Kyoritsu Electric Corporation (6874) AI Stock Analysis

• Market Cap: ¥21.60B
• Dividend Yield: 2.85%
• Average Volume (3M): 5.36K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.79
• Revenue Growth: 8.78%
• EPS Growth: 16.25%
• Country: JP
• Employees: 734
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 38.85
• Shares Outstanding: 8,738,400
• 10 Day Avg. Volume: 6,390
• 30 Day Avg. Volume: 5,356
• PEG Ratio: -0.22
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 12.20
• 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: 72 Outperform
• Price Target: ¥2,725.00 ▲(11.00% Upside)

Kyoritsu Electric Corporation's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's solid profitability margins and stable balance sheet contribute positively to the score. However, technical indicators suggest short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for Kyoritsu's products, enhancing its market position and long-term business sustainability.

Profitability Margins

Improving profitability margins reflect efficient cost management and pricing power, which are crucial for sustaining long-term profitability.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing for strategic investments and resilience in downturns.

Negative Factors

Free Cash Flow Variability

Variability in free cash flow management could indicate challenges in maintaining consistent cash generation, impacting long-term financial planning.

Debt Increase

An increase in debt, even if slight, can signal potential future financial strain if not managed properly, affecting the company's leverage position.

Growth Rate Fluctuations

Fluctuating growth rates can indicate market volatility or operational challenges, posing risks to consistent revenue and profit expansion.

Kyoritsu Electric Corporation Business Overview & Revenue Model

Company Description

Kyoritsu Electric Corporation provides various systems, testing and measuring instruments, etc. primarily in Japan. It offers Andon, digital picking, AGV, HAISHIN, barcode / RF-ID, smart card, automated storage, transport control, inventory management, embedded, and digital picking POKAYOKE systems; IIoT, O.E.E., digital ANDON, web camera monitoring, and kantan IoT systems; traceability systems comprising laser marking, QR code, and mobile / tablet; and virtualization and location information systems. The company also provides advanced control, recipe management, and start-up/shut-down emergency shut-down sequence products; distributed and open control systems; flow, level, thermos, and consistency, as well as PH, DO, UV meters; QCS System; pressure and pulp consistency transmitters; control valves, on-off valves / motors, and pumps; flue gas analyzers; and electric, instrumentation panel, and motor control centers. In addition, it offers laser doppler vibrometers; in circuit, motor, and leak testing systems; acceleration sound noise measurement, as well as engine, transmission, and vibration noise analyzers; and goniophotometers. Further, the company provides anechoic chambers, chassis dynamo and retractable turntable products, RF power amplifiers, and line impedance stabilization network; gas and liquid chromatographs, x-ray automatic inspection devices, laser microscope and spectral analyzers, particle counter, and data analyzing systems; electrodynamic vibration testing systems; and temperature and humidity, and environmental stress chambers. Additionally, it offers grid green, building air conditioning, power and water quality continuous monitoring, water treatment monitoring, and control systems; power line communication products; and control and measuring system of shielding machine for tunnel digging. Kyoritsu Electric Corporation was incorporated in 1959 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

Kyoritsu Electric Corporation generates revenue through multiple streams, primarily from the sale of its electrical equipment and components. The company sells its products to a variety of sectors, including utilities, construction, and manufacturing, which allows for a broad customer base. Key revenue streams include the production of transformers, circuit breakers, and control systems, which are essential for electrical infrastructure. Additionally, Kyoritsu may engage in service contracts for maintenance and support, generating further income. Strategic partnerships with other technology firms and participation in government contracts can also enhance revenue opportunities. The company's commitment to research and development ensures it remains competitive and can introduce new products that align with market needs, contributing to its overall financial performance.

Kyoritsu Electric Corporation Financial Statement Overview

Summary

Kyoritsu Electric Corporation exhibits strong financial health with consistent revenue growth, solid profitability margins, and a stable balance sheet. The company effectively manages its cash flows, although some variability in free cash flow ratios suggests areas for improvement. The low leverage and strong return on equity highlight the company's financial stability and efficient use of resources.

Income Statement

Kyoritsu Electric Corporation has demonstrated strong revenue growth with a 5.49% increase in the latest year. The gross profit margin and net profit margin have improved over the years, indicating enhanced profitability. The EBIT and EBITDA margins have also shown positive trends, reflecting efficient operational management. However, the growth rate has fluctuated in the past, which could be a potential risk.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating prudent financial leverage. The return on equity has been consistently strong, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable financial position. However, the slight increase in total debt in the latest year warrants monitoring.

Cash Flow

Kyoritsu Electric Corporation has shown strong free cash flow growth, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy, reflecting good cash conversion. However, the free cash flow to net income ratio has seen fluctuations, which could indicate variability in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.96B	38.25B	34.36B	33.62B	28.33B	27.29B
Gross Profit	7.61B	8.00B	6.76B	6.41B	5.38B	5.08B
EBITDA	3.57B	3.49B	2.87B	2.55B	1.85B	1.52B
Net Income	2.23B	2.14B	1.77B	1.53B	1.06B	865.00M
Balance Sheet
Total Assets	33.91B	32.59B	30.94B	29.76B	25.51B	24.05B
Cash, Cash Equivalents and Short-Term Investments	6.90B	8.53B	8.06B	6.70B	6.81B	6.29B
Total Debt	1.27B	814.20M	1.40B	1.88B	1.88B	1.88B
Total Liabilities	13.76B	11.58B	12.17B	12.67B	10.51B	9.94B
Stockholders Equity	19.28B	20.12B	17.95B	16.19B	14.35B	13.48B
Cash Flow
Free Cash Flow	0.00	1.54B	2.08B	151.55M	509.31M	1.72B
Operating Cash Flow	0.00	2.47B	2.57B	624.21M	1.21B	1.88B
Investing Cash Flow	0.00	-1.23B	-354.88M	-780.25M	-458.88M	-155.06M
Financing Cash Flow	0.00	-953.00M	-875.40M	-226.54M	-224.99M	-47.04M

Kyoritsu Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2455.00
• 50DMA: Negative
• 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:6874, the sentiment is Neutral. The current price of 2455 is below the 20-day moving average (MA) of 2507.30, below the 50-day MA of 2509.88, and above the 200-day MA of 2282.24, indicating a neutral trend. The MACD of -21.70 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 52.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6874.

Kyoritsu Electric Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.41B	12.83	―	4.88%	6.15%	2.98%
6626	73 Outperform	¥26.73B	7.89	―	1.77%	4.47%	12.28%
6848	73 Outperform	¥16.50B	16.09	―	2.64%	1.66%	-12.21%
6874	72 Outperform	¥21.60B	9.68	―	2.85%	8.78%	16.25%
6853	72 Outperform	¥18.75B	17.70	―	3.06%	-1.58%	12.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥36.08B	-29.86	―	2.00%	6.10%	―