Koa (6999) AI Stock Analysis

• Market Cap: ¥50.88B
• Dividend Yield: 2.19%
• Average Volume (3M): 192.52K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.55
• 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): 94.2
• Revenue Forecast (FY): ¥72.00B

• Rating: 72 Outperform
• Price Target: ¥1,775.00 ▲(28.25% 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

Diversified end-market exposure

KOA's core business selling resistors across automotive, industrial and consumer electronics supports durable demand diversification. Serving multiple end markets reduces reliance on one cyclical sector, helping stabilize revenue streams as different end markets cycle asynchronously over months.

Relatively strong balance sheet

A solid equity base and healthy equity ratio provide financial flexibility to fund factories, R&D and customer qualifications. This structural strength supports multi-year product qualification cycles and cushions operating shocks, enabling the company to sustain supply commitments to key customers.

Positive historical revenue growth

Recorded revenue growth of roughly 9.6% indicates the company has expanded sales capacity or won business over time. Sustained top-line growth, if maintained, underpins long-term margin recovery potential and supports reinvestment for product development and capacity needed by electronics customers.

Negative Factors

Inconsistent and negative free cash flow

Persistent and recently negative free cash flow undermines the firm's ability to self-fund capex, new product qualification and working capital. Over months this constrains strategic investments, increases reliance on borrowing, and reduces resilience to industry downturns or customer payment shifts.

Declining recent revenue and pressured margins

A recent revenue decline coupled with sharply weaker EBIT/EBITDA margins signals structural margin pressure from pricing, mix or cost inflation. If persistent, this erodes operating leverage, reduces reinvestment capacity and weakens competitiveness against peers with steadier margins.

Rising debt levels

Increasing leverage raises financial risk, particularly given inconsistent cash generation. Higher debt servicing needs constrain flexibility for capex or R&D, and in a cyclical electronics market can amplify downside in stress periods or limit the ability to pursue strategic M&A or customer-funded expansions.

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 mainly by selling electronic components—especially resistors—to equipment manufacturers and electronics supply chains. Revenue is generated from (1) product sales of resistors (a core offering) across multiple form factors and performance grades, which are incorporated into customers’ end products (e.g., vehicles, industrial machinery, and electronic devices); and (2) sales of related passive/electronic components offered alongside its resistor portfolio. Earnings are influenced by demand cycles in end markets (notably automotive and industrial), pricing and product mix (e.g., higher-specification components typically carrying higher unit value), manufacturing utilization and cost control, and the company’s ability to supply reliable, high-quality components that meet customer qualification standards. Specific details on major partnerships, customer concentration, or segment-level revenue breakdowns are null.

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	18.29B	20.00B	26.07B	18.86B	13.72B
EBITDA	7.61B	7.03B	8.19B	14.28B	9.23B	5.90B
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	44.99B	31.84B	17.49B	7.21B	5.04B
Total Liabilities	63.71B	63.25B	50.99B	39.04B	27.88B	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	-8.60B	-3.44B	1.33B	3.16B
Operating Cash Flow	0.00	8.10B	7.09B	8.21B	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	8.53B	1.25B	410.00M

Koa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1384.00
• 50DMA: Negative
• 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:6999, the sentiment is Negative. The current price of 1384 is below the 20-day moving average (MA) of 1777.05, below the 50-day MA of 1638.82, and above the 200-day MA of 1266.93, indicating a neutral trend. The MACD of -22.26 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 5.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥6.47T	59.16	8.95%	1.88%	2.88%	28.76%
6999	72 Outperform	¥50.88B	6.34	3.68%	2.19%	5.79%	193.94%
6762	67 Neutral	¥3.88T	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	¥119.64B	11.45	―	2.18%	-0.93%	-45.03%
6976	56 Neutral	¥493.06B	15.62	―	2.57%	4.81%	-49.43%
6977	45 Neutral	¥1.23B	-2.26	―	3.16%	-10.07%	-133.40%