Koa (6999) AI Stock Analysis

• Market Cap: ¥64.05B
• Dividend Yield: 2.19%
• Average Volume (3M): 192.52K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.53
• Revenue Growth: 5.79%
• EPS Growth: 193.94%
• Country: JP
• Employees: 4,309
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 54.07
• Shares Outstanding: 37,479,725
• 10 Day Avg. Volume: 231,670
• 30 Day Avg. Volume: 192,520
• PEG Ratio: -1.47
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -2.04
• 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
• EPS Forecast (FY): 74.1
• Revenue Forecast (FY): ¥71.07B

• Rating: 72 Outperform
• Price Target: ¥1,919.00 ▲(38.66% Upside)
• Action: Upgraded Date: 03/05/26
• Date: Action: Upgraded 03/05/26

Overall score reflects solid technical strength and an attractive low P/E valuation, offset by weaker financial performance driven by recent revenue/profitability pressure and negative/free-cash-flow inconsistency, despite a still-stable balance sheet.

Positive Factors

Balance-sheet resilience

A relatively strong balance sheet and healthy equity ratio provide durable financial resilience. That capital buffer supports multi-year supplier/customer relationships, funds necessary product qualification cycles, and cushions cyclical downturns, preserving strategic optionality.

Recent revenue growth

Positive revenue growth near 10% indicates expanding end-market demand or improved share. Sustained top-line growth over several quarters supports capacity utilization, margin recovery potential, and provides resources to reinvest in higher-spec products and customer qualification.

Core product specialization

Specialization in resistors and passive components creates a focused niche with high engineering qualification barriers. Long product qualification cycles and integrated supply relationships in automotive/industrial markets favor incumbents, supporting durable revenue streams and customer stickiness.

Negative Factors

Declining margins

Sharply weaker EBIT/EBITDA margins signal structural pressure on core profitability, reducing the company's ability to self-fund investments. Persistent margin erosion undermines return on capital and makes the business more sensitive to raw-material and pricing volatility over the medium term.

Inconsistent free cash flow

Material and inconsistent negative free cash flow constrains long-term capital allocation. When FCF is unreliable, funding capex, dividends, or debt reduction requires external financing, increasing vulnerability to tighter credit conditions and limiting strategic investments.

Rising leverage

A rising debt-to-equity ratio increases financial leverage and interest exposure, reducing flexibility during cyclical downturns typical for electronic components. Higher leverage elevates refinancing risk and can force trade-offs between growth investments and balance-sheet repair.

Koa Business Overview & Revenue Model

Company Description

KOA Corporation develops, manufactures, and sells electronic components in Japan and internationally. The company offers thermistors, thermal sensors, inductors, fuses, varistors, LTCC substrates, hybrid IC, and check terminals, as well as SMD resistors, low resistance/current sense shunt, and leaded resistors. Its products are used in automotive, industrial equipment, ecology and energy saving, telecommunication, AV/home appliance, power supply unit, space/satellite, and medical equipment applications. The company was formerly known as Koa Denko Co., Ltd. and changed its name to KOA Corporation in April 1985. The company was founded in 1940 and is headquartered in Nagano, Japan.

How the Company Makes Money

Koa generates revenue primarily through a subscription-based model, where healthcare providers pay for access to its software platforms and services. This includes monthly or annual fees for the use of telehealth services and patient management systems. Additionally, Koa benefits from partnerships with healthcare organizations that may involve revenue-sharing agreements, where the company earns a percentage of the fees generated through its platforms. Other revenue streams include consulting services for healthcare providers looking to optimize their operations using Koa's technology and licensing fees for its proprietary software solutions. The growing demand for digital health solutions and telemedicine, especially post-pandemic, significantly contributes to Koa's earnings.

Koa Financial Statement Overview

Summary

Mixed fundamentals: income statement pressure from declining recent revenue and sharply weaker EBIT/EBITDA margins, a relatively solid balance sheet but with rising debt, and material cash flow strain due to inconsistent and recently negative free cash flow.

Income Statement

The company's revenue showed fluctuation over the years, with a notable decline in the most recent year. Gross and net profit margins have been inconsistent, reflecting challenges in maintaining profitability. The significant drop in EBIT and EBITDA margins indicates pressure on core operations.

Balance Sheet

The balance sheet remains relatively strong with a solid equity base. However, the increase in total debt in recent years is concerning, as reflected in the rising debt-to-equity ratio. The equity ratio remains healthy, indicating a stable asset base.

Cash Flow

The company experienced inconsistent free cash flow, with significant negative figures in recent years. Operating cash flow remains positive but has not shown strong growth, leading to challenges in covering capital expenditures.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	64.75B	64.12B	64.83B	75.07B	64.95B	50.38B
Gross Profit	18.49B	18.16B	19.51B	25.69B	18.43B	13.34B
EBITDA	6.24B	7.04B	9.04B	14.29B	10.11B	6.41B
Net Income	310.00M	260.00M	2.77B	7.37B	4.77B	2.03B
Balance Sheet
Total Assets	141.74B	141.37B	129.57B	112.77B	94.99B	81.34B
Cash, Cash Equivalents and Short-Term Investments	25.83B	26.64B	32.55B	29.65B	22.92B	19.33B
Total Debt	46.06B	44.71B	31.48B	17.03B	6.58B	4.41B
Total Liabilities	63.71B	63.26B	50.99B	39.05B	27.89B	19.80B
Stockholders Equity	78.03B	78.11B	78.57B	73.72B	67.10B	61.53B
Cash Flow
Free Cash Flow	0.00	-16.97B	-10.74B	-3.07B	1.22B	2.94B
Operating Cash Flow	0.00	8.10B	7.09B	8.69B	5.97B	5.29B
Investing Cash Flow	0.00	-23.94B	-17.40B	-12.93B	-5.92B	-2.70B
Financing Cash Flow	0.00	11.25B	12.29B	8.05B	1.25B	410.00M

Koa Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1384.00
• 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:6999, the sentiment is Neutral. The current price of 1384 is below the 20-day moving average (MA) of 1739.70, below the 50-day MA of 1559.50, and above the 200-day MA of 1209.63, indicating a neutral trend. The MACD of 104.02 indicates Negative momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 47.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6999.

Koa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6981	74 Outperform	¥6.88T	59.16	8.95%	1.88%	2.88%	28.76%
6999	72 Outperform	¥64.05B	6.34	2.45%	2.19%	5.79%	193.94%
6762	67 Neutral	¥3.97T	15.03	―	1.41%	7.73%	-1.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6996	60 Neutral	¥138.34B	11.45	―	2.18%	-0.93%	-45.03%
6976	56 Neutral	¥559.74B	15.62	―	2.57%	4.81%	-49.43%
6977	45 Neutral	¥1.16B	-3.17	―	3.16%	-10.07%	-133.40%