Kokusai Electric Corporation (6525) AI Stock Analysis

• Market Cap: ¥1.67T
• Dividend Yield: 0.73%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 48.5
• Beta (1Y): 1.86
• Revenue Growth: 10.98%
• EPS Growth: 6.51%
• Country: JP
• Employees: 2,483
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• 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: ¥5,692.50
• Price Target Upside: -15.68% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥7,595.00 ▲(12.50% Upside)

The score is driven primarily by solid financial fundamentals (growth, healthy margins, and improved leverage) and strong bullish technical momentum. This is meaningfully offset by expensive valuation (high P/E and low yield), which tempers the overall attractiveness.

Positive Factors

Healthy profit margins

Sustained high gross and EBITDA margins indicate efficient manufacturing and pricing power in thermal/deposition equipment. These margins provide durable operating cash generation and reinvestment capacity, supporting R&D and service infrastructure over multiple cycles.

Improved balance sheet

Low leverage and a strong equity ratio give the company financial flexibility to fund product development and weather downturns. A ~15% ROE shows effective capital use, enabling steady investment in tooling and service capabilities without overreliance on external financing.

Recurring aftermarket revenue

A meaningful installed base and recurring service/parts sales create predictable, higher-margin revenue streams that smooth capital-equipment cyclicality. Durable service income supports margins and customer lock-in, sustaining long-term cash generation and lifecycle sales.

Negative Factors

Moderate cash conversion

Sub-1.0 cash conversion implies earnings do not fully convert to free cash flow, limiting internal funding for capex, dividends, or buybacks. Over time this can restrict strategic investments and reduce resilience when capex cycles tighten or customers delay acceptance.

Margin softness vs prior year

Year-over-year margin deterioration signals pressure from pricing, mix shifts, or cost inflation. If structural, this reduces capacity to invest in R&D and services and could compress returns persistently unless addressed through cost actions or higher-value product adoption.

Cyclical revenue exposure

Reliance on semiconductor fab capex and technology refresh cycles makes revenues lumpy and sensitive to industry downturns. This structural cyclicality increases earnings volatility and requires strong aftermarket and balance-sheet flexibility to smooth performance across cycles.

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

Strong TTM revenue growth (7.14%) and healthy profitability (gross margin 41.96%, net margin 13.07%, EBITDA margin 24.93%) support the score. Balance sheet leverage is improved (debt-to-equity 0.30; equity ratio 60.69%), but profitability has softened versus last year and cash conversion is only moderate (operating cash flow to net income 0.49; FCF to net income 0.48).

Income Statement

Kokusai Electric Corporation shows a solid revenue growth rate of 7.14% in the TTM, indicating strong sales performance. The gross profit margin of 41.96% and net profit margin of 13.07% are healthy, though slightly below the previous year's figures. EBIT and EBITDA margins are robust at 19.11% and 24.93%, respectively, reflecting efficient operational management. However, the decline in margins compared to the previous year suggests some pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.30 in the TTM, indicating a stronger balance sheet with reduced leverage. Return on equity is at 15.40%, showing effective use of shareholder funds, though it has decreased from previous levels. The equity ratio stands at 60.69%, suggesting a stable financial structure with a good proportion of equity financing.

Cash Flow

Free cash flow growth is positive at 11.02% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio of 0.49 suggests moderate cash conversion efficiency. The free cash flow to net income ratio of 0.48 is reasonable but indicates room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	241.59B	238.93B	180.84B	245.72B	245.43B
Gross Profit	99.87B	101.74B	68.00B	93.97B	100.36B
EBITDA	60.32B	64.85B	42.03B	67.28B	80.61B
Net Income	33.51B	36.00B	22.37B	40.30B	51.34B
Balance Sheet
Total Assets	343.32B	341.51B	375.43B	373.54B	356.53B
Cash, Cash Equivalents and Short-Term Investments	43.81B	44.76B	92.62B	106.05B	108.40B
Total Debt	54.41B	60.76B	93.02B	99.21B	123.19B
Total Liabilities	135.01B	145.34B	188.04B	212.66B	237.01B
Stockholders Equity	208.31B	196.17B	187.39B	160.88B	119.52B
Cash Flow
Free Cash Flow	21.02B	12.99B	-9.03B	22.15B	70.29B
Operating Cash Flow	36.61B	38.48B	2.94B	29.99B	73.61B
Investing Cash Flow	-18.77B	-27.71B	-11.95B	-7.83B	-3.35B
Financing Cash Flow	-44.13B	-58.11B	-6.31B	-25.11B	-3.51B

Kokusai Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6751.00
• 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:6525, the sentiment is Positive. The current price of 6751 is above the 20-day moving average (MA) of 6291.85, above the 50-day MA of 5368.62, and above the 200-day MA of 3972.23, indicating a bullish trend. The MACD of 363.09 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 64.88 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
7729	76 Outperform	¥572.44B	26.03	12.66%	2.28%	9.53%	-11.17%
6966	75 Outperform	¥137.43B	13.36	―	2.45%	4.60%	-21.64%
6890	73 Outperform	¥305.66B	23.76	5.41%	3.28%	11.15%	-19.39%
7735	72 Outperform	¥1.87T	21.31	21.73%	2.29%	11.29%	11.38%
6525	67 Neutral	¥1.67T	48.53	―	0.73%	10.98%	6.51%
6723	63 Neutral	¥4.60T	-93.09	-2.51%	1.31%	-10.97%	-118.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kokusai Electric Corporation Corporate Events

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.

Kokusai Electric Corporation Releases Q2 Financial Briefings

Kokusai Electric Corporation has released its financial briefings for the second quarter of the fiscal year ending March 2026. The company highlights its use of adjusted operating profit and net income as key performance indicators, while noting the impact of currency fluctuations on its overseas revenues. The financial reports are prepared in accordance with International Financial Reporting Standards (IFRS).

The most recent analyst rating on (JP:6525) stock is a Hold with a Yen5925.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Revises Full-Year Forecast Amid Delayed Equipment Sales

Kokusai Electric Corporation reported better-than-expected financial results for the first half of the fiscal year ending March 2026, driven by accelerated sales of NAND and Logic/Foundry equipment to a Chinese manufacturer. However, the company revised its full-year earnings forecast downward due to delayed sales of high-value equipment to the next fiscal year, impacting revenue and profit expectations. Despite the temporary setback, the company anticipates improved profitability with future sales expansion.

The most recent analyst rating on (JP:6525) stock is a Hold with a Yen5925.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Reports Decline in Q2 Profits Amid Revised Forecasts

Kokusai Electric Corporation reported its consolidated financial results for the second quarter of the fiscal year ending March 2026, showing a slight increase in revenue but a decline in operating profit and net income compared to the previous year. The company has revised its forecast for the fiscal year, indicating a decrease in expected revenue and profit margins, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:6525) stock is a Hold with a Yen5925.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.