Kaji Technology Corporation Ltd. (6391) AI Stock Analysis

• Market Cap: ¥5.75B
• Dividend Yield: 1.15%
• Average Volume (3M): 2.83K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.89
• Revenue Growth: 0.55%
• EPS Growth: -19.84%
• Country: JP
• Employees: 199
• Sector: Industrials
• Sector Strength: 77
• Industry: Industrial - Machinery
• EPS (TTM): 33.69
• Shares Outstanding: 1,718,000
• 10 Day Avg. Volume: 2,010
• 30 Day Avg. Volume: 2,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,091.00
• Price Target Upside: 17.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥4,091.00 ▲(17.90% Upside)

Kaji Technology Corporation Ltd. scores well due to its strong financial performance and attractive valuation. The technical analysis indicates positive market momentum, further supporting the stock's potential. While financial management shows positive trends, attention to debt and cash flow optimization is advisable.

Kaji Technology Corporation Ltd. Business Overview & Revenue Model

Company Description

Kaji Technology Corporation Ltd. (6391) is a technology company that specializes in providing innovative solutions across various sectors, including information technology, telecommunications, and electronics. The company focuses on developing advanced technologies and services that cater to both consumer and industrial markets, offering a range of products that enhance connectivity, efficiency, and digital transformation.

How the Company Makes Money

Kaji Technology Corporation Ltd. generates revenue through the sale of its technology products and services. The company leverages its expertise in IT and telecommunications to offer solutions that meet the needs of a diverse client base, including businesses and individual consumers. Key revenue streams include the sale of hardware devices, software solutions, and ongoing service contracts that provide technical support and system maintenance. Additionally, strategic partnerships with other technology firms and service providers play a significant role in expanding the company's market reach and enhancing its product offerings, contributing to its overall earnings.

Kaji Technology Corporation Ltd. Financial Statement Overview

Summary

Kaji Technology Corporation Ltd. demonstrates strong revenue growth and stable profitability in the Industrial - Machinery sector. The balance sheet reflects sound financial health with a robust equity base, though debt management requires attention. Cash flow management shows positive trends, but improvements in capital expenditure efficiency could enhance free cash flow.

Income Statement

Kaji Technology Corporation Ltd. has shown a strong revenue growth trajectory over the years, with a noticeable increase from 2022 to 2024. The gross profit margin has been relatively stable, indicating operational efficiency. However, the net profit margin has seen fluctuations, possibly due to variable operating expenses. The EBIT and EBITDA margins indicate solid operational performance, but there's room for improvement in maintaining consistent net income growth.

Balance Sheet

The company maintains a healthy equity ratio, reflecting a strong capital base and low leverage, as evidenced by a moderate debt-to-equity ratio. The return on equity has been positive, indicating effective use of shareholder funds. However, an increase in liabilities over time suggests potential risks if not managed carefully. Overall, the balance sheet reflects financial stability with some caution needed regarding debt management.

Cash Flow

The cash flow statement highlights variability in free cash flow, with significant improvements in recent years. The operating cash flow to net income ratio suggests strong cash-generating capabilities from operations. However, the free cash flow to net income ratio could be better, indicating potential inefficiencies in capital expenditures or other cash outflows. Overall, cash flow management shows positive trends but requires attention to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.00B	7.00B	7.26B	5.98B	4.58B	5.74B
Gross Profit	2.04B	1.99B	1.96B	1.35B	1.48B	1.49B
EBITDA	903.94M	1.07B	1.09B	648.16M	632.37M	549.48M
Net Income	578.49M	578.91M	578.36M	288.51M	309.41M	307.82M
Balance Sheet
Total Assets	11.56B	11.56B	11.81B	10.99B	9.68B	8.52B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.67B	1.52B	971.51M	771.23M	819.50M
Total Debt	1.37B	1.37B	1.45B	1.52B	1.02B	10.00M
Total Liabilities	3.74B	3.74B	4.50B	4.20B	3.11B	2.19B
Stockholders Equity	7.82B	7.82B	7.31B	6.80B	6.57B	6.33B
Cash Flow
Free Cash Flow	0.00	376.50M	684.25M	-332.69M	-1.09B	-728.03M
Operating Cash Flow	0.00	542.21M	842.83M	380.69M	786.17M	70.21M
Investing Cash Flow	0.00	-245.75M	-155.18M	-611.36M	-1.77B	-89.47M
Financing Cash Flow	0.00	-148.34M	-134.83M	430.95M	932.11M	-68.43M

Kaji Technology Corporation Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3470.00
• 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:6391, the sentiment is Positive. The current price of 3470 is below the 20-day moving average (MA) of 3499.00, above the 50-day MA of 3434.20, and above the 200-day MA of 3408.74, indicating a neutral trend. The MACD of 10.97 indicates Positive momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 24.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6391.

Kaji Technology Corporation Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6229	80 Outperform	¥6.89B	10.70		2.95%	13.41%	12.59%
6391	77 Outperform	¥5.75B	10.19		1.15%	0.55%	-19.84%
6408	72 Outperform	¥5.76B	9.20		1.30%	0.40%	―
6292	64 Neutral	¥5.97B	8.74		4.73%	-13.64%	-36.27%
Sector *	64 Neutral	$10.74B	15.62	8.14%	2.00%	2.79%	-14.82%
6155	55 Neutral	¥5.43B	―		1.99%	-4.30%	10.69%
6495	51 Neutral	¥5.95B	87.90		1.61%	10.04%	339.33%