Kokusai Electric Corporation (6525) AI Stock Analysis

• Market Cap: ¥1.54T
• Dividend Yield: 0.73%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 45.9
• Beta (1Y): 1.72
• Revenue Growth: 10.98%
• EPS Growth: 6.51%
• Country: JP
• Employees: 2,483
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 66.72
• Shares Outstanding: 238,115,620
• 10 Day Avg. Volume: 5,647,220
• 30 Day Avg. Volume: 6,529,006
• PEG Ratio: 0.26
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 2.36
• P/FCF Ratio: 43.42
• 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: ¥7,318.57
• Price Target Upside: 13.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 124.45
• Revenue Forecast (FY): ¥232.35B

• Rating: 62 Neutral
• Price Target: ¥7,012.00 ▲(8.48% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily supported by solid profitability and a stronger, lower-risk balance sheet. This is tempered by a mixed technical picture (short-term weakness despite longer-term uptrend signals) and a stretched valuation with a high P/E and low dividend yield.

Positive Factors

Profitability

Mid‑teens net margins indicate durable operating leverage in its core thermal and thin‑film deposition tools. Sustained margin levels support R&D and aftermarket investment, helping preserve earnings power across semiconductor cycles over the next several quarters.

Balance Sheet Strength

Improving debt-to-equity and a conservative leverage profile reduce financial risk and increase flexibility. A stronger balance sheet lets the company fund capex, service the installed base, and withstand cyclical downturns without urgent refinancing pressure.

Improving Cash Generation

A material rebound in free cash flow versus recent weak years signals recovering cash conversion capacity. Stronger FCF supports durable aftermarket growth (service, parts, upgrades) and funds reinvestment that stabilizes revenue and margins over the medium term.

Negative Factors

Revenue Volatility

Volatile revenue and a TTM decline reflect sensitivity to customer capex timing and product cycle shifts. This weakens top‑line predictability, complicates capacity and resource planning, and may pressure growth visibility across the next 2–6 months.

Cash Conversion Inconsistency

FCF materially trailing net income indicates inconsistent cash conversion driven by working‑capital swings or investments. Persistent gaps can constrain discretionary spending, hamper sustained aftermarket investment, or necessitate external funding in weaker cycles.

End‑market Cyclicality

The business is structurally tied to semiconductor capex and technology transition timing. This cyclical exposure causes uneven order flow and revenue timing risk that is likely to persist, making medium‑term top‑line consistency challenging.

Kokusai Electric Corporation Business Overview & Revenue Model

Company Description

Kokusai Electric Corporation engages in the development, manufacture, sale, repair, and maintenance of semiconductor manufacturing equipment worldwide. The company offers deposition process equipment, treatment process equipment, measuring systems, and ultrasonic generators. It also sells related parts; and new and used equipment for wafers. The company was founded in 1949 and is based in Chiyoda, Japan.

How the Company Makes Money

Kokusai Electric Corporation generates revenue primarily through the sale of its semiconductor manufacturing equipment and related services. The company’s key revenue streams include the direct sale of machinery for semiconductor fabrication, ongoing maintenance and support services, and the provision of spare parts. Additionally, Kokusai Electric benefits from long-term contracts and partnerships with leading semiconductor manufacturers, which provide a stable revenue base. The company also invests in research and development to enhance its product offerings, ensuring competitiveness in the rapidly evolving semiconductor industry.

Kokusai Electric Corporation Financial Statement Overview

Summary

Solid profitability with mid-teens net margins and a resilient, de-risked balance sheet. Offsets include weaker/volatile revenue trends and less consistent cash conversion, even though free cash flow has rebounded in the TTM.

Income Statement

Profitability remains solid in TTM (Trailing-Twelve-Months), with healthy gross and operating margins and a net margin around the mid-teens. However, the growth profile has weakened: revenue is slightly down in TTM and has been volatile across recent years, with a notable drop in FY2024. Net income is also below prior peak levels, suggesting a less favorable cycle vs. the strongest recent year.

Balance Sheet

Leverage looks well-controlled, with debt-to-equity improving meaningfully versus earlier years and remaining at a conservative level in TTM (Trailing-Twelve-Months). Equity has grown and the company still generates an attractive return on equity, though it has come down from the unusually high levels seen a few years ago. Overall, the balance sheet appears resilient and less risk-prone than in prior periods.

