KOHOKU KOGYO CO. LTD. (6524) AI Stock Analysis

• Market Cap: ¥75.57B
• Dividend Yield: 0.79%
• Average Volume (3M): 149.31K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 1.05
• Revenue Growth: 6.64%
• EPS Growth: 18.46%
• Country: JP
• Employees: 1,536
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 44.09
• Shares Outstanding: 26,000,000
• 10 Day Avg. Volume: 135,680
• 30 Day Avg. Volume: 149,306
• PEG Ratio: 0.35
• Price to Book (P/B): 3.40
• Price to Sales (P/S): 5.00
• P/FCF Ratio: 33.15
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥3,758.00 ▲(29.27% Upside)

KOHOKU KOGYO CO. LTD. receives a strong overall score driven by its robust financial performance and positive technical indicators. The company's stable financial position and effective cash generation support its growth potential. However, the high P/E ratio suggests the stock may be overvalued, which slightly tempers the overall score.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a successful expansion in market reach and product adoption, supporting long-term business sustainability.

Financial Stability

Low leverage and strong equity position provide financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Cash Generation

Strong cash generation capability supports reinvestment and growth strategies, ensuring the company can fund its operations and strategic initiatives effectively.

Negative Factors

EPS Decline

A decline in EPS indicates potential challenges in maintaining profitability, which could affect investor confidence and the company's ability to finance future growth.

High Capital Expenditure

High capital expenditures can strain cash reserves, potentially limiting the company's ability to respond to market opportunities or financial challenges.

Equity Ratio

While a high equity ratio indicates stability, it may limit aggressive growth strategies due to less financial leverage, impacting competitive positioning.

KOHOKU KOGYO CO. LTD. Business Overview & Revenue Model

Company Description

Kohoku Kogyo CO.,LTD. manufactures and sells lead terminals for aluminum electrolytic capacitors, optical components and devices for optical fiber communication network, and precision components using quartz glass materials in Japan. It offers lead terminals, including standard type, burr-free type, edge-free type, one-side rib type, round 4-corner type, vibration-resistant type, front-back discriminative type, welded resin coating, and round bar resin coating, as well as rounding and anodic oxidation processing, and lead terminal materials. The company also provides optical communication parts and devices, such as in-line optical isolators, hybrid optical isolators, optical filter devices, optical circulators, variable light attenuators, polarized optical fiber assembled products, faraday rotators, high power laser assemblies with end cap and AR coating, high purity silica glasses, and optical fiber preforms, as well as optical components for submarine cable and optical fiber array assembled with hermetic feedthrough. The company was incorporated in 1959 and is headquartered in Nagahama, Japan.

How the Company Makes Money

KOHOKU KOGYO generates revenue primarily through the sale of its precision machinery and electronic components. The company operates a diversified revenue model that includes direct sales to manufacturers in various sectors, as well as partnerships with other technology firms to develop specialized products. Key revenue streams include bulk orders from automotive and electronics companies, contract manufacturing services, and ongoing maintenance and support for its machinery. Additionally, the company benefits from long-term contracts with major clients, which provide a stable income base. Strategic collaborations and joint ventures in research and development also contribute to KOHOKU KOGYO's earnings, enabling it to stay competitive and innovate within the marketplace.

KOHOKU KOGYO CO. LTD. Financial Statement Overview

Summary

KOHOKU KOGYO CO. LTD. demonstrates strong financial health with robust revenue and profit growth, effective capital utilization, and prudent financial management. The company's low leverage and strong equity position provide stability, though they may constrain opportunities for aggressive expansion. The positive cash flow metrics reflect solid cash generation, supporting reinvestment and growth strategies.

Income Statement

KOHOKU KOGYO CO. LTD. has demonstrated strong revenue growth, with a significant increase of 18.20% from 2023 to 2024. The gross profit margin has remained robust at 43.23% in 2024, and net profit margin improved to 20.42%, indicating enhanced profitability. The EBIT margin of 24.73% and EBITDA margin of 31.00% also portray strong operational efficiency. The company shows positive financial health and growth trajectory, with increasing profitability and stable margins.

Balance Sheet

The balance sheet of KOHOKU KOGYO CO. LTD. indicates a solid financial position with a low debt-to-equity ratio of 0.10, reflecting minimal leverage. Return on equity has improved to 13.88%, showcasing effective use of equity capital. The equity ratio is strong at 81.64%, suggesting the company is well-capitalized with a high proportion of equity financing. These metrics highlight financial stability, though the relatively high equity ratio may limit aggressive growth strategies.

