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

• Market Cap: ¥63.74B
• Dividend Yield: 0.92%
• Average Volume (3M): 325.14K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.21
• Revenue Growth: 20.24%
• EPS Growth: 33.60%
• Country: JP
• Employees: 1,536
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 8.56
• Shares Outstanding: 26,000,000
• 10 Day Avg. Volume: 360,590
• 30 Day Avg. Volume: 325,136
• PEG Ratio: -1.21
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.22
• 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: ¥3,200.00
• Price Target Upside: 30.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• 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. Business Overview & Revenue Model

Company Description

KOHOKU 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 Money

KOHOKU 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.92B	13.47B	15.67B	14.62B	11.18B
Gross Profit	6.88B	5.48B	6.14B	6.06B	4.25B
EBITDA	4.94B	3.74B	4.58B	5.00B	2.97B
Net Income	3.25B	1.90B	3.07B	2.96B	1.56B
Balance Sheet
Total Assets	28.68B	24.97B	24.29B	22.54B	13.27B
Cash, Cash Equivalents and Short-Term Investments	11.13B	10.86B	10.36B	10.95B	3.50B
Total Debt	2.31B	2.95B	3.60B	4.35B	5.49B
Total Liabilities	5.25B	4.91B	5.99B	7.39B	7.51B
Stockholders Equity	23.43B	20.06B	18.30B	15.15B	5.77B
Cash Flow
Free Cash Flow	2.40B	1.97B	1.89B	2.45B	1.52B
Operating Cash Flow	3.84B	3.58B	2.75B	3.03B	2.02B
Investing Cash Flow	-3.12B	-1.03B	-1.95B	-406.07M	-524.39M
Financing Cash Flow	-1.64B	-1.58B	-2.58B	4.56B	-1.05B

KOHOKU KOGYO CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2452.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6859	80 Outperform	¥69.69B	11.33		3.85%	8.31%	21.11%
6850	79 Outperform	¥19.59B	9.87		3.89%	6.94%	13.25%
6524	76 Outperform	¥63.74B	24.00		0.92%	20.24%	33.60%
6853	76 Outperform	¥14.27B	13.22		3.83%	0.16%	5.68%
6914	74 Outperform	¥58.72B	9.38		2.68%	8.40%	30.12%
6866	68 Neutral	¥75.19B	12.15		3.63%	4.55%	4.94%
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%

KOHOKU KOGYO CO. LTD. Corporate Events

Kohoku Kogyo Completes Treasury Shares Disposal for Compensation

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

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

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

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

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

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.