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

• Market Cap: ¥73.96B
• Dividend Yield: 0.82%
• Average Volume (3M): 242.15K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.19
• Revenue Growth: 13.68%
• EPS Growth: -11.38%
• Country: JP
• Employees: 1,536
• Sector: Technology
• Sector Strength: 96
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 14.47
• Shares Outstanding: 26,000,000
• 10 Day Avg. Volume: 293,260
• 30 Day Avg. Volume: 242,146
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,010.50
• Price Target Upside: 5.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: ¥2,821.00 ▼(-0.84% Downside)

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 operating in the manufacturing sector, primarily specializing in electronic components. The company is known for producing high-quality parts such as precision metal components and electronic connectors, which are essential in various industries, including automotive, telecommunications, and consumer electronics.

How the Company Makes Money

KOHOKU KOGYO CO. LTD. generates revenue through the sale of its electronic components and precision metal parts. The company's key revenue streams include supplying connectors and other parts to major manufacturers in the automotive and electronics sectors. Significant partnerships with leading companies in these industries contribute to its earnings by ensuring a steady demand for its products. The company also engages in research and development to innovate and improve its product offerings, thereby maintaining a competitive edge and attracting more business.

KOHOKU KOGYO CO. LTD. Financial Statement Overview

Summary

The financial performance of KOHOKU KOGYO CO. LTD. is strong with notable revenue growth, improved profit margins, and robust operational efficiency. The company maintains a solid financial position with low leverage and strong cash flow metrics, though high equity may limit aggressive expansion.

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: 2845.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2845 is above the 20-day moving average (MA) of 2641.25, above the 50-day MA of 2504.00, and above the 200-day MA of 2503.98, indicating a bullish trend. The MACD of 58.47 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 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	¥72.82B	13.27		2.92%	3.74%	4.01%
6850	79 Outperform	¥20.48B	10.81		2.89%	9.88%	11.83%
6524	76 Outperform	¥73.96B	36.85		0.82%	13.68%	-11.38%
6914	75 Outperform	¥67.43B	10.78		2.46%	5.70%	19.34%
6853	69 Neutral	¥17.77B	16.71		3.34%	2.10%	5.08%
6866	68 Neutral	¥81.06B	13.72		3.37%	7.11%	7.49%
Sector *	57 Neutral	HK$14.39B	9.80	-0.60%	4.57%	7.08%	-37.99%

KOHOKU KOGYO CO. LTD. Corporate Events

KOHOKU KOGYO Reports Mixed Financial Results for First Half of 2025

KOHOKU KOGYO CO., LTD. reported its consolidated financial results for the first half of 2025, showing a modest increase in net sales by 2.2% compared to the previous year. However, the company experienced a significant decline in ordinary profit and profit attributable to owners of the parent, with decreases of 52.9% and 66.2%, respectively. The financial outlook for the full year 2025 anticipates a 9% increase in net sales, but a decrease in ordinary profit and profit attributable to owners of the parent by 13.2% and 22%, respectively. The company also reported changes in its share structure, including a stock split and the acquisition and cancellation of treasury shares, impacting earnings per share calculations.

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 Mixed Financial Results for First Half of 2025

KOHOKU KOGYO CO., LTD. reported its consolidated financial results for the first half of 2025, showing a slight increase in net sales by 2.2% to ¥7,875 million. However, the company faced significant declines in ordinary profit and profit attributable to owners of the parent, dropping by 52.9% and 66.2% respectively. Despite these challenges, the company maintained a strong capital adequacy ratio of 83.3%, indicating a stable financial position. The forecast for the full year ending December 31, 2025, anticipates a 9.0% increase in net sales, although ordinary profit and profit attributable to owners are expected to decrease by 13.2% and 22.0% respectively, reflecting ongoing operational challenges.

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 Revises Earnings Forecast Amid Impairment Loss

KOHOKU KOGYO CO., LTD. has announced an extraordinary impairment loss of 310 million yen due to a review of its development schedule and capital investment plan for its subsidiary, EpiPhotonics CO., LTD. The company has also revised its second-quarter earnings forecast downward, citing a challenging business environment, including prolonged adjustments in the European automobile market and unexpected temporary order adjustments. These factors, along with foreign exchange losses and recorded impairment losses, have led to a significant decrease in expected sales and profits for the period.

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 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.