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

• Market Cap: ¥33.40B
• Dividend Yield: 3.34%
• Average Volume (3M): 232.15K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.03
• Revenue Growth: 2.10%
• EPS Growth: 4.99%
• Country: JP
• Employees: 398
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 21.74
• 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: 81 Outperform
• Price Target: ¥1,832.00 ▲(52.54% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by strong and improving financial performance (profitability, cash generation, and low leverage). Technicals add support with a clear uptrend and positive momentum. Valuation is supportive with a reasonable P/E and a solid dividend yield.

Positive Factors

Improving profitability

Sustained margin expansion (gross 21.5%, EBIT 11.4%, net 8.73% in 2025) indicates durable operational efficiency and pricing power in plant engineering. Higher structural margins support reinvestment capacity and resilience across cycles, improving long-term earnings quality.

Strong cash generation

Robust operating cash flow (¥2,576m) and OCF/net income >1 show the business converts earnings to cash reliably. Durable cash generation funds capex, dividends, and working capital without reliance on debt, underpinning financial flexibility over the medium term.

Conservative balance sheet

High equity ratio and minimal leverage (D/E 0.08) provide a strong capital base and low refinancing risk. Combined with ROE ~12%, this balance sheet conservatism supports stable operations, strategic investments, and downside protection through industry cycles.

Negative Factors

Negative revenue trend

Reported revenue contraction (≈-40% per the revenue growth metric) is a durable concern: shrinking top line can strain scale economies, force reliance on margin recovery, and limit capacity to fund organic growth. Persistent revenue declines threaten long-term operating leverage.

Asset utilization weakness

Underused assets reduce return on invested capital and indicate inefficiencies in deployment or lower throughput. Over the medium term, poor asset turns can cap scalability, depress ROA, and require management initiatives to reallocate or downsize capital to restore profitability.

Limited forward visibility

Absence of formal guidance and public highlights reduces transparency about order backlog and expected volumes. Over several months this limits stakeholder visibility into demand trajectory and complicates planning, increasing forecasting risk for investors and external partners.

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

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Kimura Chemical Plants Co., Ltd. Financial Statement Overview

Summary

Strong profitability and growth profile: improving net margin (8.73% in 2025) with solid EBIT/EBITDA margins, supported by strong operating cash flow (¥2,576m) and good cash conversion (OCF to net income 1.12). Balance sheet is healthy with a high equity ratio (56.41%) and very low leverage (D/E 0.08), though asset utilization has room to improve.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	26.03B	26.43B	24.67B	21.55B	24.59B	21.52B
Gross Profit	5.13B	5.69B	4.54B	3.81B	4.91B	3.83B
EBITDA	2.43B	3.30B	2.35B	2.00B	2.93B	2.15B
Net Income	1.70B	2.31B	1.55B	999.00M	1.97B	1.33B
Balance Sheet
Total Assets	33.81B	34.22B	34.96B	30.25B	29.59B	29.80B
Cash, Cash Equivalents and Short-Term Investments	8.50B	9.89B	8.36B	7.63B	5.57B	6.44B
Total Debt	1.40B	1.54B	1.63B	1.38B	1.73B	1.55B
Total Liabilities	15.29B	15.08B	17.51B	14.82B	14.89B	16.53B
Stockholders Equity	18.52B	19.13B	17.45B	15.42B	14.69B	13.27B
Cash Flow
Free Cash Flow	0.00	2.11B	790.00M	2.81B	-360.00M	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: Negative
• 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 1460.60, below the 50-day MA of 1369.34, and above the 200-day MA of 1126.03, indicating a bullish trend. The MACD of 54.61 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 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	81 Outperform	¥33.40B	13.81	―	3.34%	2.10%	4.99%
6247	76 Outperform	¥42.82B	11.21	―	3.32%	18.47%	64.23%
6498	72 Outperform	¥158.78B	13.19	10.28%	2.77%	2.74%	7.86%
6376	70 Outperform	¥141.76B	7.70	8.17%	2.04%	1.48%	58.59%
6363	70 Outperform	¥69.96B	4.09	―	3.09%	6.35%	-34.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6240	61 Neutral	¥34.34B	25.47	―	2.53%	6.56%	23.98%