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KANAME KOGYO Co., Ltd. (JP:6566)
:6566
Japanese Market
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KANAME KOGYO Co., Ltd. (6566) AI Stock Analysis

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JP:6566

KANAME KOGYO Co., Ltd.

(6566)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
¥1,251.00
▲(6.83% Upside)
Action:Downgraded
Date:05/18/26
The score is primarily driven by strong financial fundamentals (rising profitability and a low-leverage balance sheet), partially offset by weaker cash-flow conversion. Technical signals are notably bearish and weigh on the score, while valuation is reasonable with a moderate dividend yield.
Positive Factors
Revenue Growth
Consistent multi-year revenue growth with a notable 2026 acceleration indicates durable demand for the company’s solar EPC and services. Steady top-line expansion supports scale economies, stronger contract pipelines, and a firmer base for recurring O&M revenue over the medium term.
Negative Factors
Weak Cash Conversion
Operating cash underperforming net income and FCF at ~56% of net income imply working-capital swings or reinvestment needs limit cash realization. This persistent cash conversion gap can constrain capacity to fund backlog, capex, or shareholder returns without external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent multi-year revenue growth with a notable 2026 acceleration indicates durable demand for the company’s solar EPC and services. Steady top-line expansion supports scale economies, stronger contract pipelines, and a firmer base for recurring O&M revenue over the medium term.
Read all positive factors

KANAME KOGYO Co., Ltd. (6566) vs. iShares MSCI Japan ETF (EWJ)

KANAME KOGYO Co., Ltd. Business Overview & Revenue Model

Company Description
Kaname Kogyo Co.,Ltd. is a firm dedicated to environmental services, offering complete waste management solutions. Their operations cover the entire process of handling diverse waste streams, from the initial collection and transportation to the f...
How the Company Makes Money
The company generates revenue primarily by delivering solar power projects and related services. A core revenue stream is project-based sales from EPC-type work: it earns income by designing systems, procuring and supplying equipment (e.g., solar ...

KANAME KOGYO Co., Ltd. Financial Statement Overview

Summary
Strong multi-year revenue growth with meaningful improvement in gross and net margins, supported by a very low-debt balance sheet. Main drawback is cash-flow quality: operating cash flow has recently lagged net income and free-cash-flow conversion is mixed/volatile.
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue14.58B14.95B14.51B13.50B13.03B11.93B
Gross Profit3.38B3.45B3.37B2.98B2.91B2.39B
EBITDA2.81B2.82B2.88B2.44B2.35B1.86B
Net Income1.52B1.58B1.51B1.29B1.26B873.00M
Balance Sheet
Total Assets24.41B25.75B24.13B23.58B22.43B21.54B
Cash, Cash Equivalents and Short-Term Investments5.45B6.80B5.64B5.78B5.43B4.80B
Total Debt1.36B1.32B978.78M1.46B1.52B1.84B
Total Liabilities4.87B4.91B4.55B5.12B5.00B5.09B
Stockholders Equity19.53B20.84B19.57B18.46B17.43B16.44B
Cash Flow
Free Cash Flow0.001.15B1.09B1.23B1.55B792.44M
Operating Cash Flow0.002.05B2.13B1.81B1.93B1.38B
Investing Cash Flow0.00-572.14M-1.19B-623.58M-451.59M-679.18M
Financing Cash Flow0.00-325.99M-1.09B-830.06M-771.64M-462.24M

KANAME KOGYO Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1171.00
Price Trends
50DMA
1329.52
Negative
100DMA
1401.75
Negative
200DMA
1359.95
Negative
Market Momentum
MACD
-46.44
Negative
RSI
33.97
Neutral
STOCH
30.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6566, the sentiment is Negative. The current price of 1171 is below the 20-day moving average (MA) of 1220.35, below the 50-day MA of 1329.52, and below the 200-day MA of 1359.95, indicating a bearish trend. The MACD of -46.44 indicates Negative momentum. The RSI at 33.97 is Neutral, neither overbought nor oversold. The STOCH value of 30.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6566.

KANAME KOGYO Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥182.19B19.7011.00%2.20%6.75%-0.17%
73
Outperform
¥25.20B13.612.62%-14.20%231.20%
72
Outperform
¥54.64B19.220.73%8.61%0.83%
65
Neutral
¥18.47B11.771.92%3.05%4.34%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
¥5.01B9.271.80%4.07%-20.12%
49
Neutral
¥6.06B20.871.36%-4.59%-14.60%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6566
KANAME KOGYO Co., Ltd.
1,171.00
10.75
0.93%
JP:9793
Daiseki Co
3,835.00
479.66
14.30%
JP:2195
Amita Holdings Co., Ltd.
338.00
6.73
2.03%
JP:5698
Envipro Holdings, Inc.
853.00
358.52
72.50%
JP:5699
IBOKIN Co., Ltd.
1,467.00
159.41
12.19%
JP:6564
MIDAC HOLDINGS CO. LTD.
1,959.00
17.04
0.88%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 18, 2026