Cash Flow

KOHOKU KOGYO CO. LTD.'s cash flow statement reflects a healthy cash generation capability, with a free cash flow growth rate of 21.96% from 2023 to 2024. The operating cash flow to net income ratio of 1.18 implies efficient conversion of earnings into cash. The free cash flow to net income ratio at 0.74 indicates good cash retention for reinvestment and shareholder returns. These strengths are slightly offset by a significant capital expenditure, which may impact future cash availability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.09B	15.92B	13.47B	15.67B	14.62B	11.18B
Gross Profit	6.96B	6.88B	5.48B	6.14B	6.06B	4.25B
EBITDA	4.23B	5.96B	3.74B	5.20B	5.00B	2.97B
Net Income	2.06B	3.25B	1.90B	3.07B	2.96B	1.56B
Balance Sheet
Total Assets	24.32B	28.68B	24.97B	24.29B	22.54B	13.27B
Cash, Cash Equivalents and Short-Term Investments	6.62B	11.13B	10.86B	10.36B	10.95B	3.50B
Total Debt	2.03B	2.31B	2.95B	3.60B	4.35B	5.49B
Total Liabilities	4.05B	5.25B	4.91B	5.99B	7.39B	7.51B
Stockholders Equity	20.26B	23.43B	20.06B	18.30B	15.15B	5.77B
Cash Flow
Free Cash Flow	0.00	2.40B	1.97B	1.89B	2.45B	1.52B
Operating Cash Flow	0.00	3.84B	3.58B	2.75B	3.03B	2.02B
Investing Cash Flow	0.00	-3.12B	-1.03B	-1.95B	-406.07M	-524.39M
Financing Cash Flow	0.00	-1.64B	-1.58B	-2.58B	4.56B	-1.05B

KOHOKU KOGYO CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2907.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6524, the sentiment is Negative. The current price of 2907 is below the 20-day moving average (MA) of 3129.60, below the 50-day MA of 3260.24, and above the 200-day MA of 2610.71, indicating a neutral trend. The MACD of -110.11 indicates Positive momentum. The RSI at 38.46 is Neutral, neither overbought nor oversold. The STOCH value of 13.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6524.

KOHOKU KOGYO CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.17B	12.70	―	2.93%	6.15%	2.98%
6859	75 Outperform	¥74.38B	13.29	―	3.16%	2.78%	-5.32%
6524	73 Outperform	¥75.57B	27.54	―	0.79%	6.64%	18.46%
6853	72 Outperform	¥18.51B	17.96	―	3.03%	-1.58%	12.24%
6914	71 Outperform	¥97.99B	14.13	―	1.66%	2.72%	33.10%
6866	68 Neutral	¥83.11B	14.42	―	3.28%	7.28%	4.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

KOHOKU KOGYO CO. LTD. Corporate Events

KOHOKU KOGYO Reports Mixed Financial Results for Nine Months Ending September 2025

KOHOKU KOGYO CO., LTD. reported a slight increase in net sales for the nine months ending September 30, 2025, with a 2.8% rise compared to the previous year. However, the company faced declines in ordinary profit and profit attributable to owners of the parent, with decreases of 15.0% and 21.1% respectively. The equity-to-asset ratio improved to 84.1% from 81.7% at the end of 2024, indicating a stronger financial position. Despite these mixed results, the company maintains its forecast for the fiscal year ending December 31, 2025, with expected net sales growth of 9.0% and a 17.9% increase in operating profit.

KOHOKU KOGYO CO., LTD. Releases Financial Update and Continues Industry Focus

KOHOKU KOGYO CO., LTD. has released a financial update, noting that figures prior to December 2021 were unaudited and current forecasts are based on available information, which may differ from actual results. The company continues to focus on its core businesses in lead terminals and optical components, maintaining a strong presence in the electronics industry.

Kohoku Kogyo Reports First Nine Months Financial Results for FY12/2025

Kohoku Kogyo Co., Ltd. has released its financial results for the first nine months of FY12/2025, showcasing its ongoing commitment to quality and industry leadership. The announcement provides insights into the company’s performance across its lead terminals and optical components segments, indicating its strategic focus and potential implications for stakeholders.

KOHOKU KOGYO Reports Mixed Financial Results for Nine Months Ending September 2025

KOHOKU KOGYO CO., LTD. reported its consolidated financial results for the nine months ending September 30, 2025, showing a modest increase in net sales by 2.8% to ¥12,480 million. However, the company experienced a decline in ordinary profit by 15% and profit attributable to owners of the parent by 21.1%, indicating challenges in maintaining profitability despite increased sales. The company’s equity-to-asset ratio improved to 84.1%, reflecting a strong financial position. The financial outlook for the full fiscal year 2025 anticipates a 9% increase in net sales, though ordinary profit is expected to decline by 13.2%, suggesting ongoing operational challenges.

KOHOKU KOGYO Reports Mixed Financial Results for Nine Months Ending September 2025

KOHOKU KOGYO CO., LTD. reported its consolidated financial results for the nine months ended September 30, 2025, showing a slight increase in net sales by 2.8% compared to the previous year. However, the company experienced a decline in ordinary profit by 15% and profit attributable to owners of the parent by 21.1%. The financial position remains strong with a high equity-to-asset ratio of 84.1%, despite a decrease in total assets. The company has maintained its dividend forecast for the fiscal year ending December 31, 2025, indicating stability in shareholder returns.