Kinki Sharyo Co., Ltd. (7122) AI Stock Analysis

• Market Cap: ¥15.86B
• Dividend Yield: 2.19%
• Average Volume (3M): 17.20K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.07
• Revenue Growth: -30.97%
• EPS Growth: -107.48%
• Country: JP
• Employees: 1,229
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Machinery
• EPS (TTM): -5.45
• Shares Outstanding: 6,908,359
• 10 Day Avg. Volume: 13,560
• 30 Day Avg. Volume: 17,200
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,502.00
• Price Target Upside: 9.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥2,502.00 ▲(9.59% Upside)

Kinki Sharyo Co., Ltd. has a mixed overall stock score. The most significant factor is the financial performance, which shows volatility and challenges in revenue and cash flow. Technical analysis indicates strong bullish momentum, but overbought signals suggest caution. Valuation is a concern due to the negative P/E ratio, despite a moderate dividend yield.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a healthy equity ratio indicates strong financial health, reducing risk and providing a solid foundation for future growth.

Reduced Leverage

Reduced leverage lowers financial risk and interest obligations, enhancing the company's ability to invest in growth opportunities and weather economic downturns.

Innovative Business Model

An innovative business model and commitment to quality help maintain competitive advantages and open new markets, supporting long-term revenue growth.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or competitive positioning, potentially impacting long-term financial stability and growth prospects.

Cash Flow Volatility

Volatile cash flows can hinder the company's ability to fund operations and investments, posing risks to financial health and strategic initiatives over the long term.

Inconsistent Profitability

Inconsistent profitability suggests operational challenges and market pressures, which can undermine investor confidence and limit resources for growth and innovation.

Kinki Sharyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kinki Sharyo Co., Ltd. (7122) is a renowned Japanese company primarily engaged in the manufacturing of railway vehicles. Established in 1920, the company specializes in the design, manufacture, and maintenance of light rail vehicles (LRVs), heavy rail vehicles, and other forms of rolling stock. Kinki Sharyo is recognized for its innovative approach and commitment to quality, serving both domestic and international markets with customized transportation solutions.

How the Company Makes Money

Kinki Sharyo Co., Ltd. generates revenue through the production and sale of railway vehicles, including light rail vehicles, heavy rail vehicles, and other related transportation equipment. The company secures contracts with government transportation departments and private sector clients for the supply of customized rail solutions to meet specific transit needs. Revenue is also derived from the provision of maintenance and repair services to extend the life and performance of their rail vehicles. Additionally, Kinki Sharyo benefits from partnerships with other manufacturers and technological collaborations, which can open new markets and opportunities for revenue growth. The company's earnings are influenced by factors such as infrastructure investment trends, urban transit development, and international demand for advanced rail systems.

Kinki Sharyo Co., Ltd. Financial Statement Overview

Summary

The financial performance of Kinki Sharyo Co., Ltd. is mixed. The income statement shows inconsistent profitability with a significant revenue drop in 2025. The balance sheet is stable with reduced leverage, but cash flow analysis indicates volatility and challenges in cash generation.

Income Statement

The income statement shows mixed performance. Gross profit margin remained relatively low but stable over the years, indicating controlled cost of goods sold. However, the company experienced a significant drop in revenue from 2024 to 2025, resulting in a negative revenue growth rate of approximately -29.85%. Net profit margin improved significantly in 2024 but fell again in 2025, reflecting inconsistent profitability. The EBIT and EBITDA margins also fluctuated, indicating operational challenges.

Balance Sheet

The balance sheet reveals a stable equity base, with a healthy equity ratio averaging around 57% in recent years. The debt-to-equity ratio improved, showing reduced leverage, which decreases financial risk. However, total assets and cash reserves have fluctuated, reflecting potential volatility in asset management. The return on equity showed a strong performance in 2024 but dropped in 2025, indicating some inconsistency in generating returns for shareholders.

Cash Flow

Cash flow analysis highlights significant volatility. There was a notable decrease in operating and free cash flow in 2025, leading to a steep decline in free cash flow growth rate. The operating cash flow to net income ratio turned negative in 2025, indicating cash flow challenges despite reported net income. The free cash flow to net income ratio also suffered, highlighting inefficiencies in converting income to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.26B	30.26B	43.15B	35.87B	39.33B	49.42B
Gross Profit	3.99B	3.99B	8.25B	4.63B	5.20B	3.40B
EBITDA	1.30B	2.06B	6.35B	2.56B	4.09B	1.50B
Net Income	560.00M	560.00M	4.37B	1.18B	2.77B	662.00M
Balance Sheet
Total Assets	58.84B	58.84B	59.56B	55.49B	61.50B	66.02B
Cash, Cash Equivalents and Short-Term Investments	6.35B	6.35B	11.72B	7.63B	9.94B	4.35B
Total Debt	5.41B	5.41B	4.92B	9.10B	15.72B	22.43B
Total Liabilities	25.22B	25.22B	27.06B	28.20B	37.02B	44.70B
Stockholders Equity	33.61B	33.61B	32.50B	27.29B	24.47B	21.32B
Cash Flow
Free Cash Flow	0.00	-5.77B	8.26B	5.22B	12.10B	-408.00M
Operating Cash Flow	0.00	-4.86B	8.93B	5.92B	12.95B	24.00M
Investing Cash Flow	0.00	-576.00M	2.58B	-652.00M	-4.03B	-128.00M
Financing Cash Flow	0.00	-14.00M	-4.62B	-8.26B	-6.48B	-695.00M

Kinki Sharyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2283.00
• 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:7122, the sentiment is Positive. The current price of 2283 is below the 20-day moving average (MA) of 2299.90, above the 50-day MA of 2161.82, and above the 200-day MA of 1682.49, indicating a bullish trend. The MACD of 38.11 indicates Positive momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 57.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7122.

Kinki Sharyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6365	82 Outperform	¥22.60B	7.97		3.25%	16.67%	66.25%
6016	80 Outperform	¥84.37B	20.44		0.74%	18.23%	3.26%
6144	80 Outperform	¥32.61B	13.14		3.86%	4.62%	39.04%
Sector *	65 Neutral	$2.67B	14.71	12.10%	3.52%	2.94%	43.39%
7122	57 Neutral	¥15.86B	26.34		2.19%	-30.97%	-107.48%
NPPSF	―	$278.69M	0.90	11.50%	―	―	―
6151	61 Neutral	¥34.28B	62.54		2.14%	1.69%	-67.19%