Kyoritsu Electric Corporation (6874) AI Stock Analysis

• Market Cap: ¥23.12B
• Dividend Yield: 2.84%
• Average Volume (3M): 5.36K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.73
• Revenue Growth: 8.78%
• EPS Growth: 16.25%
• Country: JP
• Employees: 734
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 8,738,400
• 10 Day Avg. Volume: 6,390
• 30 Day Avg. Volume: 5,356
• PEG Ratio: 0.42
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥3,058.00 ▲(17.62% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

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

Strong balance sheet and low leverage

Kyoritsu’s low leverage and healthy equity ratio provide durable financial flexibility to fund capex, R&D, and dividends without stressing liquidity. Consistent return on equity signals efficient capital use, supporting resilience through industry cycles and enabling strategic investments over the next several quarters.

Consistent revenue growth and improved margins

Steady top-line expansion alongside rising gross and net margins indicates sustainable operational improvement and pricing or cost advantages. This trend supports long-term cash generation and reinvestment capacity, enabling durable earnings power and better ability to absorb demand variability over a multi-quarter horizon.

Robust cash generation and conversion

Strong free cash flow and healthy cash conversion reinforce the company’s ability to self-fund capital needs, pay dividends, and reduce debt. Reliable cash generation reduces refinancing risk and gives management optionality to pursue strategic projects or weather cyclical downturns over the medium term.

Negative Factors

Variability in free cash flow ratios

Fluctuating free cash flow relative to earnings increases forecasting uncertainty for capital allocation and shareholder distributions. Over a 2–6 month horizon this variability can constrain consistent reinvestment, make budgeting tougher, and limit the firm’s ability to smoothly increase strategic spending or accelerate deleveraging.

Historical revenue growth volatility

Past variability in growth rates points to exposure to cyclical end-markets or uneven product demand. Such volatility reduces predictability of earnings and capital needs, complicating medium-term planning and making sustained margin expansion harder if weaker demand recurs over the coming quarters.

Slight recent increase in total debt

While leverage remains low overall, a recent uptick in total debt could signal incremental financing needs or lower internal funding. If the trend continues it may erode financial flexibility, raise interest exposure, and limit capacity for opportunistic investments or dividends over the medium term.

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

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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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	38.25B	34.36B	33.62B	28.33B	27.29B
Gross Profit	7.87B	6.65B	6.32B	5.29B	4.99B
EBITDA	3.60B	2.71B	2.47B	1.67B	1.45B
Net Income	2.14B	1.77B	1.53B	1.06B	865.00M
Balance Sheet
Total Assets	32.59B	30.94B	29.76B	25.51B	24.05B
Cash, Cash Equivalents and Short-Term Investments	8.53B	8.06B	6.70B	6.81B	6.29B
Total Debt	814.20M	1.40B	1.88B	1.88B	1.88B
Total Liabilities	11.58B	12.17B	12.67B	10.51B	9.94B
Stockholders Equity	20.12B	17.95B	16.19B	14.35B	13.48B
Cash Flow
Free Cash Flow	1.54B	2.32B	218.26M	560.31M	1.77B
Operating Cash Flow	2.47B	2.57B	624.21M	1.21B	1.88B
Investing Cash Flow	-1.23B	-350.40M	-780.25M	-458.88M	-155.06M
Financing Cash Flow	-953.00M	-879.87M	-226.54M	-224.99M	-47.04M

Kyoritsu Electric Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2600.00
• 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 Negative. The current price of 2600 is below the 20-day moving average (MA) of 2818.45, below the 50-day MA of 2808.14, and above the 200-day MA of 2528.05, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 44.32 is Neutral, neither overbought nor oversold. The STOCH value of 29.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥27.43B	13.32	―	2.89%	6.15%	2.98%
7745	80 Outperform	¥70.08B	8.26	―	2.31%	6.50%	30.54%
6866	79 Outperform	¥101.26B	15.13	―	3.23%	7.28%	4.16%
6853	73 Outperform	¥19.30B	18.81	―	2.93%	-1.58%	12.24%
6874	72 Outperform	¥23.12B	7.24	―	2.84%	8.78%	16.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6858	59 Neutral	¥9.23B	16.72	―	2.45%	15.66%	-69.17%