Kaji Technology Corporation Ltd. (6391) AI Stock Analysis

• Market Cap: ¥5.59B
• Dividend Yield: 1.17%
• Average Volume (3M): 2.75K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.03
• Revenue Growth: -14.09%
• EPS Growth: -36.08%
• Country: JP
• Employees: 199
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 40.40
• Shares Outstanding: 1,718,000
• 10 Day Avg. Volume: 840
• 30 Day Avg. Volume: 2,750
• PEG Ratio: 58.80
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 15.27
• 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: 69 Neutral
• Price Target: ¥3,800.00 ▲(13.43% Upside)

Kaji Technology Corporation Ltd. is well-positioned in the Industrial - Machinery sector with strong financial performance and positive technical indicators. The stock's valuation is reasonable, though improvements in cash flow management and debt monitoring could enhance its financial strength. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Market Position

Partnerships with major firms enhance market position and access to new customer segments, ensuring sustained competitive advantage.

Operational Efficiency

Stable gross margins reflect efficient operations, which are crucial for maintaining profitability in competitive markets.

Negative Factors

Debt Management

Rising debt levels could strain financial flexibility, posing risks to long-term stability if not managed carefully.

Net Profit Margin Variability

Fluctuating net profit margins indicate challenges in cost management, which could impact consistent profitability.

Capital Expenditure Efficiency

Inefficiencies in capital expenditures may hinder cash flow improvements, affecting the company's ability to fund growth initiatives.

Kaji Technology Corporation Ltd. Business Overview & Revenue Model

Company Description

Kaji Technology Corporation Ltd. (6391) is a leading technology firm specializing in the development and manufacturing of advanced electronic components and systems. The company operates primarily in the electronics sector, focusing on a diverse range of products including semiconductor devices, integrated circuits, and innovative solutions for telecommunications and consumer electronics. Kaji Technology is committed to delivering high-quality, cutting-edge technologies that meet the evolving needs of its global clientele.

How the Company Makes Money

Kaji Technology Corporation Ltd. generates revenue primarily through the sale of its electronic components and systems to various industries, including telecommunications, automotive, and consumer electronics. Their revenue model is largely based on direct sales to manufacturers and distributors, as well as long-term contracts with key clients for exclusive supply agreements. Additionally, the company has established strategic partnerships with major technology firms, which not only bolster its market presence but also provide access to new customer segments and distribution channels. The ongoing demand for advanced electronic solutions, particularly in the context of digital transformation and smart technology integration, further contributes to Kaji Technology's earnings.

Kaji Technology Corporation Ltd. Financial Statement Overview

Summary

Kaji Technology Corporation Ltd. demonstrates strong revenue growth and stable profitability. The balance sheet is robust with a strong equity base, though debt management requires attention. Cash flow management shows positive trends but needs improvement in capital expenditure efficiency.

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	7.24B	7.00B	7.26B	5.98B	4.58B	5.74B
Gross Profit	2.06B	1.99B	1.96B	1.35B	1.48B	1.49B
EBITDA	858.44M	1.07B	1.09B	648.16M	632.37M	549.48M
Net Income	562.49M	578.91M	578.36M	288.51M	309.41M	307.82M
Balance Sheet
Total Assets	11.20B	11.56B	11.81B	10.99B	9.68B	8.52B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.67B	1.52B	971.51M	771.23M	819.50M
Total Debt	1.34B	1.37B	1.45B	1.52B	1.02B	10.00M
Total Liabilities	3.39B	3.74B	4.50B	4.20B	3.11B	2.19B
Stockholders Equity	7.81B	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: 3350.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3350 is below the 20-day moving average (MA) of 3397.75, below the 50-day MA of 3409.60, and below the 200-day MA of 3386.45, indicating a neutral trend. The MACD of -13.92 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 86.44 is Negative, 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	76 Outperform	¥8.35B	13.05	―	2.47%	8.69%	14.63%
6391	69 Neutral	¥5.59B	11.75	―	1.17%	-14.09%	-36.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6292	61 Neutral	¥5.20B	9.23	―	4.41%	-8.98%	4.00%
6408	61 Neutral	¥5.38B	4.86	―	1.40%	-3.05%	―
6155	58 Neutral	¥5.21B	-8.31	―	2.04%	-0.59%	89.24%
6495	50 Neutral	¥5.52B	81.52	―	1.77%	3.96%	―