Kaji Technology Corporation Ltd. (6391) AI Stock Analysis

• Market Cap: ¥8.37B
• Dividend Yield: 1.19%
• Average Volume (3M): 1.54K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.69
• Revenue Growth: -14.09%
• EPS Growth: -36.08%
• Country: JP
• Employees: 199
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 227.00
• Shares Outstanding: 1,718,000
• 10 Day Avg. Volume: 1,700
• 30 Day Avg. Volume: 1,543
• 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: 74 Outperform
• Price Target: ¥5,846.00 ▲(74.51% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by solid financial fundamentals (strong revenue growth, stable profitability, and a healthy balance sheet) and supportive technicals (price above major moving averages with positive MACD). Valuation is also favorable with a low P/E, while the modest dividend yield provides limited additional support.

Positive Factors

Healthy equity base and low leverage

A healthy equity ratio and moderate debt-to-equity provide durable financial resilience, supporting investment and borrowing capacity. This strong capital base cushions cyclical downturns, preserves credit optionality, and underpins strategic spending over the next several months.

Stable gross margins and solid operating margins

Relatively stable gross margins and robust EBIT/EBITDA margins point to consistent operational efficiency and pricing power. That stability supports sustainable profitability and the ability to absorb cost fluctuations, preserving margin durability across business cycles.

Improving operating cash generation

Improving operating cash flow and a strong OCF-to-net-income ratio indicate the company converts earnings into real cash. Consistent cash generation supports capex funding, debt service and optional shareholder returns without relying heavily on external financing.

Negative Factors

Rising liabilities over time

An upward trend in liabilities can increase leverage and interest exposure, eroding financial flexibility. If liabilities grow faster than equity or cash generation, the company may face higher funding costs and constrained capacity to invest or respond to shocks.

Variable free cash flow efficiency

Variability in free cash flow and a weaker FCF-to-income ratio suggest capex or working-capital swings that limit consistent cash available for debt reduction or shareholder returns. Persistent FCF volatility undermines long-term reinvestment and planning.

Recent negative revenue and EPS growth

Negative recent top-line and EPS growth indicate demand or execution headwinds that could erode operating leverage and margin expansion. Continued declines would pressure cash generation and the company's ability to sustain investment and earnings recovery in the medium term.

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. Financial Statement Overview

Summary

Income statement strength (75) is supported by strong revenue growth and stable gross margins, while balance sheet health is solid (70) with a strong equity base but rising liabilities. Cash flow is improving (68) but free cash flow efficiency remains a key area to watch.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4248.00, below the 50-day MA of 3933.00, and below the 200-day MA of 3545.22, indicating a bullish trend. The MACD of 317.95 indicates Negative momentum. The RSI at 73.30 is Negative, neither overbought nor oversold. The STOCH value of 84.70 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
6360	79 Outperform	¥5.52B	8.84	―	6.61%	-30.65%	-46.85%
6396	79 Outperform	¥4.56B	-66.26	―	1.19%	-6.39%	-3.86%
6402	79 Outperform	¥11.21B	6.38	―	2.15%	-0.94%	6.93%
6391	74 Outperform	¥8.37B	3.84	―	1.19%	-14.09%	-36.08%
6408	67 Neutral	¥6.89B	3.03	―	1.37%	-3.05%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6393	60 Neutral	¥13.35B	10.99	―	6.70%	7.96%	43.37%