Koa (6999) AI Stock Analysis

• Market Cap: ¥53.02B
• Dividend Yield: 2.19%
• Average Volume (3M): 192.52K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.46
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥1,694.00 ▲(22.40% Upside)

The overall stock score is primarily influenced by financial performance challenges, including fluctuating revenue and rising debt levels. Technical analysis provides a positive outlook with bullish momentum, while valuation concerns due to a high P/E ratio and moderate dividend yield limit the stock's attractiveness.

Positive Factors

Diversified end-market exposure

KOA sells resistors across automotive, industrial, and consumer electronics markets. This end-market diversification reduces reliance on a single cycle, smoothing revenue and order variability over months, and supports stable demand for core components across industry cycles.

Core product specialization

A focused product portfolio in resistors and passive components creates manufacturing expertise, customer qualification advantages, and potential pricing power in higher-spec segments. Specialization supports durable customer relationships and repeatable revenue from qualified parts.

Solid equity base on the balance sheet

A healthy equity base and stable asset ratios give KOA financial resilience, enabling it to fund capex, weather cyclical downturns, and pursue selective investments without immediate equity dilution. This underpins long-term operational continuity.

Negative Factors

Rising debt levels

Higher debt on the balance sheet reduces financial flexibility and raises interest servicing risk if cash flows weaken. Continued leverage growth could force tighter capital allocation, limit strategic spending, and increase refinancing vulnerability over the medium term.

Inconsistent and negative free cash flow

Persistent negative or volatile free cash flow undermines the company's ability to self-fund capex, pay down debt, or return cash to shareholders. Reliance on external financing to bridge FCF gaps raises execution risk and weakens long-term financial resilience.

Revenue and margin volatility

Fluctuating revenue and inconsistent gross/net margins suggest difficulty maintaining pricing or cost control across cycles. Structural margin pressure reduces long-term profitability and free cash generation, harming reinvestment capacity and shareholder returns.

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

The company's financial performance is challenged by fluctuating revenue and profit margins, a solid balance sheet with rising debt levels, and significant cash flow issues. These factors indicate financial instability and the need for improved cash flow management.

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	64.75B	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: Positive
• 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 Positive. The current price of 1384 is below the 20-day moving average (MA) of 1449.80, below the 50-day MA of 1395.64, and above the 200-day MA of 1109.26, indicating a bullish trend. The MACD of 36.78 indicates Negative momentum. The RSI at 66.15 is Neutral, neither overbought nor oversold. The STOCH value of 56.86 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
6814	76 Outperform	¥224.89B	13.88	―	1.88%	6.56%	106.55%
6787	74 Outperform	¥327.05B	18.13	―	0.76%	15.02%	46.62%
6817	70 Outperform	¥38.87B	19.31	―	4.53%	-2.57%	3.43%
6824	69 Neutral	¥51.78B	12.71	―	1.12%	14.84%	7.57%
6999	67 Neutral	¥53.02B	19.64	2.45%	2.19%	5.79%	193.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6976	54 Neutral	¥407.03B	94.12	―	2.57%	4.81%	-49.43%