Kyocera (6971) AI Stock Analysis

• Market Cap: $2.42T
• Dividend Yield: 2.72%
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): 100.2
• Beta (1Y): 0.74
• Revenue Growth: 0.61%
• EPS Growth: -70.68%
• Country: JP
• Employees: 79,185
• Sector: Industrials
• Sector Strength: 92
• Industry: Consumer Electronics
• EPS (TTM): 4.10
• Shares Outstanding: 1,510,474,400
• 10 Day Avg. Volume: 5,317,070
• 30 Day Avg. Volume: 3,692,476
• PEG Ratio: -1.32
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.75
• 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: $2,038.26
• Price Target Upside: 18.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: ―

Kyocera's overall score reflects strong financial stability, especially in its balance sheet and cash flow, but faces challenges in income growth and profitability margins. Technical indicators suggest mixed momentum, and the high P/E ratio points to potential overvaluation. The dividend yield is a positive aspect but doesn't fully compensate for other valuation concerns.

Kyocera Business Overview & Revenue Model

Company Description

Kyocera Corporation (6971), headquartered in Kyoto, Japan, is a diversified multinational company engaged in various sectors, including electronics, telecommunications, and industrial components. The company is renowned for its expertise in the development and manufacturing of a wide range of products, including printers, copiers, solar power generating systems, electronic components, and advanced ceramic materials. Kyocera serves a global clientele, providing innovative solutions across various industries and focusing on sustainable development and technological advancement.

How the Company Makes Money

Kyocera makes money through several key revenue streams. The company's electronics division generates income from the sale of office equipment such as printers and multifunctional devices, which are marketed to businesses and consumers worldwide. Another significant revenue source is its electronic components sector, where it produces and sells components like capacitors, connectors, and crystal oscillators for use in various electronic devices. The company also capitalizes on its expertise in advanced materials through the sale of ceramic components for industrial applications, including automotive and medical industries. Additionally, Kyocera's solar energy solutions contribute to its revenue by providing solar panels and systems to residential, commercial, and industrial sectors. Strategic partnerships and collaborations in research and development further enhance its capabilities and market reach, affecting its earnings positively.

Kyocera Financial Statement Overview

Summary

Kyocera's financials highlight strong balance sheet stability and efficient cash flow management, with low debt-to-equity and a high equity ratio. However, income statement challenges in revenue growth and low profitability margins could impact future earnings potential.

Income Statement

Kyocera's income statement reveals a stable gross profit margin and moderate net profit margin in the TTM, with gross profit margin at 27.56% and net profit margin at 1.45%. Revenue growth is challenged with a slight decline from the previous year. The EBIT margin is low at 1.27%, indicating potential efficiency concerns, while the EBITDA margin is better at 9.61%, suggesting stronger cash earnings potential.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.09, highlighting conservative leverage. Return on Equity (ROE) is modest at 0.87%, suggesting limited profitability on shareholders' funds. The equity ratio is strong at 72.61%, indicating financial stability and low reliance on external debt.

Cash Flow

Kyocera's cash flow statement shows a positive free cash flow of ¥94.98 billion in the TTM, though the growth has been inconsistent. The operating cash flow to net income ratio is healthy at 9.28, suggesting strong cash generation relative to earnings. Free cash flow to net income ratio is notably high at 3.27, reflecting efficient capital expenditure management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.00T	2.00T	2.03T	1.84T	1.53T	1.60T
	Gross Profit
552.36B	553.11B	564.94B	513.64B	406.95B	441.17B
	EBIT
25.35B	92.92B	128.52B	148.91B	70.64B	100.19B
	EBITDA
192.57B	249.87B	328.26B	331.46B	228.55B	243.13B
	Net Income Common Stockholders
29.04B	101.07B	127.99B	148.41B	90.21B	107.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
430.95B	460.33B	396.90B	458.21B	484.08B	493.65B
	Total Assets
4.59T	4.47T	4.09T	3.92T	3.49T	3.25T
	Total Debt
310.48B	304.19B	209.80B	149.26B	147.82B	127.32B
	Net Debt
-80.99B	-120.60B	-163.70B	-264.87B	-238.91B	-292.30B
	Total Liabilities
1.23T	1.21T	1.05T	1.02T	877.36B	795.93B
	Stockholders Equity
3.33T	3.23T	3.02T	2.87T	2.59T	2.43T
Cash Flow		Free Cash Flow
94.98B	109.33B	-7.43B	55.05B	88.69B	93.90B
	Operating Cash Flow
269.45B	269.07B	179.21B	201.96B	220.82B	214.63B
	Investing Cash Flow
-177.78B	-158.41B	-168.83B	-79.46B	-183.79B	-145.55B
	Financing Cash Flow
-102.20B	-82.60B	-61.26B	-111.47B	-80.97B	-157.13B

