Kurita Water Industries (6370) AI Stock Analysis

• Market Cap: ¥693.94B
• Dividend Yield: 1.65%
• Average Volume (3M): 491.56K
• Price to Earnings (P/E): 30.3
• 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): 105.06
• Shares Outstanding: 116,200,690
• 10 Day Avg. Volume: 346,650
• 30 Day Avg. Volume: 491,563
• 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: ¥7,100.03
• Price Target Upside: 16.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 333.95
• Revenue Forecast (FY): ¥422.36B

• Rating: 67 Neutral
• Price Target: ¥7,101.00 ▲(16.52% Upside)

Kurita Water Industries has a solid financial foundation with operational efficiency and a strong balance sheet. However, challenges in revenue growth and cash flow management weigh on its financial performance. The technical analysis indicates strong bullish momentum, but overbought conditions could lead to a pullback. The stock appears overvalued with a high P/E ratio, and the dividend yield is modest. These factors combine to give an overall score of 67.

Positive Factors

Business Model Strength

Kurita's diversified revenue streams from chemicals, facilities, and services provide stability and resilience against market fluctuations, supporting long-term growth.

Operational Efficiency

Stable gross margins reflect effective cost management, enabling Kurita to maintain profitability even amidst revenue growth challenges.

Financial Stability

A strong equity base provides Kurita with financial stability and flexibility, allowing it to withstand economic downturns and invest in growth opportunities.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential difficulties in market expansion or product adoption, which could impact long-term business prospects.

Profitability Decline

Decreasing net profit margins suggest challenges in maintaining profitability, which could hinder Kurita's ability to reinvest in its business.

Cash Flow Management

Negative free cash flow growth may limit Kurita's ability to fund operations and invest in growth, potentially impacting long-term financial health.

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 operational efficiency with stable margins, but faces challenges in revenue growth and profitability. The balance sheet is strong with moderate leverage and a solid equity base. Cash flow management requires attention due to declining free cash flow. Overall, the company maintains financial stability but needs to address growth and cash flow issues to enhance performance.

Income Statement

Kurita Water Industries shows a stable gross profit margin at around 36% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 4.98% in TTM, reflecting reduced profitability. The revenue growth rate is negative in TTM, suggesting a decline in sales performance. Despite these challenges, the company maintains a reasonable EBIT margin of 7.96% and an EBITDA margin of 21.46%, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.31 in TTM, indicating a balanced approach to leveraging. Return on equity has decreased to 6.03% in TTM, suggesting reduced efficiency in generating returns from equity. The equity ratio stands at 60.72%, reflecting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Kurita Water Industries faces challenges in cash flow management, with a negative free cash flow growth rate of -9.78% in TTM. The operating cash flow to net income ratio is 0.62, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio is 0.41, suggesting limited free cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	406.83B	408.89B	384.82B	344.61B	288.21B	267.75B
Gross Profit	147.92B	148.09B	131.84B	119.70B	104.28B	94.68B
EBITDA	87.32B	87.64B	75.15B	60.57B	53.78B	50.14B
Net Income	20.24B	20.30B	29.19B	20.13B	18.47B	19.09B
Balance Sheet
Total Assets	532.87B	548.95B	557.41B	501.54B	469.98B	424.93B
Cash, Cash Equivalents and Short-Term Investments	53.61B	62.95B	54.01B	53.83B	48.80B	65.05B
Total Debt	101.34B	93.47B	101.19B	100.07B	58.68B	51.35B
Total Liabilities	206.96B	210.44B	224.00B	205.78B	192.12B	167.09B
Stockholders Equity	323.45B	336.03B	331.26B	293.98B	271.91B	253.09B
Cash Flow
Free Cash Flow	33.57B	37.90B	18.82B	-6.35B	-28.40B	24.04B
Operating Cash Flow	81.37B	87.76B	50.87B	48.63B	28.74B	40.00B
Investing Cash Flow	-46.99B	-52.07B	-35.80B	-46.27B	-39.93B	-10.77B
Financing Cash Flow	-31.89B	-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: 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 6094 is below the 20-day moving average (MA) of 6197.15, above the 50-day MA of 5703.63, and above the 200-day MA of 5235.02, indicating a bullish trend. The MACD of 142.93 indicates Positive momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 63.47 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
9551	76 Outperform	$121.17B	14.74	12.54%	1.65%	13.86%	51.05%
6368	76 Outperform	¥593.11B	21.57	―	1.40%	7.87%	38.32%
6332	72 Outperform	¥107.27B	12.23	―	3.64%	2.46%	533.70%
6013	71 Outperform	¥192.39B	18.54	9.02%	3.16%	1.25%	-3.97%
6370	67 Neutral	¥693.94B	30.33	6.61%	1.65%	5.02%	-27.41%
7004	66 Neutral	¥163.48B	9.20	―	2.37%	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 Reports Strong Profit Growth

Kurita Water Industries Ltd., a Tokyo-listed company, specializes in water treatment solutions, serving both the electronics and general industries with a focus on sustainable and innovative technologies.

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.