Kokusai Electric Corporation (6525) AI Stock Analysis

• Market Cap: ¥1.00T
• Dividend Yield: 0.87%
• Average Volume (3M): 4.94M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 1.98
• Revenue Growth: 5.69%
• EPS Growth: -10.53%
• Country: JP
• Employees: 2,483
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 29.08
• Shares Outstanding: 238,115,620
• 10 Day Avg. Volume: 8,087,650
• 30 Day Avg. Volume: 4,937,770
• 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: ¥3,827.43
• Price Target Upside: -9.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 63 Neutral
• Price Target: ¥4,322.00 ▲(2.76% Upside)

Kokusai Electric Corporation's overall stock score is primarily driven by its solid financial performance, with strong profitability and cash flow metrics. However, the technical analysis indicates potential overbought conditions, and the high P/E ratio suggests overvaluation concerns. The absence of recent earnings call insights and corporate events means these factors do not influence the score.

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 fabrication equipment to major semiconductor manufacturers. The company's key revenue streams include the sale of new equipment, maintenance services, and spare parts. Additionally, Kokusai Electric may engage in partnerships or collaborations with semiconductor manufacturers to ensure its products meet the evolving technological requirements of the industry. The company's earnings are significantly influenced by the global demand for semiconductors, technological advancements, and its ability to innovate and provide state-of-the-art equipment solutions.

Kokusai Electric Corporation Financial Statement Overview

Summary

Kokusai Electric Corporation demonstrates strong profitability and cash flow metrics, with a robust free cash flow growth rate of 45.69%. Despite a decline in revenue growth rate by 5.62%, the company maintains healthy margins and a stable balance sheet with moderate leverage.

Income Statement

Kokusai Electric Corporation has shown a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 5.62%, which is a concern. However, the company maintains strong profitability metrics with a gross profit margin of 42.58% and a net profit margin of 15.07%. The EBIT and EBITDA margins are also healthy at 21.42% and 26.71% respectively, indicating efficient operational management. Despite the revenue decline, the company remains profitable, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.31, indicating moderate leverage. The return on equity (ROE) is 18.80%, showcasing effective use of equity to generate profits. The equity ratio stands at 58.24%, suggesting a strong equity base relative to total assets. However, the decrease in stockholders' equity over the periods indicates potential risks if the trend continues.

Cash Flow

The cash flow statement shows a robust free cash flow growth rate of 45.69% in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.47, and the free cash flow to net income ratio is 0.34, indicating good cash conversion from profits. The company has improved its cash flow position significantly compared to previous periods, which is a positive indicator of financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	225.50B	238.93B	180.84B	245.72B	245.43B
Gross Profit	94.61B	101.74B	68.00B	93.97B	100.36B
EBITDA	56.22B	64.85B	42.03B	67.28B	80.61B
Net Income	29.48B	36.00B	22.37B	40.30B	51.34B
Balance Sheet
Total Assets	341.51B	341.51B	375.43B	373.54B	356.53B
Cash, Cash Equivalents and Short-Term Investments	42.77B	44.76B	92.62B	106.05B	108.40B
Total Debt	60.30B	60.18B	93.02B	99.21B	123.19B
Total Liabilities	142.59B	145.34B	188.04B	212.66B	237.01B
Stockholders Equity	198.92B	196.17B	187.39B	160.88B	119.52B
Cash Flow
Free Cash Flow	18.93B	12.99B	-9.03B	22.15B	70.29B
Operating Cash Flow	39.33B	38.48B	2.94B	29.99B	73.61B
Investing Cash Flow	-23.07B	-27.71B	-11.95B	-7.83B	-3.35B
Financing Cash Flow	-60.39B	-58.11B	-6.31B	-25.11B	-3.51B

Kokusai Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4206.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 4206 is above the 20-day moving average (MA) of 3417.96, above the 50-day MA of 3249.89, and above the 200-day MA of 2847.23, indicating a bullish trend. The MACD of 372.29 indicates Negative momentum. The RSI at 71.62 is Negative, neither overbought nor oversold. The STOCH value of 81.57 is Negative, 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
6890	77 Outperform	¥190.45B	14.05	6.63%	3.95%	22.01%	-13.47%
7729	72 Outperform	¥410.50B	15.99	14.64%	2.53%	10.24%	28.30%
7735	72 Outperform	¥1.23T	13.35	23.65%	2.28%	16.20%	22.07%
6966	71 Outperform	¥143.28B	15.35	11.11%	2.30%	6.31%	-37.42%
6723	65 Neutral	¥3.19T	-33.86	-4.72%	1.56%	-12.38%	-133.53%
6525	63 Neutral	¥1.00T	33.14	―	0.87%	5.69%	-10.53%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kokusai Electric Corporation Corporate Events

Kokusai Electric Completes Treasury Share Disposal with Adjustments

Kokusai Electric Corporation has completed the payment process for the disposal of treasury shares to its Employee Shareholding Association, initially resolved in May 2025. The number of shares and the aggregate disposal price were adjusted due to partial forfeiture, with the final impact on the company’s financial results expected to be minimal.

The most recent analyst rating on (JP:6525) stock is a Hold with a Yen3022.00 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 Q1 Financials Amid Currency Risks

Kokusai Electric Corporation released its financial briefings for the first quarter of the fiscal year ending March 2026, highlighting the use of adjusted operating profit and adjusted net income as key performance indicators. The company faces currency risk due to its substantial overseas revenue and foreign currency-denominated assets and liabilities, which are affected by exchange rate fluctuations.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6150.00 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 Q1 Financial Performance

Kokusai Electric Corporation reported a significant decline in its financial performance for the first quarter of the fiscal year ending March 2026, with revenue and net income dropping by 20.6% and 49.1% respectively compared to the previous year. The company anticipates continued challenges in the upcoming quarters, as reflected in their forecasts, which predict further declines in operating profit and net income, indicating potential impacts on their market positioning and stakeholder confidence.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6150.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.

Kokusai Electric Announces Change in Principal Shareholder

Kokusai Electric Corporation announced a change in its principal shareholder, as Nomura Securities Co., Ltd. will no longer hold a significant share of the company. This change, effective July 14, 2025, is not expected to impact the company’s financial performance. The company also received assurance from KKR HKE Investment L.P. regarding the sale of its shares, with an agreement to refrain from further disposals for 90 days post-sale, indicating stability in shareholder structure.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6150.00 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 Announces Major Shareholder Changes

Kokusai Electric Corporation announced an expected change in its principal shareholders as KKR HKE Investment L.P. plans to sell its shares, leading to a shift in shareholder structure. Following the sale, Applied Materials Europe B.V. is anticipated to become the largest shareholder, potentially impacting the company’s strategic direction and market positioning.

The most recent analyst rating on (JP:6525) stock is a Buy with a Yen6150.00 price target. To see the full list of analyst forecasts on Kokusai Electric Corporation stock, see the JP:6525 Stock Forecast page.