Kokusai Electric Corporation (6525) AI Stock Analysis

• Market Cap: ¥1.35T
• Dividend Yield: 0.77%
• Average Volume (3M): 6.53M
• Price to Earnings (P/E): 44.7
• Beta (1Y): 1.90
• Revenue Growth: 10.98%
• EPS Growth: 6.51%
• 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: 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: ¥3,823.33
• Price Target Upside: -20.64% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥5,131.00 ▲(6.50% Upside)

Kokusai Electric Corporation's overall stock score is driven by solid financial performance and short-term bullish technical indicators. However, the high P/E ratio suggests potential overvaluation, and the overbought technical indicators may indicate a near-term pullback. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong sales performance and market demand, supporting long-term business expansion and stability.

Balance Sheet Health

A lower debt-to-equity ratio enhances financial stability and flexibility, reducing risk and supporting sustainable growth.

Cash Generation

Positive free cash flow growth indicates effective cash generation, providing resources for reinvestment and debt reduction.

Negative Factors

Profitability Margins

Declining margins suggest pressure on profitability, which could impact future earnings and competitiveness if not addressed.

Cash Flow Efficiency

Moderate cash conversion efficiency indicates room for improvement in cash flow management, which is crucial for sustaining operations.

Return on Equity

A declining return on equity may reflect less effective use of shareholder funds, potentially impacting investor confidence and capital efficiency.

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

Kokusai Electric Corporation demonstrates a solid financial standing with strong profitability and cash flow metrics, despite a recent decline in revenue. The company maintains a healthy balance sheet with moderate leverage and effective equity utilization. Continued focus on revenue growth and maintaining profitability will be crucial for sustaining its financial performance in the competitive semiconductor industry.

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	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: 4818.00
• 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 4818 is above the 20-day moving average (MA) of 4405.70, above the 50-day MA of 4743.76, and above the 200-day MA of 3456.16, indicating a bullish trend. The MACD of 26.12 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 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	77 Outperform	$1.17T	13.38	21.73%	2.35%	11.29%	11.38%
7729	76 Outperform	€457.29B	20.79	12.66%	2.29%	9.53%	-11.17%
6890	75 Outperform	$231.59B	17.08	5.41%	3.38%	11.15%	-19.39%
6966	75 Outperform	¥153.51B	16.45	―	2.30%	4.60%	-21.64%
6525	66 Neutral	¥1.35T	44.75	―	0.77%	10.98%	6.51%
6723	64 Neutral	¥3.44T	-68.58	-2.51%	1.28%	-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 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).

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.

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.

Kokusai Electric Announces Change in Largest Shareholder

Kokusai Electric Corporation has announced a change in its largest and principal shareholder. Applied Materials Europe B.V. has sold 10,700,000 shares of Kokusai Electric to Goldman Sachs Securities Co., Ltd., resulting in KKR HKE Investment L.P. becoming the new largest shareholder with 10.36% of the company’s common shares. This change may impact the company’s shareholder dynamics and influence its strategic direction.