KEL Corporation (6919) AI Stock Analysis

• Market Cap: ¥9.87B
• Dividend Yield: 5.89%
• Average Volume (3M): 6.81K
• Price to Earnings (P/E): 24.5
• 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: 9,800
• 30 Day Avg. Volume: 6,813
• PEG Ratio: -0.82
• Price to Book (P/B): 0.64
• 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: ¥1,473.00
• Price Target Upside: 8.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,500.00 ▲(10.78%Upside)

KEL Corporation's overall stock score reflects its strong financial stability, characterized by low debt and high equity, which positions it well against financial risks. However, declining profitability and revenue growth present challenges. Technical indicators show positive momentum, supported by an attractive dividend yield, though the valuation does not fully mitigate growth concerns.

KEL Corporation Business Overview & Revenue Model

Company Description

KEL Corporation (6919) is a Japanese company that operates in the electronic components sector. The company specializes in the manufacture and sale of connectors and cable assemblies that are utilized in various industries, including automotive, telecommunications, and consumer electronics. KEL Corporation is known for its high-quality, reliable products that cater to the evolving needs of its diverse clientele.

How the Company Makes Money

KEL Corporation generates revenue primarily through the sale of its electronic components, specifically connectors and cable assemblies. The company serves a wide range of industries, which ensures a diversified customer base and revenue stream. Its products are integral to the manufacturing and operation of electronic devices, making them essential purchases for its clients. Additionally, KEL Corporation may engage in partnerships with other firms to enhance its product offerings and expand its market reach, though specific partnership details are not available. The company's focus on innovation and quality helps maintain its competitive position and supports its financial growth.

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	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	18.17B	18.61B	18.92B	19.68B	18.39B	15.96B
Cash, Cash Equivalents and Short-Term Investments	4.85B	5.07B	5.52B	5.30B	5.39B	4.68B
Total Debt	467.00M	466.00M	450.00M	450.00M	450.00M	450.00M
Total Liabilities	2.98B	3.38B	3.53B	4.64B	4.53B	3.46B
Stockholders Equity	15.19B	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: 1354.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1354 is above the 20-day moving average (MA) of 1340.20, above the 50-day MA of 1325.12, and above the 200-day MA of 1336.70, indicating a bullish trend. The MACD of 10.95 indicates Negative momentum. The RSI at 61.52 is Neutral, neither overbought nor oversold. The STOCH value of 63.24 is Neutral, 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
6919	75 Outperform	¥9.87B	24.51		5.89%	-2.94%	-52.90%
6658	73 Outperform	¥8.78B	4.16		5.16%	1.75%	29.95%
6772	68 Neutral	¥13.22B	17.76		1.71%	0.69%	-25.68%
6907	64 Neutral	¥6.45B	17.89		―	14.66%	―
Sector *	57 Neutral	HK$14.57B	5.76	-5.77%	4.75%	9.65%	-43.80%
6926	50 Neutral	¥4.72B	―		2.01%	-32.99%	-1509.50%

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.