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

• Market Cap: ¥14.33B
• Dividend Yield: 2.4%
• Average Volume (3M): 28.90K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.14
• Revenue Growth: -29.89%
• EPS Growth: -87.19%
• Country: JP
• Employees: 1,229
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): -64.96
• Shares Outstanding: 6,908,359
• 10 Day Avg. Volume: 40,120
• 30 Day Avg. Volume: 28,896
• PEG Ratio: -0.15
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.95
• 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

• Rating: 62 Neutral
• Price Target: ¥2,251.00 ▲(8.90%Upside)

JP:7122 displays mixed financial performance with significant revenue and cash flow challenges impacting its score. However, technical indicators are favorable, showcasing strong bullish momentum, albeit with overbought conditions. Valuation raises concerns due to a high P/E ratio, although the dividend yield offers some appeal. The absence of recent earnings call insights or corporate events limits further analysis.

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

Company Description

Kinki Sharyo Co., Ltd. (7122) is a Japanese company primarily engaged in the manufacturing and sale of railway vehicles and related equipment. With a focus on innovation and quality, Kinki Sharyo provides a range of products, including light rail vehicles, commuter trains, and other specialized rail solutions. The company is known for its engineering excellence and commitment to delivering safe and efficient transportation solutions to its clients worldwide.

How the Company Makes Money

Kinki Sharyo Co., Ltd. generates revenue through the design, manufacturing, and sale of railway vehicles and related equipment. The company's key revenue streams include contracts with public and private transportation authorities for the supply of rail vehicles. This includes the sale of new trains, maintenance services, and after-sales support. Additionally, Kinki Sharyo collaborates with international partners and participates in joint ventures to expand its market reach. The company's earnings are significantly influenced by large-scale transportation infrastructure projects and ongoing maintenance contracts, ensuring a steady flow of income from both new sales and recurring services.

Kinki Sharyo Co., Ltd. Financial Statement Overview

Summary

The company shows a mixed financial picture. Despite a stable equity base and reduced leverage, revenue declines and cash flow inefficiencies present significant challenges. The income statement indicates inconsistent profitability, and the cash flow volatility highlights potential risks to financial stability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
34.96B	30.26B	43.15B	35.87B	39.33B	49.42B
	Gross Profit
5.40B	3.99B	8.25B	4.63B	5.20B	3.40B
	EBIT
1.43B	234.00M	4.31B	1.23B	1.79B	320.00M
	EBITDA
3.09B	2.06B	6.35B	2.56B	4.09B	1.50B
	Net Income Common Stockholders
2.00B	560.00M	4.37B	1.18B	2.77B	662.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.03B	6.35B	11.72B	7.63B	9.94B	4.35B
	Total Assets
59.73B	58.84B	59.56B	55.49B	61.50B	66.02B
	Total Debt
6.10B	5.41B	4.92B	9.10B	15.72B	22.43B
	Net Debt
-1.93B	-937.00M	-6.81B	1.46B	5.78B	18.08B
	Total Liabilities
26.97B	25.22B	27.06B	28.20B	37.02B	44.70B
	Stockholders Equity
32.76B	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: 2067.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2067 is above the 20-day moving average (MA) of 1883.70, above the 50-day MA of 1636.22, and above the 200-day MA of 1473.94, indicating a bullish trend. The MACD of 145.51 indicates Negative momentum. The RSI at 79.54 is Negative, neither overbought nor oversold. The STOCH value of 85.99 is Negative, 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	79 Outperform	¥19.51B	7.99		4.99%	16.52%	39.65%
6144	76 Outperform	¥27.90B	11.88		4.54%	4.40%	18.83%
6016	74 Outperform	¥50.87B	11.74		1.64%	37.64%	69.78%
7102	71 Outperform	$29.70B	4.63	10.04%	1.94%	9.41%	19.24%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
6151	66 Neutral	¥31.35B	24.73		2.02%	0.68%	-22.88%
7122	62 Neutral	¥14.33B	25.58		2.40%	-29.89%	-87.19%