KEL Corporation (6919) AI Stock Analysis

• Market Cap: ¥9.72B
• Dividend Yield: 5.98%
• Average Volume (3M): 5.69K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.63
• Revenue Growth: -2.94%
• EPS Growth: -52.90%
• Country: JP
• Employees: 318
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 7,743,000
• 10 Day Avg. Volume: 4,190
• 30 Day Avg. Volume: 5,690
• PEG Ratio: -0.80
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 71 Outperform
• Price Target: ¥1,459.00 ▲(9.62%Upside)

KEL Corporation's overall stock score is primarily driven by its strong financial stability due to low debt levels and high equity. However, the company's challenges in revenue growth and profitability weigh down the score. The stock's technical indicators suggest a neutral short-term outlook, and while the dividend yield is attractive, the high P/E ratio indicates potential overvaluation, moderating the overall score.

KEL Corporation Business Overview & Revenue Model

Company Description

KEL Corporation (6919) is a Japanese company that specializes in the manufacturing and distribution of electronic components. The company operates primarily in the electronic and electrical equipment sectors, providing high-quality connectors, sockets, and related products used in various applications including industrial machinery, automotive, telecommunications, and consumer electronics.

How the Company Makes Money

KEL Corporation generates revenue primarily through the sale of its electronic components, such as connectors and sockets, to a diverse range of industries including automotive, telecommunications, and consumer electronics. The company focuses on producing high-quality, reliable components that meet the specific needs of its clients, often working directly with manufacturers to supply parts for their products. Additionally, KEL Corporation may engage in strategic partnerships or collaborations with other companies to enhance its product offerings and expand its market reach. The company's strong reputation and established customer base contribute significantly to its earnings, as does its continuous investment in research and development to innovate and improve its product lines.

KEL Corporation Financial Statement Overview

Summary

KEL Corporation has a solid financial foundation with strong equity and low debt levels, indicating financial stability. However, challenges are evident in maintaining profitability and revenue growth, which are critical areas for improvement.

Income Statement

KEL Corporation's income statement reveals a mixed performance. The gross profit margin for the latest year is approximately 24.73%, indicating efficient cost management. The net profit margin stands at 3.38%, showing a decline from the previous year, which suggests challenges in maintaining profitability. EBIT and EBITDA margins are 5.03% and 12.99%, respectively, which reflect an adequate operational efficiency but a decline in earnings before interest and taxes. Revenue has decreased compared to the prior year, highlighting potential market challenges or increasing competition. Overall, while the company maintains decent operational margins, the drop in net income and revenue growth is concerning.

Balance Sheet

KEL Corporation's balance sheet is strong with an equity ratio of 81.83%, indicating a solid reliance on equity financing. The debt-to-equity ratio is low at 0.03, reflecting minimal leverage and financial risk. Return on Equity (ROE) is 2.64%, suggesting moderate returns for shareholders. The company's high level of stockholders' equity and low debt levels provide stability, though the relatively low ROE indicates room for improvement in generating shareholder value.

Cash Flow

The cash flow statement shows a decrease in free cash flow to 234.93 million, down from the previous year. The operating cash flow to net income ratio is strong at 2.88, indicating good cash conversion from reported profits. The free cash flow to net income ratio, however, is lower at 0.58, reflecting reduced cash available after capital expenditures. Despite the cash flow generation capability, the decline in free cash flow growth rate needs attention for future investments and liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.87B	11.87B	12.23B	14.50B	12.79B	10.16B
Gross Profit	2.93B	2.94B	3.28B	4.56B	4.16B	2.74B
EBITDA	1.07B	1.54B	2.30B	3.47B	2.98B	1.81B
Net Income	571.72M	401.55M	852.37M	1.73B	1.46B	725.42M
Balance Sheet
Total Assets	19.20B	18.61B	18.92B	19.68B	18.39B	15.96B
Cash, Cash Equivalents and Short-Term Investments	4.80B	5.07B	5.52B	5.30B	5.39B	4.68B
Total Debt	450.00M	466.00M	450.00M	450.00M	450.00M	450.00M
Total Liabilities	4.60B	3.38B	3.53B	4.64B	4.53B	3.46B
Stockholders Equity	14.61B	15.22B	15.39B	15.04B	13.85B	12.49B
Cash Flow
Free Cash Flow	0.00	234.93M	1.01B	732.97M	862.63M	881.61M
Operating Cash Flow	0.00	1.16B	2.32B	1.67B	1.58B	1.46B
Investing Cash Flow	0.00	-1.07B	-1.48B	-1.08B	-603.29M	-557.13M
Financing Cash Flow	0.00	-641.30M	-740.25M	-732.92M	-312.69M	-283.07M

KEL Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1331.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6919, the sentiment is Positive. The current price of 1331 is above the 20-day moving average (MA) of 1319.30, above the 50-day MA of 1310.28, and below the 200-day MA of 1349.46, indicating a neutral trend. The MACD of 4.83 indicates Negative momentum. The RSI at 61.96 is Neutral, neither overbought nor oversold. The STOCH value of 89.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6919.

KEL Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6907	75 Outperform	¥6.45B	17.86		―	14.66%	―
6658	71 Outperform	¥8.48B	4.08		5.33%	1.75%	29.95%
6919	71 Outperform	¥9.72B	24.22		5.98%	-2.94%	-52.90%
6772	68 Neutral	¥13.08B	17.61		1.73%	0.69%	-25.68%
Sector *	59 Neutral	€3.21B	12.60	-9.91%	2.78%	2.38%	-49.53%
6926	48 Neutral	¥4.70B	―		2.01%	-32.99%	-1496.54%

KEL Corporation Corporate Events

KEL Corporation Reports Decline in Financial Performance for 2024

KEL Corporation reported a decline in its financial performance for the nine months ended December 31, 2024, with net sales dropping by 3.9% and operating profit down by 49.5% compared to the previous year. The company also revised its forecast for the fiscal year ending March 31, 2025, indicating expected decreases in net sales, operating profit, and profit attributable to owners of the parent, reflecting ongoing challenges in the market.