Kyoei Sangyo Co., Ltd. (6973) AI Stock Analysis

• Market Cap: ¥12.06B
• Dividend Yield: 2.78%
• Average Volume (3M): 37.46K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.58
• Revenue Growth: -6.44%
• EPS Growth: 28.44%
• Country: JP
• Employees: 890
• Sector: Technology
• Sector Strength: 79
• Industry: Semiconductors
• EPS (TTM): 278.32
• Shares Outstanding: 3,193,545
• 10 Day Avg. Volume: 105,840
• 30 Day Avg. Volume: 37,463
• PEG Ratio: -0.19
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.69
• 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: 67 Neutral
• Price Target: ¥4,337.00 ▲(9.52%Upside)

Kyoei Sangyo Co., Ltd.'s stock score is driven by its strong valuation, with a low P/E ratio and solid dividend yield suggesting potential undervaluation. However, financial performance is moderate with concerns about revenue volatility and cash flow challenges. Technical indicators suggest caution due to overbought conditions.

Kyoei Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kyoei Sangyo Co., Ltd. (6973) is a Japanese company primarily engaged in the distribution and sale of industrial materials and components. The company's operations span various sectors, including electronics, automotive, and machinery, offering a diverse range of products such as semiconductor devices, electronic components, and industrial equipment. Kyoei Sangyo leverages its extensive industry knowledge and network to provide high-quality products and services to its clients, ensuring efficient and reliable supply chain solutions.

How the Company Makes Money

Kyoei Sangyo Co., Ltd. generates revenue primarily through the sale and distribution of industrial materials and components. The company sources products from various manufacturers and suppliers, which it then sells to businesses in the electronics, automotive, and machinery industries. Kyoei Sangyo's revenue streams are supported by its strategic partnerships with key manufacturers and its ability to deliver comprehensive supply chain solutions that meet the specific needs of its clients. The company capitalizes on its extensive industry expertise and strong distribution network to maintain a competitive edge in the market, contributing to its overall earnings.

Kyoei Sangyo Co., Ltd. Financial Statement Overview

Summary

Kyoei Sangyo Co., Ltd. exhibits moderate financial performance with strengths in operational efficiency and leverage management. While profitability and asset utilization show positive trends, revenue volatility and cash flow challenges pose potential risks.

Income Statement

Kyoei Sangyo Co., Ltd. has demonstrated a moderate performance in its income statement. The gross profit margin for 2025 was approximately 14.16%, indicating efficient cost management. However, the net profit margin declined from 2024 to 2025, suggesting pressure on net profitability. Revenue growth rate showed volatility with a decrease in 2025 after an increase in 2024, highlighting instability in revenue generation. EBIT and EBITDA margins have shown improvements, reflecting better operational efficiency over time.

Balance Sheet

The balance sheet presents a stable financial position with a debt-to-equity ratio of 0.41 in 2025, indicating conservative use of leverage. The equity ratio improved to 50.19%, signifying solid equity financing. Return on equity increased to 9.05% in 2025, demonstrating improved profitability from shareholders' equity. However, total assets have decreased, suggesting a contraction in asset base. Overall, the balance sheet reflects a balanced yet slightly constrained financial strategy.

Cash Flow

Cash flow analysis shows a concerning trend with declining free cash flow growth rate, indicating challenges in generating cash. The operating cash flow to net income ratio improved in 2025, suggesting better conversion of profits into cash flows. However, the free cash flow to net income ratio remains low, pointing to potential liquidity challenges. Overall, cash flow stability is a potential risk area for Kyoei Sangyo Co., Ltd.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
57.80B	57.71B	61.68B	60.55B	56.98B	53.08B
	Gross Profit
8.43B	8.17B	8.75B	8.50B	8.16B	7.10B
	EBIT
1.11B	974.25M	1.75B	1.47B	1.39B	397.50M
	EBITDA
1.41B	2.35B	2.07B	1.13B	2.71B	142.24M
	Net Income Common Stockholders
1.39B	1.72B	1.34B	432.74M	2.06B	-382.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.94B	4.22B	4.32B	3.10B	2.52B	3.19B
	Total Assets
39.38B	37.86B	42.27B	37.41B	36.35B	34.22B
	Total Debt
8.32B	7.73B	8.68B	9.34B	7.71B	8.11B
	Net Debt
2.39B	3.51B	5.10B	6.24B	5.19B	4.92B
	Total Liabilities
20.93B	18.87B	24.48B	22.13B	21.38B	21.05B
	Stockholders Equity
18.46B	19.00B	17.79B	15.28B	14.96B	13.17B
Cash Flow		Free Cash Flow
0.00	434.42M	1.93B	-1.41B	-1.70B	1.43B
	Operating Cash Flow
0.00	466.26M	2.00B	-1.07B	-1.32B	1.64B
	Investing Cash Flow
0.00	740.15M	-13.53M	246.97M	1.21B	-77.30M
	Financing Cash Flow
0.00	-1.30B	-890.73M	1.39B	-656.62M	-1.30B

Kyoei Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6973, the sentiment is Positive. The current price of 3960 is above the 20-day moving average (MA) of 2831.65, above the 50-day MA of 2464.48, and above the 200-day MA of 2287.78, indicating a bullish trend. The MACD of 463.13 indicates Negative momentum. The RSI at 90.93 is Negative, neither overbought nor oversold. The STOCH value of 98.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6973.

Kyoei Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6338	72 Outperform	¥8.54B	7.87		2.55%	-51.97%	-56.67%
6337	72 Outperform	¥9.35B	21.24		4.23%	-25.41%	-45.60%
6973	67 Neutral	¥12.06B	6.89		2.78%	-6.44%	28.44%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
6769	61 Neutral	¥9.98B	145.91		1.63%	-8.06%	―
6656	55 Neutral	¥3.39B	160.51		―	50.79%	-59.24%
6614	52 Neutral	¥4.51B	31.45		1.47%	-8.12%	-102.86%