Cash Flow

Cash generation has improved sharply in TTM (Trailing-Twelve-Months), with free cash flow rebounding strongly versus FY2025 annual and FY2024 (which showed weak operating cash flow and negative free cash flow). That said, cash conversion is still a watch item: free cash flow is meaningfully below net income in both TTM and FY2025 annual, indicating working-capital or investment swings can materially impact reported earnings quality and cash consistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	237.33B	238.93B	180.84B	245.72B	245.43B
Gross Profit	97.89B	101.74B	68.00B	93.97B	100.36B
EBITDA	58.89B	64.85B	42.03B	67.28B	80.61B
Net Income	32.77B	36.00B	22.37B	40.30B	51.34B
Balance Sheet
Total Assets	352.11B	341.51B	375.43B	373.54B	356.53B
Cash, Cash Equivalents and Short-Term Investments	47.73B	44.76B	92.62B	106.05B	108.40B
Total Debt	58.20B	60.76B	93.02B	99.21B	123.19B
Total Liabilities	139.26B	145.34B	188.04B	212.66B	237.01B
Stockholders Equity	212.84B	196.17B	187.39B	160.88B	119.52B
Cash Flow
Free Cash Flow	34.55B	12.99B	-9.03B	22.15B	70.29B
Operating Cash Flow	46.22B	38.48B	2.94B	29.99B	73.61B
Investing Cash Flow	-15.63B	-27.71B	-11.95B	-7.83B	-3.35B
Financing Cash Flow	-44.34B	-58.11B	-6.31B	-25.11B	-3.51B

Kokusai Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6464.00
• 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:6525, the sentiment is Positive. The current price of 6464 is above the 20-day moving average (MA) of 6269.60, above the 50-day MA of 6086.62, and above the 200-day MA of 4346.69, indicating a bullish trend. The MACD of 92.04 indicates Negative momentum. The RSI at 55.24 is Neutral, neither overbought nor oversold. The STOCH value of 74.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6525.

Kokusai Electric Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7735	78 Outperform	¥2.09T	25.76	21.73%	2.29%	11.29%	11.38%
7729	77 Outperform	€710.21B	32.37	12.66%	2.28%	9.53%	-11.17%
6890	76 Outperform	$298.60B	22.48	5.41%	3.28%	11.15%	-19.39%
6966	75 Outperform	¥160.27B	15.58	―	2.45%	4.60%	-21.64%
6723	63 Neutral	¥5.28T	-102.21	-2.51%	1.31%	-10.97%	-118.87%
6525	62 Neutral	¥1.54T	45.94	―	0.73%	10.98%	6.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kokusai Electric Corporation Corporate Events

Kokusai Electric Details Q3 FY2026 Metrics and Currency Risks

Kokusai Electric Corporation released its financial briefing for the third quarter of the fiscal year ending March 2026, covering the period from April to December 2025, prepared under International Financial Reporting Standards. The company emphasized that adjusted operating profit and adjusted net income are its key performance indicators, while warning that currency fluctuations and other internal and external factors could significantly affect its overseas-heavy business, financial position, and cash flows.

Management highlighted that most export sales are denominated in yen, though some transactions are in foreign currencies, making results sensitive to exchange-rate movements. The briefing also clarified that these adjusted metrics may not be directly comparable with similarly named indicators used by other companies, underlining the need for investors and stakeholders to interpret Kokusai Electric’s performance measures within its own disclosure framework.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6500.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Profit Slips but Balance Sheet and Dividends Hold Firm

Kokusai Electric reported nine‑month revenue of ¥173.1 billion to December 31, 2025, down slightly year on year, with operating profit and net income declining more sharply amid lower adjusted earnings. Despite weaker profitability, equity attributable to owners rose to ¥212.8 billion and the equity ratio improved to 60.4%, indicating a strengthened balance sheet.

The company kept its full‑year forecast unchanged, projecting a mid‑single‑digit revenue decline and operating profit and net income drops of more than 20%, reflecting a softer business environment. Dividend plans remain intact, with a total annual payout of ¥36 per share expected, signaling management’s intent to maintain shareholder returns even as earnings come under pressure.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6500.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Sees Principal Shareholder Cut Stake in Secondary Share Sale

Kokusai Electric Corporation announced a change in its principal shareholder after Applied Materials Europe B.V. sold 12 million Kokusai shares to Goldman Sachs Securities, which plans to resell the stock in overseas markets. Following the transaction, Applied Materials Europe B.V.’s stake falls from 10.22% to 5.08% of Kokusai’s voting rights, although it has agreed to a 30-day lock-up on further share disposals without the purchaser’s consent, and both companies state that their existing business relationship and Kokusai’s performance outlook will remain unaffected by the ownership shift.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen8015.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Reshapes Executive Lineup for 2026 with New Vice Presidents and Renewed Leadership

Kokusai Electric Corporation has announced a new lineup of executive officers effective April 1, 2026, with President and CEO Kazunori Tsukada and all current senior leaders reappointed to their roles overseeing key functions including production, finance, technology management, global supply chain, equipment and service businesses, HR, and digital/business transformation. The company also strengthened its management structure by appointing two new Corporate Vice Presidents and Executive Officers: Masakazu Shimada to lead system technology development, and Takaaki Nose to oversee corporate planning, public relations and IR, sustainability, legal, ethics and compliance, and export control, signaling an emphasis on governance, strategic planning, and technology capabilities as it positions for future growth in the semiconductor equipment market.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen7156.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.