Kyokuto Kaihatsu Kogyo Co., Ltd. (7226) AI Stock Analysis

• Market Cap: ¥100.44B
• Dividend Yield: 6.18%
• Average Volume (3M): 178.14K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.74
• Revenue Growth: 9.70%
• EPS Growth: 66.02%
• Country: JP
• Employees: 3,237
• Sector: Industrials
• Sector Strength: 83
• Industry: Agricultural - Machinery
• EPS (TTM): 50.42
• Shares Outstanding: 40,150,000
• 10 Day Avg. Volume: 125,290
• 30 Day Avg. Volume: 178,140
• PEG Ratio: 0.84
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.39
• 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: 76 Outperform
• Price Target: ¥2,793.00 ▲(4.06%Upside)

Kyokuto Kaihatsu Kogyo Co., Ltd. exhibits strong technical momentum and a robust financial foundation, bolstered by an attractive dividend yield. While profitability and cash flow management present areas for improvement, the stock's current valuation and technical indicators suggest overall strength.

Kyokuto Kaihatsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Kyokuto Kaihatsu Kogyo Co.,Ltd. manufactures and sells special purpose vehicles, environmental equipment and systems, and car parking systems in Japan. It operates through Specialty Truck, Environmental Equipment and Systems, and Real Estate Rental segments. The company offers piston, squeeze, high pressure and large capacity piston, and stationary squeeze concrete pumps; minicrete; and dump, sprinkler, and mixer trucks for the construction sector. It also provides tailgate lifters, pneumatic bulk and single car carriers, and steel cargo bodies, as well as tank, refuse, and detachable body trucks for the logistics and environmental sectors. In addition, it offers environmental equipment and systems, such as pulverizers for crushing of various domestic and industrial waste; and reuse, derived, and fuel system that is used as heat energy for hot-water supply, heating and cooling, and power generation applications. Further, the company provides multistory parking systems, such as loading and unloading pit type, loading and unloading transverse pit type, and loading and unloading transverse ground type parking systems; and real estate rental services. The company was formerly known as Kyokuto Kaihatsu Kikai Kogyo Co., Ltd. and changed its name to Kyokuto Kaihatsu Kogyo Co.,Ltd. in April 1971. Kyokuto Kaihatsu Kogyo Co.,Ltd. was founded in 1955 and is headquartered in Nishinomiya, Japan.

How the Company Makes Money

Kyokuto Kaihatsu Kogyo Co., Ltd. generates revenue mainly through the sale of its specialized vehicles and environmental equipment. Its key revenue streams include the production and distribution of concrete mixer trucks and dump trucks for the construction industry, as well as garbage trucks and road sweepers for municipal and industrial waste management. The company capitalizes on its strong engineering capabilities and innovative technologies to maintain competitiveness in the market. Strategic partnerships with construction companies, government agencies, and municipalities further bolster its revenue by ensuring a steady demand for its products. Additionally, the company's focus on after-sales services and maintenance of its vehicles and equipment provides an additional revenue stream.

Kyokuto Kaihatsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Kyokuto Kaihatsu Kogyo Co., Ltd. shows strong revenue growth and a robust balance sheet, with a commendable equity position and manageable debt. However, there is room for improvement in profitability margins and cash flow management.

Income Statement

Kyokuto Kaihatsu Kogyo Co., Ltd. has shown a commendable revenue growth rate of 9.7% in the recent fiscal year, indicative of strong sales performance in the agricultural machinery sector. Gross profit margin stands at 17.6%, while net profit margin has improved to 4.1%, reflecting enhanced operational efficiency. However, the EBIT margin of 4.7% and EBITDA margin of 9.4% suggest room for improvement in managing operating expenses.

Balance Sheet

The company maintains a robust equity position with an equity ratio of 61.8%, showcasing strong financial stability. The debt-to-equity ratio is manageable at 0.25, indicating conservative leverage usage. Return on equity at 5.0% is modest, suggesting potential for better utilization of equity to generate profits.

Cash Flow

Kyokuto Kaihatsu Kogyo Co., Ltd. experienced a negative free cash flow in the most recent period, primarily due to significant capital expenditures. The operating cash flow to net income ratio is 0.9, highlighting a need for improved cash generation from core operations. Despite challenges, the company has managed to maintain positive operating cash flow, which is crucial for sustaining business operations.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
134.36B	140.45B	128.03B	113.09B	116.91B	117.17B
	Gross Profit
23.29B	24.75B	20.70B	16.01B	21.17B	23.16B
	EBIT
6.46B	6.66B	4.83B	991.00M	6.97B	9.08B
	EBITDA
10.51B	13.22B	8.56B	8.27B	23.71B	12.02B
	Net Income Common Stockholders
5.93B	5.82B	3.50B	3.58B	14.27B	6.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.66B	20.29B	19.44B	33.63B	37.31B	21.90B
	Total Assets
181.16B	187.75B	170.40B	158.16B	154.35B	142.74B
	Total Debt
27.49B	29.55B	11.83B	11.07B	1.23B	1.04B
	Net Debt
9.82B	9.26B	-3.91B	-8.26B	-24.58B	-8.66B
	Total Liabilities
65.69B	70.47B	52.75B	46.19B	41.34B	42.16B
	Stockholders Equity
114.38B	116.11B	117.00B	111.54B	112.69B	100.28B
Cash Flow		Free Cash Flow
0.00	-2.65B	-12.66B	-14.84B	1.23B	4.91B
	Operating Cash Flow
0.00	5.22B	-1.84B	-3.42B	6.87B	8.26B
	Investing Cash Flow
0.00	-15.07B	-9.48B	-6.82B	10.66B	-4.30B
	Financing Cash Flow
0.00	10.79B	-1.50B	5.12B	-1.55B	-2.77B

Kyokuto Kaihatsu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2684.00
• 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:7226, the sentiment is Positive. The current price of 2684 is above the 20-day moving average (MA) of 2600.45, above the 50-day MA of 2454.64, and above the 200-day MA of 2394.35, indicating a bullish trend. The MACD of 61.92 indicates Negative momentum. The RSI at 70.27 is Negative, neither overbought nor oversold. The STOCH value of 88.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7226.

Kyokuto Kaihatsu Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7226	76 Outperform	¥100.44B	17.78		6.18%	9.70%	66.02%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
TN0		€740.36M	14.62	4.46%	2.39%	―	―
6345	82 Outperform	¥99.95B	16.17		5.09%	11.63%	20.80%
6306	73 Outperform	¥27.56B	13.79		4.72%	11.49%	52.75%
6358	72 Outperform	¥17.03B	11.63		6.17%	-15.65%	-41.34%
6390	51 Neutral	¥14.82B	―		5.53%	-7.94%	-242.37%

Kyokuto Kaihatsu Kogyo Co., Ltd. Corporate Events

Kyokuto Kaihatsu Kogyo Reports Strong Financial Growth and Increased Dividends

Kyokuto Kaihatsu Kogyo Co., Ltd. reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 9.7% and profit attributable to owners of the parent increasing by 66.2%. The company also announced an increase in annual dividends per share, reflecting its strong financial position and commitment to returning value to shareholders.