KEL Corporation (6919) AI Stock Analysis

• Market Cap: ¥9.99B
• Dividend Yield: 5.76%
• Average Volume (3M): 11.56K
• Price to Earnings (P/E): 54.1
• Beta (1Y): 0.56
• Revenue Growth: -2.65%
• EPS Growth: -74.99%
• Country: JP
• Employees: 318
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.46
• Shares Outstanding: 7,743,000
• 10 Day Avg. Volume: 9,010
• 30 Day Avg. Volume: 11,560
• PEG Ratio: -0.46
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 41.46
• 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: ¥1,481.00
• Price Target Upside: 7.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥1,481.00 ▲(7.71% Upside)

KEL Corporation's overall stock score reflects a solid financial foundation with strong equity and low debt levels, but challenges in profitability and revenue growth. The technical analysis indicates a neutral to bearish trend, and the high P/E ratio suggests overvaluation, though the dividend yield is a positive factor. The absence of earnings call and corporate events data limits further insights.

KEL Corporation Business Overview & Revenue Model

Company Description

KEL Corporation engages in the manufacture and sale of industrial connectors in Japan. It offers board to board, board to cable, and on-board power connectors for use in camera/video related, FA equipment, automobile, medical/healthcare, infrastructure/railway, and amusement related applications. The company is also engaged in research and development, production, quality control, and sales activities. Its products have applications in automotive, imaging, medical, and gaming equipment. KEL Corporation was incorporated in 1962 and is based in Tama, Japan.

How the Company Makes Money

KEL Corporation generates revenue primarily through the sale of its semiconductor products and electronic components to various manufacturers in multiple sectors. The company's revenue model is based on direct sales to OEMs (Original Equipment Manufacturers) and distributors, who integrate KEL's components into their own products. Key revenue streams include high-performance semiconductors, which are in demand due to the growing need for advanced technology in consumer electronics and automotive applications. Additionally, KEL Corporation often engages in partnerships with other tech companies, research institutions, and universities to develop cutting-edge technologies, which can lead to new product offerings and additional revenue opportunities. Factors such as market demand for electronics, advancements in technology, and the company's ability to innovate and adapt to industry trends significantly contribute to its earnings.

KEL Corporation Financial Statement Overview

Summary

KEL Corporation demonstrates a solid financial foundation with strong equity and low debt levels, providing financial stability. However, challenges in maintaining profitability and revenue growth are evident. While operational efficiency remains decent, improvements in revenue generation and profitability are necessary to enhance overall financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.77B	11.87B	12.23B	14.50B	12.79B	10.16B
Gross Profit	1.99B	2.94B	3.28B	4.56B	4.16B	2.74B
EBITDA	1.21B	1.54B	2.30B	3.47B	3.00B	1.81B
Net Income	184.11M	401.55M	852.37M	1.73B	1.46B	725.42M
Balance Sheet
Total Assets	18.47B	18.61B	18.92B	19.68B	18.39B	15.96B
Cash, Cash Equivalents and Short-Term Investments	4.44B	5.07B	5.52B	5.30B	5.39B	4.68B
Total Debt	464.95M	466.00M	450.00M	450.00M	450.00M	450.00M
Total Liabilities	3.40B	3.38B	3.53B	4.64B	4.53B	3.46B
Stockholders Equity	15.07B	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: Neutral
• Last Price: 1375.00
• 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:6919, the sentiment is Neutral. The current price of 1375 is below the 20-day moving average (MA) of 1391.70, below the 50-day MA of 1388.60, and above the 200-day MA of 1318.54, indicating a neutral trend. The MACD of -4.00 indicates Positive momentum. The RSI at 45.70 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥8.46B	17.80	―	―	15.58%	―
6658	73 Outperform	¥9.98B	4.84	―	4.55%	2.22%	28.89%
6919	65 Neutral	¥9.99B	54.14	―	5.76%	-2.65%	-74.99%
6772	65 Neutral	¥11.09B	18.66	―	1.95%	1.49%	-26.82%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6926	46 Neutral	¥4.56B	―	―	2.01%	-21.49%	-155.24%

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.