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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

KANAME KOGYO Co., Ltd.

(6566)

Rating:78Outperform
Price Target:
¥1,309.00
▲(10.84%Upside)
KANAME KOGYO Co., Ltd. is supported by strong financial performance, particularly in its balance sheet and cash flow generation. Despite robust upward momentum, technical indicators suggest caution due to overbought conditions. The company's valuation appears favorable, with a low P/E ratio and a solid dividend yield, enhancing its attractiveness to investors.

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

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

Company DescriptionKANAME KOGYO Co., Ltd. (6566) is a Japan-based company primarily engaged in the construction business. The company offers a wide range of services including civil engineering, construction work, and maintenance of facilities. It is involved in both public and private sector projects, providing comprehensive solutions from planning and design to construction and maintenance.
How the Company Makes MoneyKANAME KOGYO Co., Ltd. generates revenue through its diverse construction services. Its key revenue streams include contracts for civil engineering projects, building construction, and facility maintenance. The company engages in both government and private sector contracts, leveraging its expertise to secure large-scale projects. Additionally, KANAME KOGYO may benefit from strategic partnerships or joint ventures that enhance its project portfolio and expand its market reach, contributing to its overall earnings.

KANAME KOGYO Co., Ltd. Financial Statement Overview

Summary
KANAME KOGYO Co., Ltd. exhibits strong financial health, characterized by steady revenue growth and improved profitability margins, highlighting effective operational management. The company's balance sheet is particularly robust, with low leverage and high equity ratios, promoting stability and financial security. Cash flow generation is strong, although fluctuations in financing activities warrant attention. Overall, the company's financial performance is commendable, with a solid foundation for future growth.
Income Statement
85
Very Positive
The company demonstrates robust revenue growth with a CAGR of about 5.5% over the past five years, reaching a total revenue of ¥14,506,733,000 in 2025. The gross profit margin has consistently improved, achieving approximately 23.3% in 2025. Net profit margins have also improved significantly, reaching 10.4% in 2025 from 5.6% in 2020, indicating strong operational efficiencies and cost management. However, the slight decrease in EBITDA margin from 12.8% to 11.9% in 2025 suggests room for improvement in operational costs.
Balance Sheet
88
Very Positive
The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05 in 2025, reflecting conservative financial leverage and effective debt management. The equity ratio is high at 81.1%, indicating solid asset funding through equity. Return on equity (ROE) has increased to 7.7% in 2025, showcasing the company's ability to generate profits from shareholder investments. The consistent increase in stockholders' equity over the years further highlights financial stability.
Cash Flow
82
Very Positive
Operating cash flow has shown a consistent upward trend, reaching ¥2,133,567,000 in 2025. The free cash flow has grown significantly, reflecting effective capital expenditure management and a focus on generating cash efficiently. The free cash flow to net income ratio is healthy, suggesting good conversion of income into cash. However, fluctuations in financing cash flow indicate potential challenges in maintaining steady financing activities.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue14.51B13.50B13.03B11.93B11.00B
Gross Profit3.37B2.98B2.91B2.39B1.96B
EBITDA2.88B2.44B2.35B1.86B1.55B
Net Income1.51B1.29B1.26B873.00M618.22M
Balance Sheet
Total Assets24.13B23.58B22.43B21.45B20.85B
Cash, Cash Equivalents and Short-Term Investments5.64B5.78B5.43B4.80B4.48B
Total Debt978.78M1.46B1.52B1.84B1.99B
Total Liabilities4.55B5.12B5.00B5.01B5.07B
Stockholders Equity19.57B18.46B17.43B16.44B15.78B
Cash Flow
Free Cash Flow1.09B1.23B1.55B792.44M1.07B
Operating Cash Flow2.13B1.81B1.93B1.38B1.55B
Investing Cash Flow-1.19B-623.58M-451.59M-679.18M-539.98M
Financing Cash Flow-1.09B-830.06M-771.64M-462.24M-853.52M

KANAME KOGYO Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1181.00
Price Trends
50DMA
1112.10
Positive
100DMA
1074.63
Positive
200DMA
1097.55
Positive
Market Momentum
MACD
18.24
Positive
RSI
57.67
Neutral
STOCH
50.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6566, the sentiment is Positive. The current price of 1181 is above the 20-day moving average (MA) of 1177.75, above the 50-day MA of 1112.10, and above the 200-day MA of 1097.55, indicating a bullish trend. The MACD of 18.24 indicates Positive momentum. The RSI at 57.67 is Neutral, neither overbought nor oversold. The STOCH value of 50.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6566.

KANAME KOGYO Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥4.85B7.22
1.75%3.62%48.23%
78
Outperform
¥13.14B12.70
2.51%7.20%291.22%
78
Outperform
¥18.74B12.38
2.37%7.43%17.74%
71
Outperform
¥19.37B14.24
1.21%-5.25%-11.55%
71
Outperform
¥9.07B16.45
3.52%8.60%55.62%
66
Neutral
¥15.44B26.70
2.92%-2.57%-51.75%
58
Neutral
HK$14.28B4.69-3.01%5.60%3.67%-54.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6566
KANAME KOGYO Co., Ltd.
1,185.00
295.58
33.23%
JP:1712
Daiseki Eco.Solution Co., Ltd.
1,153.00
152.36
15.23%
JP:4245
Daiki Axis Co., Ltd.
680.00
-31.91
-4.48%
JP:5698
Envipro Holdings, Inc.
515.00
69.00
15.47%
JP:5699
IBOKIN Co., Ltd.
1,430.00
238.55
20.02%
JP:9221
FULUHASHI EPO CORPORATION
1,116.00
63.09
5.99%
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: Jun 17, 2025