Koa (6999) AI Stock Analysis

• Market Cap: $40.62B
• Dividend Yield: 3.34%
• Average Volume (3M): 197.41K
• Price to Earnings (P/E): 143.4
• Beta (1Y): 1.36
• Revenue Growth: 1.06%
• EPS Growth: -85.13%
• Country: JP
• Employees: 4,309
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 11.30
• Shares Outstanding: 37,479,725
• 10 Day Avg. Volume: 163,440
• 30 Day Avg. Volume: 197,410
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: 7.32
• 1Y Price Target: $1,037.99
• Price Target Upside: -13.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥1,038.00 ▼(-13.21% Downside)

The overall stock score is primarily influenced by financial performance and valuation concerns. Financial health is challenged by fluctuating revenues and negative cash flows, while a high P/E ratio suggests overvaluation. Despite technical indicators showing bullish trends, overbought signals hint at potential price corrections. Investors should be cautious of the high valuation and focus on cash flow improvements.

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 makes money by designing, manufacturing, and selling its range of passive electronic components to a diverse customer base. The company's revenue model is primarily driven by direct sales of its products to manufacturers and distributors in the electronics industry. Key revenue streams include the sale of resistors, inductors, and circuit protection devices, which are essential components in numerous electronic devices and systems. Koa's revenue is further supported by its strong relationships with various industrial sectors, including automotive and telecommunications, where demand for reliable and efficient electronic components remains high. Additionally, strategic partnerships and collaborations with other technology firms enhance its market presence and contribute to its financial performance.

Koa Financial Statement Overview

Summary

Koa's financial position is marked by fluctuating revenue and profit margins, alongside a solid balance sheet but rising debt levels. Cash flow challenges are significant, as shown by negative free cash flows, which could impact future growth investments. The company needs to focus on stabilizing its income and improving cash flow management to strengthen its financial health.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.12B	64.12B	64.83B	75.07B	64.95B	50.38B
Gross Profit	18.16B	18.16B	19.51B	25.69B	18.43B	13.34B
EBITDA	7.04B	7.04B	9.04B	14.29B	10.11B	6.41B
Net Income	260.00M	260.00M	2.77B	7.37B	4.77B	2.03B
Balance Sheet
Total Assets	141.37B	141.37B	129.57B	112.77B	94.99B	81.34B
Cash, Cash Equivalents and Short-Term Investments	26.64B	26.64B	32.55B	29.65B	22.92B	19.33B
Total Debt	44.71B	44.71B	31.48B	17.03B	6.58B	4.41B
Total Liabilities	63.26B	63.26B	50.99B	39.05B	27.89B	19.80B
Stockholders Equity	78.11B	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: Positive
• Last Price: 1196.00
• 50DMA: Positive
• 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:6999, the sentiment is Positive. The current price of 1196 is above the 20-day moving average (MA) of 1183.30, above the 50-day MA of 1095.20, and above the 200-day MA of 944.88, indicating a bullish trend. The MACD of 31.09 indicates Positive momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 54.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6999.

Koa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6787	76 Outperform	256.80B	16.37	13.79%	0.76%	15.13%	31.79%
6824	76 Outperform	45.83B	12.95	7.36%	1.30%	9.96%	3.13%
6814	75 Outperform	181.68B	13.28	15.87%	1.91%	9.11%	114.88%
6817	70 Outperform	35.95B	20.42	3.12%	4.84%	-3.69%	-22.95%
6976	59 Neutral	418.83B	-85.65	0.73%	2.70%	4.21%	-135.36%
6999	54 Neutral	$40.62B	143.41	0.39%	3.34%	1.06%	-85.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Koa Corporate Events

KOA’s 2024 Integrated Report: Advancing Sustainability and Innovation in Electronic Components

KOA’s 2024 Integrated Report highlights its commitment to resolving social issues through innovative electronic components that enhance device performance and sustainability. The company focuses on developing products that contribute to a prosperous future by addressing challenges like thermal issues, air quality deterioration, and the need for high reliability and precision in electronic devices. This approach positions KOA as a key player in advancing a carbon-neutral society and supporting the adoption of new technologies such as xEVs and ADAS, thereby reinforcing its industry positioning and impact on stakeholders.