75.15B	60.57B	53.78B	50.14B
	Net Income Common Stockholders
20.30B	29.19B	20.13B	18.47B	19.09B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.95B	54.01B	53.83B	48.80B	65.05B
	Total Assets
548.95B	557.41B	501.54B	469.98B	424.93B
	Total Debt
93.47B	101.19B	100.07B	58.68B	51.35B
	Net Debt
30.52B	47.18B	49.60B	12.95B	-10.88B
	Total Liabilities
210.44B	224.00B	205.78B	192.12B	167.09B
	Stockholders Equity
336.03B	331.26B	293.98B	271.91B	253.09B
Cash Flow		Free Cash Flow
37.90B	18.82B	-6.35B	-28.40B	24.04B
	Operating Cash Flow
87.76B	50.87B	48.63B	28.74B	40.00B
	Investing Cash Flow
-52.07B	-35.80B	-46.27B	-39.93B	-10.77B
	Financing Cash Flow
-25.45B	-15.34B	1.10B	-7.93B	-18.85B

Kurita Water Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5312.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 5312 is above the 20-day moving average (MA) of 5294.55, above the 50-day MA of 4934.38, and below the 200-day MA of 5373.96, indicating a neutral trend. The MACD of 86.00 indicates Positive momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 39.14 is Neutral, 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
6370	76 Outperform	$596.96B	29.40	6.03%	1.73%	6.25%	-30.43%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%
MTWTF		$546.32M	14.44	8.79%	0.02%	―	―
TKUMF		$1.09B	15.97	9.36%	0.03%	―	―
7004	77 Outperform	¥161.46B	7.29		2.40%	9.84%	16.55%
6332	76 Outperform	¥87.74B	13.36		5.02%	12.10%	148.39%
6368	75 Outperform	¥364.82B	15.13		2.24%	8.59%	39.41%

Kurita Water Industries Corporate Events

Kurita Water Industries Acquires Own Shares to Optimize Capital Structure

Kurita Water Industries Ltd. has announced the acquisition of 1,557,700 of its own shares, amounting to approximately 8.2 billion yen, through market acquisition on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the Board of Directors to acquire up to 3.5 million shares, reflecting the company’s commitment to optimizing its capital structure and potentially enhancing shareholder value.

The most recent analyst rating on (JP:6370) stock is a Hold with a Yen7000.00 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 Announces Dividend and Reserve Reversal

Kurita Water Industries Ltd. has announced a dividend of 46 yen per share for the fiscal year ending March 31, 2025, maintaining its policy of stable shareholder returns. Additionally, the company plans to reverse 18 billion yen from its general reserve to retained earnings to address negative retained earnings and ensure continued dividend stability, with no impact on overall net assets.

The most recent analyst rating on (JP:6370) stock is a Hold with a Yen7000.00 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 Fiscal Year Results and Strategic Expansion Plans

Kurita Water Industries reported a significant increase in net sales and business profit for the fiscal year ended March 31, 2025, despite a decline in net profit due to impairment losses in its US subsidiaries. The company secured large-scale electrical facilities projects in the US and Europe, boosting its service business sales in the electronics and general industry segments. Looking ahead, Kurita plans to continue expanding its CSV business and global service operations, although the impact of increased US tariffs remains uncertain.

Kurita Water Industries Reports Fiscal Year 2025 Financial Results

Kurita Water Industries reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 6.3% increase in net sales to 408,888 million yen. Despite this growth, the company experienced a decline in operating profit and profit attributable to owners of the parent by 24.1% and 30.0% respectively, due to extraordinary losses related to its subsidiary, Kurita America Holdings Inc. The company plans to increase its dividend per share for the next fiscal year, reflecting confidence in future performance.

Kurita Water Industries Announces Share Buyback Plan to Boost Capital Efficiency

Kurita Water Industries Ltd. has announced a strategic decision to acquire up to 3.12% of its own shares, aiming to enhance capital efficiency and maintain a flexible capital strategy amid evolving business conditions. This move, involving a market acquisition on the Tokyo Stock Exchange, reflects the company’s proactive approach to adapting to future business environments and optimizing shareholder value.

Kurita Water Industries Revises Forecast Due to Impairment Losses

Kurita Water Industries Ltd. has announced a revision of its business forecast for the fiscal year ending March 31, 2025, due to significant impairment losses from its subsidiaries, Pentagon Technologies Group, Inc. and Kurita Fracta Holdings, Inc. The impairment losses are attributed to underperformance in revenue targets, largely due to low capacity utilization and delays in plant construction for Pentagon, and challenges in establishing a business structure for Fracta. Consequently, Kurita has revised its profit forecasts downward, impacting its operating and net profits. Despite these setbacks, the dividend forecast remains unchanged.

Kurita Water Industries Announces Board Nominee Slate

Kurita Water Industries Ltd. has announced the nomination of candidates for its Board of Directors, which will be proposed at the upcoming General Meeting of Shareholders. This move includes both new appointments and the retention of existing directors, reflecting the company’s strategy to strengthen its governance structure. The nominations also include candidates for the Nominating, Audit, and Compensation Committees, indicating a comprehensive approach to enhancing corporate oversight and strategic decision-making.