Kimura Chemical Plants Co., Ltd. (6378) AI Stock Analysis

• Market Cap: ¥25.24B
• Dividend Yield: 3.34%
• Average Volume (3M): 232.15K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.15
• Revenue Growth: 2.10%
• EPS Growth: 4.99%
• Country: JP
• Employees: 398
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 33.56
• Shares Outstanding: 20,600,000
• 10 Day Avg. Volume: 435,530
• 30 Day Avg. Volume: 232,153
• PEG Ratio: 0.13
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 6.82
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥1,487.00 ▲(23.81% Upside)

Kimura Chemical Plants Co., Ltd. scores highly due to its strong financial performance and attractive valuation. The company's robust revenue growth, improving profitability, and financial stability are key strengths. The technical analysis supports a positive outlook with bullish momentum. The low P/E ratio and high dividend yield further enhance the stock's attractiveness. The absence of earnings call data and corporate events does not detract from the overall positive assessment.

Positive Factors

Balance Sheet Strength

High equity ratio (56.41%) and minimal leverage (debt/equity 0.08) give durable financial flexibility, lowering refinancing and solvency risk. Improved ROE (12.06%) shows effective capital deployment, supporting steady investment or shareholder returns through cycles.

Cash Generation

Robust operating cash flow (¥2,576m) and OCF-to-net-income above 1 indicate strong cash conversion and internal funding capacity. This supports sustained capex, working-capital needs and reduces reliance on external financing for multi-year plant projects and maintenance.

Profitability and Margins

Healthy gross margin (21.5%) and rising net margin (8.73%) with double-digit EBIT/EBITDA margins reflect structural pricing power and cost control in engineering/manufacturing. Sustained margins support reinvestment and resilience versus input-cost volatility over the medium term.

Negative Factors

Modest Revenue Growth

Reported revenue growth of roughly 2.1% implies limited top-line expansion. Persistently low revenue CAGR can cap long-term EPS and free cash flow growth, limiting resources for scaling operations, R&D, or geographic expansion without new product wins or market diversification.

Limited Scale

A relatively small headcount (~398) suggests limited organizational scale versus large EPC peers, which may constrain capacity for multiple large projects, specialized engineering teams, and rapid geographic expansion. Scale limits can hinder competitiveness for major contracts.

Asset Utilization Needs Improvement

The balance-sheet observation on asset utilization points to potential underused capacity. For capital-intensive plant engineering, suboptimal asset turns reduce ROA and constrain returns on invested capital, pressuring long-term margin and cash generation unless utilization improves.

Kimura Chemical Plants Co., Ltd. Business Overview & Revenue Model

Company Description

Kimura Chemical Plants Co., Ltd. operates as an engineering company. The company offers chemical equipment, including evaporation/concentration plants, material works, skid mounted units, and solvent recovery systems. It also provides nuclear equipment, such as transport packaging, frogman systems, hot cells, evaporator packages for recovering boric acid, equipment for radioactive treatment, equipment for radiation shielding, electric boiler, globe boxes, fuel handling equipment, irradiation equipment, cleaners for medical treatments, and dust samplers, as well as installations for MOX fuel manufacturing. Kimura Chemical Plants Co., Ltd. was founded in 1924 and is headquartered in Amagasaki, Japan.

How the Company Makes Money

Kimura Chemical Plants Co., Ltd. generates revenue primarily through the sale of its engineering services and the construction of chemical plants. Key revenue streams include contracts for the design and installation of chemical processing equipment, maintenance services for existing plants, and consulting services that enhance operational efficiency for clients in the chemical industry. The company may also benefit from long-term partnerships with major chemical manufacturers and suppliers, which facilitate ongoing contracts and repeat business. Additionally, the global demand for chemical production and processing technologies supports the company's growth, as it positions itself as a trusted provider in the market.

