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KOHOKU KOGYO CO. LTD. (JP:6524)
:6524
Japanese Market

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

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JP

KOHOKU KOGYO CO. LTD.

(6524)

Rating:76Outperform
Price Target:
¥2,821.00
▲(15.05%Upside)
KOHOKU KOGYO CO. LTD.'s stock is supported by strong financial performance, particularly in revenue and profit growth, and solid cash flow generation. Technical analysis suggests moderate positive momentum, while valuation metrics point to potential overvaluation risks. The stock is well-positioned within its industry, but investors should be cautious of its current valuation.

KOHOKU KOGYO CO. LTD. (6524) vs. iShares MSCI Japan ETF (EWJ)

KOHOKU KOGYO CO. LTD. Business Overview & Revenue Model

Company DescriptionKOHOKU KOGYO CO. LTD. (6524) is a Japanese company that operates primarily in the manufacturing sector, specializing in the production of electronic components and materials. The company is recognized for its expertise in developing and supplying high-quality products such as precision devices, optical devices, and various electronic materials used in a wide range of industries including telecommunications, automotive, and consumer electronics.
How the Company Makes MoneyKOHOKU KOGYO CO. LTD. generates revenue through the manufacturing and sale of its electronic components and materials. The company capitalizes on its advanced technology and production capabilities to provide high-demand products such as optical devices and precision components to major industries. Its revenue streams are mainly derived from long-term supply agreements with key players in the telecommunications and automotive sectors, as well as through strategic partnerships that enhance its product offerings and market reach. Additionally, the company's focus on innovation and quality supports its competitive advantage, enabling it to maintain strong business relationships and capture new market opportunities.

KOHOKU KOGYO CO. LTD. Financial Statement Overview

Summary
KOHOKU KOGYO CO. LTD. shows strong financial health with an impressive revenue growth of 18.20% and improved profitability margins. The low debt-to-equity ratio and strong equity position highlight financial stability, though high equity may limit aggressive growth. Positive cash flow metrics support reinvestment, despite significant capital expenditure concerns.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.92B13.47B15.67B14.62B11.18B
Gross Profit6.88B5.48B6.14B6.06B4.25B
EBITDA4.94B3.74B4.58B5.00B2.97B
Net Income3.25B1.90B3.07B2.96B1.56B
Balance Sheet
Total Assets28.68B24.97B24.29B22.54B13.27B
Cash, Cash Equivalents and Short-Term Investments11.13B10.86B10.36B10.95B3.50B
Total Debt2.31B2.95B3.60B4.35B5.49B
Total Liabilities5.25B4.91B5.99B7.39B7.51B
Stockholders Equity23.43B20.06B18.30B15.15B5.77B
Cash Flow
Free Cash Flow2.40B1.97B1.89B2.45B1.52B
Operating Cash Flow3.84B3.58B2.75B3.03B2.02B
Investing Cash Flow-3.12B-1.03B-1.95B-406.07M-524.39M
Financing Cash Flow-1.64B-1.58B-2.58B4.56B-1.05B

KOHOKU KOGYO CO. LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2452.00
Price Trends
50DMA
2154.14
Positive
100DMA
2090.09
Positive
200DMA
2560.27
Positive
Market Momentum
MACD
120.72
Positive
RSI
66.15
Neutral
STOCH
21.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6524, the sentiment is Positive. The current price of 2452 is below the 20-day moving average (MA) of 2504.05, above the 50-day MA of 2154.14, and below the 200-day MA of 2560.27, indicating a bullish trend. The MACD of 120.72 indicates Positive momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 21.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6524.

KOHOKU KOGYO CO. LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥69.69B11.33
3.85%8.31%21.11%
79
Outperform
¥19.59B9.87
3.89%6.94%13.25%
76
Outperform
¥63.74B24.00
0.92%20.24%33.60%
76
Outperform
¥14.27B13.22
3.83%0.16%5.68%
74
Outperform
¥58.72B9.38
2.68%8.40%30.12%
68
Neutral
¥75.19B12.15
3.63%4.55%4.94%
63
Neutral
$33.76B6.14-11.84%1.84%5.29%-18.23%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6524
KOHOKU KOGYO CO. LTD.
2,452.00
-145.45
-5.60%
JP:6850
Chino Corporation
2,313.00
-100.76
-4.17%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
525.00
102.63
24.30%
JP:6859
Espec Corp.
3,140.00
167.33
5.63%
JP:6866
Hioki E.E.Corporation
5,590.00
-1,226.64
-17.99%
JP:6914
OPTEX GROUP Company Limited
1,640.00
-24.70
-1.48%

KOHOKU KOGYO CO. LTD. Corporate Events

Kohoku Kogyo Completes Treasury Shares Disposal for Compensation
May 21, 2025

Kohoku Kogyo Co., Ltd. has completed the payment procedures for the disposal of treasury shares as restricted stock compensation. This move, resolved at the Board of Directors meeting on April 22, 2025, involves the disposal of 10,527 shares of common stock at a price of 1,668 yen per share, totaling 17,559,036 yen, and is allocated to three directors and eight corporate officers.

The most recent analyst rating on (JP:6524) stock is a Buy with a Yen2500.00 price target. To see the full list of analyst forecasts on KOHOKU KOGYO CO. LTD. stock, see the JP:6524 Stock Forecast page.

KOHOKU KOGYO Reports 2024 Financial Results
May 12, 2025

KOHOKU KOGYO CO., LTD. has released its financial data for the fiscal year ending December 2024, reporting net sales of 15,924 million yen. The company employs a total of 1,536 people across its consolidated operations, indicating a strong workforce supporting its business activities in the electronics and optical components sectors.

Kohoku Kogyo Releases First Quarter Financial Summary for FY12/2025
May 12, 2025

Kohoku Kogyo Co., Ltd. has released its financial summary for the first quarter of FY12/2025, providing insights into its operational segments and offering reference information. This announcement may impact the company’s operations and industry positioning, although specific implications for stakeholders were not detailed.

KOHOKU KOGYO Reports Q1 2025 Financial Results with Mixed Performance
May 12, 2025

KOHOKU KOGYO CO., LTD. reported its consolidated financial results for the first quarter ending March 31, 2025, showing a slight increase in net sales and operating profit compared to the previous year. However, the company experienced a significant decline in ordinary profit and profit attributable to owners of the parent, indicating challenges in maintaining profitability. Despite these challenges, the company maintains a strong capital adequacy ratio, reflecting a stable financial position. The forecast for the fiscal year ending December 31, 2025, anticipates growth in net sales and operating profit, although ordinary profit and profit attributable to owners are expected to decline, suggesting ongoing operational challenges.

KOHOKU KOGYO Evaluates Board Effectiveness and Plans Governance Improvements
Apr 22, 2025

KOHOKU KOGYO CO., LTD. has conducted an evaluation of its Board of Directors’ effectiveness, confirming that its structure and operations are generally appropriate. However, the company identified areas for improvement, such as enhancing materials presented to the board and increasing collaboration among outside directors. Following its transition to a company with an audit and supervisory committee, KOHOKU KOGYO plans to address these issues and strengthen its sustainability efforts to enhance corporate governance and corporate value over the medium to long term.

KOHOKU KOGYO Announces Treasury Share Disposal for Stock Compensation
Apr 22, 2025

KOHOKU KOGYO CO., LTD. has announced the disposal of 10,527 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and corporate officers. This strategic move is designed to improve corporate value and align the interests of the company’s leadership with those of its shareholders over the long term, with a transfer restriction period set at 30 years.

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.Date of analysis: Jul 05, 2025