KNC Laboratories Co.,Ltd. (6568) AI Stock Analysis

• Market Cap: ¥8.67B
• Dividend Yield: 2.94%
• Average Volume (3M): 2.89K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.35
• Revenue Growth: -9.60%
• EPS Growth: -38.34%
• Country: JP
• Employees: 219
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 1.59
• Shares Outstanding: 7,779,900
• 10 Day Avg. Volume: 3,150
• 30 Day Avg. Volume: 2,890
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,232.00 ▲(11.09% Upside)

The stock's overall score is driven primarily by its strong financial performance and reasonable valuation. Technical analysis indicates potential short-term weakness, but longer-term trends remain positive. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns effectively.

Competitive Advantage

The company's focus on innovative chemical solutions and strategic partnerships enhances its competitive edge, ensuring sustained market relevance and potential for long-term growth.

Revenue Diversification

Diversified revenue sources reduce dependency on any single market, mitigating risk and providing a stable income base, which supports long-term financial health and strategic growth initiatives.

Negative Factors

Negative Free Cash Flow

Sustained negative free cash flow can strain financial resources, limiting the company's ability to invest in new projects or respond to unforeseen expenses, potentially impacting long-term growth.

Decline in Revenue

A decline in revenue signals potential challenges in maintaining market share or product demand, which could affect profitability and long-term growth prospects if not addressed.

Profitability Pressure

Decreasing profit margins suggest rising costs or pricing pressures, which could erode profitability and hinder the company's ability to reinvest in its operations and growth strategies.

KNC Laboratories Co.,Ltd. Business Overview & Revenue Model

Company Description

KNC Laboratories Co., Ltd. (6568) is a company engaged in the development and manufacturing of high-quality laboratory instruments and reagents. Operating primarily in the biotechnology and pharmaceutical sectors, KNC Laboratories specializes in providing innovative solutions for research and development, quality control, and manufacturing processes. Their core products include analytical instruments, diagnostic kits, and customized laboratory services, catering to a diverse clientele ranging from academic institutions to large pharmaceutical companies.

How the Company Makes Money

KNC Laboratories generates revenue through the sale of its laboratory instruments and reagents, which are essential for various scientific and industrial applications. The company has multiple key revenue streams, including direct sales of products, service contracts for maintenance and support, and collaborations with research institutions and pharmaceutical companies for custom product development. Strategic partnerships with industry leaders also contribute significantly to the company's earnings, enabling it to leverage complementary technologies and expand its market reach. Additionally, KNC Laboratories may benefit from grants and funding for research projects, further enhancing its financial stability.

KNC Laboratories Co.,Ltd. Financial Statement Overview

Summary

The company has shown strong revenue growth over the years, though 2025 saw a decline. The balance sheet is solid with low leverage, but negative free cash flow due to high capital expenditures poses a risk.

Income Statement

The company has shown strong revenue growth over the years with a notable increase from 2020 to 2024. However, the latest period (2025) saw a decline in revenue compared to 2024. Gross profit margins have been relatively stable, but EBIT and net profit margins saw a dip in the most recent year, indicating some pressure on profitability.

Balance Sheet

The company maintains a solid equity base with a consistent equity ratio above 65%. The debt-to-equity ratio is low, suggesting prudent leverage management. Return on equity is reasonable, though it has decreased slightly in the latest year, which could indicate some efficiency challenges.

Cash Flow

Operating cash flow to net income ratio is strong, reflecting good conversion of earnings to cash. However, free cash flow has been negative in the latest periods, primarily due to high capital expenditures. This poses potential risks if not managed carefully.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.18B	9.15B	8.63B	7.44B	6.03B
Gross Profit	2.32B	3.30B	3.30B	2.11B	1.76B
EBITDA	1.83B	3.02B	3.10B	1.86B	1.54B
Net Income	737.33M	1.49B	1.54B	643.46M	399.68M
Balance Sheet
Total Assets	20.15B	18.62B	15.40B	13.95B	12.78B
Cash, Cash Equivalents and Short-Term Investments	2.39B	3.31B	2.30B	1.97B	1.96B
Total Debt	3.12B	1.97B	1.54B	1.68B	1.44B
Total Liabilities	6.63B	5.53B	3.66B	3.38B	2.66B
Stockholders Equity	13.52B	13.09B	11.75B	10.58B	10.12B
Cash Flow
Free Cash Flow	-1.82B	850.16M	863.73M	-248.27M	434.68M
Operating Cash Flow	1.49B	3.20B	1.99B	585.11M	1.33B
Investing Cash Flow	-3.32B	-2.37B	-1.15B	-613.51M	-660.05M
Financing Cash Flow	909.60M	178.87M	-523.39M	39.02M	-180.14M

KNC Laboratories Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1109.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6568, the sentiment is Positive. The current price of 1109 is below the 20-day moving average (MA) of 1109.30, below the 50-day MA of 1133.29, and above the 200-day MA of 1075.37, indicating a neutral trend. The MACD of -7.60 indicates Negative momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 81.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6568.

KNC Laboratories Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4040	77 Outperform	¥6.30B	6.12	―	1.97%	8.43%	2.99%
4366	74 Outperform	¥8.81B	10.55	―	1.68%	9.07%	―
4531	74 Outperform	¥6.15B	8.74	―	3.21%	9.92%	-27.64%
6568	69 Neutral	¥8.67B	12.86	―	2.94%	-9.60%	-38.34%
4960	67 Neutral	¥5.72B	39.89	―	0.96%	-9.63%	-1.71%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
9227	54 Neutral	¥11.71B	119.20	―	―	-16.76%	74.95%