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Kinki Sharyo Co., Ltd.
(7122)
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Rating:71Outperform
Price Target:
¥2,583.00
▲(4.87% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strengthening financial fundamentals—especially a very conservative balance sheet and a strong free cash flow rebound in 2026—paired with an attractive valuation (low P/E and a ~2.1% dividend yield). Offsetting these positives, operating profitability and year-to-year consistency remain a key risk, and technical momentum is currently neutral-to-weak.
Positive Factors
Balance Sheet Deleveraging
The substantial reduction in leverage lowers solvency risk and interest burden, giving Kinki Sharyo greater financial flexibility to fund rolling-stock projects, absorb execution issues, and withstand fluctuations in contract timing.
Negative Factors
Negative Operating Margin
A negative operating margin suggests core project economics remain pressured by costs, pricing, or product mix. Persistent weakness would limit the benefit of revenue growth and make profitability vulnerable to execution overruns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Deleveraging
The substantial reduction in leverage lowers solvency risk and interest burden, giving Kinki Sharyo greater financial flexibility to fund rolling-stock projects, absorb execution issues, and withstand fluctuations in contract timing.
Read all positive factors
Kinki Sharyo Co., Ltd. (7122) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥16.09B
Dividend Yield2.14%
Average Volume (3M)8.47K
Price to Earnings (P/E)8.6
Beta (1Y)0.86
Revenue Growth31.63%
EPS GrowthN/A
CountryJP
Employees1,163
SectorGeneral
Sector StrengthN/A
IndustryRailroads
Share Statistics
EPS (TTM)273.10
Shares Outstanding6,908,359
10 Day Avg. Volume6,610
30 Day Avg. Volume8,470
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.40
Price to Sales (P/S)0.39
P/FCF Ratio1.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kinki Sharyo Co., Ltd. Business Overview & Revenue Model
Company Description
Kinki Sharyo Co., Ltd. is an international manufacturer and supplier of railway vehicles, with operations extending across Japan and global markets. The company's business is divided into two primary divisions: the production of rolling stock and ...
How the Company Makes Money
Kinki Sharyo primarily makes money by selling railway rolling stock under manufacturing contracts to rail operators and public transportation agencies. Revenue is generally recognized through project-based orders that cover the design/engineering ...
Kinki Sharyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.26B | 37.10B | 30.26B | 43.15B | 35.87B | 39.33B |
| Gross Profit | 4.02B | 3.64B | 3.99B | 8.25B | 4.63B | 5.20B |
| EBITDA | 1.35B | 1.11B | 1.52B | 5.58B | 2.46B | 2.99B |
| Net Income | 1.88B | 1.57B | 560.00M | 4.37B | 1.18B | 2.77B |
Balance Sheet | ||||||
| Total Assets | 71.27B | 72.94B | 58.84B | 59.56B | 55.49B | 61.50B |
| Cash, Cash Equivalents and Short-Term Investments | 11.18B | 16.90B | 6.35B | 11.72B | 7.63B | 9.94B |
| Total Debt | 1.78B | 1.40B | 5.41B | 4.92B | 9.10B | 15.72B |
| Total Liabilities | 35.76B | 36.98B | 25.22B | 27.05B | 28.19B | 37.02B |
| Stockholders Equity | 35.52B | 35.95B | 33.61B | 32.50B | 27.29B | 24.47B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 13.95B | -5.77B | 8.51B | 5.29B | 12.12B |
| Operating Cash Flow | 0.00 | 15.63B | -4.86B | 8.93B | 5.92B | 12.95B |
| Investing Cash Flow | 0.00 | -558.00M | -576.00M | 2.58B | -652.00M | -4.03B |
| Financing Cash Flow | 0.00 | -4.33B | -14.00M | -4.62B | -8.26B | -6.48B |
Kinki Sharyo Co., Ltd. Technical Analysis
Neutral
2463.00
Price Trends
2350.92
Negative
2319.53
Positive
2355.83
Negative
Market Momentum
-7.75
Positive
48.55
Neutral
38.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7122, the sentiment is Neutral. The current price of 2463 is above the 20-day moving average (MA) of 2347.10, above the 50-day MA of 2350.92, and above the 200-day MA of 2355.83, indicating a bearish trend. The MACD of -7.75 indicates Positive momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 38.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7122.
Kinki Sharyo Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥77.80B | 13.75 | ― | 3.95% | 6.49% | 36.18% | |
74 Outperform | ¥289.66B | 9.39 | 11.15% | 3.85% | 13.51% | 48.95% | |
72 Outperform | ¥51.89B | 3.99 | 16.07% | 1.07% | 2.28% | 80.43% | |
71 Outperform | ¥16.09B | 8.56 | ― | 2.02% | 31.63% | ― | |
70 Outperform | ¥75.63B | 12.10 | 12.85% | 2.31% | 1.11% | 32.63% | |
65 Neutral | ¥81.35B | 16.95 | ― | 0.55% | -2.20% | 16.26% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:7122
Kinki Sharyo Co., Ltd.
2,338.00
180.14
8.35%
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1,955.00
472.72
31.89%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.