KyOwa CORP (6570) AI Stock Analysis

• Market Cap: ¥7.54B
• Dividend Yield: 1.86%
• Average Volume (3M): 4.77K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.51
• Revenue Growth: 17.11%
• EPS Growth: 49.43%
• Country: JP
• Employees: 202
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 27.55
• Shares Outstanding: 6,080,130
• 10 Day Avg. Volume: 4,710
• 30 Day Avg. Volume: 4,766
• PEG Ratio: 0.15
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -54.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥1,466.00 ▲(22.06% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

KyOwa CORP's overall stock score is driven by strong financial performance and attractive valuation. The company's robust revenue growth and profitability improvements are significant strengths. However, high debt levels and inconsistent cash flow generation present risks. Technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Consistent revenue expansion

Sustained top-line growth over multiple years evidences successful demand capture and scale. This expansion strengthens market position, increases operating leverage potential, and provides recurring revenue that supports investment, product development, and longer-term strategic initiatives.

High gross and improving net margins

A ~50% gross margin with rising net margin indicates durable cost controls and pricing power in core offerings. Higher margins create room to reinvest in growth, absorb cycle shocks, and improve return on invested capital, supporting profitability resilience over the medium term.

Strong operating cash generation

Operating cash consistently beating net income signals high-quality earnings and reliable cash conversion from operations. That steady cash generation underpins working capital, funds capital expenditures or debt service, and reduces reliance on external financing over the coming months.

Negative Factors

Relatively high leverage

A debt-to-equity ratio near 1.2 reflects material reliance on debt funding, constraining financial flexibility. Elevated liabilities increase interest and refinancing exposure, limiting the firm's ability to invest or respond to shocks without deleveraging or raising costly capital over the medium term.

Volatile and sometimes negative free cash flow

Repeated negative free cash flow, notably in 2025, suggests capex or investment timing that strains liquidity. Persistent FCF volatility can impede debt reduction, limit buffer for dividend policy, and force external financing, elevating long-term funding and execution risk.

Moderate operating margins need improvement

Moderate EBIT/EBITDA margins indicate the company has not fully translated revenue growth into proportionate operating profit. This leaves limited room to absorb cost inflation or competitive pressure and necessitates further operational efficiency to secure durable profitability gains.

KyOwa CORP Business Overview & Revenue Model

Company Description

Kyowa Corporation engages in the amusement business in Japan. The company is involved in the amusement facility management, batting center and bowling alley management, game equipment sale, and amusement facility management outsourcing, as well as advertising agency and store decoration activities. Kyowa Corporation was founded in 1982 and is based in Nagano, Japan.

How the Company Makes Money

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KyOwa CORP Financial Statement Overview

Summary

KyOwa CORP demonstrates strong revenue growth and improving profitability, signaling a positive financial trajectory. However, the company's high debt levels and inconsistent free cash flow generation pose risks. While operational efficiency and equity utilization are commendable, attention to cash flow stability and debt management is needed to ensure sustainable financial health.

Income Statement

KyOwa CORP shows a strong revenue growth trend with a significant increase from ¥10,385M in 2022 to ¥16,705M in 2025, demonstrating a robust expansion trajectory. The gross profit margin has been consistently high, around 50%, indicating efficient cost management. The net profit margin improved notably to 5.5% in 2025, reflecting enhanced profitability. However, EBIT and EBITDA margins, while improving, remain moderate, suggesting room for operational efficiency enhancements.

Balance Sheet

The company's debt-to-equity ratio has been stable, yet relatively high, around 1.2, indicating a moderate reliance on debt financing. The return on equity (ROE) improved to 18.8% in 2025, showcasing effective utilization of equity. The equity ratio is satisfactory at approximately 31.6%, suggesting a balanced asset structure. Despite these positives, high total liabilities remain a concern.

Cash Flow

KyOwa CORP's cash flow statement reflects challenges in free cash flow management, with negative free cash flow in several years, particularly in 2025. Operating cash flow remains strong and consistently exceeds net income, indicating solid cash generation capacity. However, the volatility in free cash flow growth rates suggests potential issues in capital expenditure management and investment activities.

Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	17.38B	16.71B	14.58B	12.44B	10.39B	10.71B
Gross Profit	9.21B	8.60B	7.47B	6.70B	5.61B	4.63B
EBITDA	3.43B	3.29B	2.81B	2.10B	1.47B	1.17B
Net Income	966.64M	917.23M	646.96M	432.65M	128.87M	-129.34M
Balance Sheet
Total Assets	15.19B	15.56B	14.34B	13.38B	12.18B	11.09B
Cash, Cash Equivalents and Short-Term Investments	4.06B	4.70B	5.33B	4.77B	5.10B	4.85B
Total Debt	5.95B	5.91B	6.10B	5.64B	6.23B	5.62B
Total Liabilities	10.18B	10.69B	10.35B	9.97B	9.09B	8.04B
Stockholders Equity	5.01B	4.87B	3.99B	3.40B	3.09B	3.05B
Cash Flow
Free Cash Flow	0.00	-102.51M	264.62M	497.52M	-133.36M	490.39M
Operating Cash Flow	0.00	2.51B	2.54B	2.55B	1.59B	1.06B
Investing Cash Flow	0.00	-2.73B	-2.44B	-2.18B	-1.93B	112.13M
Financing Cash Flow	0.00	-305.46M	347.74M	-698.28M	528.54M	924.20M

KyOwa CORP Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1201.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6570, the sentiment is Neutral. The current price of 1201 is below the 20-day moving average (MA) of 1295.65, below the 50-day MA of 1262.68, and above the 200-day MA of 1173.48, indicating a neutral trend. The MACD of 11.94 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 61.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6570.

KyOwa CORP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8135	81 Outperform	¥9.20B	16.36	―	3.96%	7.77%	247.26%
6570	73 Outperform	¥7.54B	10.89	―	1.86%	17.11%	49.43%
7309	63 Neutral	¥1.41T	42.60	5.92%	1.93%	7.64%	22.13%
7867	63 Neutral	¥246.90B	43.09	―	2.18%	10.50%	27.82%
7906	62 Neutral	¥282.14B	21.92	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7990	61 Neutral	¥46.82B	11.29	―	3.94%	0.74%	41.25%