Kimura Chemical Plants Co., Ltd. Financial Statement Overview

Summary

Kimura Chemical Plants Co., Ltd. demonstrates strong financial health across income, balance sheet, and cash flow statements. The company benefits from robust revenue growth and improving profitability margins, supported by efficient cost control and operational management. Financial stability is evident from a strong equity position and low leverage. The substantial improvement in cash flow metrics reflects effective capital and operational management.

Income Statement

Kimura Chemical Plants Co., Ltd. has shown impressive revenue growth, with a CAGR in revenue over the years. The gross profit margin stands at 21.5% for 2025, indicating strong product margins. Net profit margin improved significantly, reaching 8.73% in 2025, reflecting operational efficiency and cost control. The EBIT margin of 11.40% and EBITDA margin of 13.19% further underscore robust profitability. Overall, the company demonstrates strong and improving profitability metrics.

Balance Sheet

The company maintains a healthy balance sheet with an equity ratio of 56.41% in 2025, indicating financial stability. Debt-to-equity ratio is low at 0.08, pointing to conservative leverage practices. Return on equity improved to 12.06% in 2025, reflecting effective use of shareholders' funds. Although the company has been reducing debt, additional improvements in asset utilization could enhance financial performance further.

Cash Flow

Operating cash flow increased substantially to ¥2,576 million in 2025, showcasing strong cash generation capabilities. The free cash flow to net income ratio improved significantly, reflecting efficient capital management. Free cash flow growth rate was impressive, highlighting effective investment and capital expenditure management. The operating cash flow to net income ratio of 1.12 indicates solid cash conversion from earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.03B	26.43B	24.67B	21.55B	24.59B	21.52B
Gross Profit	5.13B	5.69B	4.65B	3.91B	5.00B	3.92B
EBITDA	2.46B	3.49B	2.52B	1.73B	3.10B	2.22B
Net Income	1.70B	2.31B	1.55B	999.00M	1.97B	1.33B
Balance Sheet
Total Assets	33.81B	33.91B	34.64B	30.16B	29.52B	29.73B
Cash, Cash Equivalents and Short-Term Investments	8.50B	9.89B	8.36B	7.63B	5.57B	6.44B
Total Debt	1.42B	1.54B	1.63B	1.38B	1.73B	1.55B
Total Liabilities	15.29B	14.77B	17.19B	14.73B	14.83B	16.46B
Stockholders Equity	18.52B	19.13B	17.45B	15.42B	14.69B	13.27B
Cash Flow
Free Cash Flow	0.00	2.11B	774.00M	2.81B	-363.00M	1.94B
Operating Cash Flow	0.00	2.58B	1.01B	3.41B	-214.00M	2.12B
Investing Cash Flow	0.00	-427.00M	-234.00M	-589.00M	-150.00M	-186.00M
Financing Cash Flow	0.00	-612.00M	-79.00M	-770.00M	-518.00M	-260.00M

Kimura Chemical Plants Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1201.00
• 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:6378, the sentiment is Positive. The current price of 1201 is below the 20-day moving average (MA) of 1284.55, below the 50-day MA of 1228.10, and above the 200-day MA of 1014.83, indicating a neutral trend. The MACD of 9.58 indicates Positive momentum. The RSI at 51.04 is Neutral, neither overbought nor oversold. The STOCH value of 26.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6378.

Kimura Chemical Plants Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6378	80 Outperform	¥25.24B	11.93	―	3.34%	2.10%	4.99%
6365	80 Outperform	¥22.86B	7.49	―	3.35%	23.30%	104.31%
6246	76 Outperform	¥25.61B	8.12	―	4.27%	55.21%	80.44%
6245	74 Outperform	¥27.70B	29.59	―	5.37%	-14.01%	-65.79%
6486	70 Outperform	¥152.04B	20.25	―	3.88%	1.70%	18.50%
6284	68 Neutral	¥91.90B	12.16	―	3.24%	18.70%	33.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%