Kitz Corporation (JP:6498)
:6498
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Kitz
(6498)
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Rating:72Outperform
Price Target:
¥1,917.00
▲(14.58% Upside)
Action:ReiteratedDate:02/18/26
The score is driven by solid fundamentals and an improving balance sheet, offset by a notable 2025 cash-flow and free-cash-flow conversion setback. Technicals are supportive with a strong uptrend and positive momentum, while valuation appears reasonable with a moderate P/E and a ~2.5% dividend yield.
Positive Factors
Revenue & profitability trend
Consistent multi-year revenue expansion and improving profitability through 2024–2025 indicate durable end-market demand and some pricing power. This steady top-line growth and margin improvement strengthen reinvestment capacity and support more stable long-term earnings generation.
Negative Factors
Weak cash generation in 2025
A sharp drop in operating and free cash flow in 2025 reduces internal funding for capex, dividends and debt reduction. Persistent weak cash conversion increases reliance on external financing, raises liquidity risk, and can impair the company's ability to fund strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profitability trend
Consistent multi-year revenue expansion and improving profitability through 2024–2025 indicate durable end-market demand and some pricing power. This steady top-line growth and margin improvement strengthen reinvestment capacity and support more stable long-term earnings generation.
Read all positive factors
Kitz (6498) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥154.53B
Dividend Yield2.77%
Average Volume (3M)321.75K
Price to Earnings (P/E)13.2
Beta (1Y)1.00
Revenue Growth2.74%
EPS Growth7.86%
CountryJP
Employees5,415
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)30.77
Shares Outstanding87,565,610
10 Day Avg. Volume453,540
30 Day Avg. Volume321,746
Financial Highlights & Ratios
PEG Ratio-22.14
Price to Book (P/B)1.28
Price to Sales (P/S)0.86
P/FCF Ratio46.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)150.1
Revenue Forecast (FY)¥195.50B
Kitz Business Overview & Revenue Model
Company Description
KITZ Corporation engages in the manufacturing and selling of valves, other flow control devices, and related products in Japan and internationally. It operates through three segments: Valve Manufacturing, Brass Bar Manufacturing, and Other segment...
How the Company Makes Money
Kitz generates revenue primarily through the sale of its industrial valves and fittings, which are essential components in numerous applications across different sectors. The company's revenue model is based on direct sales to industrial clients, ...
Kitz Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 176.68B | 172.04B | 166.94B | 159.91B | 135.79B |
| Gross Profit | 46.96B | 43.88B | 42.42B | 37.86B | 33.71B |
| EBITDA | 22.61B | 21.35B | 21.07B | 17.98B | 15.76B |
| Net Income | 11.47B | 11.82B | 10.59B | 8.55B | 4.96B |
Balance Sheet | |||||
| Total Assets | 184.32B | 172.41B | 166.69B | 152.57B | 143.42B |
| Cash, Cash Equivalents and Short-Term Investments | 28.24B | 30.73B | 29.00B | 24.37B | 27.94B |
| Total Debt | 36.30B | 36.09B | 37.94B | 38.38B | 39.71B |
| Total Liabilities | 64.53B | 62.59B | 64.48B | 61.52B | 62.16B |
| Stockholders Equity | 118.16B | 108.39B | 100.87B | 89.96B | 80.37B |
Cash Flow | |||||
| Free Cash Flow | 3.24B | 9.15B | 7.66B | 1.52B | 4.80B |
| Operating Cash Flow | 13.63B | 18.56B | 16.01B | 8.54B | 8.28B |
| Investing Cash Flow | -10.29B | -7.84B | -7.41B | -7.47B | -3.24B |
| Financing Cash Flow | -6.07B | -9.91B | -5.19B | -5.57B | -11.53B |
Kitz Technical Analysis
Negative
1673.00
Price Trends
2035.28
Negative
1868.10
Negative
1638.72
Positive
Market Momentum
-75.03
Positive
30.14
Neutral
10.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6498, the sentiment is Negative. The current price of 1673 is below the 20-day moving average (MA) of 1973.90, below the 50-day MA of 2035.28, and above the 200-day MA of 1638.72, indicating a neutral trend. The MACD of -75.03 indicates Positive momentum. The RSI at 30.14 is Neutral, neither overbought nor oversold. The STOCH value of 10.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6498.
