Kaji Technology Corporation Ltd. (6391) AI Stock Analysis

• Market Cap: ¥8.29B
• Dividend Yield: 1.19%
• Average Volume (3M): 1.54K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.68
• 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: 93.82
• 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: ¥5,858.00 ▲(74.87% 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

Revenue growth trajectory and stable gross margins

Reported strong revenue growth from 2022–2024 alongside relatively stable gross margins indicates durable demand for the company's products and consistent production economics. This combination supports sustainable top-line expansion and provides room to reinvest in operations or product development over the next several quarters.

Healthy equity ratio and low leverage

A healthy equity ratio and moderate debt-to-equity position provide financial resilience and lower refinancing risk. That capital structure gives management flexibility to fund organic growth, weather cyclical industry downturns, and prioritize strategic investments without immediate leverage-driven constraints over the medium term.

Improving operating cash generation

Improving operating cash flow and a strong operating cash flow to net income ratio point to genuine cash-generative operations, supporting capex, working capital needs, and potential shareholder returns. Over 2–6 months this trend bolsters balance sheet health and reduces dependence on external financing.

Negative Factors

Rising liabilities over time

An observed increase in liabilities, despite a solid equity base, can erode financial flexibility if the trend continues. Higher liabilities raise interest and refinancing exposure, constraining capital allocation to growth initiatives and increasing vulnerability to rate or demand shocks over the medium term.

Fluctuating net profit margins

Volatility in net profit margins undermines earnings predictability and may reflect inconsistent cost control or variable overheads. Even with stable gross margins, fluctuating net margins make long-term cash flow and return forecasts less certain, complicating planning for reinvestment or shareholder distributions.

Free cash flow efficiency could improve

A weaker free cash flow to net income ratio signals that reported profits do not fully convert into discretionary cash. Persistent FCF inefficiency limits capacity to fund growth, pay down liabilities, or raise returns for shareholders, creating a structural constraint unless capital spending or working capital management improves.

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.

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	2.05B	1.99B	1.93B	1.32B	1.45B	1.46B
EBITDA	869.58M	910.41M	1.03B	502.90M	655.20M	502.50M
Net Income	563.47M	578.91M	578.36M	288.51M	309.41M	307.82M
Balance Sheet
Total Assets	11.20B	11.57B	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	1.35B	1.37B	1.45B	1.52B	1.02B	10.00M
Total Liabilities	3.39B	3.75B	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	758.92M	-276.96M	-1.06B	-697.30M
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: 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 3350 is below the 20-day moving average (MA) of 4480.50, below the 50-day MA of 4038.80, and below the 200-day MA of 3578.22, indicating a bullish trend. The MACD of 319.18 indicates Negative momentum. The RSI at 62.61 is Neutral, neither overbought nor oversold. The STOCH value of 70.14 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
6360	79 Outperform	¥5.54B	8.84	―	6.61%	-30.65%	-46.85%
6396	79 Outperform	¥4.46B	-66.26	―	1.19%	-6.39%	-3.86%
6402	79 Outperform	¥10.88B	6.38	―	2.15%	-0.94%	6.93%
6391	74 Outperform	¥8.29B	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	¥12.94B	10.99	―	6.70%	7.96%	43.37%