Maezawa Kyuso Industries Co., Ltd. (6485) AI Stock Analysis

• Market Cap: ¥34.00B
• Dividend Yield: 4.23%
• Average Volume (3M): 19.17K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.71
• Revenue Growth: -0.34%
• EPS Growth: 50.73%
• Country: JP
• Employees: 483
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 31.80
• Shares Outstanding: 21,500,000
• 10 Day Avg. Volume: 24,970
• 30 Day Avg. Volume: 19,173
• PEG Ratio: 0.25
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 19.84
• 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: 79 Outperform
• Price Target: ¥2,006.00 ▲(41.27% Upside)

The score is supported most by strong financial strength (debt-free balance sheet and improving 2025 profitability) and a reasonable valuation with a solid dividend yield. This is partially offset by volatile cash-flow history and overbought technical signals despite a positive trend.

Positive Factors

Debt-free balance sheet

An entirely debt-free balance sheet with a large equity base provides durable financial flexibility for public-works tendering, capital expenditure, and dividend policy. It materially lowers solvency risk and permits strategic investment or cushioning through downturns without refinancing pressure.

Improving profitability in 2025

Material margin expansion in 2025 reflects operational or pricing improvements that support sustainable earnings power. Higher EBIT and net margins increase durable free cash generation potential, improving capacity to reinvest in product/ service quality and maintain distributions over the medium term.

Rebound in cash generation

A strong rebound to positive operating and free cash flow enhances the company’s ability to fund working capital, support recurring maintenance/service revenues, and invest in project execution. Reliable cash generation is a durable foundation for stability in infrastructure services.

Negative Factors

Volatile cash flows

Historic swings including negative OCF/FCF in 2023 indicate project timing and working capital sensitivity. This volatility undermines predictability for capex, bids, and dividends, raising execution and liquidity risk over a multi-quarter horizon despite recent improvement.

Margins remain below prior peaks

Although margins improved in 2025, they remain below earlier peak levels, suggesting profitability is influenced by cyclical project mix and public spending. Without structural product or market share gains, margin gains may reverse when tender conditions or input costs shift.

Moderate returns on equity

Relatively low ROE despite a conservative capital base signals modest efficiency converting equity into profits. This limits long-term shareholder return potential unless management can raise asset turnover, margins, or deploy capital into higher-return opportunities.

Maezawa Kyuso Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Maezawa Kyuso Industries Co., Ltd. (6485) is a Japanese company that specializes in the manufacturing and distribution of water supply and sewage system equipment. The company is involved in the production of valves and fittings, which are crucial components in the infrastructure of water supply and drainage systems. It serves a broad range of sectors, including construction, municipal utilities, and industrial facilities.

How the Company Makes Money

Maezawa Kyuso Industries Co., Ltd. generates revenue primarily through the sale of its manufactured products, such as valves and fittings, to various customers including construction companies, municipal governments, and industrial operators. The company benefits from the ongoing demand for infrastructure development and maintenance in both public and private sectors. Additionally, it may engage in partnerships with other firms or governmental bodies to supply equipment for large-scale projects, contributing to its revenue streams. The company's earnings are significantly influenced by the construction industry's health and governmental infrastructure spending.

Maezawa Kyuso Industries Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals driven by an exceptionally conservative balance sheet (zero debt, large equity base) and improving profitability in 2025 (higher net/EBIT margins vs. 2024). The main constraint is cash-flow volatility (negative OCF/FCF in 2023) and only moderate cash conversion in 2025.

Income Statement

Revenue has grown steadily from 2022–2025 (with positive growth each year since 2020), while profitability improved meaningfully in 2025 (net margin ~7.4% vs. ~5.3% in 2024; EBIT margin ~10.1% vs. ~7.7%). Gross margin also expanded versus the prior two years. The main weakness is that margins remain below the 2020–2021 peak levels, indicating profitability can be somewhat cyclical rather than consistently compounding.

Balance Sheet

The balance sheet is very conservative with zero debt across all periods provided and a large equity base (equity ~¥39.8B vs. assets ~¥45.8B in 2025), which lowers financial risk and increases flexibility. Returns on equity are moderate (roughly ~3.7%–6.0% over 2023–2025, improving in 2025), suggesting strong solvency but only mid-level efficiency in generating profits from the capital base.

Cash Flow

Cash generation rebounded strongly in 2024–2025 (operating cash flow ~¥2.46B and free cash flow ~¥1.36B in 2025), and free cash flow growth in 2025 was exceptionally high off the prior base. However, cash flow has been volatile—2023 saw negative operating and free cash flow—and recent cash conversion is only moderate (in 2025, free cash flow was ~55% of net income, and operating cash flow was below net income), which is a key watch item for consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.96B	31.96B	32.01B	31.01B	28.79B	27.51B
Gross Profit	9.80B	9.80B	9.34B	8.61B	8.22B	8.79B
EBITDA	3.69B	3.93B	3.18B	2.85B	2.80B	3.29B
Net Income	2.38B	2.38B	1.68B	1.43B	1.50B	1.87B
Balance Sheet
Total Assets	45.78B	45.78B	45.97B	44.64B	45.62B	44.00B
Cash, Cash Equivalents and Short-Term Investments	10.32B	10.32B	10.85B	11.64B	14.70B	14.09B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.02B	6.02B	6.93B	6.42B	7.99B	7.59B
Stockholders Equity	39.75B	39.75B	39.04B	38.22B	37.63B	36.41B
Cash Flow
Free Cash Flow	411.00M	1.35B	1.30B	-2.30B	642.00M	2.67B
Operating Cash Flow	839.00M	2.46B	2.06B	-1.27B	1.06B	3.23B
Investing Cash Flow	-738.00M	-1.26B	-273.00M	-731.00M	-207.00M	-1.28B
Financing Cash Flow	-767.00M	-1.56B	-1.78B	-982.00M	-708.00M	-700.00M

Maezawa Kyuso Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1420.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6485, the sentiment is Positive. The current price of 1420 is below the 20-day moving average (MA) of 1658.40, below the 50-day MA of 1578.60, and above the 200-day MA of 1386.86, indicating a neutral trend. The MACD of 19.68 indicates Positive momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 11.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6485.

Maezawa Kyuso Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7871	80 Outperform	¥19.10B	11.59	―	3.09%	0.27%	7.57%
6485	79 Outperform	¥34.00B	11.54	―	4.23%	-0.34%	50.73%
5940	74 Outperform	¥11.67B	4.23	―	2.89%	2.56%	17.52%
5262	67 Neutral	¥86.09B	26.30	―	1.49%	-8.92%	1.67%
7943	66 Neutral	¥115.01B	32.52	―	3.53%	-0.58%	-46.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5932	52 Neutral	¥20.16B	-4.49	―	4.03%	1.03%	-92.80%

Maezawa Kyuso Industries Co., Ltd. Corporate Events

Maezawa Kyuso Industries Reports Semi-Annual Financial Results and Forecast

Maezawa Kyuso Industries reported its non-consolidated financial results for the six months ending September 30, 2025, showing net sales of 15,739 million yen and a profit of 1,664 million yen. The company announced a forecast for the fiscal year ending March 31, 2026, with expected net sales of 32,000 million yen and a profit of 2,600 million yen, indicating slight growth in sales but a decrease in profit margins, which may impact stakeholders and market positioning.