Kokusai Electric Corporation (6525) AI Stock Analysis

• Market Cap: ¥744.83B
• Dividend Yield: 1.21%
• Average Volume (3M): 2.96M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 2.04
• Revenue Growth: 32.13%
• EPS Growth: 60.02%
• Country: JP
• Employees: 2,483
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 135.95
• Shares Outstanding: 238,115,620
• 10 Day Avg. Volume: 2,526,680
• 30 Day Avg. Volume: 2,964,603
• PEG Ratio: -0.63
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.44
• 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: ¥3,647.50
• Price Target Upside: 16.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: ¥3,591.00 ▲(14.80%Upside)

Kokusai Electric Corporation demonstrates strong financial performance and technical momentum, significantly boosting its stock score. While the valuation is reasonable, future liquidity challenges due to high capital expenditures are a consideration.

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 semiconductor manufacturing equipment. The company's product offerings include systems essential for deposition and etching processes, which are critical stages in semiconductor fabrication. These products are sold to semiconductor manufacturers, who rely on Kokusai's technology to enhance their production efficiency and output quality. In addition to equipment sales, the company also earns money from providing maintenance services and technical support for its products, ensuring optimal performance and longevity. Kokusai Electric's revenue is significantly influenced by its relationships with major semiconductor manufacturers and the overall demand for semiconductors driven by industries such as consumer electronics, automotive, and telecommunications.

Kokusai Electric Corporation Financial Statement Overview

Summary

The company shows strong financial health with significant revenue growth and solid profitability. Improved leverage ratios and balance sheet stability enhance its resilience, though high capital expenditures may affect future liquidity.

Income Statement

Kokusai Electric Corporation displays a strong financial performance with impressive gross profit and EBIT margins, indicating effective cost management and operational efficiency. The revenue growth from 2024 to 2025 is substantial at 32.11%, highlighting robust market demand and competitive positioning. However, a slight decline in gross profit margin from 42.08% in 2024 to 42.56% in 2025 suggests rising costs or pricing pressures.

Balance Sheet

The balance sheet reveals a solid equity ratio of 57.45% in 2025, showcasing financial stability and a strong capital base. The debt-to-equity ratio has improved from 0.50 in 2024 to 0.31 in 2025, indicating reduced leverage and financial risk. Nonetheless, the reduction in cash reserves could limit liquidity buffers.

Cash Flow

Kokusai Electric's cash flow demonstrates positive free cash flow growth from negative figures in 2024 to a positive 129.95 billion yen in 2025, reflecting improved cash generation capabilities. The operating cash flow to net income ratio of 1.07 in 2025 indicates efficient cash conversion. Nonetheless, the company experienced significant capital expenditures, potentially impacting future cash flow.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement		Total Revenue
238.93B	180.84B	245.72B	245.43B
	Gross Profit
101.74B	68.00B	93.97B	100.36B
	EBIT
51.23B	30.55B	57.36B	71.66B
	EBITDA
64.85B	42.03B	67.28B	80.61B
	Net Income Common Stockholders
36.00B	22.37B	40.30B	51.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.76B	92.62B	106.05B	108.40B
	Total Assets
341.51B	375.43B	373.54B	356.53B
	Total Debt
60.18B	93.02B	99.21B	123.19B
	Net Debt
15.43B	399.00M	-6.85B	14.79B
	Total Liabilities
145.34B	188.04B	212.66B	237.01B
	Stockholders Equity
196.17B	187.39B	160.88B	119.52B
Cash Flow		Free Cash Flow
12.99B	-9.03B	22.15B	70.29B
	Operating Cash Flow
38.48B	2.94B	29.99B	73.61B
	Investing Cash Flow
-27.71B	-11.95B	-7.83B	-3.35B
	Financing Cash Flow
-58.11B	-6.31B	-25.11B	-3.51B

Kokusai Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3128.00
• 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 3128 is above the 20-day moving average (MA) of 3058.30, above the 50-day MA of 2681.32, and above the 200-day MA of 2791.63, indicating a bullish trend. The MACD of 101.05 indicates Negative momentum. The RSI at 65.64 is Neutral, neither overbought nor oversold. The STOCH value of 78.97 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
6525	77 Outperform	¥744.83B	20.23		1.21%	32.13%	60.02%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
DINRF		$7.19B	11.07	24.78%	2.76%	―	―
FRRZF		$872.18M	6.94	7.01%	6.14%	―	―
RNECF		$23.77B	22.68	7.22%	1.29%	―	―
TYS		€1.99B	12.50	15.34%	3.23%	―	―
6966	78 Outperform	¥145.23B	11.17		3.21%	9.70%	-21.39%

Kokusai Electric Corporation Corporate Events

Kokusai Electric to Boost Employee Engagement with Share Disposal Plan

Kokusai Electric Corporation has announced a plan to dispose of 109,620 treasury shares to its Employee Shareholding Association as part of a special incentive scheme. This initiative aims to enhance the company’s medium- to long-term corporate value by encouraging employee participation in shareholding, thereby aligning their interests with those of shareholders. The disposal is expected to have minimal market impact due to its small scale relative to the total number of issued shares.

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 Treasury Share Disposal for Stock Incentive Plan

Kokusai Electric Corporation has announced the disposal of its treasury shares in relation to the vesting of Restricted Stock Units (RSUs) and Performance Share Units (PSUs) as part of a performance-based stock remuneration plan. This move aims to incentivize directors, executive officers, and employees to enhance corporate value. The disposal involves 251,943 shares at a price of 3,014 yen per share, impacting the company’s financial structure and aligning employee interests with corporate performance targets.

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 Increases Dividend Payout for Fiscal Year 2025

Kokusai Electric Corporation announced a dividend payout of 19 yen per share for the fiscal year ending March 2025, reflecting an increase from the previous year. This decision aligns with the company’s policy of balancing shareholder returns with investments in R&D and future business growth, aiming for a dividend payout ratio of 20% to 30%.

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 Robust Financial Growth for FY 2025

Kokusai Electric Corporation reported significant financial growth for the fiscal year ended March 31, 2025, with a 32.1% increase in revenue and a 66.9% rise in operating profit compared to the previous year. This financial performance indicates a strong recovery and improved market positioning, benefiting stakeholders with increased dividends and a solid equity ratio.

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 Strategic Debt Refinancing

Kokusai Electric Corporation announced a strategic financial move involving the borrowing of funds amounting to 60 billion yen from several major banks, including Sumitomo Mitsui Banking Corporation and MUFG Bank, to facilitate the early prepayment of existing debt. This decision is expected to streamline the company’s financial obligations, although it is projected to have an insignificant impact on the fiscal year’s consolidated financial results.

Kokusai Electric Stock Gains Loan Margin Trading Status

Kokusai Electric Corporation announced that its stock has been selected as a loan margin trading issue on the Tokyo Stock Exchange Prime Market, effective March 19, 2025. This selection is expected to enhance stock liquidity, improve the supply-demand balance, and contribute to more active trading and fair pricing, potentially benefiting stakeholders and the company’s market positioning.