Kitz Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥20.89B | 7.97 | ― | 0.72% | 6.51% | 3.68% | |
81 Outperform | ¥6.83B | 9.00 | ― | 2.80% | 6.02% | 7.39% | |
79 Outperform | ¥11.28B | 10.27 | ― | 2.82% | 7.10% | 18.03% | |
76 Outperform | ¥170.71B | 11.03 | ― | 2.50% | -2.46% | -10.72% | |
72 Outperform | ¥154.53B | 13.19 | 10.28% | 2.77% | 2.74% | 7.86% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | ¥11.09B | 42.22 | ― | 1.65% | 3.96% | ― |
* Industrials Sector Average
JP:6498
Kitz
1,780.00
597.23
50.49%
JP:6267
General Packer Co., Ltd.
3,865.00
1,127.40
41.18%
JP:6488
Yoshitake Inc.
944.00
255.00
37.01%
JP:6490
Nippon Pillar Packing Co., Ltd.
7,220.00
3,727.76
106.74%
JP:6492
Okano Valve Mfg. Co., Ltd.
12,000.00
6,590.59
121.84%
JP:6495
Miyairi Valve Mfg.Co., Ltd.
228.00
128.96
130.21%
Kitz Corporate Events
Kitz Lifts Annual Dividend as Payout Ratio Tops 40%
Feb 26, 2026
Kitz Corporation’s board has approved a year-end dividend of 32 yen per share for the fiscal year ended December 31, 2025, matching its latest forecast and up from 27 yen a year earlier. This brings the total annual dividend to 53 yen per sh...
Kitz Nears Buyback Ceiling With ¥99.9 Million Share Repurchase
Feb 17, 2026
Kitz Corporation has completed a share buyback program authorized under Japan’s Companies Act, repurchasing 46,600 common shares on the Tokyo Stock Exchange for a total of ¥99.9 million. The buyback, nearly exhausting the approved ceili...
Kitz Launches Modest Share Buyback to Fund Expanded Equity Compensation
Feb 12, 2026
Kitz Corporation has authorized a share buyback of up to 51,000 common shares, representing about 0.06% of its outstanding stock, for a total consideration of up to ¥100 million between February 13 and March 31, 2026. The repurchased shares w...
Kitz to Switch Long-Standing Auditor from EY ShinNihon to KPMG AZSA
Feb 12, 2026
Kitz Corporation plans to replace its long-standing financial auditor, Ernst Young ShinNihon LLC, with KPMG AZSA LLC, pending shareholder approval at the 112th Ordinary General Meeting on March 26, 2026. The Audit Committee cited the desire for a...
Kitz Overhauls Board Committees With New Independent Directors
Feb 12, 2026
Kitz Corporation has announced a slate of director candidates and committee assignments, to be formally approved following its 112th Annual General Meeting of Shareholders scheduled for March 26, 2026. The board will maintain Representative Execut...
Kitz Raises Dividend Forecast, Targets 40% Payout Ratio for 2025
Feb 12, 2026
Kitz Corporation has revised its dividend forecast for the fiscal year ended December 31, 2025, raising the planned year-end dividend from ¥27 to ¥32 per share and lifting the total annual dividend to ¥53, up from ¥48 in the pr...
Kitz Raises Dividend Payout Target to Boost Shareholder Returns
Feb 12, 2026
Kitz Corporation has revised its dividend policy to place stronger emphasis on shareholder returns, responding to changes in the business environment and its capital structure and ROE targets. The board approved the change effective from the fisca...
Kitz Lifts Dividend as Sales Grow and Forecasts Stronger 2026 Earnings
Feb 12, 2026
Kitz Corporation reported a 2.7% rise in net sales to ¥176.7 billion for the year ended December 31, 2025, with operating profit up 8.7% and ordinary profit up 5.2%, even as profit attributable to owners of parent slipped 3.0%. The company st...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.