Kyocera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1714.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6971, the sentiment is Positive. The current price of 1714.5 is below the 20-day moving average (MA) of 1729.08, above the 50-day MA of 1689.15, and above the 200-day MA of 1632.70, indicating a neutral trend. The MACD of 22.15 indicates Positive momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 9.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6971.

Kyocera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6758	79 Outperform	$22.50T	19.52	14.32%	0.52%	9.56%	26.52%
6501	77 Outperform	$17.04T	27.88	10.50%	1.12%	0.56%	5.32%
6503	75 Outperform	€6.20T	18.96	8.40%	1.76%	5.02%	14.73%
6752	75 Outperform	$3.66T	10.01	7.85%	2.90%	-0.45%	-17.53%
6702	74 Outperform	$6.11T	27.45	11.70%	0.82%	-5.48%	-11.96%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
6971	64 Neutral	$2.42T	100.23	0.71%	2.72%	0.61%	-70.68%

Kyocera Corporate Events

Kyocera Corporation Enhances Corporate Governance for Sustainable Growth

Kyocera Corporation has updated its corporate governance report, emphasizing its commitment to transparency, equity, and sustainable growth. The company aims to strengthen its market position by enhancing production capacity, investing in research and development, and conducting mergers and acquisitions. Kyocera’s governance structure includes an Audit & Supervisory Board and a Nomination and Remuneration Committee to ensure objectivity and transparency, while promoting its core corporate philosophy among employees.

Kyocera Revises Capital Strategy with Accelerated KDDI Shares Sale

Kyocera Corporation announced changes to its Corporate Governance Code, specifically the policy on cross-shareholdings, to revise its capital strategy by accelerating the sale of its shares in KDDI Corporation. This strategic move aims to provide alternative investment funds and respond to shifting business conditions, reflecting a broader effort to reform both its capital and business strategies.

Kyocera Revises Fiscal 2025 Financial Forecasts Amid Market Challenges

Kyocera Corporation has revised its financial forecast for fiscal 2025, citing lower than expected market recovery in key business areas and one-time impairment losses. The company plans to improve profitability through structural reforms and has adjusted its revenue and profit expectations significantly downward, which may impact its stakeholders and market positioning.

Kyocera Corporation Financial Overview and Strategic Initiatives

Kyocera Corporation has released its financial presentation for the nine months ended December 31, 2024. The company shared its financial results and forecasts for Fiscal 2025, alongside initiatives aimed at improving corporate value. This release is positioned to impact stakeholders by outlining Kyocera’s strategic direction and financial health, offering insights into its operation and market positioning.

Kyocera Reports Steep Decline in Nine-Month Financial Results

Kyocera Corporation reported a significant decline in its financial performance for the nine months ended December 31, 2024, with operating profit dropping by 84.6% and profit attributable to owners decreasing by 79.7% compared to the previous year. This downturn is attributed to a challenging market environment and operational adjustments, including a recent stock split. Despite these challenges, the company maintains a strong equity position with a high ratio of equity to total assets, indicating resilience in its financial structure.

Kyocera Announces Amendments to Articles of Incorporation to Enhance Governance

Kyocera Corporation announced proposed amendments to its Articles of Incorporation, including a key change to shorten the term of office for directors from two years to one year. This adjustment aims to enhance the company’s management system’s agility, increase shareholder trust, and clarify management responsibilities. Additionally, other amendments involve procedural clarifications for convening meetings and the removal of the Chairperson Emeritus position, reflecting a move towards streamlined governance.

Kyocera Announces Share Repurchase Policy to Enhance Capital Strategy

Kyocera Corporation announced a new policy for repurchasing its own shares as part of a strategic capital realignment. This move aims to optimize the company’s capital structure and increase shareholder returns, with a planned repurchase of approximately 200 billion yen worth of shares in fiscal years ending 2026 and 2029.