Kanemitsu Corporation (7208) AI Stock Analysis

• Market Cap: ¥5.07B
• Dividend Yield: 3.02%
• Average Volume (3M): 15.98K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.40
• Revenue Growth: 0.05%
• EPS Growth: 9.31%
• Country: JP
• Employees: 596
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Parts
• EPS (TTM): 38.70
• Shares Outstanding: 5,129,577
• 10 Day Avg. Volume: 10,480
• 30 Day Avg. Volume: 15,980
• 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: ¥1,158.00
• Price Target Upside: 15.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: ¥1,158.00 ▲(15.92% Upside)

Kanemitsu Corporation's strong financial performance and undervaluation are the primary drivers of its high stock score. The bullish technical indicators further support a positive outlook, although caution is advised due to overbought signals. The absence of earnings call and corporate events data does not impact the overall assessment.

Kanemitsu Corporation Business Overview & Revenue Model

Company Description

Kanemitsu Corporation (7208) is a Japanese company primarily engaged in the manufacturing and distribution of automotive parts. The company operates in the automotive sector and specializes in producing components such as timing chains, chain tensioners, sprockets, and other engine-related parts for vehicles. Kanemitsu is known for its high-quality products and has established itself as a key supplier to major automotive manufacturers both in Japan and internationally.

How the Company Makes Money

Kanemitsu Corporation generates revenue through the sale of its automotive components to various automobile manufacturers. The company's primary revenue streams include the production and supply of timing chains, chain tensioners, sprockets, and other related engine parts. Kanemitsu's earnings are bolstered by its strong relationships and contracts with major automotive companies, which ensure a steady demand for its products. Additionally, the company may benefit from strategic partnerships and collaborations that enhance its market presence and expand its customer base. Kanemitsu's focus on quality and innovation also contributes to its financial performance by maintaining customer trust and securing long-term contracts.

Kanemitsu Corporation Financial Statement Overview

Summary

Kanemitsu Corporation demonstrates strong financial health with consistent revenue and profit growth. The balance sheet is robust with low leverage, and cash flow generation is solid, supporting future growth. Minor fluctuations in net income are noted but do not significantly detract from the overall positive financial trajectory.

Income Statement

Kanemitsu Corporation has shown strong and consistent revenue growth, with a notable increase in total revenue from 2020 to 2025. Gross profit margins have improved significantly, reflecting effective cost management and revenue growth. The company has also transitioned from negative EBIT in 2021 to positive EBIT in subsequent years, indicating improved operational efficiency. Net profit margins are solid, although there was a dip in net income in 2025, suggesting room for improvement in profit conversion.

Balance Sheet

The company's balance sheet is robust, with a healthy equity ratio indicating strong financial stability. The debt-to-equity ratio is low, demonstrating prudent leverage management. Return on equity is favorable, driven by consistent profitability. The company has increased its stockholders' equity over time, reflecting retained earnings and reinvestment into the business.

Cash Flow

Kanemitsu Corporation's cash flow statements reflect a solid cash flow generation capability. The operating cash flow has shown an upward trend, supporting the company's liquidity and operational flexibility. Free cash flow has grown significantly, demonstrating efficient capital expenditure management. The company maintains a strong operating cash flow to net income ratio, highlighting the quality of its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.12B	11.12B	11.09B	10.02B	8.76B	7.03B
Gross Profit	2.50B	2.50B	2.32B	2.07B	1.88B	1.10B
EBITDA	1.55B	1.57B	1.50B	1.49B	1.07B	654.30M
Net Income	540.56M	540.61M	632.25M	538.06M	163.77M	-109.55M
Balance Sheet
Total Assets	16.10B	16.10B	16.11B	15.41B	14.37B	14.15B
Cash, Cash Equivalents and Short-Term Investments	4.14B	4.14B	3.57B	3.74B	3.29B	3.02B
Total Debt	1.12B	1.12B	1.76B	2.32B	2.43B	2.57B
Total Liabilities	4.43B	4.43B	5.14B	5.45B	5.10B	5.00B
Stockholders Equity	11.47B	11.47B	10.78B	9.79B	9.10B	8.98B
Cash Flow
Free Cash Flow	0.00	1.20B	430.26M	275.98M	582.78M	-191.39M
Operating Cash Flow	0.00	1.65B	1.42B	903.73M	1.09B	563.74M
Investing Cash Flow	0.00	-1.04B	-992.46M	-330.12M	-522.39M	-434.04M
Financing Cash Flow	0.00	-799.70M	-727.59M	-273.27M	-328.59M	885.92M

Kanemitsu Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 999.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7208, the sentiment is Positive. The current price of 999 is above the 20-day moving average (MA) of 954.65, above the 50-day MA of 900.92, and above the 200-day MA of 840.03, indicating a bullish trend. The MACD of 30.89 indicates Negative momentum. The RSI at 72.27 is Negative, neither overbought nor oversold. The STOCH value of 51.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7208.

Kanemitsu Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	81 Outperform	¥5.07B	7.67		3.02%	0.05%	9.31%
6901	68 Neutral	¥4.37B	16.91		2.97%	-12.15%	-123.44%
7284	66 Neutral	¥4.19B	7.28		4.15%	4.93%	―
Sector *	61 Neutral	$17.92B	12.81	-0.76%	2.98%	1.30%	-14.28%
6699	60 Neutral	¥4.83B	9.16		4.33%	0.86%	―
7214	54 Neutral	¥4.78B	7.89		4.45%	4.74%	-193.39%
7256	39 Underperform	¥4.37B	―		―	33.86%	69.12%